The engagement of the private sector in setting and implementing sustainable development policy remains at the heart of the global debate. While big global groups prove reluctant to progressive regulations, many more show evident support to SDGs by setting highly ambitious targets – such as Microsoft who “pledged to achieve carbon negative status by 2030.”

Today Madagascar witnesses the scariest drought in the southern part of the country, as a direct result of climate change – even though other studies overturned that theory. Like in any other country, the Malagasy private sector has a key responsibility in tackling climate change, reaching the SDGs, and preserving national biodiversity. Romy Andrianarisoa Voos, President of the GEM’s (Groupement des Entreprises de Madagascar) Sustainable Development and Business Ethics Commission (DDEA Commission), travelled to Glasgow to attend COP26 last November. Romy Andrianarisoa’s mission during COP26 was focused on building partnerships leading to concrete actions with key countries such as Japan and Morocco, and with countries who managed to handle extreme climate conditions such as Dubai.

“The private sector is not aware of climate change yet.”

Romy states that the awareness level of the private sector – and all stakeholders excluding the Ministry of Environment and Sustainable Development – is still low. “To be very clear, we only do green washing and social washing that account for 80 percent of CSR activities. Even though we express our commitment to restoring green, little action is done.”

Today, with the impact of climate change felt in their daily lives, Malagasy people start to open their eyes. Small communities suffer from industrial fishing like never before. Temperatures are skyrocketing, human life itself is threatened. Romy stresses that despite all of this, Madagascar is still far from a fair level of awareness due to unsuitable policies.

Leadership from the top is critical.

Romy argues that effective sensitization must come with a clear government strategy.  “The example comes from above.” First, she insists on an adapted legal framework governing the private sector.  She cites the example of Namibia where companies allocate 1 to 5 percent of their turnovers to the green economy. Then, the government must ease access to green financing and create favorable conditions to the regreening of businesses.

The President of the GEM’s DDEA Commission also recommends capacity-building projects and highlights the great example of Mauritius who made a significant progress in sustainable tourism. This means that appropriate sectoral strategies must be implemented.

Exports: control of carbon footprint

Reducing generation of greenhouse gases measured by the so-called “carbon footprint” can become an opportunity for a country or a region to become more competitive in terms of exports. To meet the requirements of their buyers, exporters have no other choice than reducing the carbon footprint at each level of the value chain – from the production of an item to the management of its waste.

Romy Andrianarisoa explains that Malagasy companies are not the worst polluters on the global mapping. The great thing is, Madagascar will not wait to become a polluter to set up a decarbonisation strategy. The Ministry of Environment and Sustainable Development has put in place a strategy to manage and control carbon footprint to be respected, but it is based on the companies’ free choice. The government does not exert a stringent inspection over the matter. To Romy, Madagascar does not have the tools and the right people who understand that mechanism yet. “For now, fighting against climate change and preserving our biodiversity are our top priorities; but we definitely should work on that in the coming years.”

Oil sector: “Madagascar is not going to ban fossil energy.”

To achieve SDG7: Affordable and Clean Energy, to align with what was decided in the Paris Agreement, to achieve SDGs by 2030, and to fulfill a decarbonized energy system by 2050, the United Nations (2021) urges every country to speed up energy transition and broaden its scope.

Romy Andrianarisoa reports that the global use of fossil energy still counts for 60 percent of the total consumption. Oil producers keep focusing on oil production. Anyway, every country will have to move towards energy transition. Today, the use of hybrid energy systems is still low, and that of renewables is even lower, except for pioneers such as Nordic countries. Madagascar is lagging behind. Today, the Big Island is just starting to explore its potential in fossil energy. This delay is not necessarily a bad thing, with regards to the natural resources that we have.

“Madagascar will pave its own way to energy transition – a ‘made in Mada’ scheme.” Even though Madagascar must turn the corner in the shift towards renewables, Romy explains that “Madagascar is not going to ban fossil energy.” Instead, Madagascar’s energy transition will include fossils, hybrids and renewables. However, she insists on the implementation of effective economic, social and environmental strategies by benchmarking and learning from exemplary countries such as Norway or Canada.

Filling the “policy gap”.

“As far as the private sector is concerned, it is urgent to establish a single legal framework for all existing and future investments,” Romy Andrianarisoa argues. Concretely, all investors are required to meet certain strict terms and conditions. In accordance with the MECIE decree – the decree for environmental compliance of investments – every single mining project is required to apply for an environmental permit operating. Unfortunately, the decree is applicable to the mining sector only. Romy recommends that all economic sectors should be subject to a similar legal provision.

On a personal note, Romy advocates for a strict implementation of rules and policies. In other countries, businesses are required to allocate part of their turnovers towards regreening and preserving the environment. In Madagascar, only one to two percent of local companies’ turnovers are spent for that valuable cause; and on top of that, it remains an opt-in provision. In other words, Romy Andrianarisoa strives for an effective supervision of investments in key sectors such as infrastructures and tourism, and highly recommends that sustainability becomes a mandatory component of business operations.

Madagascar as a leader in the Indian Ocean region

Madagascar’s neighboring islands are way more committed in the preservation of the environment and in the fight against climate change. The country is left unseen due to the lack of political visibility and a significant leadership gap to fill, especially in terms of good governance. “Madagascar must be involved in the establishment of regional policies to tackle climate change.” Madagascar, through GEM, envisions leading a regional conference of sustainable development.

Romy Andrianarisoa specifically adds that women must be actively involved in this common fight and gender-based policies must be implemented. The GFEM (Groupement des Femmes Entrepreneures de Madagascar) joining the GEM is already a major step. Moreover, it is important to recall that GEM members contribute roughly 72 percent of tax incomes in Madagascar. This means that the private sector, and the GEM in particular, is a key stakeholder in reaching SDGs along with public institutions.

Madagascar is home to five percent of the endemic biodiversity in the world, and shares the responsibility of ensuring that biodiversity is kept safe at the global level. Today, with or without COP26, technical and financial partners (TFPs) involved in biodiversity preservation are looking closely into Madagascar’s case. Romy Andrianarisoa Voos sees President Andry Rajoelina’s Madagascar Emergence Plan and his strategy to put biodiversity at the heart of Madagascar’s development policy as a very commendable point. Same goes for the Minister of Environment and Sustainable Development Baomiavotse Vahinala Raharinirina’s pledge to make the link between sustainable development and economic development. But still, the government will not make it alone; private companies have a major role to play in this fight.

By Kenny Raharison