Transcript SA response to climate change

South Africa’s Designated National Authority
for Clean Development Mechanism
Designated National Authority
for
Clean Development Mechanism
+27 12 317 8309
Overview
History of global efforts & response to CC
CDM basics
SA response to CC
Functions & institutional arrangement - DNA
DNA evaluation & approval procedure
Projects profile
Key role players in CDM
Conclusion
History of international efforts and response
to climate change
UNFCCC adopted in 1992 (Rio Conference/UNCED)
Provide framework for mitigation & adaptation
Stabilization of GHG concentrations
Parties meet annually - COPs
Kyoto Protocol (1997) – Update to UNFCCC & primary international
agreement on combating climate change
Negotiated in Kyoto, in Dec.1997, opened for signature in Mar 16 1998,
and closed in Mar 15 1999.
Came into force Feb 16, 2005 following ratification by Russia on Nov 18,
2004.
168 countries ratified the Protocol - to date
Commitments by Parties to reduce GHG’s (Annex 1) by 5.2% below
1990 levels and Non-Annex 1 to sustainable development (SD) goals.
Mechanisms – Carbon Trading, Joint Implementation (JI) & CDM
Allow Annex 1 entities to meet their GHG targets by purchasing GHG
emission reductions and/or investing in projects elsewhere
The CDM Basics
CDM – Annex1 countries with GHG reduction commitment to invest in
emission reducing projects in developing countries as an alternative to what
is generally considered more costly emission reductions in their own
countries
Support sustainable development
Project-based; incentive-based & market-driven
Goals:
Contribute to the Convention
Assist Annex1 achieve ER targets
Assist Non-Annex1 achieve sustainable development
Characteristics:
Activities must lead to measurable reductions – tradable
Reductions must be additional (would not have occurred in absence of
the project activity)
Participation is project activity voluntary
CDM Operational Structure
CDM – the baseline concept
A project’s GHG emission reductions need to be judged
against some baseline
The baseline is “what would have happened in the
absence of the CDM”
Additionality
CO2
Baseline
CERs
Project
Emissions
Time (yrs)
SA response to climate change
SA acceded to UNFCCC in 29 August 1997
Ratified the Kyoto Protocol in 31 July 2002
Dept of Environmental Affairs & Tourism (DEAT) –
national focal point for climate change
Coordinates CC activities – NCCC, COPs, CSDs etc
National Communications to UNFCCC
Development of environment legislation and regulatory
frameworks - National Climate Change Response Strategy;
Air Quality Act
Other instruments – DME’s policies and targets on
energy renewable and energy efficiency
CDM project cycle
CDM Market
Project Idea Note (PIN)
Screening
Letter of No Objection
Project Development Document
(PDD)
Validation (OE)
National Review
Letter of Approval
Project Registration
Project Monitoring
Verification, Certification
DNA
Mandatory
Responsibility
CDM project cycle…cont
Project completion
Periodic
monitoring,
verification &
certification
Construction and start up
Preparation and review of the
Project
Baseline Study and
Monitoring
and Verification Plan (MVP)
Validation process
Negotiation of Project
Agreements
Functions of DNA
DNA establishment within DME approved by Cabinet in 2003
Regulations establishing DNA gazzetted in July 2005 under
Section 25 of the NEMA Act of 1998
DNA established in December 2004
DNA functions:
Regulation function:
Project evaluation and approval in accordance with section
40(a) of the Marakech Accords.
Promotion function:
To promote and facilitate the development of CDM projects in
South Africa
Secure an adequate share of CDM investment in South Africa
To promote CDM projects of a developmental nature
Ensure that the mechanism is in the national interest (Gov.
objectives)
Institutional Arrangement to handle CDM in SA
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
DTI
DME
DEAT
DST
DoT
NT
DoA
DWAF
DoH
DFA
“Oversight”
Steering
Committee
1.
2.
3.
4.
5.
DTI
DME
Parastatals
Private Sector
NGOs
Promotions
Sub-Committee
Designated National
Authority
(Director General of DME)
CDM Evaluation & Approval Procedure
Evaluation & approval of submitted PDD should be
read in conjunction with:
Project approval procedure of the DNA (DME, 20th
November 2004);
SD criteria for approval of CDM projects by the DNA
(DME, 14th October 2004); and,
Any regulations promulgated with regard to the DNA
(Regulation Gazette No 8275)
DNA project approval process
SD Criteria for CDM project approval
National Environmental Management Act (NEMA) definition of
sustainable development
the integration of social, economic and environmental
factors into planning, implementation and decision making
so as to ensure that development serves present and
future generations
This definition of sustainable development will inform the
decisions of the DNA
SD Criteria
Economic: Does the project contribute to national economic
development?
Social: Does the project contribute to social development in South
Africa?
Environmental: Does the project conform to the National
Environmental Management Act principles of sustainable
development?
SD Criteria…cont.
Social
• Opportunities to facilitate
gender equality,
•Stimulate Socio-economic
development, job creation
and poverty alleviation,
•Offers BEE investment
opportunities,
•Improved health for all.
Environment
• RE helps reduce GHG
emissions (climate change
mitigation),
• Helps reduce
environmental pollution and
associated adverse health
effects,
• Provides diversity of
supply and thus energy
security
Economic
• Job creation,
• Community & industrial
economic dev.
• Off-sets energy imports
(BOP),
• Contribute to new
generation capacity,
•Helps with DSM
Key Role Players in CDM
Project Developers
- Development of PIN or PDD; Request for Host Country
approval;
- Project registration as CDM
Designated Operational Entities
- Validation; Verification; Certification
CDM Executive Board
- Project registration; Approval of methodologies; Issuance of
CERs; Accreditation of entities
Key Role Players in CDM….cont..
Host Country (DNA)
- Establishment of institutional & legal frameworks; Ensures
Projects contribute to SD; Promotion of CDM
Project Owners (e.g. municipality)
- Project identification, funding & implementation
Businesses
- Investment
NGOs & General Public
- Projects contribute to SD; Promotion of CDM; Watch Dogs!!!
SA emissions in international comparison
Non-energy
emissions
Agriculture
9%
Waste
4%
Industry
8%
Total: 380 Mt
CO2- equivalent
Energy
industries
45%
Fugitive emissions
2%
Other energy
7%
Transport
11%
Industrial energy
14%
Share of national emissions, CO2, CH4 and N20, 1994 GHG inventory
Sectors for potential projects
Energy supply and demand – Energy efficiency (EE), renewable
electricity & energy, cogeneration, cleaner coal for generation; fuel switch from
coal to gas
Waste sector – composting; energy (electricity) generation
Mining – CH4 reduction from coal mines; EE
Agriculture – afforestation & reforestation; fire controls; improved
management of woodlands; biofuel production
Transport and automotive sectors – Improved public transport,
urban planning & traffic management; vehicle fuel switch; vehicle efficiency, road
to rail transport
Manufacturing – industrial EE; structural changes to less energy &
emissions-intensive; boiler conversion to gas
Residential, public & commercial buildings – fuel switch,
solar heating, energy management, EE building design (thermal-efficiency), EE
appliances
Overview of projects submitted for approval
54 projects (19 PDDs and 35 PINs) received to date
10 PDDs registered with EB
Kuyasa Low-Cost Housing Energy Efficient Project (Cape Town) –
27/08/2005; Gold Standard Award; reduces 6,500 t eCO2 per
annum
Lawley Fuel Switch Project (Lenasia) – 06/03/2006; 19,000 t
eCO2/yr
PetroSA Biogas to Energy Project (Mossel Bay) – 29/09/2006;
29,000 t eCO2/yr
Rosslyn Fuel Switch Project (North Pretoria) – 29/11/2006; 107,000
t eCO2/yr
Durban Landfill Gas to Energy Project (Durban) – 15/12/2006;
60,000 t eCO2/yr
Tugela CFB10 Conversion from Coal to Bark Fired (Tugela) –
12/02/2007; 70,000 t eCO2/yr
Overview of projects submitted …cont
Mondi Biomass Project (Richards Bay) – 20/05/2007; 222,474 t
eCO2/yr
Omnia N2O Destruction Project (Sasolburg) – 03/05/2007; 576,000
t eCO2/yr
EnviroServ Chloorkop Landfill Gas Project (East Rand) –
27/04/2007; 188,000 t eCO2/yr
Sasol Nitrous Oxide Abatement Project (Witbank) – 25/05/2007;
610,000 t eCO2/yr
Projects cover the following types:
Fuel switch; Cogeneration; Energy efficiency; Hydro power, Energy
generation from renewables
Barriers to CDM development
Lack of project development capacity
Lack of financing - project development &
implementation
High transaction costs - CERs
Municipal Finance Management Act (MFMA)/Public
Finance Management Act (PFMA)
Lack of capacity to develop
methodologies/technologies
Uncertainties around post 2012 regime
Tax implications of CERs
Low electricity cost vs clean/renewable energies
Conclusion
DNA has commissioned three studies:
CERs taxation implications (completion - September 2007)
Review of SD criteria (completion - August 2007)
DNA rolling out CDM awareness raising & capacity
building initiatives
DNA supports establishment of functional DNAs in
other African countries
Useful Links
www.dme.gov.za/cdm
www.info.gov.za/gazette/regulation/2005/27788a.pdf
http://cdm.unfccc.int
www.pointcarbon.com
www.ipcc.ch
www.un.org/esa/sustdev/csd/policy.htm
www.ieta.org