Transcript SA GHG Emission Reduction System: Progress and development of

SA GHG Emission
Reduction System:
Progress and
development of 2nd
Phase of the DEROs
and Carbon Budgets
THE NATIONAL CLIMATE CHANGE RESPONSE POLICY
PCEA 28 OCTOBER 2016
WHAT IS THE SA GHG EMISSION
REDUCTION SYSTEM?
An organized structure that consists of interrelated
and interdependent elements that are critical for the
country’s greenhouse gas emission reduction
These elements directly and indirectly influence one
another to maintain the existence of the system, and
will include a range of measures as contemplated in
the National Climate Change Response White Paper
(NCCRWP), aimed at achieving the overall national
goal
PURPOSE AND BACKGROUND
To provide an update on the development and implementation of
South Africa’s Climate Change Mitigation System
In 2015, Cabinet approved South Africa’s climate change mitigation
system framework. The system includes the following key elements:
• Greenhouse gas inventory;
• Mitigation Potential Analysis;
• National Emissions Trajectory;
• A carbon budget for each company;
• Pollution prevention plans by companies with carbon budgets;
• Desired emissions reduction outcomes for key economic sectors
• A reporting system, to gather information on the actual
emissions of users;
• A variety of other measures to be applied to support and/or
complement the carbon budget system including a carbon tax
PURPOSE AND BACKGROUND (2)
• The system was introduced in phases.
• Phase one (2016-2020) will be voluntary as there
is no legal basis to set emission limits for sectors
or companies.
• 2nd and subsequent phases (post-2020 period) will
only become mandatory when climate change
response legislation is in place
• Objective of the mitigation system is to ensure that
SA’s emissions remain within the peak, plateau and
decline trajectory range, set out in South Africa’s
Intended Nationally Determined Contribution.
FRAMEWORK WAS APPROVED BY CABINET IN 2015
Phase 1
2016 to 2020
AQA Provisions
PHASE 2
IRP (2016/17)
Mitigation Potential
Analysis (2017/18)
Assess compliance
(end of the cycle –
2026)
Annual reporting
(2021 – 25)
Set carbon budget
(2018)
Call for pollution
prevention plans
(2018/19)
Set the desired emission reduction outcomes (DEROs)
for key sectors
PROGRESS WITH PHASE 1: GHG MITIGATION SYSTEM
Phase 1 carbon budget design document consulted with
business.
Companies identified were requested to submit GHG data
– (historical and projections)
A total of 18 companies finalised so far
Phase 1 - carbon budgets support the current operations
of companies; Key outcome is to establish a workable
system and to signal to companies that they must plan
and implement the necessary investment to reduce their
carbon footprint.
Alignment of carbon budget and carbon tax
Additional 5% allowance to companies participating
in phase 1 (2016-2020) of the carbon budget system
The additional 5% allowance will raise the overall
maximum tax-free thresholds to 95% of GHG
emissions for some companies.
Regulations
GHG Reporting Regulations
• To inform policy formulation, implementation and
legislation;
• meet reporting obligations under the UNFCCC
• to establish and maintain a National Greenhouse Gas
Inventory
Pollution Prevention Plan Regulations
• Regulations prescribing requirements for Pollution
Prevention Plans (PPP) ito section 29(3), and s53(a) and (o)
of Air Quality Act
• Guideline on preparing PPPs currently being drafted
OTHER ELEMENTS OF THE GHG MITIGATION SYSTEM
Desired Emission Reduction Outcomes
Obective is to set GHG reduction targets for key sectors (energy,
transport, industry etc)
DEA has completed “Desired Emission Reduction Outcomes” for
the short term (2020).
The approach to DEROs was informed by the cost-effective
interventions identified in South Africa’s Greenhouse Gas Mitigation
Potential Analysis
All interventions with a cost of zero Rands or less per ton are used
as a basis for sectoral DEROs.
OTHER ELEMENTS OF THE GHG MITIGATION SYSTEM
cont…
Mix of Measures
The mapping of government measures to assist in
emission reductions has been completed
The aim of this work was to identify measures
government has put in place to support climate change
mitigation in South Africa
SCOPE OF WORK OF THE MITIGATION SYSTEM
PHASE 2
EMISSION REDUCTION SYSTEM FOR THE SECOND AND
SUBSEQUENT PHASES
Key issue: phase 2 of GHG mitigation system requires a
legal basis.
Key elements below: (presented in cycles: 2016 - 2030
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Step 1: GHG Inventory
Step 2: Mitigation Potential Analysis
Step 3: Policies and Measures
Step 4: National emissions trajectory
Step 5: Desired Emission Reduction Outcomes
Step 6: Carbon Budgets
Step 7: Mitigation Plans
Step 8: Monitoring and Evaluation
National Com
BUR
STEP 2
Mitigation
Potential
Analysis 2
STEP 1
GHG
Inventory
2000 – 2012
GHG
Inventory
Management
System
STEP 8
GHG
Emissions
Reporting
System (via
NAEIS)
20
16
Mitigation
Potential
Analysis 3
STEP 4
National
Emissions
Trajectory
20
17
STEP 6
Carbon
Budgets
20
18
STEP 9
Web-Based
M&E 1
STEP 3
Policies
and
Measures
Assessmen
t1
GHG
Inventory
2000 2015
BUR
20
19
STEP 7
Mitigation
Plans 2
20
20
20
21
20
23
STEP 10
Compliance
Review of
DEROs,
Carbon
budgets
GHG
Inventory
2000 2017
International
commitments
• 2009 Pledge
Assessment
• LEDs
• National Com
• BUR
20
24
BUR
National
Com
BUR
GHG
Inventory
2000 2021
20
26
20
27
20
28
Compliance
Review of
DEROs,
Carbon
budgets
GHG Inventory
2000 - 2025
Mitigation
Plans 3
GHG
Inventory
2000 2023
Mitigation System
Webbased
M&E
System
Update 3
Carbon
Budgets 4
20
25
Review of
LEDs
INDC
Submissi
on 3
DEROs 4
Webbased
M&E
System 2
Global
stocktaking
20
22
National
Emissions
Trajectory
4
INDC
Submissi
on 2
Carbon
Budgets 3
GHG
Inventory
2000 2019
Mitigation
Potential
Analysis 4
Policies
and
Measures
3
National
Emissions
Trajectory
3
DEROs 3
Policies
and
Measures
2
STEP 5
DEROs 2
BUR
20
29
Policies
and
Measures
4
Mitigation
Plans 4
GHG
Inventory
2000 2027
20
30
Renewable Energy Developments
South Africa has significant solar and wind resources
Renewable energy technology costs have dropped
dramatically and this presents an opportunity for the
scale up of solar and wind technologies
RE implementation - REIPPPP since 2011:
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8.1 GW of RE allocated for procurement in all bid windows
Approx 2.5GW operational
2014: PV and wind production -1% of electricity supply
2015: PV and wind production – 2% of electricity supply
(Avoided 3.3 Mt CO2e and saved 3.2 Ml of water)
• First half of 2016: PV and wind – 2.2% electricity supply
Summary of the REIPPP programme in terms of Ministerial
Determinations (as of 31 March 2016)
Bid window
Capacity
1 423.80 MW
Bid window 1
1 043.86 MW
Bid window 2
1 451.56 MW
Bid window 3
200 MW CSP
Bid window 3.5
2 205 MW
Bid window 4 and 4 additional
Summary of the REIPPP programme in terms of Ministerial
Determinations (as of 31 March 2016) cont…
Bid window
Capacity
1 800 MW
Bid window Expedited
1 566 MW
Bid window 5
49 MW
Small renewables First Stage Two
51 MW
Small renewables Second Stage Two
100 MW
Small Renewables Bid Window 3
CSIR Analysis of REIPPPP tariffs
All tariffs
in R/kWh
Base
Month/Year
REIPPPP
BW 1
REIPPPP
BW 2
REIPPPP
BW 3
REIPPPP
BW 4
REIPPPP
BW 4
additional
Coal IPP
BW1
REIPPPP
BW 4
expedited
Bid
submission
4 Nov 2011
5 March
2012
19 Aug 2013
18 Aug 2014
18 Aug 2014
2 Nov 2015
11 Nov 2015
Solar PV
632 MW
417 MW
435 MW
415MW
398 MW
632 MW
520 MW
April 2014
3.29
1.96
1.05
0.79
0.85
0.56
April 2015
3.44
2.05
1.10
0.82
0.89
0.58
April 2016
3.65
2.18
1.17
0.87
0.95
0.62
634 MW
563 MW
787 MW
676 MW
686 MW
650 MW
April 2014
1.36
1.07
0.78
0.62
0.72
0.56
April 2015
1.42
1.12
0.82
0.65
0.75
0.58
April 2016
1.51
1.19
0.87
0.69
0.80
0.62
Wind
Coal
863 MW
April 2014
0.93
April 2015
0.97
April 2016
1.03
Emission reduction from the REIPPPP
Energy produced and supplied to the grid- 5 003
GWh
Emission reduction realised from the programme 8.4 Mton CO2 equivalent