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PCEA 28 OCTOBER 2016

SA GHG Emission Reduction System: Progress and development of 2 nd Phase of the DEROs and Carbon Budgets. PCEA 28 OCTOBER 2016. WHAT IS THE SA GHG EMISSION REDUCTION SYSTEM?.

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PCEA 28 OCTOBER 2016

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  1. SA GHG Emission Reduction System: Progress and development of 2nd Phase of the DEROs and Carbon Budgets PCEA 28 OCTOBER 2016

  2. 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

  3. 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

  4. 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.

  5. FRAMEWORK WAS APPROVED BY CABINET IN 2015 Phase 1 2016 to 2020 AQA Provisions

  6. PHASE 2

  7. Set the desired emission reduction outcomes (DEROs) for key sectors

  8. 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.

  9. 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.

  10. 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

  11. 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.

  12. 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

  13. SCOPE OF WORK OF THE MITIGATION SYSTEM PHASE 2

  14. 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 • 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

  15. Mitigation Potential Analysis 3 BUR National Com BUR STEP 2 Mitigation Potential Analysis 2 Mitigation Potential Analysis 4 National Emissions Trajectory 3 Policies and Measures 3 STEP 4 National Emissions Trajectory National Emissions Trajectory 4 Policies and Measures 2 INDC Submission 2 DEROs 3 INDC Submission 3 Carbon Budgets 3 STEP 1 GHG Inventory 2000 – 2012 GHG Inventory Management System DEROs 4 STEP 5 DEROs 2 Web-based M&E System 2 Web-based M&E System Update 3 GHG Inventory 2000 - 2019 Carbon Budgets 4 Global stocktaking STEP 6 Carbon Budgets STEP 8 GHG Emissions Reporting System (via NAEIS) 2019 2020 2016 2017 2018 2026 2021 2023 2022 2025 2024 2029 2030 2027 2028 STEP 9 Web-Based M&E 1 Compliance Review of DEROs, Carbon budgets STEP 10 Compliance Review of DEROs, Carbon budgets STEP 7 Mitigation Plans 2 Review of LEDs Policies and Measures 4 STEP 3 Policies and Measures Assessment 1 Mitigation Plans 3 BUR Mitigation Plans 4 GHG Inventory 2000 - 2025 GHG Inventory 2000 - 2017 National Com BUR GHG Inventory 2000 - 2015 GHG Inventory 2000 - 2027 GHG Inventory 2000 - 2023 • International commitments • 2009 Pledge Assessment • LEDs • National Com • BUR GHG Inventory 2000 - 2021 BUR Mitigation System Elements

  16. 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: • 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

  17. Summary of the REIPPP programme in terms of Ministerial Determinations (as of 31 March 2016)

  18. Summary of the REIPPP programme in terms of Ministerial Determinations (as of 31 March 2016) cont…

  19. CSIR Analysis of REIPPPP tariffs

  20. 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

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