generalheader
IDC access - February 2010

Thought leadership

thoughtleadership FEBLeading the way

Dr Bethuel Kgobane of the IDC's Environment, Health and Safety (EHS) Department shares his thoughts on whether South Africa can meet its ambitious targets.

The UN talks on Climate Change held in December 2009 in Copenhagen, Denmark were thrown into disarray at the outset as developing countries demanded that rich countries raise their pledges for reducing greenhouse gas emissions. However, the fact that 55 nations representing about 78% of global emissions presented their action plans to the U.N. in time for the Copenhagen deadline shows widespread commitment to combat global warming. 

Like many developing countries, South Africa believes that developed nations have a much greater responsibility for curbing climate change than poorer nations. Richer nations have contributed to emissions for a longer period than developing nations. They have already reached a level of growth that warrants emission reduction, whereas developing nations have quite a long way to go in growing their economies and reaching their millennium growth targets.

openMark The goal set by South Africa is amongst the most ambitious of any country involved in the Copenhagen Accord, and will not be easy to achieve. closedMark

Before the Copenhagen meeting, the South African government indicated that South Africa would contribute to carbon emission reduction by working on scientific research to find alternative energy sources.  A firmer commitment was made when South Africa made the pledge to reduce greenhouse gas emissions to 34% by 2020 and 42% by 2025. If the country can meet those targets, the government estimates that South Africa's emissions will peak between 2020 and 2025, plateau for about a decade, and decline afterwards.  

The goal set by South Africa is the most ambitious amongst countries involved in the Copenhagen Accord, and will not be easy to achieve. The South African economy is driven by coal-based energy - according to the World Wide Fund for Nature and Allianz SE's G-8 Climate Scorecards, South Africa is the world's 13th largest emitter of carbon dioxide. The country's dependence on coal puts its emissions per capita only slightly below the average for industrialised countries and well above the developing country average. 

Critics of government’s undertakings believe it is an exaggerated target, and that businesses had already made efforts to improve energy efficiency because of the electricity crisis. However, the targets may be achievable if a mooted carbon tax levy, nuclear expansion plans, renewable energy strategy and emissions-curbing legislation are taken into account. 

There may be some financial support from developed nations.The Copenhagen Accord creates a fund to help mitigate emissions through clean technology deployment to curb the global temperature rise to below 2 degrees Celsius from pre-industrial levels, the commonly-used benchmark.  

 

Statement at the December 2009 United Nations Climate Change Conference by Minister Buyelwa Sonjica, South African Minister of Water and Environmental Affairs.

un

Click here to download the full PDF
(this link is no longer active)

This suggests a need to raise $30bn between 2010 and 2012 and $100bn per year by 2020. However, details are lacking as to where the money will come from, whether the climate change fund will divert money from existing development programmes, how the money will be allocated and through which channels will it flow.

Despite the lack of a legally enforceable agreement in Copenhagen, South African businesses will need to prepare for policy changes including a carbon tax. Limitations on carbon emissions are likely to increase steadily. Technologies such as Carbon Capture and Storage (CCS), even though not endorsed by the Copenhagen sittings, will remain part of the solution for biggest emitters such as coal-fired power generators and coal-to-liquid businesses until a long lasting renewable energy solution is found. 

thoughtleadership _Feb
The IDC is a full stakeholder member of the international forum that participates in CCS technology development and South Africa is a deputy chair of the forum. Many industries in South Africa, including Sasol, Eskom, PetroSA and AngloCoal participate in the activities of the forum, contributing huge capital support for projects.

I am convinced that South Africa’s ambitious targets can be reached by embracing carbon capture and storage technologies, supporting and expanding nuclear technology facilities, rolling out renewable energy subsidies and implementing legislation to foster an integrated energy supply strategy to all households, industries and government buildings.  More research needs to be undertaken into clean technology such as low carbon vehicles, tidal energy, geothermal and concentrated solar power, and biofuels. Government will also need to create a carbon fund or clean technology fund that will encourage the private sector to come on board in the interest of the targets set at Copenhagen.




Disclaimer