A project of

Earthlife Africa Johannesburg

& participant in the Energy Caucus

Energy Caucus Presentation to PPC:

Creating Employment

Reducing Poverty

Respect for Future Generations

March 2005

Four areas of project activityto promote sustainable energy and

address climate change

•Advocacy and building awareness and capacity;

•Research and information dissemination;

•South-North-South networking and collaboration;

•Supporting the South African Climate Action Network (SACAN).

Advocacy and raising awareness

Advocating social and environmental justice in the energy sector and in addressing global climate change, including:

•Input to government processes e.g. Integrated Energy

Planning (IEP); Renewable Energy & Efficiency Strategies;

•Participation in stakeholder fora, e.g. DME workshops; NCCC;

•Supporting civil society initiatives, e.g. Energy Caucus; CURES;

•Community outreach and capacity building;

•Lobbying of decision-makers.

Information development & dissemination

Producing and distributing information and advocacy materials, including:Sustainable Energy Briefings;

E-mail newsletters: SENSE (monthly) & CCEN (bi-monthly);

Climate Action News (Quarterly);

Flyers, fact-sheets, posters, information booklets, incl:

‘Getting to Grips with Global Climate Governance’ &

‘Getting to Grips with Sustainable Energy’

www.earthlife.org.za

Research

Commissioning independent research, for a knowledge base focused on public benefits and longer term:

‘Green Power, public benefits and electricity sector restructuring’ (2001)

‘Energy Sustainability Indicators for South Africa’ (May 2002)

‘Policies and Measures for Renewable Energy and Energy Efficiency’

(EDRC with ERI, UCT, April 2003)

‘Employment Potential of Renewable Energy in South Africa’(AGAMA Energy, November 2003)

‘The Potential of Renewable Energy in South Africa’ long-term, to 2050

due April 2005 (RAPs Consulting)

South-North-South networking & collaboration

Information exchange, civil society collaboration and developing solidarity with organisations in the South, as well as the North, including participation in the global Climate Action Network (CAN), Friends of the Earth International, Citizens United for Renewable Energy and Sustainability (CURES), INFORSE, Climate Justice etc.

Study Tour: South Africans to Denmark, incl. DME officials and a parliamentarian (May 2003)

WSSD: Civil society position papers (first Energy Caucus) and liaison with big NGOs

Bonn Renewables 2004 & follow-up

South Africa Climate Action Network (SACAN)

•Initial funding to support meetings of SACAN;•Production of information materials, including S A Climate Action News (distributed with groundWork newsletter);

•Providing secretariat services to the network;

•Co-ordination NGO & CBO interaction with government & national processes

•Co-ordinating participation in CAN and international initiatives such as CDMWatch and Climate Equity debate.

Why a South African civil society Energy Caucus?

- To provide a common platform to advocate a just transition to sustainable energy

•What is sustainable energy?

•Why do we need to change from business-as-usual (BAU)?

•What are the elements and parameters of a just transition?

•What are the costs and who should pay them?

•What is possible or realistic and what are the factors that determine what is possible?

•How does South Africa initiate a just transition?

Nkosana’s input

• Paste here

Why a South African civil society Energy Caucus?

- To provide a common platform to advocate a just transition to sustainable energy

•What is sustainable energy?

•Why do we need to change from business-as-usual (BAU)?

•What are the elements and parameters of a just transition?

•What are the costs and who should pay them?

•What is possible or realistic and what are the factors that determine what is possible?

•How does South Africa initiate a just transition?

What is sustainable energy? - RE & EE

Renewable energy that draws on resources that are constantly replenished – flux energy (mostly solar in origin) – rather than exhausting finite hydrocarbon or uranium ‘stock’ energy. Conditions need to apply to hydropower (World Commission on Dams) & biomass – sustainable production; competing land and water use.

Energy efficiency seeks maximum final output for a given input:•Everybody (business, industry, commercial and government buildings, individuals – role models) could do more with less, also extending access;

•Includes conservation e.g. solar water heating and passive solar design;

•Optimising benefits and reducing costs in medium and long term.

“..reliable, affordable, economically viable, locally

acceptable and environmentally sound..” (UN - CSD)

Why do we need to change from business-as-usual?

National resource base: Impacts of stock (fossil and nuclear) energy use are unsustainable, destroying or degrading the natural resource base and causing rapidly escalating climate change

Human health: The extraction, processing and burning of hydrocarbons (sp. coal and oil) and nuclear fuel are poisoning communities

Energy security – national and local: less dependence on imports and more wealth staying within communities

Competitivness in global economy: reduced material input costs, vulnerability to global markets and liability for regional and global pollution

Stock energy resources are finite: hydrocarbon resources are limited, with oil production near its peak, are required as feedstock material and could be more productively used in future (uranium also limited)

Human rights: large-scale, centralised and industry-oriented energy development increases dependence on trans-national corporations

Why do we need to change from business-as-usual?

Renewable energy: •Creates more jobs than conventional energy development•Allows community participation / ownership – not simply customers

•Growth industries with established export potential (e.g. India)

•Human scale with minimal impacts (water, land, air and atmosphere)

•Uses plentiful resources currently going to waste – less entropy

Energy efficiency:

•Value for money and resources

•Better investment than new elec. generation & fuels processing plants

•Accelerated technology development – moving to best available

•Full-cost accounting – encourages application of ‘triple bottom line’ in meeting energy service needs;

Employment in coal-based electricity generation in South Africa

Source: Own analysis, based on data from Eskom (1989), Eskom (2002), Statistics SA (1995), Statistics SA (2002), NER (2000), DME (2003c).

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Year

Ou

tpu

t (G

Wh

)

0

15000

30000

45000

60000

75000

90000

105000

120000

135000

150000

Jo

bs

consumption:coal-generatedelectricityelectricity-relatedmining jobs (53%)

Eskom jobs

total jobs

Summary conventional energy employment potential: jobs/MW insalled and/GWh produced

  Fuel Mnfr Inst O&M Total

  /MW /GWh /MW /GWh /MW /GWh /MW /GWh /MW /GWh

Coal (current)[2] 0.8 0.2         0.9 0.2 1.7 0.3

Coal (future) 0.8 0.2     1.3  0.3  0.9 0.2 3.0 0.7

Nuclear             0.5 0.1 0.5 0.1

PBMR     ?  ?  0.4 0.1 0.9 0.1 1.3 0.2

Gas  ? ? ?  ?  1.0 0.1 0.1 0.0 1.2 0.1

 

Core RETs employment potential data (gross direct jobs/MW and /GWh)

  Fuel Mnfr Inst O&M Other Total

RET /MW /GWh /MW /GWh /MW /GWh /MW /GWh /MW /GWh /MW /GWh

Solar thermal 0.0 0.0 1.7 3.0 4.0 7.0 0.2 0.4 0.0 0.0 5.9 10.4

Solar PV 0.0 0.0 18.8 32.9 12.1 21.2 2.5 4.4 2.0 3.5 35.4 62.0

Wind 0.0 0.0 3.2 8.4 0.5 1.3 1.0 2.6 0.1 0.3 4.8 12.6

Biomass 0.0 0.0 0.0 0.0 0.0 0.0 1.0 5.6 0.0 0.0 1.0 5.6

Landfill 0.0 0.0 1.9 7.1 1.9 7.1 2.3 8.8 0.0 0.0 6.0 23.0

…and we do have the policy to address these issues, some in development and some begging for implementation…

SA Policy and implementation• White Paper on Energy Policy (DME, 1998): “Ensuring that an equitable level of national resources is

invested in renewable technologies, given their potential and compared to investments in other supply options”

• White Paper on Renewable Energy“… is being published to ensure that the renewable energy

resources are used optimally.”Target: “..additional 10 000 GWh (0.8 Mtoe) renewable energy contribution.. by 2013…this is equivalent to two 660MW coal-fired power stations”

But this would produce 10 000 GWh per annum

SA Policy and implementation• Draft Energy Efficiency Strategy (DME, 2004): 12% reduction against projected demand for 2014 – review

in 2007 “…this target is by no means a mandatory requirement, but rather a guideline to aspire to.”

“Mandatory energy efficiency standards will be an important and integral part of the Strategy.” yet to be developed

• Renewable Energy Strategy (overdue)R14.2 million for direct once-off subsidies in first 5 years,

followed by a review of the target• Electricity Regulation Bill (comment period just ended)Concerns re grid access and fair treatment of SMMEs

SA Policy and implementation• NEMA (1998)

EIA regulations: incl. identify alternative sites for projects, but little on alternative technologies / strategies and practice and energy projects ‘exempt’ – DME vs DEAT

• Draft Air Quality Act (2004)

“… air pollution carries a high social, economic and environmental cost that is seldom borne by the polluter;” Controlled emitters with emissions standards for appliances and activities,

but standards yet to be set and no power to introduce pollution charges (Treasury Environmental Fiscal Reform - process unclear and focused on raising revenue rather than redirecting investment and budget allocations and implementing constitutional rights

What are the elements and parameters of a just transition?

Access to basic energy services is recognised as a human right and responsibility of the state;

Meeting energy service needs without compromising other human rights – equity, including gender and grandchildren;

No net job loss and improved worker health & safety;Implementation of the polluter pays principle;Application of cradle to grave responsibility and

liabilityPublic participation in planning and decision-making;

How to initiate a just transition?

Acknowledge the need and the challenge – incl. vested interests

Political agenda – elaboration of existing priorities

Integrated Energy Planning – phase 2 initiated, but short term

Policies and Measures (PAMs) for RE & EE

Corporate accountability - not just voluntary agreements without monitoring, independent verification and penalties

Popular awareness & Individual behavioral change – instigating a culture of responsibility and sharing… ubuntu

International co-operation and co-ordination – multilateral agreements to stop the ‘race to the bottom’ of global competition

‘The Independent PAMs Study’

UCT study Priority PAMs:• Legislate codes and standards for energy efficient buildings in

government, commercial and residential sectors

• Set mandatory equipment standards for industry and commerce• Set targets for renewable electricity generation (15% elec by

2020)

• Subsidise the production for renewable electricity• Implement a pollution tax (with exception for households)

“The research concluded that these measures could be implemented with little or no cost to the economy, with significant

savings for some stakeholders, net job creation and significant human health and environmental benefits.”

‘The Employment Potential of RE in South Africa’

AGAMA study conclusions:• RE electricity generating technologies will create 36 400 new

jobs when providing 15% of the total electricity mix in 2020 without taking jobs away from the coal-based electricity generating sector; if RET deployment displaces coal, further additional jobs created;

• A biodiesel and bioethanol programme that replaces 15% of current petrol and diesel consumption would see the ctreation of 350 000 new, direct jobs;

• Targeted deployment of solat water heaters will result in the creation of at least 118 000 new, direct jobs;

more on the potential of RE in SA up to 2050 on 13 April at the third Sustainable Energy Symposium, incl. Launch report

What is possible or realistic and what are the factors that determine what is possible?

•Available renewable energy resources can provide for all current energy demand many times over;

•Technologies and materials exist to achieve a ‘factor 4’ improvement in efficiency – i.e. achieve the same service with 25% of current energy input (factor 10 possible);

but•Exploitation of stock energies is one of the most profitable enterprises under current market conditions – consumption = profit;

•Developing countries do not have a ‘third world’ to plunder, nor the ecological space to follow the development path of the North.

What factors determine what is realistic?

•Millenium Development Goals

•Business as usual will lead to catastrophic climate change, with Sub-Saharan Africa the suffering the worst impacts •National security – “wars of the future will be fought over water”

•Energy pricing – stepped block tariff – industry not hide behind poor

•Full cost accounting & resource economics

•Technology transfer

•Equity in the greenhouse

What are the costs and who should pay them?

The longer we wait, the more it will cost, e.g. stranded public investments in plants with 40-year lifespan

Avoiding ‘dangerous’ climate change requires the mobilisation of political will and financial resources on the scale usually reserved for going to war

Leveling the playing field, incl. subsidy reform and polluter pays

Mandate of Development Banks and other IFIs – international finance institutions including export credit agencies

Public spending for public benefit

Common but differentiated responsibilities

Conclusion

A Just Transition to Sustainable Energy is possible for

employment creation and poverty reduction, through

Integrated Energy Planning – from resource extraction to end use with full cost-benefit analysis done right this time,

A forward-looking policy agenda – national and international (not waiting for/dependent on Northern finance) with an

Energy services approach, incl. needs and benefits based pricing,

if there is clear political will and implementation.