Portfolio Committee on Water And Environmental Affairs

Presentation on Mitigation: approach and technical work

7 June 2012

Presentation overview

• Approach to mitigation• Key elements and steps of mitigation

work• Link with the overall strategic approach• Overview of the technical work required• Institutional arrangements• Objectives and criteria for flagships

Approach to mitigationThe approach to mitigation seeks to achieve a balance among: •Achievement of SA’s development priorities•The economic and social opportunities presented by the transition to a lower carbon economy•The country’s contribution as a responsible global citizen to the international effort to curb global emissions

Key elements of mitigation

– Build on what is already on the ground– Definition of desired sectoral mitigation

outcomes– Use of a mix of mitigation policies and

measures, including carbon budgeting – Use of the market– Formulation of mitigation plans for sectors

and sub-sectors– Monitoring and evaluation

Implementation: Key steps in the process

• Definition of sectors: Establishing and defining key sectors, for which mitigation potential will be assessed, and mitigation measures will be adopted. This includes definition of “significant” sectors for which carbon budgeting may be adopted– SA GHG inventory uses IPCC guidelines, and classifies

emissions into 4 categories:

Key steps in the process

• Desired emission reduction outcomes, for key sectors and sub-sectors

• Based on an in-depth assessment:– mitigation potential of key sectors and sub-sectors – best available mitigation options for key sectors/ sub-

sectors; – science i.e. published research on the mitigation potential

and options for key sectors and sub-sectors; – evidence i.e. published results on the efficacy of mitigation

options for key sectors and sub-sectors; – costs and benefits of achieving desired emission reduction

outcomes for key sectors and sub-sectors

Key steps in the process cont...

Recommendations on the best mix of mitigation measures: •on the basis of the above assessment, recommendations will be made on…•the optimal combination of mitigation measures…•at the least cost to- and with the most sustainable development benefits for the relevant sector and or national economy.

Key steps in the process cont...

Defining Carbon Budgets for significant GHG emitting sectors and/or sub-sectors –Adopting a carbon budget approach to provide for flexibility and least-cost mechanisms in relevant sectors and/or sub-sectors. –The initial carbon budgets for significant GHG emitting sectors and/or sub-sectors will be adopted within two years –These may be revised as required based on monitoring and evaluation results, technological advances or new science, evidence and information.

Key steps in the process cont...

Using the market– Deploying a range of economic instruments to support the system of desired emissions reduction outcomes, including….–the appropriate pricing of carbon and economic incentives…. –as well as the possible use of emissions offset or emission reduction trading mechanisms for those relevant sectors, sub-sectors, companies or entities where a carbon budget approach has been selected.

Key steps in the process cont...

• Mitigation plans: Requiring companies and economic sectors or sub-sectors for whom desired emission reduction outcomes have been established to prepare and submit mitigation plans that set out how they intend to achieve the desired emission reduction outcomes.

• Monitoring and evaluation: a national system of data collection to provide detailed, complete, accurate and up-to-date emissions data, in the form of GHG inventory and M&E system to support the analysis of the impact of mitigation measures

Link with overall strategic approach • “Needs-driven and customised – Employing a wide range of

different types of …approaches, policies, measures, programmes …being specifically tailored to the potential, best available solutions and other relevant conditions related to the specific actor….. or sub-sector concerned”

• “Integrated and aligned – Providing for the integration of sector-related climate change responses into the relevant sector planning processes and developmental policies and measures

• “Sectoral responses – the requirement for all key actors, ….in relevant sectors or sub-sectors to prepare, submit, implement, monitor and report the implementation of detailed climate change response strategies and action plans that clearly articulate their roles, responsibilities, policies, measures, and interventions ….to contribute to the achievement of the National Climate Change Response Objective in a measurable way.”

Why sector-based approaches make sense

Although GHG mitigation revolves around the reduction in GHG emissions…•There are many ways to do this (e.g. fuel switching; changing energy source; industrial process changes; resource use efficiency; reduced wastage; etc.)•There is no “silver bullet” – what may work in one industry, may not work in another•“Mitigation Potential” differs between significant sources of emissions (e.g. cement manufacture vs. electricity production)•The efficacy of different regulatory and/or market tools to encourage mitigation may differ between significant sources of emissions•Mitigation impact, timing and competitive advantage could be improved through group rather than individual changes•Trying to achieve equal levels of mitigation across all significant sources of emissions may not be the most efficient and effective approach.•Different sections and spheres of government regulate the significant sources of emissions

Why sector-based approaches make sense Sectoral approaches have the potential to overcome a number of political and technical issues of concern and:•allow for greater participation of all actors in the country’s mitigation efforts;•provide an opportunity to avoid “locking-in” long-lived carbon-intensive practices;•facilitate the setting of tangible emissions- or technology-based targets within high profile sectors;•provide an opportunity to accelerate the adoption of technology and facilitate access to financing;•offer the potential, in certain forms, to increase carbon market finance

Guiding criteria for defining sectors• In defining sectors we should groups thing together where –

– The group produces similar products using similar processes; and/or– The group carries out similar activities; and/or– The group’s carbon footprint make-up is similar for each entity – The group shares similar carbon mitigation opportunities and/or

constraints; and/or– The group is organised and can work together in order to further the

collective interests of the group; and/or– The group could all benefit from specific R&D activities; and/or– The group is regulated by the same entities; and/or– As a group, the group’s carbon footprint is significant, e.g.

contributes >1% to South Africa’s total GHG emissions; and/or– Similar regulatory tools could be applied to the group resulting in

similar responses from the entities in the group; and/or – One or two big interventions could have an extremely significant

impact on the group and/or its carbon footprint and/or– A group is implied by the flagship programmes or other significant

mitigation intervention.

Proposal for definition of economic sectors

1. Energy transformation sectors (transformation of one type of energy into another): electricity & liquid fuels

2. Energy consuming sectors– With direct process emissions (emissions which arise

from use of energy in the process and/or emissions from the production process).

– all waste management activities as defined in the IPCC guidelines (solid and liquid waste management)

– Agriculture, Land Use, Land use change and Forestry – No process emissions in terms of IPCC definitions

3. Transport

Overall objective:

to present a set of viable options for reducing GHGs in key

economic sectors• The scenarios presented should be realistic and

based on best available information.

Mitigation potential?

• The majority of SA’s emissions arise from energy supply (electricity and liquid fuels) and use (mining, industry & transport)

mitigation actions with the largest emission reduction potential should focus on these areas

Mitigation potential

In order to guide policy and intervention choices for SA mitigation approach, its important to undertake comprehensive analysis of mitigation potential for key economic sectors

Scope of technical work• Scoping exercise to locate this work in relation to

other important plans and scenarios (eg linkages with other modelling frameworks, etc)– This is key in finalising key assumptions for the

modelling work

• Assessment of mitigation potential & options through:Research and modelling:

Research will illustrate the range of possible options – ranging from existing initiatives to those requiring more effort by different sectors

Modelling different scenarios- explore options for reducing emissions

Scope of technical work cont...• Research on mitigation options by sector:

– Assessment of important factors such as time-frames (short-, medium- & long-term), current options, best available practice, next available generation, expected changes in the sector, uncertainties such as technological breakthroughs, identification of alternatives, etc

Scope of technical work cont...

• Supplemented by complementary analysis and assessment of environmental and socio-economic considerations – criteria to include:• reduction potential, cost effectiveness, project level

considerations, equity considerations, emission reduction of non-GHG emissions

• Institutional- administrative burden, consistency with other policies etc

• Model emission reduction potential by sector

Scope of technical work cont...• Macro-economic analysis to understand the

broader economic costs - Impact on GDP, employment, & other macro-economic variables– Macro economic modelling – quantify costs and

benefits of reducing emissions in key sectors – for each mitigation option

Used to rank different options for emission reduction outcomes

• abatement cost curves• Analysis from modelling and research will

provide comprehensive mitigation potential options

Combined to among others,

derive

Coordination of mitigation technical work

• Coordination within government and with stakeholders will be central to the success of this work. Therefore a – A Technical Working Group on Mitigation has

been established– DEA to report the work of the TWG to the

IGCCC, NCCC & cluster committee structures.

Composition

– Government- DEA, DTI, DoE, DAFF,

Treasury, DST, DoT, DMR, EDD, DPE

– Civil Society (2 representatives)

– Labour (2 representatives)

– Business (2 representatives)

– State-owned research institutions

Functions• To coordinate and align the mitigation

work, including the generation and provision of the best mitigation options for key economic sectors

• Manage overall design and development of the national MRV system

• To coordinate sectoral technical work, through the establishment of a task team/workstreams per sector

Technical working group & sectoral task teams/workstreams

The primary objectives of the flagships

• Anchor, embed and consolidate existing climate change response projects and programmes, as well as to catalyse new initiatives; ;

• Provide a stimulus to leverage additional private and public sector funding in order to promote scale-up of existing programmes;

• Identify and remove barriers to implementation;• Demonstrate effectiveness of a range of interventions, including

policy and regulatory measures, market-based instruments and technology innovation;

• Create awareness and provide information on SA’s efforts to reduce emissions and build resilience;

• Draw out lessons learned, to contribute to the further development of policies and programmes, iro transitioning to a lower carbon and climate resilient society;

• Contribute to longer term planning processes, such as the definition of desired mitigation outcomes

Key criteria for flagships

• Projects and programmes that: (i) in the case of mitigation, provide large emission reduction potential, and have well known mitigation outcomes and delivery mechanisms; and (ii) in the case of adaptation, have significant impact in building social, economic and environmental resilience;

• Projects and programmes that demonstrate good potential for scale-up;

• Projects and programmes that contribute to sustainable development benefits and co-benefits such as improved quality of life, employment and poverty alleviation;

• Projects and programmes that promote local, manufacturing, commercialization and technology deployment.

THANK YOU