Energy Mix – top priority at the close of 2009 South African Climate Summit

Posted by Sabrina Chesterman on March 09, 2009
South Africa / No Comments

The 2009 Climate Summit which closed on Friday was a giant step for South Africa in recognising the severity and implications of climate change, as well as bringing together key stakeholders in the climate policy discussion. Climate change received a much needed spotlight for the week, and President Kgalema Motlanthe utilised his speech to instil some optimism to the 893 delegates gathered, and endorse the need for ‘green growth.’ This is an imperative if government is seen to be serious in shifting South Africa’s position as the 14th greatest emitter of global greenhouse gas emissions, largely due to 90% of electivity being derived from the countries ample coal reserves.

The summit was hailed by the Minister for Environmental Affairs and Tourism, Marthinus van Schalkwyk, as creating ‘milestone’ steps towards comprehensive and effective climate policy. The engagement of business was also flagged by van Schalwyk as essential, especially in partnering with the government to create a low carbon economy.  However South Africa’s business sector’s grasp of the significance of their role in creating a low carbon economy is debatable. 

Van Schalkwyk utilised the summit to showcase the government’s commitment to emission reductions and its progression towards mandatory emissions reductions.  This has major implications on South Africa’s economy, largely based upon significant natural resource extraction and conversion, sectors that will face fundamental changes if and when mandatory regulations are implemented.

Creating this change in mind set in the business sector is a huge challenge. The Department for Environment Affairs and Tourism (DEAT) needs to remain dedicated and on course to implement mandatory emissions cuts.  DEAT will face strong and economically persuasive opposition from the private and public sectors who continue to advocate voluntary emissions reduction measures.  This coupling and relationship between business leaders and government policy discourse needs to be managed sensitively as the emissions cuts South Africa needs are going to be made through public and private innovation.  This innovation is needed to deploy suitable technologies to harness renewable energy; essential to achieve van Schalwyk’s vision of a low carbon economy.

A major stumbling block to the low carbon economy is the absence of policy frameworks promoting renewable energy and a lack of incentives for investors.  The summit was however successful in stressing the importance of renewable energy. Nelisiwe Magubane, Depurty Director General at the Department of Mineral Affairs and Energy, signalled the governments commitment to dealing with these pivotal hurdles commenting on the drafting of a feed-in tariff which aims to stimulate the large scale investment that is needed.

Shadowing the optimism of Van Schalwyk’s comments is a report released this week by Oxfam International and Earthlife Africa.  The report highlighted South Africa’s vulnerability due to the predominant arid and semi arid environments which will be extremely sensitive to the anticipated volatility in flood and drought conditions associated with climate change.  This is of particular consequence to subsistence and small scale agriculturalists.  In this respect the summit has indicated positive moves for climate policy – devolution to a provincial level so all stakeholders, especially those most afflicted can become involved in policy discourse. 

Climate policy discussions are complicated  and intertwined with South Africa’s convoluted history. Over four million households don’t use electricity to cook and two million households use candles as their primary lighting source. Over 70% of the rural households still utilise fuel wood and paraffin as fuel sources.  The government needs to take stock of these critical shortfalls in energy usage and capitalise on the existing 36 000MW of power generation capacity.  More importantly for the bigger picture, government must make intelligent decisions about South Africa’s future optimum energy mix; namely reforming its coal dependent energy sector.  As President Motlanthe fittingly commented at the close of the summit; ‘we owe it to the millions of people who will be directly affected by climate change’.

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South African National Climate Conference Begins

Posted by Sabrina Chesterman on March 02, 2009
South Africa / No Comments

South Africa faces a myriad of challenges; an increasing and farcical rate of crime, political upheavals and tension in lieu of the forthcoming elections as well as the looming deadline and expectations of playing host to the FIFA 2010 soccer world cup with an expected 3 million visitors.  In amongst these, jostling for position are the fundaments South Africa must face – achieving racial equality, sustainable development and tackling climate change.

The climate commitments implemented by Minister of Environmental Affairs and Tourism, Marthinus van Schalkwyk to “stabilize” emissions by 2020 to 2025, “with absolute reductions in emission to begin ten years after growth was halted” will be tested this week in the National Climate Summit and Science Conference, being hosted in Midrand, close to South Africa’s largest cities Johannesburg between the 3rd and 6th of March.  Van Schalkwyk will be under pressure to ensure the results of the Long-Term Mitigation Scenario (LTMS) study and stated emission reductions obligations are translated into strategic options.  Expectations will focus on galvanising a clearer climate policy directive over the three day conference, in which key scientists and government officials will gather to discuss South Africa’ position with regard to Climate Change. 

Top priority for climate policy needs to be a refocus, and a move away from, South Africa’s historical consumption of cheap coal for electricity.  Options such as Carbon Capture and Storage technology need to be discussed at the National Conference as real and tangible options for future investment by Eskom, the national electricity service provider.  South Africa’s near total dependence on the large domestic coal reserves, as the primary energy resource are principally responsible for high per capita greenhouse emission, among the top five highest within developing countries

The conference proceedings need focus on renewable energy especially in line with the renewable energy white paper which sets a target of 10000GWh as a contribution to total energy consumption by 2013. The National Energy Regulator of South Africa (Nersa) has promoted feed in tariffs, set for a minimum of 15 years, that would be pegged at a level that would allow investors to recover the cost of generation, plus get a fair return on their investment.  These feed in tariffs are a contentious point for discussion as it is felt at present they are a major economic disincentive for renewable investment despite ample natural resources for hydro, wind and potential tidal and wave power.  Nersa’s suggestion of Eskom Distribution as the renewable energy purchasing agency have also been hotly contested, especially in light of Eskom’s gross failings in electrical production and supply in the last 18 months.

If anything positive can come out of the National Summit this week , it will be for the scientists to educate  the politicians on the grave consequences climate change will have for the country and the continent, and the integral role South Africa’s business and political leaders must play in implementing effective climate policy. However discussions are likely to stumble and falter with the mention of costs, for example the issue over compliance with Euro emission standards. South Africa is at level 2 and needs to more to Euro 4 by 2012, however the R40 billion estimated costs are protracting decision making and diverting from the real time issue of climate change. 

The summit proceedings need to also effectively bring to the table other options for South Africa’s future climate policy for example the potential for a carbon tax and the need to implement stringent energy efficiency measures.  However Climate policy discussions in South Africa are saddled under a nervous political regime which is set for a changeable year.  Therefore a policy approach that is able to balance increasing demands for energy and the pressing need for sustainable development and equity, especially in relation to climate change mitigation will remain the core challenge for van Schalkwyk and the government.

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