Download approach and technical work - Parliamentary Monitoring Group

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 mitigation
The 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
Understanding what projects
=Flagships
are in place
•
•
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Mitigation and adaptation projects in place
Plans to scale up
Quantify current mitigation/ adaptation outcome, eg emissions reduced
Reporting systems in place
Planning for
implementation
= Desired mitigation outcomes
+ Long term adaptation scenarios
• Mitigation : assess mitigation potential; assess mitigation options; assess
costs and benefits
• Adaptation: define climate scenarios; analyse impact scenarios; assess risk
Measuring the outcome
=Monitoring and evaluation
• Verification of whether the implementation of intervention is having the
desired effect
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/ subsectors;
– 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-todate 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 technologybased 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 –
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–
–
–
–
–
–
–
–
–
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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 timeframes (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 socioeconomic 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 macroeconomic 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
Combined to
among others,
derive
• abatement cost curves
• Analysis from modelling and research will
provide comprehensive mitigation potential
options
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
Energy
Industry
TWG
Agriculture
Transport
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 scaleup;
• 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