SOUTH AFRICA'S LONG TERM MITIGATION SCENARIOS AND CLIMATE CHANGE POLICY RESPONSE - Workshop on mitigation potentials, comparability of effort and ...

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SOUTH AFRICA'S LONG TERM MITIGATION SCENARIOS AND CLIMATE CHANGE POLICY RESPONSE - Workshop on mitigation potentials, comparability of effort and ...
SOUTH AFRICA’S LONG TERM
MITIGATION SCENARIOS AND CLIMATE
     CHANGE POLICY RESPONSE

      Workshop on mitigation potentials,
      comparability of effort and sectoral
       approaches, Bonn, March 2009

                                             1
Context

• SA is a developing country with significant
  development challenges - poverty,
  unemployment and high vulnerability to climate
  impacts
• Climate and development
• Adaptation and mitigation balance
  – Majority of national “Climate” investment required for
    immediate adaptation priorities related to the poor
  – Close price gap on mitigation

                                                             2
South Africa’s approach to mitigation

•    Recognition that SA must play its part in
     line with prescripts in Convention
•    Take action in way appropriate to
     national circumstances
•    Energy intensive economy – coal based
•    LTMS is a study of country’s mitigation
     potential in order to inform policy and
     action, not a mitigation plan

                                                 3
LTMS process

               4
LTMS PROCESS

• LTMS is multi stakeholder, research based
  scenario process that has produced an
  assessment of country’s mitigation
  potential.
• Rigorous, peer reviewed
• Inclusive
• Broad ownership

                                          5
THE LTMS SCENARIO BUILDING TEAM

Government                          Business                    Civil society
ƒ  DEAT Environment                 ƒ   SASOL                   ƒ   EcoCity/CURES
ƒ  DME Minerals & Energy            ƒ   Eskom                   ƒ   SESSA
ƒ  DST Science & Technology         ƒ   EIUG Energy Intensive   ƒ   Labour (COSATU)
ƒ  DoT Transport                        Users Group             ƒ   SEA
ƒ  Treasury                         ƒ   Engen                   ƒ   SACAN
ƒ  Foreign Affairs                  ƒ   Grain SA                ƒ   COSATU
ƒ  DTI Trade & Industry             ƒ   Anglo Coal              ƒ   SALGA
ƒ  DPE Public Enterprises           ƒ   BHP Billiton            ƒ   WWF-SA
ƒ  DWAF Water Affairs & Forestry    ƒ   Chamber of Mines        ƒ   Earthlife Africa
ƒ  Dept of Agriculture              ƒ   Aluminium – AFSA        ƒ   NEDLAC
ƒ  Presidency                       ƒ   Kumba Resources
ƒ  SAWS Weather Service             ƒ   Chemical – CAIA
ƒ  CEF / SA Nat’l Energy Research   ƒ   Engen
   Institute                        ƒ   Forestry SA
ƒ  NERSA Energy Regulator           ƒ   AgriSA
ƒ  W Cape Province (DEADP)          ƒ   Business Unity SA
ƒ  City of Johannesburg             ƒ   Sappi
ƒ  ARC                              ƒ   Envirotech (Waste)

                                                                                       6
LTMS
analysis

           7
Two Scenarios frame South Africa’s options

                      1,800

                      1,600

                      1,400
                                                     Current Development Trend
Mt CO 2 -equivalent

                      1,200

                      1,000

                       800
                                                                                       Unilateral contribution
                                                                                                            THE GAP
                                                                                       to atmosphere
                       600

                       400

                       200                                          Upper limit of IPCC lowest scenario
                       -

                                                                                     39

                                                                                     45
                                 6

                                                             8

                                                                                     30
                                                                           4
                                               2

                                                                                     33
                                                                                      7

                                                                                     42

                                                                                     48
                           3

                                                                                     36
                                        9

                                                      5

                                                                    1
                                  0

                                                              1

                                                                            2
                                                1

                                                                                   2
                          0

                                         0

                                                       1

                                                                     2

                                                                                  20

                                                                                  20
                               20

                                                           20

                                                                                  20
                                                                         20
                                             20

                                                                                  20
                                                                                20

                                                                                  20

                                                                                  20
                       20

                                                                                  20
                                      20

                                                    20

                                                                  20

                                                                                                               8
Business as Usual breakdown

                              9
SA Strategic Analysis
• Energy modelling
   – Used bottom-up, partial equilibrium optimisation
     modelling framework – MARKAL, widely used for
     energy analysis
   – Internationally peer-reviewed
• Non-energy modelling (agriculture, waste, land use,
  industrial process emissions)
   – Spreadsheet-based, based on methods
     developed for SA Country Study, based on
     international literature
• Economy-wide impacts
   – Computable General Equilibrium model,
     comparative static and dynamic approaches
• Adaptation & Impacts
   – Updating of state-of-the-art knowledge
                                                        10
Technical Options
• Used SD PAM’s approach to define
  actions
• Quantification of emission reductions &
  costs
• Scenarios and underlying research reports
  available at:
  – http://www.deat.gov.za
  – http://www.erc.uct.ac.za/Research/LTMS/LTM
    S-intro.htm

                                             11
Limit less eff vehicles
           Escalating CO2 tax                        Nuclear, extended                                                                     50
                                            300
  600                                                                                                               Electric vehicles in   25
                                            150                                                                50                                             -R 4,404
                                                                                   SWH subsidy                           GWC grid           0
  450                                                                 R 20   50
                                                 0                                                             25                                   Synfuels methane
  300                                                                        25
                                                                                                                                 R 607     10
                                                                                                                0                                                 R8
                           R 42                                                             -R 208                                         5
  150                                                                         0
                                                                                                                Commercial efficiency      0
                                                                                                               50
      0
                                                                                    CCS 20 Mt
                                                                             50                                25
    Electric vehicles w ith
                                                                                                                                -R 203          Manure management
                                                                                                                                            10
 300 nuclear, renew ables                                                    25                                 0
                                                                                                  R 72                                          5
 150                                                                          0                                          Biofuels                                -R 19
                           R 102                                                                               50                               0
      0
                                                                                                               25
   Renew ables, extended                                                          Biofuel subsidy                                R 524                  Aluminium
                                                                             50
 300                                                                                                            0                           10
                                                                             25                                                                 5                     R0
 150                                                                                              R 697
                            R 92                                              0                                                                 0
      0

           Im proved vehicle                         All Medium                      Hybrids                                                        Enteric fermentation
 300                                 300                                     50                                All Small Wedges
               efficiency                             Wedges                                              50                                10
 150                                 150                                     25                                                                 5
                                                                                                          25                                                      R 50
                           -R 269                                                          R 1,987                                              0
      0                               0                                       0                           0

  Subsidy for renew ables
 300
                                                                              Residential efficiency                                                  Reduced tillage
                                                                             50
                                                                                                                                            10
 150                                                                         25                                     Waste management            5
                           R 125                                                            -R 198             50                                                 R 24
      0                                                                      0                                                                  0
                                                                                                               25
Renew ables w ith learning,                                                                                                         R 14
300                                                                               Cleaner coal                  0                                     Afforestation
       extended                                                              50                                                            10
150                                                                          25                                                             5
                                                                                                                Passenger modal shift                            R 39
                                R3                                                           -R 5              50                           0
  0                                                                           0
                                                                                                               25
          Industrial efficiency                                                                                                 -R 1,131
 300                                                                               Fire control                 0
                                                                                                                                                    Synfuels CCS 2 Mt
                                                                                                                                           10
                                                                             50                                                                                  R 476
 150                                                                                                                                        5
                            -R 34                                            25                                     SynfuelsCCS 23 Mt
      0                                                                                        -R 15           50                           0
                Nuclear                                Renew ables            0
 300                                       300                                                                 25                               Coal mine methane
                                                                                                                0                   R105   10
                                                                                                                                                                      12
 150                                       150                                                                                              5                    R 346
                            R 18                                     R 52
      0                                     0                                                                                               0
Four Strategic Options

1800

1600

1400                         Current development
                             trends
1200                                                Reach for the Goal

1000
                                 Low cost SD-PAMs

800
                 Incentivised mitigation action
                              Incentivised GHG pricing
600

400

200                     IPCC lowest scenario

  0
           06

           21

           24

           36
           12

           15

           27
           09

           18
             3

           30
           33

           39

           42

           45

       20 8
         50
     0

           4
        20

        20

        20

        20
        20

        20

        20
        20

        20
  20

        20
        20

        20

        20

        20

        20
                                                             13
Mitigation Costs – these
are NOT necessarily
additive

                           14
LTMS Conclusions
 and further work

                    15
PROPOSED POLICY DIRECTIONS

• LTMS considered by SA Cabinet and 6 broad
  areas for further work identified

  –   Greenhouse gas emission reductions and limits
  –   Build on, strengthen and/or scale up current initiatives
  –   Implementing the “Business Unusual” Call for Action
  –   Preparing for the future
  –   Prioritising Vulnerability and Adaptation
  –   Integrating and Institutionalising Climate Change work

                                     See Annexure A – LTMS Policy Directions
                                                                         16
GHG emission reductions and limits

• It is proposed that climate change mitigation
  interventions should be informed by, and
  monitored and measured against the following
  “peak, plateau and decline” emission trajectory
  – Greenhouse gas emissions stop growing (start of
    plateau) in 2020-25 at 550 Mt CO2-eq
  – Greenhouse gas emissions begin declining in
    absolute terms (end of plateau) in 2030-35
  – Long-term greenhouse gas emission level reduces to
    levels required by science by 2050-60

                                                     17
Theme 1: GHG emission reductions and
           limits (Cont.)

               Peak
 550

                 Plateau
                           Decline

                                     18
Build on, strengthen and/or scale up current
                     initiatives

•    Current energy efficiency and electricity
     demand-side management initiatives and
     interventions must be scaled-up and reinforced,
     including setting national targets in line with
     LTMS
     – Example: more efficient boilers.
•    Study to be undertaken on impact of a carbon
     tax on the South African economy and also
     look at a range of economic and fiscal
     mechanisms.

                                                    19
Implementing the “Business Unusual” Call for
                  Action
 – Renewable energy sector is key “business unusual”
   growth sector and set more ambitious national target
   for renewable energy of 27% by 2030 and 50% of
   electricity generated by 2050
    • Example: concentrated solar power
 – Transport sector is a key “business unusual” growth
   sector and plan developed to reduce its emissions.
 – Government to promote the transition to a low-carbon
   economy and society and all policy and other
   decisions that may have an impact on South Africa’s
   GHG emissions.

                                                          20
Preparing for the future

–   Increased support for research and development in
    the field of carbon-friendly technologies – with the
    focus on the renewable energy and transport
    sectors.
–   Formal and informal forms of education and
    outreach are used to encourage the behavioural
    changes required to support the implementation of
    the climate change response policy.

                                                       21
Vulnerability and Adaptation

• Ongoing identification of vulnerabilities to climate
  change across all sectors and spheres of government.
• Integrate adaptation actions into all government plans as
  a key performance area
• Develop and implement climate adaptation plans with full
  stakeholder participation

                                                         22
Integrating and Institutionalising Climate
              Change Work
–   Clarify roles and Responsibilities across society
–   Climate change response policies and measures
    are mainstreamed within existing alignment,
    coordination and cooperation structures inside and
    outside of Government

                                                         23
Support needed

• Many no regret SD PAM’s – need support
  in removing barriers
  – Significant upfront capital investment
    requirements International access to
    technology (IPR, TTB’s)
  – Internal capacity and technical assistance

                                                 24
Way forward
• On-going process
• High-level political decision on direction
  into more formal policy framework by mid
  2010
• Policy translated into legislative, regulatory
  and fiscal package (from now up to 2012)
• National Climate Change Response Policy
  Development Summit March 2009 (has
  just occurred)
                                               25
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