Energy and the Energy and the National Climate National Climate Change Response Change Response Green Paper Green Paper Presentation to the Presentation to the Parliamentary Portfolio Parliamentary Portfolio Committee on Energy, Tuesday Committee on Energy, Tuesday 21 June 2011 21 June 2011 Presented by Peter Lukey, Acting Deputy Presented by Peter Lukey, Acting Deputy Director-General: Climate Change, Department: Director-General: Climate Change, Department: Environmental Affairs Environmental Affairs
Transcript
Energy and the National Energy and the National Climate Change Climate Change
Response Green PaperResponse Green Paper
Presentation to the Parliamentary Presentation to the Parliamentary Portfolio Committee on Energy, Portfolio Committee on Energy,
Tuesday 21 June 2011Tuesday 21 June 2011
Presented by Peter Lukey, Acting Deputy Director-Presented by Peter Lukey, Acting Deputy Director-General: Climate Change, Department: General: Climate Change, Department:
Environmental Affairs Environmental Affairs
Presentation OverviewPresentation Overview
►Summary of the policy development Summary of the policy development process to date.process to date.
►Proposed policy finalisation process.Proposed policy finalisation process.►The Green PaperThe Green Paper►Energy and the Green PaperEnergy and the Green Paper►Energy-related public commentEnergy-related public comment►The IRP and the Green Paper The IRP and the Green Paper
alignmentalignment
The policy development process The policy development process to dateto date
► The 2004 National Climate Change StrategyThe 2004 National Climate Change Strategy► The 2005 Climate Change Conference.The 2005 Climate Change Conference.► The October 2007 draft LTMS findings.The October 2007 draft LTMS findings.► The July 2008 Cabinet policy directions.The July 2008 Cabinet policy directions.► The March 2009 Climate Change Policy The March 2009 Climate Change Policy
Summit.Summit.► The December 2009 UNFCCC COP 15, The December 2009 UNFCCC COP 15,
Copenhagen.Copenhagen.► The May 2010 Policy Development Round The May 2010 Policy Development Round
Table.Table.
The policy development The policy development process to date (Cont.)process to date (Cont.)
► Draft Green Paper published in November 2010Draft Green Paper published in November 2010► Provincial workshops concluded 4 February 2011Provincial workshops concluded 4 February 2011► Parliamentary Public hearings from 3 to 16 MarchParliamentary Public hearings from 3 to 16 March► Thematic workshop concluded on 23 March 2011 – Thematic workshop concluded on 23 March 2011 –
Adaptation; Mitigation; Governance; Energy; Local Adaptation; Mitigation; Governance; Energy; Local Government and Public Awareness; and Human Government and Public Awareness; and Human Resources and TechnologyResources and Technology
► NEDLAC process from February to April 2011NEDLAC process from February to April 2011► Intergovernmental Committee on Climate Change Intergovernmental Committee on Climate Change
(IGCCC) drafting retreat 13-15 April 2011(IGCCC) drafting retreat 13-15 April 2011► Initial draft White Paper circulated to IGCCC early Initial draft White Paper circulated to IGCCC early
JuneJune
The policy development process The policy development process going forwardgoing forward
• Final few weeks of interdepartmental bilateral Final few weeks of interdepartmental bilateral engagements and formal comments engagements and formal comments
• Draft White Paper submitted to Cabinet July Draft White Paper submitted to Cabinet July 20112011
Green Paper structureGreen Paper structure
►Section 1 – IntroductionSection 1 – Introduction: A 1-2 page : A 1-2 page encapsulation of the core climate encapsulation of the core climate change issues and, through this, the change issues and, through this, the justification for a national policyjustification for a national policy
►Section 2 – The ObjectiveSection 2 – The Objective: A : A succinct, clear and unambiguous succinct, clear and unambiguous description of the objective (desired description of the objective (desired outcome) of South Africa’s climate outcome) of South Africa’s climate change responsechange response
Green Paper structure (Cont.)Green Paper structure (Cont.)
►Section 3 – PrinciplesSection 3 – Principles: A concise list : A concise list of the key principles guiding the of the key principles guiding the proposed responses to climate change proposed responses to climate change (e.g. precautionary principle)(e.g. precautionary principle)
►Section 4 – Strategy: Section 4 – Strategy: A list of key A list of key strategies to be employed to meet the strategies to be employed to meet the objective (e.g. use of economic objective (e.g. use of economic instruments)instruments)
Green Paper structure (Cont.)Green Paper structure (Cont.)
► Section 5 - Policy Approaches and Section 5 - Policy Approaches and ActionsActions: This is the meat of the policy : This is the meat of the policy which is divided into key impacted and/or which is divided into key impacted and/or affected (economic) sectors The sectors are affected (economic) sectors The sectors are specifically chosen so as specifically chosen so as notnot to align with to align with national department portfolios.national department portfolios.
► Section 6 - Section 6 - Roles and ResponsibilitiesRoles and Responsibilities GovernmentGovernment Social Partners (Industry and Business; Social Partners (Industry and Business;
Organized Labour and Civil Society)Organized Labour and Civil Society)
Green Paper structure (Cont.)Green Paper structure (Cont.)
►Section 7 - Institutional Framework Section 7 - Institutional Framework for Coordinationfor Coordination The Inter-Ministerial Committee on Climate The Inter-Ministerial Committee on Climate
ChangeChange FOSAD Clusters and Outcomes Based FOSAD Clusters and Outcomes Based
MonitoringMonitoring Intergovernmental Committee on Climate Intergovernmental Committee on Climate
Change (IGCCC)Change (IGCCC) Provincial and Local Government cooperationProvincial and Local Government cooperation
Partnering with StakeholdersPartnering with Stakeholders
Green Paper structure (Cont.)Green Paper structure (Cont.)
► Section 8 - Inputs and Resources Section 8 - Inputs and Resources MobilisationMobilisation Financial ResourcesFinancial Resources Human ResourcesHuman Resources Technological ResourcesTechnological Resources InformationInformation
► The National Greenhouse Gas InventoryThe National Greenhouse Gas Inventory► Observed climate changeObserved climate change► Medium- and long-term modelling and down-scaled risk Medium- and long-term modelling and down-scaled risk
assessmentsassessments► Response MonitoringResponse Monitoring► Early Warning InformationEarly Warning Information► Information and Communication technologyInformation and Communication technology
Green Paper structure (Cont.)Green Paper structure (Cont.)
►Section 9 - Monitoring, Evaluation Section 9 - Monitoring, Evaluation and Reviewand Review Monitoring, verifying and Reporting Monitoring, verifying and Reporting
Climate ChangesClimate Changes Monitoring, verifying and Reporting Monitoring, verifying and Reporting
Green Paper structure (Cont.) – Green Paper structure (Cont.) – Unpacking Unpacking Section 5 - Policy Approaches and Section 5 - Policy Approaches and
Human Society, Human Society, Livelihoods and Livelihoods and ServicesServices
► Human Settlements, Human Settlements, Infrastructure and the Infrastructure and the Built Environment Built Environment (Urban areas, Rural (Urban areas, Rural Areas and Coastal Areas and Coastal Areas)Areas)
► WasteWaste
Green Paper structure (Cont.) – Green Paper structure (Cont.) – Unpacking Unpacking Section 5 - Policy Approaches and Section 5 - Policy Approaches and
ActionsActions►For each sector there is: For each sector there is:
A brief (5 line) introductory paragraph describing A brief (5 line) introductory paragraph describing the sector’s climate change relevance; the sector’s climate change relevance;
A few concise bullet points on the sector’s impact A few concise bullet points on the sector’s impact on CC (mitigation) and/or CC’s impact on the on CC (mitigation) and/or CC’s impact on the sector (adaptation) and/or broader socio-economic sector (adaptation) and/or broader socio-economic / socio-political CC implications for the sector / socio-political CC implications for the sector including opportunities; including opportunities;
Text along the lines of “In response to these Text along the lines of “In response to these climate change challenges for the sector, South climate change challenges for the sector, South Africa will…”; Africa will…”;
A numbered list of key interventions, i.e. dense, A numbered list of key interventions, i.e. dense, concise descriptions of what we will do as a nation concise descriptions of what we will do as a nation in meeting “the objective”.in meeting “the objective”.
Energy and the Green Paper Energy and the Green Paper – The Challenge– The Challenge
Energy and the Green Paper Energy and the Green Paper – The Challenge (Cont.)– The Challenge (Cont.)
Energy and the Green Paper Energy and the Green Paper – The Challenge (Cont.)– The Challenge (Cont.)
Energy and the Green Paper Energy and the Green Paper – The Challenge (Cont.)– The Challenge (Cont.)
Green Paper contentGreen Paper contentKey Mitigation Sector – EnergyKey Mitigation Sector – Energy
► Integrate a climate constraint into its energy Integrate a climate constraint into its energy planning tools including the Integrated Energy planning tools including the Integrated Energy Plan (IEP) and the Integrated Resource Plan for Plan (IEP) and the Integrated Resource Plan for Electricity Generation (IRP).Electricity Generation (IRP).
► Ensure that the Integrated Resource Plan for Ensure that the Integrated Resource Plan for Electricity Generation (IRP) and its future Electricity Generation (IRP) and its future iterations are modelled so as to take account of iterations are modelled so as to take account of the peak plateau and decline trajectory described the peak plateau and decline trajectory described above through the diversification of our energy above through the diversification of our energy mix, the implementation of far reaching energy mix, the implementation of far reaching energy efficiency measures, investments in the efficiency measures, investments in the development of new and cleaner technologies and development of new and cleaner technologies and industries and the initiation of the transition to a industries and the initiation of the transition to a low-carbon economy.low-carbon economy.
Green Paper contentGreen Paper contentKey Mitigation Sector – Energy (Cont.)Key Mitigation Sector – Energy (Cont.)
► Use economic instruments to internalise the Use economic instruments to internalise the cost of carbon through the introduction of a cost of carbon through the introduction of a COCO22 tax that will escalate over time. This tax that will escalate over time. This should be directed at supporting the should be directed at supporting the diversification of our energy mix, motivate the diversification of our energy mix, motivate the implementation of far reaching energy implementation of far reaching energy efficiency measures and investments in the efficiency measures and investments in the development of new and cleaner technologies development of new and cleaner technologies and industries. and industries.
► Establish a business environment that Establish a business environment that facilitates the development of an local facilitates the development of an local renewable energy technology manufacturing, renewable energy technology manufacturing, implementation and export industry and that implementation and export industry and that maximises its job creation potential.maximises its job creation potential.
Green Paper contentGreen Paper contentKey Mitigation Sector – Energy (Cont.)Key Mitigation Sector – Energy (Cont.)
► Design and roll out ambitious research, Design and roll out ambitious research, development and demonstration programmes development and demonstration programmes that result in new, novel and innovative that result in new, novel and innovative approaches to the diversification of our energy approaches to the diversification of our energy mix, development of alternative energy sources, mix, development of alternative energy sources, energy efficiency, cleaner technologies and energy efficiency, cleaner technologies and industries, carbon capture and storage and the industries, carbon capture and storage and the transition to a low-carbon economy.transition to a low-carbon economy.
► Identify and resolve the financial, regulatory and Identify and resolve the financial, regulatory and institutional barriers that may impede the institutional barriers that may impede the implementation of the renewable energy feed-in implementation of the renewable energy feed-in tariff at a level adequate to incentivise large-tariff at a level adequate to incentivise large-scale investment.scale investment.
► Review and scale up the 10,000 GWh 2013 Review and scale up the 10,000 GWh 2013 Renewable Energy target in order that it can sustain Renewable Energy target in order that it can sustain long term growth in order to promote competitiveness long term growth in order to promote competitiveness for renewable energy with conventional energies in for renewable energy with conventional energies in the medium and long term. Consideration should be the medium and long term. Consideration should be given to the feasibility of “fleet” procurement of given to the feasibility of “fleet” procurement of particular renewable technologies.particular renewable technologies.
► Develop renewable energy policy, legal and Develop renewable energy policy, legal and regulatory frameworks that allow for differentiated regulatory frameworks that allow for differentiated but specific targets, parameters and tariffs for all but specific targets, parameters and tariffs for all renewable energy technology options (wind, hydro, renewable energy technology options (wind, hydro, solar PV, CSP, landfill gas, biomass and biofuels).solar PV, CSP, landfill gas, biomass and biofuels).
Green Paper contentGreen Paper contentKey Mitigation Sector – Energy (Cont.)Key Mitigation Sector – Energy (Cont.)
Green Paper contentGreen Paper contentKey Mitigation Sector – Energy (Cont.)Key Mitigation Sector – Energy (Cont.)
► Scale-up and accelerate the implementation of the Scale-up and accelerate the implementation of the “Working for Energy” programme which seeks to develop “Working for Energy” programme which seeks to develop human capacity and labour intensive opportunities human capacity and labour intensive opportunities through renewable energy and energy efficiency through renewable energy and energy efficiency technologies as well as energy management type technologies as well as energy management type projects which will provide poverty alleviation projects which will provide poverty alleviation opportunities for SMMEs, local cooperatives and opportunities for SMMEs, local cooperatives and sustainable local economic development. sustainable local economic development.
► Explore and further develop the potential for nuclear Explore and further develop the potential for nuclear energy in terms of the national Nuclear Energy Policy, as energy in terms of the national Nuclear Energy Policy, as a means to both ensure energy security as well as a means to both ensure energy security as well as meeting the country’s climate change mitigation meeting the country’s climate change mitigation undertakings. To this end, a new nuclear fuel cycle undertakings. To this end, a new nuclear fuel cycle strategy should be implemented that provides for skills strategy should be implemented that provides for skills development and industrialisation and localisation development and industrialisation and localisation opportunities with a view to developing a nuclear power opportunities with a view to developing a nuclear power station fleet with a potential of up to 10 GWe by 2035 station fleet with a potential of up to 10 GWe by 2035 with the first reactors being commissioned from 2022.with the first reactors being commissioned from 2022.
Green Paper contentGreen Paper contentKey Mitigation Sector – Energy (Cont.)Key Mitigation Sector – Energy (Cont.)
► Introduce innovative approaches for the establishment of Introduce innovative approaches for the establishment of sustainable structures and financing mechanisms for sustainable structures and financing mechanisms for delivering renewable energy including securing funding delivering renewable energy including securing funding international climate funding institution and other international climate funding institution and other development finance institutions that fund the renewable development finance institutions that fund the renewable energy projects.energy projects.
► Invest in new and clean coal technologies and efficient Invest in new and clean coal technologies and efficient technologies where coal power is still built and reinforce technologies where coal power is still built and reinforce this through introducing more stringent thermal this through introducing more stringent thermal efficiency and emissions standards for coal fired power efficiency and emissions standards for coal fired power stations. stations.
► Set ambitious and mandatory targets for energy Set ambitious and mandatory targets for energy efficiency and in other sub-national sectors. Current efficiency and in other sub-national sectors. Current energy efficiency and electricity demand-side energy efficiency and electricity demand-side management initiatives and interventions should be management initiatives and interventions should be scaled-up, made mandatory through available regulatory scaled-up, made mandatory through available regulatory instruments and other appropriate mechanisms. instruments and other appropriate mechanisms.
Green Paper contentGreen Paper contentKey Mitigation Sector – Energy (Cont.)Key Mitigation Sector – Energy (Cont.)
► Improve energy efficiency knowledge and understanding Improve energy efficiency knowledge and understanding in the various sectors via awareness campaigns, in the various sectors via awareness campaigns, demonstration programmes, audits and education, and demonstration programmes, audits and education, and publicise corporate commitment programmes, and publicise corporate commitment programmes, and public building sector energy efficiency implementation public building sector energy efficiency implementation
► Legislate requirements for the installation of energy-Legislate requirements for the installation of energy-management systems in large-scale office buildings, management systems in large-scale office buildings,
► Replace older demand technologies or reduce their Replace older demand technologies or reduce their energy consumption. These technologies include energy energy consumption. These technologies include energy efficient HVAC systems, heat pumps, variable speed efficient HVAC systems, heat pumps, variable speed drives, efficient motors and efficient boilers. The drives, efficient motors and efficient boilers. The standards, retrofits and other management actions standards, retrofits and other management actions implemented to improve the energy efficiency of the implemented to improve the energy efficiency of the commercial sector impact on either the useful energy commercial sector impact on either the useful energy intensity of demand or the energy efficiency of the intensity of demand or the energy efficiency of the technology meeting the demand. technology meeting the demand.
Green Paper contentGreen Paper contentKey Mitigation Sector – Energy (Cont.)Key Mitigation Sector – Energy (Cont.)
► Develop, implement and maintain a greenhouse gas Develop, implement and maintain a greenhouse gas emissions information management system in respect emissions information management system in respect of the energy sector of the energy sector
► Ensure that the greenhouse gas emissions information Ensure that the greenhouse gas emissions information management system provides measurable, reportable management system provides measurable, reportable and verifiable information on all significant and verifiable information on all significant interventions (i.e. interventions that reduce interventions (i.e. interventions that reduce greenhouse gases by greater than 0.1% of emissions greenhouse gases by greater than 0.1% of emissions from the sector)from the sector)
► Develop an initiative to roll-out an Energy Develop an initiative to roll-out an Energy Management training and awareness programme to be Management training and awareness programme to be implemented within the industry and mining sectorsimplemented within the industry and mining sectors
► Introduce Minimum Energy Performance Standards Introduce Minimum Energy Performance Standards (MEPS) for appliances and equipment, as well as (MEPS) for appliances and equipment, as well as proposals for mandatory energy rating labelling.proposals for mandatory energy rating labelling.
► Develop and implement mandatory appliance Develop and implement mandatory appliance labelling for household appliances.labelling for household appliances.
► Promote the development and implementation of Promote the development and implementation of appropriate standards and guidelines and codes of appropriate standards and guidelines and codes of practice for the appropriate use of renewable practice for the appropriate use of renewable energy, energy efficient and low carbon technologiesenergy, energy efficient and low carbon technologies
► Develop a legislative policy and regulatory Develop a legislative policy and regulatory framework to support carbon capture and storageframework to support carbon capture and storage
► Extend research, development and demonstration Extend research, development and demonstration efforts on new construction materials, housing efforts on new construction materials, housing design, and energy efficient buildings.design, and energy efficient buildings.
Green Paper contentGreen Paper contentKey Mitigation Sector – Energy (Cont.)Key Mitigation Sector – Energy (Cont.)
► Energy poverty (particularly amongst the rural Energy poverty (particularly amongst the rural poor) was raised as a critical concern in terms of poor) was raised as a critical concern in terms of both adaptation and mitigation.both adaptation and mitigation.
► A concern was raised that the section on A concern was raised that the section on mitigation was overly focused on electricity:mitigation was overly focused on electricity: ““In SA there is a misconception that energy = In SA there is a misconception that energy =
electricity. This section should refer to electricity. This section should refer to electricity or ‘primary energy’ and there is a electricity or ‘primary energy’ and there is a serious duplication when other references are serious duplication when other references are made to ‘energy intensity’ in industry. It made to ‘energy intensity’ in industry. It should not be confused with electricity.”should not be confused with electricity.”
► A common concern raised was who would be A common concern raised was who would be accountable for the implementation of the accountable for the implementation of the strategy:strategy: ““Where does the buck stop?”Where does the buck stop?” ““The renewable energy policy of 2004 never The renewable energy policy of 2004 never
even reached 20% of its targets. There are no even reached 20% of its targets. There are no guarantees that policy is going to be guarantees that policy is going to be implemented or how it will be implemented. implemented or how it will be implemented. Who is accountable for the non-Who is accountable for the non-implementation? Timetabling is possible and implementation? Timetabling is possible and can be included in the policy.”can be included in the policy.”
► There was much comment on how a “fair There was much comment on how a “fair contribution” to the global mitigation effort should contribution” to the global mitigation effort should be interpreted.be interpreted. A need for sectoral breakdowns of the 34% A need for sectoral breakdowns of the 34%
below baseline by 2020 target was raisedbelow baseline by 2020 target was raised The targets were controversial, with some The targets were controversial, with some
questioning the rationale of the baseline modelquestioning the rationale of the baseline model The extent of influence of DEA on the DoE’s IRP The extent of influence of DEA on the DoE’s IRP
processes was questioned (the implication being processes was questioned (the implication being that mitigation does not carry enough weight).that mitigation does not carry enough weight).
The role of nuclear power was strongly The role of nuclear power was strongly questioned (although there was also at questioned (although there was also at least one advocate for nuclear)least one advocate for nuclear)
The reference to ‘clean coal’ was disputedThe reference to ‘clean coal’ was disputed Concern was raised in terms of the Concern was raised in terms of the
precautionary principle about the precautionary principle about the inclusion of carbon capture as a mitigation inclusion of carbon capture as a mitigation intervention – it was felt to be an intervention – it was felt to be an unproven technology.unproven technology.
►Clarity around our mitigation objective Clarity around our mitigation objective and sectoral targets was a recurring and sectoral targets was a recurring themetheme
