The National Climate Change Response Policy

Carbon Tax Stakeholder Consultation University of Cape Town 1 November 2013

National Climate Change Response Policy

VISION Transition to a climate resilient and lower-carbon economy and society National Climate Change Response Policy OBJECTIVE Manage CC impacts through interventions that build & sustain SA’s social, economic & environmental resilience OBJECTIVE Make a fair contribution to the global effort to stabilize GHG concentrations……..

Overall approach

Needs driven and customised: employing a wide range of different approaches, tailored for the specific actors, organisations, sectors Developmental: prioritising climate change responses that have significant mitigation / adaptation benefits, AND have significant economic growth, job creation, public health, risk management and poverty alleviation benefits. Transformational, empowering and participatory: address climate change at a scale of economy that supports the required innovation and finance flows needed for a transition to a lower carbon, efficient, job creating, equitable and competitive economy Dynamic and evidence based: Build on existing successful policies and measures, ensuring policy alignment, and scaling up

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Key elements of mitigation

Build on what already exists Assess mitigation potential in key sectors and identify a set of viable options for reducing GHGs in key sectors Assess socio-economic costs /benefits of mitigation opportunities Develop desired emission reduction outcomes (DEROs) per sector Agree on the optimal combination of measures, appropriate to each sector, to achieve the DEROs (including the carbon tax, carbon budgeting approach, setting of efficiency targets, use of standards and regulation etc). Sectors / sub-sectors to formulate mitigation plans, to achieve DEROs Monitoring and evaluation

Sectors: energy, industry, transport, waste & agriculture,

Key issues:

Pricing carbon is key to driving transition to a green economy Part of the spectrum of measures available to achieve emission reductions How to integrate the carbon tax with other measures to achieve emission reductions, increased energy efficiency AND increased productivity , competitiveness and local manufacturing of green technologies Options for the carbon tax to interface with measures for achieving emission reductions depend primarily on the level and nature of the emission reduction outcomes, per sector

Key issues

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The carbon tax could be dovetailed with the process of setting desired emission reduction outcomes (DEROs) • Use the tax as a compliance tool, in relation to the set emission reduction objectives per sector (and measures to achieve them), in order to drive energy efficiency, improve productivity and increase investment in green technology • Each sector has specific characteristics and dynamics - decisions on sector threshold levels and on the optimal combination of measures or instruments to achieve emission reductions need to be informed by an assessment of sector characteristics

National Atmospheric Emissions Inventory System (NAEIS)

NAEIS System overview Activity Data Sub-Module Emissions Processing: the heart of the EI inventory module Emission Factor Sub-Module E

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EF Emissions Reporting Emission Summary Tables Public Interface for emissions results Inventory results are documented and archived

What pollutants are included in NAEIS Pollutant South Africa NAAQS NAEIS Capability 1. Criteria Pollutants

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PM, SO 2 , NO x , CO, Benzene, Dust, Lead Other metals (Arsenic, Cadmium, Nickel, etc.) 2. Hazardous Air Pollutants (HAPs) 3. Volatile Organic Chemicals (VOCs) 4. Green House Gasses (GHGs) Yes Yes Yes Yes Yes Yes

Activity Data Sub-Module Emission Factor Sub-Module Emissions Processing: the heart of the EI inventory module E

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EF Emissions Reporting Emission Summary Tables Public Interface for emissions results Inventory results are documented and archived

About the Activity Data module Activity Data Sub-Module

• On-line forms and file submission functionality • Emitter has joint control of information on the EI system (own access, generate facility-level reports) • Supporting documents (evidence) upload function • Multiple authority platforms [single tool, multi-authority access] • Cater for top-down and bottom-up information requirements • QA/QC tool [Virus, formatting, completeness, internal consistency checks, calculation errors] • Real-time validation [Historical and defined thresholds]

Activity Data Sub-Module Emission Factor Sub-Module Emissions Processing: the heart of the EI inventory module E

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EF Emissions Reporting Emission Summary Tables Public Interface for emissions results Inventory results are documented and archived

Emission Factor Sub-Module About the EF module

System has default and country specific emission/plant-specific emission factors Database of emission factors accessible to all users Metadata about the EF in the database

NAEIS emissions factor library Emission Factor Sub-Module

Activity Data Sub-Module Emission Factor Sub-Module Emissions Processing: the heart of the EI inventory module E

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EF Emissions Reporting Emission Summary Tables Public Interface for emissions results Inventory results are documented and archived

About the Processing module Emissions Processing: the heart of the EI inventory module

• Emissions calculation algorithms based on the 2006 IPCC guideline methodologies • Module allows for top-down and bottom-up methodologies Allow for time series development of AD, EF and Emissions Results • Allow for recalculations when new AD and EF is available • Historical and recalculated data should be kept by the system (archiving)

System handles both pollutants and GHGs Sec 21 ( Air pollutant emissions) IPCC Sectors (GHG Emissions)

Energy

Combustion: Stationery + Mobile

Energy

Non-energy use and feedstock

Process Emissions IP + PU Waste

Production of Primary and Secondary fuels Energy Recovery Pulp + Paper: Forest Management

A+FO+LU Fugitive Waste

Activity Data Sub-Module Emission Factor Sub-Module Emissions Processing: the heart of the EI inventory module E

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EF Emissions Reporting Emission Summary Tables Public Interface for emissions results Inventory results are documented and archived

About the Reporting module Emissions Reporting

• System is able to package data based on sectoral, provincial, local, national level, (see next slide) • Multiple export formats (current and historical data) • A public interface developed for ease of access by the general public • System is linked with GIS functionality • Inventory results are documented and archived

Data Mining

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Search emission data by

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Pollutants, Year, Location, Sector

System Implementation

• System will go-live in January 2014 • Reporting period – calendar year • Mandatory reporting – January 2015 • Reporting regulations – April 2013

THANK YOU