http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.47Change: -0.03
R/$ = 13.85Change: -0.01
Au 1121.72 $/ozChange: 0.95
Pt 991.50 $/ozChange: 0.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 10, 2009

Africa lags behind in carbon market

Back
Engineering|Africa|Environment|Gas|PROJECT|Projects|Resources|System|Africa|Solutions
Engineering|Africa|Environment|Gas|PROJECT|Projects|Resources|System|Africa|Solutions
engineering|africa-company|environment|gas|project|projects|resources|system|africa|solutions
© Reuse this



The value of the global carbon market has more than quadrupled from $30-billion in 2006 to $126-billion in 2008, but Africa's share of this multibillion-dollar market has not progressed beyond 3%.

The carbon market has developed over the last few years as a result of the clean development mechanism (CDM), which is an arrangement introduced under the Kyoto Protocol allowing industrialised countries with a greenhouse gas reduction commitment to invest in projects that reduce emissions in developing countries.

Addressing delegates at the Carbon Markets Africa conference in Cape Town on Tuesday, CEF Carbon CEO Devan Pillay said that the carbon market had captivated the imagination of the world over the last few years evidenced by the fact that, since the introduction of the CDM in 2005, 1199 projects had been registered under the mechanism.

Pillay said that the majority of these projects were based in India and China and that only 3% of projects registered under the CDM were based in sub-Saharan Africa.

In fact, to date, Africa had only 36 registered CDM projects, 17 of which were based in South Africa.

A similar pattern could be discerned from projects currently in the CDM pipeline. According to Pillay, China and India had 1 878 and 1 92 projects in the CDM pipeline, respectively, while Africa only had 131 projects.

This had led to the perception among some individuals within the industry that the CDM system had failed in Africa.

However, it was acknowledged that there was significant demand for carbon emission reduction (CER) certificates from industrialised countries and that there was certainly potential for Africa to benefit more substantially from the CDM.

A number of factors were to blame for the continent's small share in the carbon market and for the relatively few registered and proposed projects within CDM.

According to CDM Africa Climate Solutions CEO Johan van den Berg the most significant factor that was inhibiting the development of a flourishing carbon market in Africa was the fact that the CDM project registration process was getting more complex.

The CDM project registration process was highly-complicated with many "hoops to jump through" and Van den Berg stated that African project developers and consultants often perceived it as impossible to fulfill the CDM registration requirements.

African countries had significant skills shortages and lacked the capacity and resources to fulfill CDM requirements, stated Van den Berg.

Another factor that was delaying the registration of African projects was the bottlenecks within the CDM system.

Speaking to Engineering News Online, United Nations Development programme principal technical adviser Marcel Alers agreed that the CDM registration process was certainly laborious and that there were bottlenecks affecting the system.

"The system is currently strained with the sheer volume of projects that have been submitted for registration," said Alers. (Approximately 500 projects are submitted to the CDM board each year for registration.)

However, he believed that the CDM was an easy target for criticism and it was only in very few cases that the process really killed the project.

But, it was important to note other factors that were influencing Africa's ability to realise its carbon market opportunities.

Firstly, Alers explained that, often, the continent did not have the fundamental enabling conditions required for the growth of a carbon market. These enabling conditions included a solid regulatory framework and, amongst other conditions, preferential feed-in tariffs.

He continued that capacity and skills were certainly an issue affecting the carbon market and it was essential to build up the continent's human resources.

Significantly, financing and investment, especially in the context of the global economic recession, was a factor that was inhibiting the growth of a carbon market in Africa.

Alers went on to suggest that, in order to grow market share, African project developers and consultants seeking carbon credits through the CDM process should broaden their focus to include more non-conventional projects within the agricultural and land-use sectors.

"Africa is one of the world's most important reservoirs of soil and other terrestrial carbon, accounting for an estimated 20% of the world's entire stock of forest carbon and a large share of its agricultural carbon, with very large potential for additional sequestration and other mitigation efforts," he said.

There was certainly potential for the continent to increase its share of the global carbon market but it was essential that Africa's governments be realistic about the enabling environment to facilitate such growth, Alers told Engineering News Online.

On the other hand, it was suggested that, in order for Africa to take advantage of the growing global carbon market, it was essential that the CDM process be made simpler.

Van den Berg elaborated that a simpler CDM process would be particularly good for sub-Saharan Africa and that a two-track CDM system should be introduced.

This two-track system would include the present CDM process in its present form and another, very simple model "where only proof at 80% level of certainty is required and only 80% of CERs are issued", explained Van den Berg.

Essentially, it was advised to reduce the quality of the process in order to get more volume of projects through the system.

 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Driving the Gauteng Department of Economic Development’s (DED’s) mandate of township revitalisation, MEC for Economic Development, Environment, Agriculture and Rural Development Lebogang Maile reported on Friday that the department had provided financial support to...
Terence Goodlace
Platinum mining and refining company Impala Platinum (Implats) is providing technical support to the South African Mint on the development of a platinum coin and, in a separate initiative, on the feasibility of platinum being held as a reserve asset by the South...
MEC Sakhumzi Somyo
The R2-billion Kouga wind farm, located at Oyster Bay in the Eastern Cape, was officially opened on Friday by Economic Development, Environmental Affairs and Tourism MEC Sakhumzi Somyo. The power plant, which entered commercial operations earlier this year,...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
The Health and Welfare Sector Education and Training Authority (HWSETA) has joined forces with Tshwane North Technical, Vocational and Education and Training College (TNC) to train 100 young unemployed learners as artisans, and marked this with an event that took...
JAMES TEMPLETON The increase in distribution is as a result of Emira’s acquisitive growth
JSE-listed Emira Property Fund reported distributions per participatory interest (PI) of 134.27 c – a distribution growth of 9% – for the 12 months to June 20, 2015.
Earlier this month ground broke on South Africa’s latest four star green building – the first of its kind in the Eastern Cape. The modern three-storey office block is located within the Baywest City precinct in Port Elizabeth’s western suburbs, along the N2, and...
South African armoured and mine protected vehicles company Denel Vehicle Systems (DVS) has won its first order since becoming part of the Denel group at the end of April. "It's a sizeable contract," reports DVS CEO Johan Steyn. "We won the contract in July. It's a...
South African guided weapons, unmanned air vehicles (UAVs) and space company Denel Dynamics plans to increase its revenues to more than R2-billion within five years. This was reported by company CEO Tsepo Monaheng at its annual "Show and Tell" briefing in Centurion,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96