http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.11Change: 0.00
R/$ = 11.90Change: -0.02
Au 1205.90 $/ozChange: -0.17
Pt 1147.50 $/ozChange: -1.00
 
 
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  
 
 
Mar 18, 2010

Lack of clarity on climate regime ‘not good for business’

Back
ERM senior consultant Simon Clarke and PwC governance and sustainability manager Thabani Mlilo discuss business attitudes to the physical risks of climate change. Video cameraperson: Nicholas Boyd Video editing by: Darlene Creamer
 
 
 
Port|Africa|Resources|Water|Africa|Products|Environmental|Water|Operations
Port|Africa|Resources|Water|Africa|Products|Environmental|Water|Operations
port|africa-company|resources|water-company|africa|products|environmental|water|operations
© Reuse this



The Department of Environmental Affairs (DEA) has acceded that the lack of clarity with regard to the international climate change regime was "not good for business".

"The future of the Kyoto Protocol is not clear, hence the future of the clean development mechanism is unclear," Water and Environmental Affairs Minister Buyelwa Sonjica said in a speech, which was read at a conference by her climate change adviser Xolisa Ngwadla.

However, it was also stated that numerous government policies and action plans were in agreement that a shift towards a cleaner ‘green' and low carbon economy in South Africa were inevitable and would have benefits. Thus investment in this area would not be misplaced.

At a national level, the DEA encouraged business to participate in climate change policy creation and governmental processes, as this was a far-reaching issue. The department has indicated that it will release a climate change green paper for public comment by June 2010, while the White Paper on climate change was expected by December 2010.

The release of the document has been delayed, also largely because the national department was hoping for clarity on the international climate change regime from the global climate change conference in Copenhagen in December 2009, although this was not forthcoming.

Commentators from business present at the Merchantec Carbon conference in Bryanston on Thursday indicated that they had not been very thoroughly consulted on the government's climate change plans for the future.

A particular concern was just how South Africa would reduce its greenhouse gas emissions by 34% below the business as usual scenario by 2020. Whether or not this would be further broken down into sectoral targets and what individual companies would be obliged to do in this scenario were questions that business felt should be clearly articulated by government.

Ngwadla said that the green paper on climate change would likely address these issues. He also noted that this document would largely build on work done and documentation produced at the March 2009 Climate Change Summit that was held in Johannesburg.

The national climate change committee was also considering inputs from various stakeholders such as business, civil society and academic institutions.

BUSINESS ACTION ON CLIMATE CHANGE

Environmental Resources Management (ERM) senior consultant Simon Clarke noted that besides the potential regulatory risks and tightening of legislation, which was acting as a driver for business to consider outlining a climate change strategy, there were also physical risks from extreme weather events causing asset damage, as well as competitive and reputational risks for a company.

He added that South African companies had "a way to go" on climate change strategy planning, and a major challenge was the fact that climate change is perceived as a long-term issue, while companies often focused on short-term growth and targets.

"Making the links between the physical impacts and the financial bottom line," was important.

Clarke explained that the physical risks could be related back to financial terms, for example, if an exporter used port terminals and extreme storms cause port closures that meant not exporting products for a certain number of days, which would mean a loss of a certain amount of money.

"Physical risks are something that are starting to become front and centre in the debate," added PricewaterhouseCoopers governance and sustainability manager Thabani Mlilo - noting that insurance companies, for example, were starting to factor it in to operations.

 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Environment News
Industry body Plastics South Africa (SA) believes that its sustainability objective, dubbed ‘Zero Plastics to Landfill by 2030’, which was launched in February last year, is both realistic and achievable. The organisation says the goal, which will be pursued in...
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
Recycling company Petco’s largest contracted recycler Extrupet launched its new Phoenix polyethylene terephthalate (PET) bottle-to-bottle recycling plant last week in Germiston, which will produce an additional 14 000 t/y of PET resin for the PET packaging industry.
More
 
 
Latest News
South Africa’s crude steel production dropped by a sizeable 17.2% year-on-year to an estimated 530 000 t in April, amplifying a global trend that saw world steel production decline by a comparatively marginal 1.7% to 135-million tons in the fourth month of the year....
The Treasure the Karoo Action Group (TKAG) on Friday called on government to delay publishing final regulations and issuing rights for shale gas exploration in the Karoo, until a 24-month strategic environmental assessment (SEA) has been concluded. TKAG CEO Jonathan...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
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