Sep 02, 2011
SA needs strong, clear policy signals on climate changeBack
© Reuse this
KPMG recommends that government indicate how it intends to achieve its overall commitment, what actions it expects in each sector, and what policies and incentives will be put in place to ensure the transition to a low-carbon economy.
Almost two years ago, in the international climate change arena, South Africa committed to reducing its emissions trajectory by 34% below ‘business as usual’ emission projections by 2020, on condition that financial and technological assistance is offered by developed countries.
Despite having set these targets, South Africa’s domestic climate change policy, which, it is hoped, would outline more sectoral targets and explain how the country could meet its targets, has been delayed.
South Africa’s Climate Change White Paper was expected to go to Parliament for ratification in June; however, that did not happen and, more recently, Environmental Affairs Minister Edna Molewa said the White Paper could possibly be processed by the end of this year.
Based on the 2010 Carbon Disclosure Project, which provides GHG information on the top 100 JSE-listed companies, the KPMG report analyses how companies are currently setting emissions reduction targets and the levels of reduction these targets can deliver.
In its report, KPMG evaluates how the emission targets of these companies compare with the national commitment, noting that a key challenge in performing a carbon chasm analysis is that South Africa’s absolute commitment has not been quantified.
“The commitment should be quantified and disclosed as a matter of urgency for emitters in South Africa to be able to develop strategies and set appropriate targets for emissions reductions and to be able to participate in carbon markets,” says KPMG.
The findings of the report show the gap between ‘business as usual’ carbon emissions (taken to be the growth without the constraints option under the long-term mitigation scenario) and South Africa’s voluntary commitment of 34% below ‘business as usual’ in 2020 is 253 metric tons (mt) carbon dioxide equivalent (CO2e).
KPMG explains that this ‘chasm’ constitutes about half of South Africa’s current national emissions. South Africa’s total emissions level from all sources for 2010 has been estimated at about 500 mt CO2e.
When considering targets set by the top 100 JSE-listed companies, KPMG says that this chasm is more than halved to 105 mt CO2e. This shows that the private sector will play a big role in South Africa meeting its targets.
KPMG adds that the emissions need to decrease by about 0.2% a year to achieve South Africa’s 2020 commitment. This is somewhat different to govern-ment suggestions that South Africa follow a ‘peak, plateau and decline’ trajectory, where emissions peak between 2020 and 2025, plateau to 2035 and begin declining in absolute terms from 2036.
KPMG says that, to fully bridge the carbon chasm, it is critical that the JSE top 100 have set targets and follow through in maintaining and achieving the targets they have set.
Energy efficiency has also been identified as an emission reduction strategy that companies beyond just the JSE top 100 should be investing in.
“Although it is encouraging to see the articulated voluntary GHG reduction emissions targets in the private sector, it is only through a collective effort that climate change can be seriously addressed,” says KPMG special global adviser on climate change and sustainability Yvo de Boer.
“South Africa will soon become the focus of world attention in the lead-up to COP 17, in Durban, with the chance to address some of the gaps that exist in the international climate framework,” he notes.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Deputy Editor
Other News This Week News
Updated 3 hours ago The tide has turned for South African ports and the Transnet National Ports Authority (TNPA) is pressing ahead with its investment under Transnet’s Market Demand Strategy (MDS) notwithstanding poor economic growth. TNPA CEO Richard Vallihu told a TPA...
Updated 3 hours ago A 7 500 m2 rooftop solar system has been installed on several buildings at the V&A Waterfront, in Cape Town. The powering of several buildings on the iconic property will result in an estimated 1 640 000 kWh/y of clean energy. So far, 900 kW have been successfully...
Updated 3 hours ago The 865 km gas pipeline from the central processing facility (CPF) in Temane, Mozambique, to Secunda, South Africa, is to undergo a further $210-million expansion, the Republic of Mozambique Pipeline Investments Company (Rompco) confirmed on Monday. Rompco is a joint...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
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,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...