Emission Development Strategy 2050

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OH AF ICA LO EMISSIONDEVELOPMENTSTRATEGY 2050February 2020

TABLE OF CONTENTSACRONYMS . IVEXECUTIVE SUMMARY . VIII12INTRODUCTION . 11.1The global climate crisis . 11.2The Paris Agreement . 21.3The Science of 1.5 C and what it means for the Paris goals . 31.4Methodological elements for developing LEDS . 41.5South Africa LEDS a living document . 6THE SOUTH AFRICAN ECONOMY, EMISSIONS PROFILE AND POLICY LANDSCAPE . 82.1South Africa s Economy. 82.1.1Energy supply . 82.1.2Mining and the industrial sector . 102.1.3Agriculture, Forestry and Land Use (AFOLU) . 112.1.4Waste sector . 112.1.5Other sectors . 112.2Greenhouse gas emissions profile . 122.3Policy, legislation and strategies that inform SA-LEDS. 142.3.1National Development Plan 2030 . 152.3.2National Climate Change Response Policy . 152.3.3Climate Change Bill . 172.4The role of sub-national government and the private sector . 172.4.1Sub-national government . 172.4.2The contribution of the private sector . 182.5Vulnerability and resilience . 183VISION STATEMENT . 194GHG EMISSIONS MITIGATION MEASURES . 214.1Energy supply . 214.1.1Integrated Energy Plan . 214.1.2Integrated Resource Plan . 234.1.3Biofuels opportunities . 26i

4.24.2.1National Energy Efficiency Strategy . 274.2.2Support for uptake of Solar Water Heaters . 314.2.3National Building Regulations and Buildings Standards Act . 314.2.4Promotion of Cleaner Mobility . 324.3567Energy demand . 27Industry . 334.3.1Industrial Policy Action Plan (IPAP) . 344.3.2Tax incentives for green project development . 354.4Agriculture, Forestry and Land Use (AFOLU) . 364.5Waste . 374.6Cross-Cutting Measures . 394.6.1Carbon Tax . 394.6.2Sectoral Emissions Targets (SETs) . 404.6.3Carbon Budgets . 414.6.4Phasing out of inefficient fossil fuel subsidies/incentives . 41GOING FURTHER TO ACHIEVE THE PARIS GOALS . 425.1Enhancing the vision for development . 435.2Enhancing institutional capabilities and arrangements for the transition . 445.3Creating the right financial environment through aligning fiscal strategy with sustainable growth . 465.4Providing broad access to funds . 475.4.1Climate finance flows to date . 485.4.2Formalising climate finance structures . 505.4.3Climate finance opportunities. 515.5Driving innovation, research, and skills for future value capture . 545.6Ensuring a just transition with jobs for all . 565.7Promoting sustainable development through education and culture. 575.8Enhancing information and metrics . 57CONCLUDING REMARKS: PLANNING FOR IMPLEMENTATION . 586.1Detailed sectoral work to explore transformation pathways . 586.2Creation of policy package roadmaps across three phases . 59REFERENCES . 63ii

LIST OF FIGURESFigure 1: SA-LEDS in the context of prior climate-related work in South Africa . 7Figure 2: Key contributors to GDP . 8Figure 3: Contribution of main emission categories and energy emission categories to national gross greenhousegas emissions in 2015 . 13Figure 4: Total gross national GHG emissions by economic sector . 14Figure 5: South Africa s Peak, Plateau, Decline Trajectory Range. 20Figure 6: Sectoral energy demand . 22Figure 7: Share of installed capacity in the 2019 IRP in MW . 25Figure 8: Domestic climate finance (2015 - 2017) . 49LIST OF TABLESTable 1: Strategic interventions outlined in South Africa s National Adaptation Strategy . 19Table 2: Energy efficiency targets outlined in the post-2015 NEES . 28Table 3: Measures outlined in the post-2015 NEES . 29Table 4: Current institutional arrangements to address climate change response actions . 45Table 5: The three phases of the just transition . 61iii

ACRONYMSADPAd Hoc Working Group on the Durban Platform for Enhanced ActionAFOLUAgriculture, Forestry and Land UseBRTBus Rapid TransportCAConservation AgricultureCO2Carbon dioxideCoPConference of the PartiesCSIRCouncil for Scientific and Industrial ResearchCTLCoal-to-LiquidsDAFFDepartment of Agriculture Forestry and FisheriesDBSADevelopment Bank of Southern AfricaDEADepartment of Environmental AffairsDoEDepartment of EnergyDSIDepartment of Science and InnovationGDPGross Domestic ProductGHGGreenhouse GasGJGigajouleGTLGas-to-liquids (GTL)GTSGreen Transport StrategyGWhGigawatt hourHySAHydrogen South AfricaIDCIndustrial Development CorporationIEPIntegrated Energy PlanIGCCCIntergovernmental Committee on Climate Changeiv

IMCCCInter-Ministerial Committee on Climate ChangeIPAPIndustrial Policy Action PlanIPCCIntergovernmental Panel on Climate ChangeIPPIndependent Power ProducerIRPIntegrated Resource PlanKfWGerman KfW Development BankLEDSLow-Emission Development StrategyLTASLong Term Adaptation ScenariosLTMSLong Term Mitigation ScenariosMACCMarginal Abatement Cost CurveM&EMonitoring and EvaluationMINMECMinisters and Members of Executive CouncilsMINTECHMinisterial Technical Advisory BodyMPAMitigation Potential AnalysisMRFMaterial Recovery FacilityMtMegatonneMt CO2-eqMegatonne Carbon Dioxide EquivalentMWMegawattNCCCNational Committee on Climate ChangeNCCRPNational Climate Change Response PolicyNDCNationally Determined ContributionNDPNational Development PlanNEESNational Energy Efficiency StrategyNEM:WANational Environmental Management: Waste Actv

NERSANational Energy Regulator of South AfricaNEVANational Employment Vulnerability AssessmentNIPFNational Industrial Policy FrameworkNPCNational Planning CommissionNTCSANational Terrestrial Carbon Sinks AssessmentNWMSNational Waste Management StrategyPAMsPolicies and MeasuresPCCCCPresidential Climate Change Coordinating CommissionPJPetajoulePPDPeak, Plateau and DeclineRERenewable EnergyREIPPPPRenewable Energy Independent Power Producer Procurement ProgrammeREDDReducing Emissions from Deforestation and Forest DegradationSACCSSouth African Centre for Capture and StorageSANSSouth African National StandardSA-LEDSSouth Africa Low-Emission Development StrategySDGSustainable Development GoalSETSectoral Emissions TargetSJRPSector Jobs Resilience PlanSTEPSubtropical Thicket Ecosystem ProjectSTIScience, Technology and InnovationSWHSolar Water HeaterUNUnited NationsUNESCOUnited Nations Educational, Scientific and Cultural Organizationvi

UNFCCCUnited Nations Framework Convention on Climate ChangeWtEWaste-to-EnergyZARSouth African Randvii

EXECUTIVE SUMMARYINTRODUCTIONSouth Africa, like the rest of the world, is vulnerable to the impacts of climate change. In unmitigated greenhousegas (GHG) emissions scenarios, warming of up to 5 to 8 C is projected over the interior of the country by the endof this century. Under a range of warming scenarios, drier conditions will be experienced in the west and south ofthe country and wetter conditions in the east. Rainfall patterns will become more variable and unpredictable.These changes will impact on water resources and food production, and increase the vulnerability of impoverishedcommunities, amongst others. The South African government thus regards climate change as a considerablethreat to the country and its socio-economic development. At the same time, if climate change is to be limitedthrough limiting the growth in global GHG emissions, with South Africa contributing its fair share to emissionreductions, there will be other implications for the country. As one of the top 20 global emitters, with a highdependency on fossil fuels, substantial emission cuts will be required. The rapid transition that will be requiredpresents a potential risk to economic growth and sustainable development if not managed properly.Through the Paris Agreement, Parties to the United Nations Framework Convention on Climate Change(UNFCCC) have agreed to limit the increase in the global average temperature to well below 2 C above preindustrial levels, and pursue efforts to limit the temperature increase to 1.5 C above pre-industrial levels . Article4 of the Agreement sets out Nationally Determined Contributions (NDCs) as the instrument countries mustdevelop to present their part of the global effort to reach global peaking of greenhouse gas emissions as soonas possible on the basis of equity and in the context of sustainable development and efforts to eradicatepoverty . To help ensure that the Parties national contributions can jointly achieve the collective goal, the Articlefurther states that Parties should strive to formulate and communicate long-term low greenhouse gas emissiondevelopment strategies, mindful of Article 2 taking into account their common but differentiated responsibilitiesand respective capabilities, in the light of different national circumstances .This document has been prepared in response to that Article, and presents South Africa s first Low EmissionDevelopment Strategy (SA-LEDS). Through submitting this document to the UNFCCC our country reiterates itscommitment to achieving the Paris goals. Implementation of the Strategy will also contribute directly and indirectlyto the meeting of Sustainable Development Goals (SDGs).SA-LEDS builds upon years of work on climate change in the country, which has contributed to the establishmentof an important set of policy documents. Building on existing plans offers numerous benefits, such as optimizingviii

resources and ensuring buy-in of key stakeholders. Three key climate policy documents provide the foundationon which SA-LEDS has been developed. These are:The National Development Plan (NDP): With an overarching objective of eliminating poverty andreduce inequality by 2030, the NDP outlines a set of goals and actions to meet the country senvironmental sustainability and resilience needs, and dedicates a full chapter to EnvironmentalSustainability An equitable transition to a low-carbon economy .The National Climate Change Response Policy (NCCRP) represents government s comprehensivepolicy framework for responding to climate change, including provisions for adaptation and mitigation.The Climate Change Bill (forthcoming) will form the legislative foundation for the climate changeadaptation and mitigation response. With respect to mitigation, the Bill provides for future review anddetermination of the national greenhouse gas emissions trajectory; determination of sectoral emissionstargets for emitting sectors and subsectors; and allocation of carbon budgets. It also makes provisionfor the development of plans to phase down or phase out the use of synthetic greenhouse gasesinline with the Kigali Amendments to the Montreal Protocol.Various other strategies, policies and sector plans have been developed for individual sectors of the economy,which will all contribute to driving emission reductions. These are detailed in later sections of this document tooutline the set of discrete measures which serve as a starting point for implementation of the LEDS. At the sametime, many of these plans were developed prior to the adoption of the Paris Agreement and do not consider thelong-term, global goals in a coordinated manner and address a shorter timeframe than mid-century. Keeping SALEDS as a dynamic and flexible document is important to ensure it keeps pace with domestic policydevelopments, research, development and innovation, and declining costs of emissions mitigation technologies.Notable here is a process being undertaken by the National Planning Commission (NPC) to develop a commonvision for the country in 2050. This vision will be instrumental in driving harmonisation of government plans andpolicies and so it is important that the NPC process and vision takes into account the Paris goals.In addition to policies and measures being implemented by national government, many sub-national (provincialand local) government departments are undertaking activities that contribute to the national mitigation, adaptationand resilience efforts. Sub-national activities have, however, not yet been aligned or coordinated, and differentgeographical locations see different levels of activity. A diverse range of actions that contribute to GHG emissionsmitigation is also being seen across the private sector, with significant gains having been made in certain sectorson both energy efficiency and emissions mitigation.ix

Although this strategy focuses primarily on greenhouse gas emissions mitigation, the vulnerability to climatechange impacts, as well as the need to build resilience to these impacts is noted, and will be further elaboratedin future iterations of SA-LEDS. South Africa has developed a National Climate Change Adaptation Strategy thathighlights nine key vulnerability areas for the country which acts as a complement to this document.VISION STATEMENTThe stated vision for SA-LEDS is as follows:South Africa follows a low-carbon growth trajectory while making a fair contribution to theglobal effort to limit the average temperature increase, while ensuring a just transition andb ilding of he co n r s resilience o clima e changeIn the absence of an agreed quantitative articulation of the vision, the Peak, Plateau, Decline Emissions TrajectoryRange, as reflected in the NCCRP and NDP, is used as the benchmark against which the performance of SALEDS will be measured. The Climate Change Bill, described later, makes provision for regular updates of thistrajectory, through which it can be better placed within the context of the Paris Agreement. The outcomes of theNational Planning Commission process to develop a common vision for the country in 2050 will be used to updateSA-LEDS once released. In the development of the vision, South Africa will give due consideration to the IPCCSpecial Report on 1.5 C, which represents the latest available science regarding this goal.GHG EMISSIONS MITIGATION MEASURESThe strategy centres on measures currently being implemented by government to address mitigation across thefour key sectors of the economy, namely energy, industry, AFOLU and waste. It also presents planned crosssectoral measures that will contribute to driving mitigation action. As indicated previously, many of the measuresaddress only the short term, and are not considered transformational. South Africa puts these forward as a startingpoint from which to ratchet up our future ambition towards more integrated, transformational strategy.Energy supplyDecarbonisation of energy supply will largely be driven through the:Integrated Energy Plan, which analyses current energy supply and demand trends within the differentsectors of the economy, across all energy carriers. It then uses this information along with assumptionsx

about future demand and technology evolution to project the country s future energy requirements undera variety of different scenarios, including those with emissions limits and carbon prices.Integrated Resource Plan, which guides the evolution of the South African electricity supply sector, inthat it identifies the preferred electricity generation technologies to be built to meet projected electricitydemand. It thus provides a mechanism for Government to drive the diversification of the country selectricity generation mix and promote the use of renewable energy and other low-carbon technologies.Biofuels Opportunities, offered through the Biofuels Industrial Strategy of 2007 (yet to be implemented)and second and third generation biofuels technologies that could potentially increase the volumes ofbiofuel that could be produced, without competing with food products for feedstocks.Energy demandSA-LEDS supports the implementation of a selection of measures to reduce energy demand, or limit growth inenergy demand, as the economy and population grows:The National Energy Efficiency Strategy: In 2005, the Department of Energy launched the first NationalEnergy Efficiency Strategy (NEES). Building on this document, the Department of Minerals and Energyis finalizing the post-2015 NEES, which outlines a set of goals for energy efficiency improvements acrossthe economy to 2030. The NEES also identifies a set of measures to be implemented in each sector toachieve the stated targets. The Post-2015 NEES makes provision for a review every five years.Support for increased uptake of Solar Water Heaters: Solar Water Heaters (SWH) partially offset useof electricity for water heating in middle- and high-income households, and can service low-incomehouseholds that did not previously have ready access to hot water or used fuels other than electricity forwater heating. Since 2005 a number of goals have been set, and associated support programmes havebeen established to drive uptake of SWH, with the NDP introducing a goal of five million SWHs by 2030.The National Building Regulations and Buildings Standards Act: To further efforts to decreaseenergy consumption and associated GHG emissions of new commercial and residential buildings, thegovernment has implemented energy efficiency and energy consumption standards under the NationalBuilding Regulations and Buildings Standards Act. The first of these is South African National Standard(SANS) 204 Energy Efficiency in Buildings. This standard specifies the design requirements for energyefficiency in buildings and of services in buildings with natural environmental control and artificialventilation or air conditioning systems. The second, SANS 10400-XAEnergy Usage in Buildings,includes the provisions of SANS 204 and others, providing a standard for energy efficient buildings.xi

Promotion of cleaner mobility: Emissions from energy supply in the transport sector are addressedthrough a number of policy documents. The 2007 Public Transport Strategy sets out an action plan foraccelerated modal shifts and for the development of integrated rapid public transport networks. Sincethen, the successful implementation of the bus rapid transport (BRT) system in Johannesburg has led toit being adapted and implemented in other major South African cities, with further roll-outs being planned.In 2018 the Green Transport Strategy (GTS) to 2050 was launched. The GTS provides the strategicdirection for the transport sector regarding the reduction of GHG emissions, the contribution of transportto the green economy and the promotion of sustainable mobility. The Strategy aims to support reductionsin the contribution of the transport sector to national greenhouse gas emissions through interventions thatinclude local electric vehicle and battery production and roll out of solar powered charging stations;continued use of fuel economy norms and standards for fuel efficiency and GHG emissions of vehicles;and facilitating a shift of freight from road to rail. In September 2010 a CO2 tax was introduced on theselling price of new motor vehicles that exceed a certain emissions limit.IndustryTwo sets of policies that directly and indirectly support emissions reductions in the industrial sector are identified,beyond those that target energy efficiency. The Industrial Policy Action Plan (IPAP), the implementation planfor the National Industrial Policy Framework, is revised at various intervals. The most recent revision, which coversthe period 2018/19 to 2020/21, provides updates on key focus areas within the industrial sector, one of which isgreen industry investment. The implementation of technologies with potential for contribution to emissionsreductions in the industrial sector is also supported by various tax incentives, contained in the Income Tax Act.Agriculture, Forestry and Land Use (AFOLU)Mitigation actions identified in the AFOLU sector include Policies and Measures developed by line departmentsincluding the Department of Agriculture Forestry and Fisheries (DAFF)1. These include the draft Climate ChangeAdaptation and Mitigation Plan for the South African Agricultural and Forestry sectors, the ConservationAgriculture Policy and the Agroforestry Strategic Framework for South Africa.1Note that with a government restructure Forestry and Fisheries has now been combined with Environmental Affairs, while Agriculturehas been combined with agriculture and the department of rural development and land reform. The implications of this restructuring onpolicy implementation has not yet been considered.xii

WasteWaste management activities are legislated through the National Environmental Management: Waste Act, withfurther policy direction being provided through the National Waste Management Strategy (NWMS). The Strategyadopts the waste management hierarchy of waste avoidance and reduction, re-use, recycling, recovery, treatmentand disposal, activities which potentially contribute to a reduction in emissions from material life cycles 2.Subsequent to the Waste Act and NWMS, twenty national waste management initiatives and annual targets havebeen established through a process known as the Waste Phakisa. Of the initiatives, five are likely to have directand indirect impacts on the total national greenhouse gas emissions. The importance of circular economy thinkingin guiding the Waste Phakisa initiatives is recognised.Cross-Cutting MeasuresIn addition to the measures specific to individual sectors described, four cross-cutting measures that will supportlow carbon development are in various stages of being implemented.Carbon Tax: The Carbon Tax Act was brought into effect from 1 June 2019, which gives effect to thepolluter pays principle and aims to price carbon by internalising the negative costs of emitting GHGs.The tax rate is set at R120 per tonne of CO2-eq. To allow businesses time for transition, a basic tax-freeallowance of 60% will initially apply to all emissions, with further allowances depending on the activities.The tax structure will be revised post-2021 to align with the proposed mandatory carbon budgets.Sectoral Emissions Targets (SETs): The national emissions trajectory will be translated into SectoralEmission Targets or SETs, which are quantitative greenhouse gas emission targets allocated to anemitting sector or sub-sector, over a defined time period. Individual national government departments willbe tasked with developing and implementing Policies and Measures (PAMs) to ensure emissions fromwithin a sector or sub-sector remain within SET limits.Carbon Budgets: Carbon Budgets set a maximum volume of emissions from certain activities thatindividual entities are allowed to emit over three rolling five-year periods. By assigning a Carbon Budgetto an entity, a signal is provided as to the degree of GHG mitigation that is required within a specific timeperiod, with a penalty being imposed if the budget allocation is exceeded. Furthermore, by providingentities with an understanding of how budgets are likely to be assigned in future phases to keep overallEmissions savings achieved through actions in the waste sector will not all be reflected in that sector s inventory, however they maycontribute indirectly to national emissions savings.2xiii

national emissions within the bounds of the national emissions trajectory, which will continue to be reviseddownward in keeping with t

GDP Gross Domestic Product GHG Greenhouse Gas GJ Gigajoule GTL Gas-to-liquids (GTL) GTS Green Transport Strategy GWh Gigawatt hour HySA Hydrogen South Africa . South Africa, like the rest of the world, is vulnerable to the impacts of climate change. In unmitigated greenhouse gas (GHG) emissions scenarios, warming of up to 5 to 8 C is .

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