Mechanical Technology June 2016

⎪ Sustainable energy and energy management ⎪

Fast-tracking low carbon development in SA

the recent developments of standardised baselines in the CDM and the develop- ment of positive lists in the VCS. These developments are aimed at accelerating access, specifically for smaller projects, to potential sources of carbon finance. Many of the innovations in carbon-off- set programmes require action from the government of the country in which the programmes are implemented. Examples include certain submissions that need to be made by the Designated National Authority of a country to utilise certain provisions for automatic additionality under the CDM. Additionality is the effect of the offset project activity to reduce anthropogenic greenhouse gas emissions below the level that would have occurred in the absence of the project activity. It is also defined as whether an emissions reduction project would have occurred in the absence of incentives, such as a payment for emis- sions reductions. The baseline scenario is the scenario for an offset project activity that reason- ably represents the anthropogenic emis- sions that would occur in the absence of the proposed project activity. The baseline emissions are the greenhouse gas emissions that would occur in the baseline scenario. Carbon offset programmes are

Harmke Immink (left), a director of the carbon advisory firm, Promethium Carbon, discusses the findings of a report into low carbon development, which supports the unlocking of low carbon investments in line with the National Development Plan (NDP).

I t is not well known that many of the burdens of carbon offset schemes have been significantly reduced through innovations in recent years, through mechanisms designed to reduce the barriers in accessing carbon finance while maintaining the credibility of the programmes and the integrity of the carbon credits generated. A report produced by Promethium Carbon on fast-tracking low carbon de- velopment in SA, funded by the British High Commission in Pretoria, supports the unlocking of low carbon investment in South Africa in line with the National Development Plan. The unique carbon tax and offset scheme proposed for South Africa allows for carbon offsets to be used to mitigate a firm’s carbon tax liability. Projects that qualify to generate credits for the scheme must use an internationally recognised programme approved by the government and must be implemented inside the borders of the country and comply with the stated eligibility.

The research focuses on the stream- lining of administrative processes to be followed to obtain carbon finance. It also addresses the removal of barriers faced by smaller projects. Carbon finance is linked to specific carbon programmes such as the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS) and the Gold Standard (GS). The programmes pro- posed for the South African carbon offset scheme have a reputation of having large administrative burdens. In many cases this is deserved. It is however not that well known that many of these burdens have been significantly reduced through innova- tions in recent years, designed to reduce the barriers in accessing carbon finance while maintaining the credibility of the programmes and the integrity of the carbon credits generated. Reducing costs and administra- tive burdens have been key areas of development for many international offset programmes. Examples include

Low carbon development in underdeveloped regions in South Africa will not only assist in reducing extreme poverty in these regions, but also help to reduce migration of vulnerable people from these areas. Photo: Kilowatts for Humanity, Zambia.

Mechanical Technology — June 2016

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