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NATIONAL CLIMATE CHANGE RESPONSE
GREEN PAPER 2010
Parliamentary Portfolio Committee on Water and Environmental Affairs
16TH March 2011
Dr Dhiraj Rama
CONTENTS
Introduction ACMP
Presentation Overview
Cement Sector Case Study
Recommendations
Conclusions
INTRODUCTION: Who are the ACMP?
The ACMP acts as an umbrella body for six South African clinker and
cementitious material producer companies, specifically guiding and
representing their interests in the fields of environmental stewardship, health and safety practices, and community and stakeholder interaction
The ACMP’s member companies include:
AfriSam: www.afrisam.comLafarge South Africa: www.lafarge.comNPC-CIMPOR: www.cimpor.comPretoria Portland Cement Company Ltd: www.ppc.comCemlock(Gauteng) Pty LtdI.D.M. Cement (Pty) Ltd): www.vibro.co.za
OVERVIEW
Principles of the Green Paper supported by the ACMP
The ACMP are in support of a sectoral approach to climate change
BUT The cement sector do face challenge in implementing their climate change
strategies. The aim of this presentation is :
Firstly, to provide an overview of the cement industry and historic GHG
mitigation
Secondly to highlight challenges to GHG reduction and provide
recommendations on how they may be overcome
SECTORAL APPROACHSECTORAL APPROACHA CASE STUDYA CASE STUDY
CEMENT SECTORCEMENT SECTORG
HG
Em
issi
on
s
Electricity
Limestone: 50%
Material Handling e.g. transport from quarry to factory
Coal: 35%
Extenders
AFR
EE: Energy
efficiency
Transport
DEPENDENCY
Rail freightEE: finance & technology
Extenders: Waste definition: unintended consequence of waste definition
Regulatory decision making: Thermal policy
OPPORTUNITIE
OPPORTUNITIE
SS
RISKS: INFRASTRUCTURE PROJECTSJOBS VS IMPORTS
Target setting
Rational approach
Production cut
CHALLENGESCHALLENGES
GHG MITIGATION OPPORTUNTYGHG MITIGATION ALREADY IMPLEMENTED
Recommendation 1
Targets vs. Benchmarks
GHG emission trends: Recognition of previous and current effort
Less limestone (extenders used)Less coalLess electricity
Recommendation 2
Remove legislative barriers that are counter-productive to GHG reduction
BARRIERS: Legislation: E.g. Waste Act
Waste definition: unintended consequences: A number of materials conventionally used internationally and locally
with consequences to GHG emission reduction now potentially and intriguingly renders cement as waste in RSA due to unclear definitions in the Waste Act,
International and local business risk: cement classified as waste Discourages use of slags / fly ash / boiler ash/ synthetic gypsum etc
resources: main contributors to GHG mitigation Waste definition must be reviewed urgently:
Role of Government to ensure appropriate supply chains to manage efficient response to climate change commitment
BARRIERS: Regulatory delay: Eg. Waste Tyre Regulations
13 February 2009 : Waste Tyre Regulations -13 February 2009 (GN149).
24 July 2009 : Department’s high temperature thermal treatment policy -24 July 2009
5th April 2010 : Tyre waste management plan - 5th April 2010 -to date not been approved
March 2011: status unknown. This example clearly demonstrates the role of Government to ensure appropriate supply chains to manage efficient response to climate change
Consequence:. the unnecessary use of coal, a rapidly depleting resource:
The cement producers unable to avoid CO2 emissions attributed to coal. Approximately 13 million waste tyres generated annually (=225,000 tons ).
Implementation would have promoted sustainable development principles (reduce use of natural
resources) avoided adverse impact on ambient air quality through burning of tyres and
consequences to public health
Further example of delays is the lengthy period required by authorities to authorize the EIA’s for co-processing of AFR and the issuing of waste licenses
Recommendation 3
Addressing the rail transport inefficiencies
RAIL TRANSPORT
Role of Government to ensure appropriate supply chains to manage efficient response to climate change commitment to transport of goods by rail
Road freight: key contributor to GHG emission Many businesses rely on road freight due to its access and
reliability Establish an efficient sustainable rail network
Sectoral approach required: Eg. Cement producers: the specific needs regarding both
infrastructure and service level agreements will have a significant positive impact on managing its carbon footprint.
Recommendation 4
Economic instruments for a low carbon economy
CARBON PRICING
Carbon pricing: Establishing a realistic price on carbon is a key factor to cost effective climate action
Accurately price carbon: Encourage the pro-active adoption of low carbon technologies
Carbon revenue: Focus the funds generated by a carbon price on the mitigation of carbon
emissions
Recognition of previous and current effort Signatory to the Energy Accord Use of alternate fuels
CARBON PRICING AND ECONOMIC INSTRUMENTS
Benchmarking economic instruments: Socio-economic impact assessment:
BRIC countries Energy mix Economic growth goals and targets
Efficacy of incentives vs taxes Carbon tax at present is not a good solution as it would severely impact on
the cost of doing business with consequences to the public use of a combination of different economic interventions
Benchmarking emissions: absolute vs specific values
Discount objectively the notion that major policy and action plans to address energy intensity would not suffice before confirming the carbon tax approach
RECOMMENDATION 5
White Paper
WHITE PAPER
ACMP SUPPORT DEVELOPMENT OF THE WHITE PAPERGovernance framework
Ensure progress towards implementation: Eg. National Strategy on Sustainable development Government actions/governance mechanisms:
Enhance efficient regulatory processes: Examples: Efficient permitting, compliance monitoring and enforcement of legislations
such as the Air Quality Act and the Water Act.
Improving capacity and capability of the government Departments to ensure efficient service delivery. Many actions described in the Green Paper are already related to current regulatory requirements (example Water use and discharge; agriculture management, etc).
The format be amended to deal with matters thematically: Ensures an accurate reflection of the processes already in place in South Africa. Identifies policies and programs that are already in place , but require improved
implementation or mainstreaming climate change response during implementation National strategy on sustainable development:
Must be referred to and referenced. Catalyze alignment of the different polices, programs and plans in the country
and must be a key outcome of the review processes reflected in the Green paper
Management of risk: Avoid unintended consequences: Socio economic state of RSA Trade barriers
CONCLUSION
In light of the government commitments, the ACMP endeavours to support the national initiatives to enable the country to reach the targets set, namely 34% by 2020 and 42% by 2025
Avoid unintended consequences: greenhouse gas reduction strategy does not compromise South Africa’s competitiveness and employment conditions
While focusing on these targets, adaptation strategies need to be addressed by mainstreaming it in all key government departmental policies, plans and programs
Address trade barriers