South Africas Designated National Authority for Clean Development Mechanism

1
South Africas Designated National
Authority for Clean Development Mechanism

• Designated National Authority
• 27 12 317 8309

2
Overview

• Functions institutional arrangement - DNA
• DNA evaluation approval procedure
• Key role players in CDM
• Projects profile
• Conclusion

3
Functions of Designated National Authority for
CDM in South Africa

• Cabinet approved establishment of DNA at DME to
  perform the following functions
• Regulation function
• Project evaluation and approval in accordance
  with section 40(a) of the Marakech Accords.
• Promotion function
• To promote and facilitate the development of CDM
  projects in South Africa
• Secure an adequate share of CDM investment in
  South Africa
• To promote CDM projects of a developmental nature
• Ensure that the mechanism is in the national
  interest (Gov. objectives)

4
Institutional Arrangement to handle CDM in SA

• DTI
• DME
• DEAT
• DST
• DoT
• NT
• DoA
• DWAF
• DoH
• DFA

Oversight

• DTI
• DME
• Parastatals
• Private Sector
• NGOs

Steering Committee
Promotions Sub-Committee
Designated National Authority (Director General
of DME)
5
DNA project approval process
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CDM Evaluation Approval Procedure

• Evaluation approval of submitted PDD should be
  read in conjunction with
• Project approval procedure of the DNA (DME, 20th
• November 2004)
• SD criteria for approval of CDM projects by the
  DNA
• (DME, 14th October 2004) and,
• Any regulations promulgated with regard to the
  DNA (Regulation Gazette No 8275)

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SD Criteria for CDM project approval

• Economic
• Attract foreign investment to SA
• Technology and skills transfer clean energy
  technologies such as cogeneration, RE ,EE,
  methane recovery etc
• Contribute to EE and RE targets
• Social
• Job creation
• Improved quality of life
• Access to services
• Environment
• Improved air quality, water quality etc

8
SA emissions by sector
Waste
Total 380 Mt CO2- equivalent
4
Agriculture
Non-energy emissions
9
Industry
Energy industries
8
Fugitive emissions
45
2
Other energy
7
Transport
11
Industrial energy
14
Share of national emissions, CO2, CH4 and N20,
1994 GHG inventory
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General Information on Projects

• Cost estimation
• PDD development R150 000
• Validation cost 12000
• Registration 10 000 (but based on type of
  project
• Monitoring (Annual)

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Overview of projects submitted for approval

• 125 projects (29 PDDs and 96 PINs) received to
  date
• Out of 29 PDDs, 15 Registered with the CDM
  Executive Board
• 4 have been issued with Certified Emissions
  Reductions
• These 29 PDDs have emissions reductions
  potential of 4.7 million tCO2e per annum
• The registered 15 PDDs have emission reductions
  potential of 2.8 million tCO2e per annum
• 14 PDDs are at validation and/or request for
  review and have emission potential of 1.9 million
  tCO2e per annum
• Kuyasa Low-Cost Housing Energy Efficient Project
  (Cape Town) July 2005 Gold Standard Award
  reduces 7 000 t eCO2 per annum

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Overview of projects submitted cont

• Lawley Fuel Switch Project (Lenasia) 03/2006
  19,000 t eCO2/yr (Issued with CERs)
• PetroSA Biogas to Energy Project (Mossel Bay)
  09/2006 29 000 t eCO2/yr
• Rosslyn Fuel Switch Project (North Pretoria)
  09/2006 107,000 t eCO2/yr
• Durban Landfill Gas to Energy Project (Durban)
  12/2006 69,000 t eCO2/yr
• Tugela CFB10 Conversion from Coal to Bark Fired
  (Tugela) 02/2007 70,000 t eCO2/yr
• Mondi Biomass Project (Richards Bay) 05/2007
  222,000 t eCO2/yr

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Overview of projects submitted cont.

• Omnia N2O Destruction Project (Sasolburg)
  05/2007 576,000 t eCO2/yr (Issued with CERs)
• EnviroServ Chloorkop Landfill Gas Project (East
  Rand) 04/2007 188,000 t eCO2/yr
• N2O abatement project at nitric acid plant No. 11
  at African Explosives Ltd- 08 Feb 08 264,000 t
  eCO2/yr
• N2O abatement project at nitric acid plant No 9
  at AEL 05 Nov 07 250 000 t eCO2/yr

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Overview of projects submitted cont.

• Sasol N2O abatement project at Sasol Nitro 25 May
  07 610, 000 t eCO2/yr
• Transalloys manganese alloy smelter energy
  efficiency project 19 Oct 07 83 000 t eCO2/yr
• Kanhym Farm manure to energy project, 18 July
  2008 27 000 t eCO2/yr
• Durban Landfill gas to Electricity
  Project-Bisasar Road Landfill, 26 March 2009, 352
  000 t eCO2/yr
• Projects cover the following types
• Fuel switch Cogeneration Energy efficiency
  Hydro power, Energy generation from renewable

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Possible barriers to CDM development in SA

• Lack of project development capacity
• Lack of financing - project development
  implementation
• High transaction costs - CERs
• Municipal Finance Management Act (MFMA)/Public
  Finance Management Act (PFMA)
• Uncertainties around post 2012 regime
• Tax implications of CERs
• Low electricity cost vs clean/renewable energies

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Conclusion

• DNA has commissioned two studies
• CERs taxation implications
• Review of SD criteria
• DNA rolling out CDM awareness raising capacity
  building initiatives
• DNA supports establishment of functional DNAs in
  other African countries

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Thank you