Climate change Submission to parliament by Business Unity South Africa

BUSA Confederation of business associationsConfederation of business associations Representing all major sectors of the SA economyRepresenting all major sectors of the SA economy Member of the International Organisation of Employers (IOE)Member of the International Organisation of Employers (IOE) Member of SADC Employers’ AssociationMember of SADC Employers’ Association Business representative body for National Economic Development and Labour Council (Nedlac)Business representative body for National Economic Development and Labour Council (Nedlac) Business representative body for Presidential Working GroupBusiness representative body for Presidential Working Group Accredited at UNFCCC as observerAccredited at UNFCCC as observer

Vision Lower carbon growth path Lower carbon growth path More diverse energy mix More diverse energy mix Business as usual not an option Business as usual not an option

Business response Constructive input to policy development Voluntary participation in Carbon Disclosure Project Sponsorship of the South African Centre for Carbon Capture and in March 2009 Pipeline of CDM projects advancing Voluntary submission of GHG data to Government – –1 st and 2 nd and 3 rd national communication Energy Efficiency Accord

Energy efficiency Commitment to voluntary Energy Efficiency Accord Industrial partners target 15% improvement by 2015, on 2000 energy intensity Working with Government and UNIDO on large energy efficiency project National Cleaner Production Centre energy efficiency projects Reductions in direct emissions

Independent Power Production Number of projects awaiting: – –Reinstatement of program for all power purchases – –Standard Power Purchase Agreement – –Independent System Operator – –Cost recovery mechanism rules – –Grid access

Copenhagen declaration May 2009 Signed by a number of RSA companies Push for robust treaty despite economic downturn Economic recovery and climate action could be complimentary Agreed on short term cost but long term benefits Five step imperative requires: – –Science based stabilization path with 2020 and 2050 reduction targets – –Effective Measurement, Reporting, Verification by business – –Financing incentives for low emission technologies – –Deployment of existing technologies; dev. of new ones – –Funds for adaptation

Climate change policy Need to adapt in the following areas will require innovation and resources:Need to adapt in the following areas will require innovation and resources: –Redistribution of rainfall patterns could threaten food security –Imperative to improve water use efficiency –Redistribution of malaria vector Imperative that an integrated policy is developedImperative that an integrated policy is developed –Build on existing policy instruments and strategies –Active participation by all government departments –Application of regulatory impact assessment to policy before finalisation –Implementation strategy for new initiatives

Climate change policy (2) Sectoral instruments that should be integrated in climate change responseSectoral instruments that should be integrated in climate change response –Agricultural strategy –Water for Growth and Development, National Water Resource Strategy –Energy Efficiency Strategy, Renewable Energy Strategy, Integrated Energy Plan, –Incorporation of climate considerations in Industrial Policy Action Plan –Biodiversity management Encouragement of voluntary initiativesEncouragement of voluntary initiatives Private public partnershipsPrivate public partnerships Support for research and development and technology innovation and deploymentSupport for research and development and technology innovation and deployment Market instrumentsMarket instruments

Urgent actions Finalise “green jobs” strategyFinalise “green jobs” strategy Aggressively pursue energy efficiencyAggressively pursue energy efficiency Aggressively pursue installation of solar water heatersAggressively pursue installation of solar water heaters Aggressively pursue non Eskom generation optionsAggressively pursue non Eskom generation options Consider negative impact of Eskom price on lower carbon growth path in the absence of alternativesConsider negative impact of Eskom price on lower carbon growth path in the absence of alternatives

Conclusions Business needs to be a partner in developing and implementing mitigation and adaptation actions Recognition of need for strong business leadership BUSA committed to working with Government and other stakeholders towards a lower carbon growth path