Green Transport and the Carbon Market. Making the connection. September 2011

© 2011 Deloitte Touche Tohmatsu Limited The Agenda The Carbon Market State of Energy Report - City of Joburg Rea Vaya BRT and the Carbon Market Other Initiatives – SANERI’s Green Transport Centre 2

1. The Carbon Market 3

© 2010 Deloitte Touche Tohmatsu Limited Climate Change & its effects Kyoto Protocol 5,2% reduction of 1990 levels betweens 2008 & 2012 Developed Countries have to reduce to meet reduction target Developing Countries can reduce and get carbon credit income ‒ Assist developed countries to meet their targets 4

© 2010 Deloitte Touche Tohmatsu Limited. Carbon Market 5 Source: World Bank. State and Trends of the Carbon Market. 2011

© 2011 Deloitte Touche Tohmatsu Limited CDM Process Project Idea Note (PIN) Letter of No Objection (LoNo) Designated National Authority (DNA) CDM Executive Board (CDM EB) Project Developer Designated Operational Entity (DOE) Project Developer Designated National Authority (DNA) Project Design Document (PDD) DocumentDecisionBody Optional Project RegistrationValidation Project Idea ? Designated Operational Entity (DOE) Host Country Rules Verification of actual reductions Letter of Approval (LoA) 6

© 2010 Deloitte Touche Tohmatsu Limited Some Requirements for a Carbon Project Project with ER potential BE - PE = ER 10 Methodologies Bus Rapid Transit Emission Reduction by low- greenhouse emission vehicles Introduction of bio-CNG in transportation Additionality Greater emission reductions will be a direct result of the project activity Sustainable Development Economic Social Environmental 7 Types Compliance Market Voluntary Market

2. State of Energy Report – City of Joburg 8

© 2011 Deloitte Touche Tohmatsu Limited State of Energy Report – City of Joburg 9 Source: State of Energy Report - City of Joburg 2008

3. Rea Vaya BRT and the Carbon Market 10

© 2011 Deloitte Touche Tohmatsu Limited Rea Vaya and the Carbon Market Largest public transport project undertaken by the City Plan is to “roll out 122 km mainline BRT corridors served by 150 stations and 250 km formal feeder-routes...enabling access to 80% of City’s residents”. Voluntary market – VCS Over 380,000 CO 2 e p/a 11

4. Other initiatives 12

© 2011 Deloitte Touche Tohmatsu Limited SANERI’s Green Transport Centre & Others Vehicle conversion to alternative fuels such as: ‒ LPG ‒ CNG ‒ LNG ‒ Bio ethanol ‒ Bio diesel ‒ Electricity Gautrain 13

© 2011 Deloitte Touche Tohmatsu Limited Contact Details Sizwe Kuzwayo Assistant Manager Deloitte | Sustainability & Climate Change

© 2011 Deloitte Touche Tohmatsu Limited 15