1. Mitigation System
PCEA
8 September 2015

2. Key elements of the mitigation system
Carbon Budget
Pollution Prevention Plans (Mitigation Plans)
Carbon tax
Monitoring and Evaluation

3. SA Emission reduction cycle
IRP (2015)
Mitigation Potential Analysis (2016/17)
Set carbon budget
(2018/19)
Call for pollution prevention plans (2018/19)
Annual reporting
(2021 – 25)
Assess compliance (end of the cycle – 2026)
IRP (2010)
Mitigation Potential Analysis (2014)
Set carbon budgets (2015)
Call for pollution prevention plans (2015)
Annual reporting (2016 – 20)
Assess compliance (end of the cycle – 2021)

4. Means of regulating emission of greenhouse gases
1. Carbon Budgets
Means of regulating emission of greenhouse gases
Greenhouse gas emission allowance
Carbon budget system for companies
Due to lack of data, etc, phased approach:
First phase will run from 2016 to 2020 (5 years)
Second phase – 2021 onwards (5 year periods)

5. First phase
Commence on 1 January 2016 and end on 31 December 2020
Key goal is to test the system, to inform comprehensive system post-2020
No compliance mechanism

6. Principles for allocation:
Design Elements
Allocated for a period of 5 years- with degree of flexibility from year to year
Principles for allocation:
Support for existing operations
Planned changes to emissions:

7. National Pollution Prevention Plans
The draft regulations on National Pollution Prevention Plans have been developed under the National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004)
The purpose of these regulations is to prescribe the submission and implementation of pollution prevention plans by companies with carbon budgets
The implementation of plans will demonstrate progress towards achievement of the carbon budgets allocated to these companies
CONFIDENTIAL

8. Desired Emission Reduction Outcomes & Mix of Measures
Setting of sectoral aspirational goals per sector (Agriculture, Energy, Industry, Transport, Waste)
Phased approach
First phase- Short (2020) & medium (2030) term
MPA will be used as the basis to identify DEROs
Mapping appropriate mix of policy measures per sector (Mix of Measures)
Government interventions that will support the transition to lower carbon economy and society
Used to encourage, incentivise, and/or support emission reduction

9. Carbon Tax & Carbon Budget Alignment
DEA & NT examined various options for the alignment of the 2 instruments
Companies that participate in the carbon budget system may receive additional 5% allowance
The additional 5% allowance will raise the overall maximum tax-free thresholds to 95%
Reduce tax liability

10. Greenhouse gas reporting
Draft National Greenhouse Gas Reporting Regulations have been developed under the National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004). They have been published for public comment.
The main objective of these regulations is to introduce a single national reporting framework for the reporting and dissemination of information related to GHG emissions in order:
to enable the collection of GHG emissions data
for SA to meet its obligations under the United Nations Framework Convention on Climate Change
to inform the formulation of national policy on greenhouse gas reduction.

11. Supporting programmes
Mitigation technology plan: better understand what is required to support the implementation of climate change mitigation technologies – DST leading
National Employment vulnerability assessment: assess impact on jobs, by sector – EDD leading
Socio-economic impact: assess impact of mitigation work