1. PACE - Promoting Access to Carbon Equity PACE Centre Links between renewable energy, energy efficiency & CDM

2. PACE - Promoting Access to Carbon Equity PACE Centre Outline Why are renewable energy & energy efficiency important? Why is CDM important? Why is small-scale CDM important?

3. PACE - Promoting Access to Carbon Equity PACE Centre Why are renewable energy & energy efficiency important? -1 South Africa – needs to reduce dependency on finite fossil fuels and questionable oil rich nations is a GHG intensive country has existing RE targets is likely to confront its own targets under Kyoto beyond 2012 confronts major challenges in extending infrastructure and services to the entire population

4. PACE - Promoting Access to Carbon Equity PACE Centre Why are renewable energy & energy efficiency important? - 2 The poor are most vulnerable to accelerated climate change Current climate change projections have the potential to undermine other poverty alleviation efforts South Africa is well endowed with renewable energy Both Renewable Energy & Energy Efficiency represent new sectors with considerable growth potential The promotion of renewable energy & energy efficiency is therefore not merely environmentally sound but also economically sensible to ensure security of supply and sustainable development

5. PACE - Promoting Access to Carbon Equity PACE Centre Why is CDM important? Contributes to reducing GHG Provides additional revenue for RE & EE Conduit for technolog y transfer

6. PACE - Promoting Access to Carbon Equity PACE Centre DEFINITIONS Why is small-scale CDM important? - 1 Small-scale CDM Marrakesh Agreements, as stated by the Community Development Carbon Fund ~ Renewable energy projects = not exceeding 15 megawatt (MW) in rated capacity Energy efficiency projects = not exceeding 15 gigawatt hours (GWh) per year in savings Other projects = activities with not greater than 15,000 tons per year of direct CO2eq emissions Practically ~ Lack of ability to absorb normal transaction costs Less environmentally harmful, and may therefore not require as stringent regulation

7. PACE - Promoting Access to Carbon Equity PACE Centre Why is small-scale CDM important? - 2 Lowest marginal cost of abatement Greatest impact on poverty Compatible with a number of ongoing LED activities