M van Schalkwyk: Energy Security and Climate Change meeting

27 September 2007

On behalf of South Africa, I would like to thank you for creating this
opportunity to deliberate on our common challenges. Energy and climate security
present them as the horns of the greatest dilemma humanity may yet have faced.
The fact that these challenges are twins and inextricably linked is now clearer
than ever, through the efforts of science.

We must conclude international negotiations by 2009 on the climate regime
after 2012. A road map for multilateral negotiations to achieve this must be
agreed in Bali. 2008 will be an important milestone in the run-up to an
agreement, by 2009, that builds on the United Nations Framework Convention on
Climate Change (UNFCCC) and its Kyoto Protocol. At COP14 in Posnan we must take
stock of and receive reports from the different contributions to the
multilateral process, including this one. This meeting today is therefore very
timely. Dedicated efforts will be required over the next year to ensure that we
prepare a meaningful input to feed back into the UNFCCC negotiations.

Based on the established principle of common but differentiated
responsibilities, we understand that we must all do more and act with a greater
sense of urgency. In working towards a fair, effective, flexible and inclusive
climate regime beyond 2012, the message from a developing country perspective
is clear: We take our responsibilities seriously. We are already making a
meaningful contribution within our respective capabilities. We are willing to
do more. But the trigger must come from the north.

Besides broadening participation to include the world's largest historical
emitter, the United States (US), the creation of a more empowering technology
and financing framework will be a precondition. We therefore welcome this
initiative by the United States as a first step towards assuming their global
leadership role and full responsibility in the multilateral solution that
reflects equity across nations and generations.

From the United Nations Secretary-General's meeting on 24 September there is
an emerging consensus that a road map for negotiating the future regime should
be launched in Bali and be concluded by 2009. Therefore, we look forward to
urgently advancing and concluding this interaction between us as one important
contribution to the United Nations negotiations by the end of 2008. The central
challenge is to build bridges to enable the transition from the fragmented
status quo to a coherent regime where all Annex I parties take on absolute and
binding emission reduction targets. Given the challenges that face us, I would
suggest that all of us in this meeting carefully consider the scope and
substance of our agenda and what we can meaningfully contribute to the UNFCCC
negotiations.

We should also remind ourselves that the majority of countries that will be
hardest hit by climate change are not at this table today. We cannot design a
climate change regime that works only for the 15 or 20 major economies.
Ultimately, multilateralism must prevail. An ambitious and equitable framework
must work for all parties. It must balance our stabilisation and sustainable
development objectives and our mitigation and adaptation responses. It must
deal with the unintended consequences of these responses. And it must be
underpinned by an empowering technology and financing framework that allows
developing countries to reach economic and human development goals quicker and
cleaner than developed countries did. These are the key building blocks.

The balance between sustainable development and stabilisation, as
articulated in Article two of the United National Framework Convention, will
have to underpin the strengthening of the climate regime. The development of
any long term global emission reduction goal that serves as yardstick to guide
our overall climate efforts must strike this fundamental balance. It must be
based on sound science and broad consensus, and it must inform ambitious and
binding mid-term targets for all developed countries.

In April the Intergovernmental Panel on Climate Change (IPCC) reminded us
that existing technology and policies, together with new developments in the
pipeline, can address the climate problem at a cost that is relatively
affordable. The challenge is to accelerate technology development,
commercialisation and wider deployment and to up-scale existing investment and
financing by orders of magnitude.

Though long term technology research and development will remain an
important part of our work, the urgency of the challenge requires of us to use
all available tools to our best advantage and for the common good. Equity
requires of all countries to shoulder their responsibility towards future
generations, in balance with taking historical responsibility for the problem.
South Africa, like other developing countries, needs sustainable development in
order to address poverty and unemployment. Mindful that thirteen million South
Africans do not yet have access to modern energy resources, ensuring universal
access to energy remains a critical priority.

Given that the energy sector is the single largest source of emissions in
South Africa, mitigation and technological interventions are aimed at energy
efficiency, diversifying energy sources away from coal, promoting energy
security and also the research and development of new technologies that will
lead to a cleaner, more sustainable, low carbon energy future.

From our perspective, a number of critical issues must be resolved at a
multilateral level to enable us to address climate change whilst meeting our
energy and sustainable development objectives. This includes innovative ways to
address the costs of deploying more expensive advanced and cleaner
technologies, which in turn is closely related to the vexing issue of
intellectual property protection; as well as multilateral funding to support
higher levels of research, development and deployment. In considering these
issues, we need to focus on a suite of technologies, funding mechanisms,
investment structures and policy tools.

The further development of carbon markets holds the potential to provide
significant incentives for the diffusion of technologies. An urgent priority is
to secure the global carbon market by sending a clear market signal about the
climate regime after 2012. Ambitious targets for all developed countries are
critical to create the demand required to fuel the carbon market and to create
meaningful financial flows to stimulate investment in low carbon economic
growth in developing countries. But carbon funding alone will not be enough,
and we will also need to mobilise financing and investment beyond carbon
markets.

In addition to participation in Kyoto carbon markets, South Africa supports
a strategic approach of sustainable development policies and measures, or
so-called Sustainable Development Policies and Measures (SDPAMs) for developing
countries. The SD-PAMs approach makes it possible for developing countries to
pledge measurable, reportable and verifiable mitigation actions, supported by
technology and enabled by finance, and consistent with their sustainable
development objectives. These would be measurable mitigation actions, but of a
different kind than quantified targets for developed countries.

Chair, we need a step-change in the pace of negotiations. Addressing only
emissions intensity or long term Research and Development (R&D) will not be
sufficient. Global emissions will need to peak and decline. By 2009 we will
need a common understanding that all developed countries need to be playing on
the same field, with quantitative mitigation targets, and that major developing
countries need to be playing on a matching field, one which involves
recognition and positive incentives for their measurable action.

Chair, in conclusion, I would like to reiterate that the outcomes of our
interaction should contribute to the wider agenda and broader engagement under
the UNFCCC. And we must ask how we can contribute to building the bridge from
where we are today, to a strengthened regime based on the UNFCCC and its Kyoto
Protocol. We are looking to the United States to play a global leadership role.
No nation has the inherent right to hold to ransom the future of all nations.
We need a clear and credible signal from the north and for our part we stand
ready to take on our fair share of responsibility.

Enquiries:
Riaan Aucamp
Cell: 083 778 9923

Issued by: Department of Environmental Affairs and Tourism
27 September 2007