The current United Nations Convention on Climate Change (UNFCCC) negotiations, culminating in Copenhagen in December, aims at reaching agreement on strengthening the international climate change regime beyond 2012.
South Africa is cautiously optimistic about the deal emerging from the talks, in light of the deep difference in views between developed and developing countries on key principles such as the need for developed countries to lead on emission reduction and to meet the commitment they have made to support developing countries mitigation and adaptation with finance, technology capacity building support. South Africa has consistently indicated its willingness to contribute to global action to reduce greenhouse gas emissions within the framework of developed countries historical responsibility for current emissions and a common responsibility by all for the future.
South Africa’s expectations for the outcome of Copenhagen are informed by our national interests and our strategic priorities.
* South Africa needs global reductions in green house gas emissions to ensure that the impacts of climate change do not undermine our development, health impacts, job loss, drought, floods, water, sea level rise, etc.
* South Africa as a developing country with huge developmental challenges needs carbon space in order to meet our developmental needs. We cannot afford to take on any binding emission reduction targets
* South Africa has an energy intensive economy. In order to transform to a clean energy economy South Africa needs access to international finance and technology
* Low carbon and clean technology development and innovation are areas where South Africa can benefit from international participation.
Given South Africa’s social and economic inequalities and developmental challenges, its vulnerability to the impacts of rising global temperatures, it is crucial to secure a fair outcome in Copenhagen. An outcome that respects the convention’s principle of common but differentiated responsibilities that considers national and regional development priorities within the context of sustainable development and stabilisation of greenhouse gas emissions.
Despite not being legally bound to any targets, South Africa is proactively exploring and engaging mitigation options, with the Clean Technology Fund (CTF) as one of a myriad of such interventions to meet our clean technology goals.
CTF was set up as part of the G8 climate change initiative to provide long term high concession loan funding for low carbon development. South Africa is the co-Chair of the CTF Board. The board met in Washington on 27 October 2009 and considered the clean technology plan for South Africa. The committee endorsed the plan and agreed to an envelope of up to $500 million in CTF funding to finance the plan.
The South African Investment has identified the following area as priorities:
* energy efficiency or solar water heaters
* grid connected solar power options, including concentrated solar power
* wind power.
Support from the Clean Technology Fund is seen as critical step in supporting South Africa’s ambitious climate action, allowing for technology demonstration projects to take place, providing much capital and credit flows that enable early action and forming a base from which transformative interventions can be built. The implementation of South Africa’s CTF investment plan will contribute to South Africa’s stated commitment to address climate change at a national level and make initial investments in South Africa’s green economy thereby laying the foundation for green jobs and a transition to a low carbon economy. The $500 million is expected to leverage another $1 billion for low carbon initiatives.
Fact sheet
About Clean Technology Fund (CTF)
In February 2008, donors from the G8 formally launched a set of climate investment funds (CIFs), which consists of two trust funds, namely a Clean Technology Fund (CTF) and a Strategic Climate Fund. These funds are donor funded and are administered by the World Bank. Developing countries, like South Africa, may access funds from the Clean Technology Fund to support the deployment of clean technologies in responding to climate change.
The current status is that a draft clean technology investment plan has been developed, following two visits from a joint African Development Bank and World Bank team in March 2009 and August 2009.
This draft clean technology investment plan has been agreed by government and its priority areas include solar power, wind power, energy efficiency and supporting the national solar water heaters programme. The CTF investment plan has an indicative value of $500 million, which can be used to leverage funds from other bilateral donors.
Strategic importance
Developing and implementing a clean technology plan, will contribute to South Africa’s stated commitment to address climate change at a national level. It is also important for South Africa to take advantage of the scale of funding available under the CTF in order to make initial investments in South Africa’s green economy and lay the foundation for green jobs.
Process to date
In February 2009, National Treasury together with the Department of Environmental Affairs initiated a consultation process with other national departments on ways South Africa could leverage funds available under the CTF in support of clean technology investments in the transport and energy sectors.
During 23 to 27 March 2009, the World Bank and African Development Bank conducted a mission to South Africa, with a view to identifying possible priority areas that could be included in a clean technology investment plan for South Africa. The mission was coordinated by National Treasury with the support of the Department of Environmental Affairs.
The mission interacted with various government departments including; Department of Energy, Department of Transport, Department of Science and Technology, National Treasury, as well as the Department of Trade and Industry. The mission also met with private sector stakeholders including as well as ESKOM.
In August 2009, the World Bank and African Development Bank conducted a second mission to South Africa, with a view to finalising the preparation for the development of a Clean Technology Investment Plan for South Africa.
Strategic use of CTF financing
CTF funds would be used to support government’s goal of reducing greenhouse gas emissions, as outlined in its long-term mitigation scenarios (LTMS), including:
* Generating four percent of the country’s electricity requirements from renewable energy by 2013
* Improving energy efficiency by 12 percent by 2015
* Modal and technological shifts in transport, including shifts from private to public modes for passengers, shifts from road to rail for freight, and introduction of clean passenger vehicles such as electric vehicles.
Overview of South Africa’s clean technology investment plan
The plan will have two phases. Phase one would include projects in the energy sector that are ready for multilateral development banks and CTF supported implementation within the next 12 to 18 months. The notional CTF allocation for phase one is $500 million. Priority areas for investment in phase one include public and private sector led grid connected solar thermal and large wind power projects as well as private sector and municipality led solar water heating and energy efficiency (including demand side management).
Phase two is expected to include substantial investments in low carbon transport, which is a significant “wedge” in South Africa’s long term mitigation scenarios.
Priority projects for South Africa’s CTF investment plan
Energy sector (phase one)
* Commercial, industrial and residential energy efficiency programmes
* Solar water heaters
* Grid connected solar power options, including concentrating solar power (CSP) and photovoltaic solar power
* Wind power
Transport sector (phase two)
* A focus on low carbon transportation technologies including the Bus Rapid Transport (BRT) system, modal shifts for passenger and freight transport, as well as initiatives such as South Africa’s electric car (Joule).
For media enquiries:
Albi Modise
Cell: 083 490 2871
Sputnik Ratau
Cell: 082 874 2942
Issued by: Department of Environmental Affairs
5 November 2009
