Reducing Pollution In South Africa Environmental Sciences Essay

South Africa is one of the universe ‘s worst defilers. It has signed the Kyoto protocol on cut downing planetary nursery gas ( GHG ) emanations. Kyoto protocol was adopted in Japan on 11 December 1997 and forced on 16 February 2005. Under this policy, states are supposed to non to transcend their emanations marks and extra agencies are provided to run into these marks by three market based mechanism. This mechanism helps to run into the marks in cost effectual manner.

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Emission Trading

Clean Development Mechanism ( CDM )

Joint Implementation ( JI )

South Africa is a ‘non-Annex 1 ‘ state that means a mostly underdeveloped state. It has no GHG emanation decrease marks.

Difference between ‘Annex-I ‘ and ‘non Annex-I ‘ groups:

Annex-1 states are developed state signers of Kyoto that have agreed to cut down their GHG emanations to 5.2 % below 1990 emanation degrees. If they non traveling to accomplish these marks so they have to purchase C credits.

Non Annex-1 states are developing state signers of Kyoto that have no marks under the Kyoto Protocol. It is a fact that these states are less responsible for the job of planetary heating as their economic systems are still turning. They generate C credits through CDM undertakings ( Carbon Abatement Project ) and receive fiscal and technological helper from developed states.

Example- China, India, Brazil, South Africa.

In today ‘s scenario, there are two types of environmental revenue enhancements used in south Africa:

Electricity levy

Fuel levy

These two attacks are non plenty to extenuate GHG emanations. This revenue enhancement provides no inducement to the administration to extenuate the emanation of GHGs. we need some alternate to get the better of this environmental aim. Government should change the construction to economic system to cut down GHG emanations.

A well designed Carbon Tax would run into all demands but it is administratively complex, as it requires significant monitoring, conformity and extra administrative costs.

Other stairss taken by the south African authorities are:

Introducing financial inducements that encourage clean engineering.

Example: increasing environmental research and developmental allowance and increased allowances for clean engineerings.

Taking the economic system off from its current energy and capital-intensive footing.

It has been announced in South Africa that 2c/kwH environmental levy on electricity generated from non-renewable beginnings. This will alter the determination devising on energy generated in future and cut downing emanations. In 2008 Medium Term Budget Policy Statement ( MTBPS ) , the exchequer noted that the “ electricity levy is the first measure towards emanation based C revenue enhancement ” .

Though South Africa is one of the universe ‘s universe defiler of C dioxide and it is non clear that authorities can or should change the economic system of the state to cut down GHG emanations. Generally, authorities failure is justified when a market failure or a authorities failure occurs.

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Kyoto protocol: hypertext transfer protocol: //unfccc.int/kyoto_protocol/items/2830.php

Market failure: It occurs when the operation of the market leads to stand in optimum allotment of the resources. The major ground behind this is resources in this state. It is rich in gold, Pt and coal. So, the development of these three resources is botching the environment. As the excavation of gold and Pt utilizations big sum of energy which comes from firing of coal, approximately 95 % 3 of electricity green goodss by coal is used for the excavation of these metals. There is a development of coal-to-liquid ( CTL ) and Gas-to-Liquid ( GTL ) processes. Both these procedures produces tremendous sum of emanations and necessitate big sum of energy.

Figure 3.1 Energy Intensity and economic development

Beginning for figure 3.1 –

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Government failure:

It occurs when authorities policy leads to stand in optimum allotment of resources. Its energy strength is the consequence of the industrial policy of both the apartheid and station apartheid authoritiess policies which subsidised dirty energy and incentivised the CTL procedures, that is taking to economic development but they are non sustainable in the long term, in footings of affordability and environmental position.

Presently, the degree of GHG emanations is due to both market and authorities failure. One of the mechanisms that authorities is sing to cut down GHG emanations is a Carbon revenue enhancement. It aims to alter consumer behavior by diminishing the monetary value of clean fuel and legalizing the cost of pollution on society. This monetization leads to 1 ) compensating society for pollution cost. 2 ) Making it expensive for defilers to foul.

For illustration: revenue enhancement on electricity generated by coal should be implemented that would switch the consumer towards electricity generated by alternate energy beginnings. These revenue enhancements are known as “ Pigouvian revenue enhancements ” .

GHG emitted from one industry may hold economic impact on other industries. Harmful gases emitted from these industries have negative impact on the wellness of the citizens. Polluters additions money by fabricating things by utilizing dirty ways which pollutes the environment. They may utilize clean H2O from the river and dispose off contaminated H2O into river sysytem. They do non trouble oneself for the wellness of the citizens and it would be them much if they traveling to handle that soiled H2O and so dispose it off into river system. So, C revenue enhancement is the solution for whole society to get the better of the job of pollution upto some extent. Besides, this revenue enhancement will discourge the usage of harmful engineerings and encourge the execution of cleaner engineerings.

Both electricity and fuel levy isnt sufficient to carry through the demand of “ good revenue enhancement ” , so, an alternate solution to cut down GHG emanations should be considered.

CAP AND Trade POLICY

It is an internationally popular attack to cut down C emanation. It uses economic inducements to accomplish decreases in GHG emanations. In this system, a bound “ cap ” is set by a cardinal authorization that is national authorities on the sum of GHG emitted. Under this, all sectors either indusrty or single have emanations “ allotments ” which represent the right to breathe a certain quality of GHG ‘s. Companies which have non used their allotments can sell them, which operators that exceed their allotments must purchase extra allotments or they can besides cut down their emanations straight by utilizing a emanation decrease undertaking. Heavy penalities will be applied if a company exceed the coveted allotment. So, here, a purchaser pays a fee to breathe GHG and a marketer net incomes from cut downing emanations.

Kyoto markets and C markets

In Kyoto protocol, all states are divided into two classs:

1 ) Annex I ( industralized states ) .

2 ) Non Annex I ( developing states ) .

It provides a market mechanism to cut down GHG emanations. One constituent of this mechanism is Joint Implementation ( JI ) that decides the C emanation between Annex I that is developed states. Other is Clean Development Mechanism ( CDM ) , which decides the trading between developed states ( Non-Annex-I ) . Under CDM, developing states generate C credits, where one C recognition agencies right to breathe one metric ton of GHGs. These credits can be held, sold or traded even to Annex-I states to make their emanation decrease marks.

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It is calculated that on norm, over first committed period ( 2008-2012 ) , developed states ( Annex-1 states ) traveling to cut GHGs emanations by 5.2 % of 1990 degrees. For illustration US and Canada agreed to 7 % 4 and 6 % 4 decrease in GHGs emanations below their 1990 values severally.

For illustration: Suppose a mill is bring forthing 100,000 GHGs in a twelvemonth. Bing a signer of Kyoto protocol, it is allowed to breathe 80,000 GHGs in a twelvemonth. So there are two options either cut down its emanations or to purchase some credits to countervail extra emanations.

1 ) Reduced emanations can achieved by implementing a undertaking which consequences in decreased emanations.

2 ) Extra C credits can be purchased through C offsetting. Seller will cut down GHGs emanation through CDM undertaking and purchaser can purcahse the C credits from the marketer and would go on to breathe 100,0005 GHGs alternatively of 80,0005 GHGs. Here marketer is gaining C credits by puting a undertaking to cut down GHGs emanations. Buyer will purchase these credits to breathe 20,000 dozenss of GHGs to atmosphere.

Economicss of Emissions Trading:

Approximately the C recognition market is US $ 36 billion6. There is C recognition deficit around 3.75 billion credits. This deficit is prevailed among industrial states excepting US. The fiscal benefit of this policy is if the Marginal Abatement Cost ( MAC ) for a peculiar undertaking is less than the market monetary value ( P ) for C, it would be good for company to put in C decrease undertaking. The company will derive C credits that can be sold at predominating market monetary value ( P ) . The operator would do a addition equal to the difference between the market monetary value and MAC, indicated by shaded country.

Figure 3.2 Cap and Trade policy

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South Africa has population of about 47 million and a per capita income of $ 5,3908. Its economic system is more diversified than many developing states. Agribusiness histories for 4 % 8 of entire value while service sector added 69 % 8 which is the largest portion holder whereas industry sector is for 27 % 8. The three energy sectors: coal, crude oil and electricity and gas, rough oil is chiefly imported and there is no duty on rough oil.

The information in the theoretical account from 2003, societal accounting matix ( SAM )

Figure 3.3 CO2 emanation by energy input, 2003

hypertext transfer protocol: //www.econrsa.org/wkshops/cge/session4-south-africa-carbon-tax-6May09.pdf

Coal – 81.1 %

Oil – 17.1 %

Gas – 1.1 %

Carbon credits in South Africa:

South Africa is about breathing 800 million dozenss per annum which makes it among the top 20 states for breathing C. It is a signer of Kyoto protocol but being a developing state it has no emanations marks under the protocol. It has enormous potency to profit from Kyoto Protocol by developing C suspension undertakings and can sell the C credits gained from these undertakings to the recognition lacking Annex-I states.

Carbon trading in South Africa is increasing with the addition in awareness and now big houses are puting in C decrease undertakings with the purpose to derive the gross associated with C credits. Presently 13 undertakings has registered with CDM in South Africa, with many of them in the concluding phase of enrollment. In June 2008, It has realised its first C recognition. The market value of a C recognition is about a‚¬20. Now many South African companies are utilizing C credits to obtain their fundss for C suspension undertakings by selling it them to the developed states. The chance and increased consciousness of C trading gives a potency for fiscal addition in South Africa.

The comparing between the C revenue enhancement and cap and trade policy both locally and overseas shows that C revenue enhancement ( electricity and fuel levy ) are non effectual to get the better of the job of GHGs emanations. On the other manus Cap and Trade is deriving importance internationally.

The rules used:

Environmental Effectiveness: Carbon revenue enhancement is environmental effectual but its really dearly-won to implement. Under Cap and Trade, Kyoto Protocol aims to cut down the emanations by 5.2 % below 1990 degree by deadline in 2012.

Tax Gross: Carbon Tax has potency for big revenue enhancement grosss. On the other side, there is no direct revenue enhancement in cap and trade but it put punishments on extra emanation than the coveted bound.

Impact on economic system: Carbon revenue enhancements have short term impact on the economic system. Harmonizing to a economic modeling by DEAT shows that Rands 600/ton would take to the closing of CTL industry wholly. In Cap and Trade, it would make a market of C credits. Economy can be adversely affected with the volatility in the C monetary values.

Cost of the house: In some states carbon revenue enhancement is implemented on all emanations non over and above certain bound. This increases the cost to the administration and leads to negative impact on economic system. In Cap and Trade the cost of the C depends on the market monetary value of C.

Legislative facets: Carbon revenue enhancement are easy to implement through national budget procedure. Cap and Trade has no statute law in their support.

Technical and Administrative concerns: Well designed C revenue enhancement is hard to implement. Cap and Trade is complex and requires big sum of disposal in order to implement efficaciously.

Competitiveness consequence: If South Africa implements its ain C revenue enhancement so there would be a impact on SA ‘S fight but if all the states in universe have same C revenue enhancement so there would be no competition complications. In Cap and Trade, bounds are given to states by proportion to their historic emanation. If all states implement it so there would be no competitiveness impacts.

Cap and Trade is preferred over C revenue enhancement policy to cut down GHGS emanations in South Africa. It is more effectual than electricity and fuel levies. It increases concern friendly competition, enjoys greater support from industry. On the other manus, C revenue enhancement will resduce competition put unneeded force per unit area on consumer and has limited environmental effectivity. Carbon revenue enhancement has limited support from industry has does non incentivise the much needed behavioral displacements.

Fiscal inducements back uping environmental aim:

In South Africa, to cut down GHGs emanations there is no specific inducements available from national authorities. To measure up for inducements, undertakings have to follow with the aims like occupation creative activity, invention etc. The new inducement programme published in Revenue Act Amendment Bill of 2008, states the extra capital allowance for industrial policy undertakings. One of the standards to measure up for inducement is the usage of new engineering to better the environment. This shows that the south African authorities relising the importance of clean environment.

Introduction of inducements to advance C abatement undertakings:

The published Industrial Policy Action Plan by Department of Trade and Industry ( DTI ) presenting inducements that target the publicity of CDM undertakings and these inducements will concentrate on

* Capital Investment Support

* Infrastructure Support

* CDM Registration Support

Policies to contend clime alteration:

International Climate alteration related protocols impacting South Africa

Kyoto Protocol to UNFCCC ( 1997 ) : It does non implement any decrease in the emanation for a underdeveloped state like South Africa in first commitment period ( 2008-2012 ) . South Africa ratified in 2002.

United Nations Framework Convention on Climate Change ( UNFCCC ) 1992:

This is developed to get the better of the job of clime alteration which sets outs a model to cover with the issue.

Johannesburg Plan of Implementation: World Summit on sustainable Development 2002: It highlights the countries like economic, societal development and environmental protection in footings of sustainable development. The cardinal focal point countries put poorness, sustainable development and Africa high on the planetary docket.

South African clime alteration and energy related policies and statute law

Central Energy Fund Amendment Act 1994

It produces hydrocarbons and focal points on direction of petroleum oil. Participates in renewable energy plan besides.

White Paper on Energy Policy for Republic of S.A. 1998

It sets out the followers:

Encourages energy efficient house design, cut downing wellness and safety job related to fuel usage, supplying energy for community services, modifies fuel wood direction.

Implements energy efficiency and promotes economic growing, ensures supply of high quality energy.

Reducing coal power station emanation, increasing the usage of renewable, advancing sustainable development.

Integrated energy Plan 2003

This is a model for taking determinations on energy policy and development of different energy beginnings and energy engineerings.

National Energy Regulator Act of 40 of 2004

The National Energy Regulator of South Africa ( NERSA ) is funded from a levy on electricity gross revenues to set up a individual regulative for electricity, crude oil grapevine industry, piped gas. It includes senders and distributers, licencing generators, O.K.ing pricing and duties, sets criterions for quality of supply and service.

National Energy Bill 2004

It aims at supplying National energy database, Information system, National Advisory Committee. It includes energy and energy efficient affairs, energy safety, wellness and environmental affairs.

National Climate Change Response Strategy 2004

This policy indicates the stairss or actions to be taken by the authorities towards planetary and national deductions of clime alteration and stairss taken to react at national degree to climate alteration job.

Draft National Strategy on Cleaner Production and Sustainable Consumption 2005

This is prepared by DEAT on sustainable ingestion and production through the execution of Johannesburg program.

National Framework for Sustainable Development 2008

Frame work for sustainable development in South Africa includes national vision, rules, tendencies, strategic precedence countries. The precedence countries are efficient usage of natural resources and making sustainable human colonies.

Energy Policies and Sustainable Development

The 1998 White paper does incorporate some commissariats that considers the environmental, societal and economic facets of energy. For illustration, fossil fuels such as coal, U, liquid fuels and gas will play a cardinal function in societal economic development of state, while on the same side supplying the infrastructural economic base for the state to go an attractive host for foreign investing. Energies policies were developed to optimize the usage of the natural resources with environmental considerations. After authorities published a white paper on renewable energy in 200315 that provides a option to fossil fuels. Electricity industry can play an of import function here by following a more environmental friendly attack to bring forth electricity and maintaining in head the public benefits. That will present a secure, low cost electricity and promote energy efficiency. Now authorities have started implementing new engineerings that ensures the decrease in emanation activities.

Energy efficiency and Renewable Energy:

Earlier energy efficiency was non an of import issue in South Africa but now state of affairs has changed. In adition Department of Mineral and Energy has set a end to salvage 15 % by 201515. It acts as theoretical account for other states. Government has started implementing policies to cut down GHGs emanations. Efficiency measures has cut down the cost of electricity measures which is bring forthing great economic benefits. In 2006, Environment Minister Van Schalkwyk demonstrated energy efficiency by transition of his place with installing of energy efficient illuming, solar H2O warming, better insularity which sets as an illustration for other people to conserve energy. He besides stated that by utilizing a fluorescent bulb alternatively of normal bulb will salvage 18.50 Rands15 per twelvemonth.

Electricity

* Electricity Distribution Industry Restructuring Bill April 2003

Responsible for creative activity of regional electricity distribution industry, provides model for electricity distribution industry and restructured it.

Electricity Regulation Act 2006

Establish a model for electricity supply industry, sets norms and criterions for reticulation services with intent of keeping good quality of supply, guaranting stableness of the electricity web, understating electricity tonss casting and avoiding blackouts. South Africa ‘s Environmental Affairs and Tourism Minister, Marthinus new wave Schalkwyk, declares the attack to extenuate clime alteration as a ambitious and far-reaching. He focuses on the job of planetary heating. He added that the end is stop turning C dioxide by 2020-2025 at the latest. Government has started implementing policies, Torahs and steps associating to cut down environmental pollution. This shows that the state is traveling towards a way to extenuate C emanations.

Renewable Energy

White Paper on the Promotion of Renewable Energy 2006

It deals with four countries:

Technology development

Legal instrument

Fiscal instruments

Capacity edifice and instruction

CDM has changed the heads of industry holders to switch towards modern engineering to extenuate C dioxide emanation. South Africa has introduced a Renewable Energy Strategy which sets a mark of 10,000 GWh of renewable energy by 2013.

Draft Bio-fuels Industrial Strategy 2006

Outlines authorities ‘s attack to policy, ordinance and inducements.

Nuclear Energy

Nuclear Energy Act 12 of 1999, National Nuclear Regulator Act 47 of 1999

Provides national atomic reactor regulator and set up S.A. Nuclear Energy Corporation.

A National Agency to Promote CDM Projects:

The South African Department of Mineral and Energy created a Designated National Authority to advance CDM undertaking in Africa. It includes activities to pull investors in South Africa. Kuyasa Low-cost Housing Project in Khayelitsha, Cape Town, is the first undertaking those builts energy efficient houses.

A Carbon Tax on Business:

It is considered as most ambitious proposal to cover with C emanation in south Africa. In this, a revenue enhancement will be imposed on the C dioxide breathing industry. It imposes 2 Rand cents per kilowatt hr on non-renewable electricity beginnings. It has most important impact on GHGs emanations. It includes assorted energy efficiency steps and would get down at 100 Rand per ton and would lift to 250 Rand per ton by 2020. They have endorsed this program but concluding parliamentary blessing is pending. Fiscal officers have started discoursing about a practical execution model.

On September 2010, a new revenue enhancement was implemented on rider vehicles like new autos to incentivise a decrease in C dioxide emanations. All new cabs, autos, motorcycles sold after 1 September 2010 has levied with revenue enhancement R75 per g/km for each g/km above 120g/km19 based on maker certified CO2 emanations. Vehicles with emanation less than 120g/km19 need non to pay any revenue enhancement.

Commercial vehicles like trucks have been excluded from this revenue enhancement and seek understanding on nonexempt emanation degrees.

This revenue enhancement will prefer the sale of vehicles which emit less CO2. There is a general perceptual experience that vehicles with little engines emits less CO2. For example- the retail monetary value of a auto increased by approximately R1500 with extra cost of gasoline R190019 or more.

g/km- criterion measuring to cipher vehicle emanation.

For a underdeveloped continent like South Africa, factors like poorness, administration and institutional dimensions, limited entree to capital, complex catastrophes and struggles are obstructions in the way of cut downing GHGS emanations.

Economic growing, sustainable resource direction and clime alteration are connected, executive and legislative weaponries of south African authorities have agreed on clime alteration policy.

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