Assessment of Carbon Emissions Embodied in South Africa Fruit Supply Chains

Transcription

1 Assessment of Carbon Emissions Embodied in South Africa Fruit Supply Chains 6 th International Conference on Climate: Impacts & Responses Reykjavik, Iceland 28 June 2014 Presented by: Sifiso Ntombela Research Team: Sifiso Ntombela; Masego Moobi and Yolanda Potelwa

2 Presentation Outline Background Study Need & Objectives SA Fruit industry Background Methods & Data Collection Results & Discussions Concluding Remarks Recommendations

3 Location

4 Background GATT reduced global average tariffs from over 50% in 1950 to 12% in 2000s Emergence of Non-Tariff Measures >> adoption of SPS & TBT in Uruguay Round Environmental issues e.g. climate change key TBT issue Climate change & trade nexus gaining interest: address relationship between environmental protection and trade development Complex linkage CC increase food insecurity & Trade reduce food insecurity Climate change & trade agendas evolved independently over last 3 decades. The two fields have become the most popular and contested issues in multilateral negotiations at UNFCCC and WTO. Environmental policies tend to restrict trade However, Article XX(b) and (g) of the General Agreement on Tariff and Trade (GATT) allows an exception measures are necessary to protect human, animal and plant life, or when the issue relates to conservation of exhaustible natural resources

5 Background: Cont... Industrialised countries have found comfort in Article XX(b) and (g) of the WTO to develop and implement unilateral climate policies. Treating trade policy as a mechanism to address climate change issue. Motive for trade based climate policies include: reduced competitiveness, and the carbon leakage problem Countries exporting carbon intensive products are vulnerable South Africa is one of highest per capita carbon dioxide emitter in the world Nearly % of SA s exports to the EU and USA may attract taxation under proposed carbon trade based policies. Over 66% of agricultural exports, mainly fruits are destined for EU

6 Study Needs & Objectives Carbon leakage problem and weakening competitiveness are the main motivations for push for carbon-trade-based measures. It is this growing support that motivates our assumption that BTAs are likely to be implemented, at least in the medium- to long-term horizons. Assuming that BTAs and PCF would be implemented by the EU and the USA, the South African fruit industry would be highly vulnerable. The lack of knowledge on the amount of emissions embodied in South African fruit supply chains is identified as a problem statement in this study. Research objectives are formulated as following: To investigate and quantify the amount of carbon emissions embodied in citrus, table grape, pome and stone fruit export supply chains; To identify hot-spot areas in the fruit supply chains The study is designed to contribute in the field of mitigating greenhouse gas emissions emitted from fruit industries.

7 South Africa Fruit Exports: Million Rand SA Fruit Industry Background Study focused on fruit industries because of (i) export oriented; (iii) intensive electricity users; & (iv) highly vulnerable to proposed climate policies EU regional market accounts for approximately 66 % of market share, and USA accounts for 3 % of fruit exports measured in value terms in EU Asia Africa USA Other

8 Method & Data Collection The carbon emissions of four key fruit sub-value chains will be quantified using a life cycle assessment (LCA) method. The carbon emissions will be measured following the non-product related process or production method (PPM) of South African fruit value chains. The life cycle assessment method is based on British GHG Accounting Standards, i.e. based on PAS The LCA is a technique for systematically analyzing a product from cradleto-grave, that is, from resource extraction through manufacture and use to disposal. Data Collection Equation : Activity data x EF = Kg CO2e Non probability sampling (i.e. purposive) method to collect data over the period of three year (i.e. between 2011 and 2013). Detail activity and consumption data covered 1942 units including farms, packhouses, cold-stores, exporters and transport.

9 Process map Co 2 N 2 O Co 2 Other GHGs Co 2 e Other GHGs Co 2 e Other GHGs Co 2 e Other GHGs Co 2 e Other GHGs Farming Electricity Direct & Indirect Fuel Fertiliser & Agro Chemicals Land Use Chnage De Greening Electricity Refrigeran t Gas Grading Electricity Fresh Packing Electricity Direct & Indrirect Fuel Packaging Waste Cold Store Electricity Refrigeran t Gass Shipping Shipping Fuel Packhouse Distribution/Logisti cs SA Port

10 Results & Discussion: Citrus Supply-Chain Segments Activity Levels Transport & Shipping 42% Farm 23% Packaging 16% Fertiliser & Agro- Chemicals 11% Waste 0% Electricity 25% Packhouse & ColdStore 35% Fuel 48%

11 Results & Discussion: Table Grape Supply-Chain Segments Activity Levels Transport & Shipping 25% Farm 32% Fertiliser & Agro- Chemicals 10% Packaging 0% Land Use Change 2% Electricity 40% Packhouse & ColdStore 43% Fuel 48%

12 Results & Discussion: Pome fruit Supply-Chain Segments Activity Levels Transport & Shipping 30% Farm 17% Packaging 10% Fertiliser & Agro- Chemicals 3% Electricity 50% Packhouse & ColdStore 53% Fuel 37%

13 Results & Discussion: Stone Fruit Supply-Chain Segments Activity Levels Transport & Shipping 32% Farm 28% Fertiliser & Agro- Chemicals 7% Packaging 21% Electricity 29% Packhouse & ColdStore 40% Fuel 43%

14 Conclusion The study found that fruit exported through air is seven times more carbon intensive than fruits exported though sea transport. Futhermore, a deeper evaluation of all four supply chains reveals that transportation constitutes the largest share of carbon emissions emitted from the supply chain to export markets. On average transportation account about 45% of total emissions embodied in South African fruits, while farming activities accounts for less than 20% of total emissions embodied in exported fruits. At farm level the biggest contributor to emissions is the usgae of electricity for irrigation pumping. At Packhouse level the biggest contributor to the emissions is the usage of virgin packing material, particularly corrugated cardboard.

15 Recommandations Recommendations To conduct the similar asssessment on an annual basis to monitor the mitigation rate of South African fruit industries. To encourage the shift to renewable electricity and fuel could significantly reduce emissions emitted fromt the fruit industry To encourage the usage of packaging material that are made from environmental friendly sources could significantly reduce the emissions emttited from the packhouse. Way forwards To expand the tool to coverage other agricultural industries in South Africa To use the emissions results from this study to evalutes the impact of BTAs on fruit industries To compares the measured South African fruit emissions from this study with emissions from other Southern Hemisphere countries that export fruits to Northern Hemisphere markets.

16 Thank you