Managing and Planning Sustainable Energy Transitions. Implementation of Climate Change Actions in South Africa 27 February 2018

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1 Managing and Planning Sustainable Energy Transitions Implementation of Climate Change Actions in South Africa 27 February 2018

2 South Africa and Paris COP 21 Agreement

3 Implications of the Paris Agreement for South Africa South should submit a progressively ambitious nationally determined contribution (NDC) every five years. South Africa submitted its first NDC in 2015 covering 2025 to 2030 South Africa s first NDC included adaptation, mitigation and a support component for national scale programmes requiring implementation support Develop and scale-up policies and measures (PAMs) to implement our NDCS, and to report on progress with these PAMs Account for the extent to which we have met the goals of our NDC Submit regular reports including biennial reports to the UNFCCC on developments in the implementation of our national climate response including adaptation South Africa will be encouraged to develop a long-term low-carbon development strategy.

4 GHG Emissions Reduction Pathways for South Africa Mt CO2e South Africa s NDC: Emission trajectory range of 398 to 614 Mt CO 2 eq BaU PPD MPA - WOM MPA - WEM NDC target for

5 South Africa Overall Governance Framework for Reducing GHG Emissions Greenhouse gas emissions are to peak by 2025, plateau between and decline thereafter within an emission trajectory range of 398 to 614 Mt CO 2 eq Pre-2020 implementation provides the foundation for meeting the post 2020 commitments. The governance framework comprises four key elements implemented in phases Phase 1: Phase 2: Mitigation potential analysis Carbon budgets Mitigation plans GHG reporting system

6 South Africa GHG Emissions Reduction Governance Framework Mitigation Potential Analysis (2018) Assess compliance (end of the cycle 2026) Set carbon budgets and SETs (2018) Annual reporting ( ) Call for Mitigation plans (2018/ 2019)

7 Climate Action at Scale through the Climate Change Flagship Programmes CLIMATE CHANGE FLAGSHIP PROGRAMMES Policy Regulatory Compliance IMPLEMENTATION Delivery Mechanism Priorities and targets Market Mechanisms and Instruments Enabling Environment National Level Provincial / Local Government Level Private Sector Transformation Sectoral Emission Targets and Strategies Carbon Budgets and Mitigation Plans Framework: Integrated Implementation; Financial and Governance Approach Monitoring, Commission/ Evaluation Operationalise and Delivery Programme Reporting and M&E Project Achieving the Project Pipeline envisaged Rollout mitigation potential Consistent and Repeatable Project Delivery

8 Emerging Climate Finance Landscape: Market Mechanisms, Finance Instruments and Climate Funds Increasingly sophistication characterised by use of market mechanisms that integrated with South Africa s mitigation goals and supporting systems Carbon tax Carbon trading Carbon Budget Credits and Carbon Offsets Risk Mitigation Tools Enhanced Access to Finance South Africa s Green Climate Fund Strategic Framework

9 Transitioning to a Low-carbon and Climate Resilient Economy and Society South Africa already has well-developed base for mitigating climate change and building climate resilience The Climate Change Flagship Programmes of the National Climate Change Response Policy are South Africa s response to implementing climate action at a national scale The Climate Change Flagship programmes are implementation programmes, and represent the leading actions committed to and underway, which advance South Africa s climate change response efforts The programmes provide a coordination and consolidating structure for enable national-scale implementation providing the mechanism the implementation of projects or groups of projects The programmes include both the scaling-up of existing climate change initiatives and new initiatives that are ready to come on-stream by 2020

10 Climate Change Flagship Programmes Goals The Climate Change Flagship Programmes respond to the three key challenges facing South Africa and other countries as global efforts to address climate change intensify: 1) Demonstrating the course of actions needed to respond to climate change effectively and efficiently unlocking and realising significant social and economic benefits; 2) Attracting resources at the scale required to enable meaningful transformation, i.e. at the scale that effectively limits atmospheric GHG emissions and/or enables adaptation to the impacts of unavoidable climate change; 3) Igniting national-scale action at the speed required to respond to climate change, i.e. limiting GHG emissions and/or enabling adaptation change with the necessary urgency

11 Prioritised Climate Change Flagship Programmes to 2020 Agriculture, Food Systems and Food Security Energy Efficiency and Energy Demand Management Carbon Capture and Storage Land, Oceans, Biodiversity and Ecosystems Low Carbon, Climate Resilient Built Environment, Communities and Human Settlements Low Carbon, Climate Resilient Transport Systems Renewable Energy Waste Management Water Conservation and Water Demand Management

12 Linking the GCF to the Climate Change Flagship Programmes and Outcomes GCF Results Area Small, medium and large scale low emission power generation Low emission energy access Energy efficiency of buildings and appliances Energy efficiency of industrial processes Climate Change Flagship Programme Renewable Energy Energy Efficiency and Energy Demand Management Outcome Statement Widespread development, integration, use, and affordable access to South Africa s abundant renewable energy (RE) resources driving innovation; localisation of RE services and technologies; energy security and economic growth Urgent, comprehensive and coordinated large scale implementation of energy efficiency measures and technologies, across all sectors of South Africa s economy and society stimulating the establishment of inclusive and localised energy services and technologies

13 Energy Efficiency in Public Infrastructure and Buildings Programme All spheres of the South African government (national, provincial and municipal) have measurably contributed to national GHG mitigation and energy efficiency targets, by applying cost-effective mechanisms for energy efficiency interventions in public infrastructure and buildings. Vertical integration of mitigation strategies established, mitigation potential on provincial and municipal level tapped Private climate financing accessed and public climate financing improved Impact Evidence provided that GHG mitigation targets can be met and flagship programmes can be implemented Combination of mitigation targets with other development targets successfully proven

14 Linking the GCF to the Climate Change Flagship Programmes and Outcomes Financial Component IDC Lending Department Multi-Stakeholder Steering Committee (DoE, DEA, DPW, NBI, GIZ, IDC, municipalities) IDC Guarantee Fund Technical Component Energy Efficiency Project Support Office (EEPSO) Loan agreement (incorporating guarantee) Capacity building and awareness M&V Technical, procurement and legal assistance ESCos Contractual: services and savings Guaranteed savings model Public Entities (municipal, provincial, national)

15 Climate Change Flagship Programmes and South Africa s Climate Change Response South Africa s Nationally Determined Contribution to the UNFCCC South Africa s GCF Country Programme and Investment Framework CLIMATE CHANGE FLAGSHIP PROGRAMMES South Africa s Portfolio of Nationally Appropriate Mitigation Actions (NAMAs) South Africa s NDC to UNFCCC South Africa s NAMA Portfolio National GCF Country Programme

16 Reitumetse Molotsoane Department of Environmental Affairs Directorate: Climate Change Flagship Programmes