24 October 2009

FOR IMMEDIATE RELEASE

MEDIA STATEMENT BY MARTHINUS VAN SCHALKWYK, MINISTER OF ENVIRONMENTAL
AFFAIRS AND TOURISM, CAPE TOWN 28 JULY 2008

The South African Government launched its long-term mitigation scenario
(LTMS) process on climate change in 2006. Findings and policy
recommendations based on the LTMS were presented to the Cabinet at its
Lekgotla last week. This is the culmination of two and a half years of
work that involved stakeholders from Government, business, civil society
and labour.

During the Cabinet Lekgotla, Government discussed the policy
implications of the LTMS in detail. In response, Government has outlined
an ambitious vision and adopted a pro-active and scientifically and
economically robust policy framework that will ensure we meet the
challenges of climate change in decades to come.  It has set the
strategic direction for climate action in South Africa.

Government*s vision and the implementation of this policy framework
will be the best insurance policy current and future generations will
have against the potentially devastating impacts of climate change.  By
adopting this strategic direction South Africa takes a leading position
in the developing world and demonstrates it is ready to shoulder its
fair share of responsibility as part of an effective global response.
The worst impacts of climate change can be avoided if the rest of the
world takes up the challenge in a similarly serious way, with developed
countries taking the lead.

The international negotiations on strengthening the climate regime
after 2012 gained significant momentum at the talks in Bali in December
2007. This process will conclude in Copenhagen at the end of 2009. South
Africa*s LTMS process also establishes parameters for our post-2012
negotiating positions.

Science tells us the climate challenge is urgent and Government has
therefore formulated a comprehensive domestic response based on the best
available science, scenario building tools, rigorous analysis of energy
and non-energy emissions, the consideration of a wide range of
mitigation options and potentials, adaption planning and economic
models. This is indeed cutting edge work.

Science also tells us that an increase in global average temperature
above 2*C poses a danger to all of us, but in particular the poor. To
avoid the worst impacts of climate change we need to limit the
temperature increase to 2*C above pre-industrial levels. We are already
approximately 0.7*C above pre-industrial levels.

The world faces a global climate emergency. It is now clear that only
action by both developed and developing countries can prevent the
climate crisis from deepening. While developed countries bear most of
the responsibility for causing the problem to date, developing countries
- including South Africa - must face up to our responsibility for the
future. Whilst we have different historical responsibilities for
emissions, we share a common responsibility for the future.

The technical work done in the LTMS makes it clear that without
constraints our emissions might quadruple by 2050. This is, in the most
literal sense, not sustainable: If we continue with business-as-usual,
we will go out of business. The alternative is a very challenging
scenario - to make it our goal to achieve what is required by science of
a developing country. According to the IPCC Fourth Assessment Report,
avoiding dangerous climate change requires developed countries to reduce
their emissions compared to 1990 levels by 80% to 95% by 2050, and by
25% to 40% by 2020.  In developing countries, substantial deviations
below business-as-usual baselines are required.

The implementation of a combination of the three LTMS strategic options
- in other words those that can be achieved with known technologies and
at a relatively affordable cost - can deliver a substantial deviation
from business-as-usual emission trajectories in South Africa.  By
committing to and implemen
ting this vision and policy framework,
Government will make a meaningful contribution to the international
effort. It is more ambitious and detailed than what many countries in
the current negotiation process have put on the table.

GOVERNMENT*S VISION

Government has outlined its vision for climate policy in the following
terms:

1. In designing our policy for the transition to a climate resilient
and low-carbon economy and society, we will balance our mitigation and
adaptation response.
2. Our climate response policy, built on six pillars, will be informed
by what is required by science, namely to limit global temperature
increase to 2*C above pre-industrial levels.  The six policy direction
themes are:
Theme 1: Greenhouse gas emission reductions and limits;
Theme 2: Build on, strengthen and/or scale up current initiatives;
Theme 3: Implementing the *Business Unusual* Call for Action;
Theme 4: Preparing for the future;
Theme 5: Vulnerability and Adaptation; and
Theme 6 We will continue to pro-actively build the knowledge base and
our capacity to adapt to the inevitable impacts of climate change, most
importantly by enhancing early warning and disaster reduction systems
and in the roll-out of basic services, water resource management,
infrastructure planning, agriculture, biodiversity and in the health
sector.
4. GHG emissions must peak, plateau and decline. This means it must
stop growing at the latest by 2020-2025, stabilise for up to ten years
and then decline in absolute terms.
5. Over the long term we will redefine our competitive advantage and
structurally transform the economy by shifting from an energy-intensive
to a climate-friendly path as part of a pro-growth, pro-development and
pro-jobs strategy.
6. Implementing policy under six themes will lay the basis for
measurable, reportable and verifiable domestic emission reduction and
limitation outcomes.
7. Overall, this would constitute a fair and meaningful contribution to
global efforts. We would demonstrate leadership in the multi-lateral
system by committing to a substantial deviation from baseline, enabled
by international funding and technology.

MITIGATION STRATEGY

With reference specifically to our mitigation strategy, Cabinet adopted
the following approach:

1.  The Start Now strategic option as outlined in the LTMS will be
further implemented. This is based, amongst others, on accelerated
energy efficiency and conservation across all sectors, including
industry, commerce, transport and residential, inter alia through more
stringent building standards.

2. We will invest in the Reach for the Goal strategic option by setting
ambitious research and development targets focussing on carbon-friendly
technologies, identifying new resources and affecting behavioral change.

3. Furthermore, regulatory mechanisms as set out in the Scale Up
strategic option will be combined with economic instruments such as
taxes and incentives under the Use the Market strategic option, with a
view to:
* Setting ambitious and mandatory (as distinct from voluntary)
targets for energy efficiency and in other sub-national sectors. In the
next few months each sector will be required to do work to enable it to
decide on actions and targets in relation to this overall framework.
* Based on the electricity-crisis response, government*s energy
efficiency policies and strategies will be continuously reviewed and
amended to reflect more ambitious national targets aligned with the
LTMS.
* Increasing the price on carbon through an escalating CO2 tax, or an
alternative market mechanism.
* Diversifying the energy mix away from coal whilst shifting to
cleaner coal, by for example introducing more stringent thermal
efficiency and emissions standards for coal fired power stations.
* Setting similar targets for electricity generated from both
renewable and nuclear energy sources by the end of the next two
decades.
* Laying the basis for a net zero-carbon electricity sector in the
long term.
* Incentivising renewab
le energy through feed-in tariffs.
* Exploring and developing carbon capture and storage (CCS) for coal
fired power stations and all coal-to-liquid (CTL) plants, and not
approving new coal fired power stations without carbon capture
readiness.
* Introducing industrial policy that favours sectors using less
energy per unit of economic output and building domestic industries in
these emerging sectors.
* Setting ambitious and where appropriate mandatory national targets
for the reduction of transport emissions, including through stringent
and escalating fuel efficiency standards, facilitating passenger modal
shifts towards public transport and the aggressive promotion of hybrids
and electric vehicles.

PROCESS GOING FORWARD: 2009 to 2012

Cabinet has mandated a clear path for the future. Milestones will
include a national summit in February next year, the conclusion of
international negotiations at the end of 2009 and a final domestic
policy to be adopted by the end of 2010 after international negotiations
have been completed.

The process will culminate in the introduction of a legislative,
regulatory and fiscal package to give effect to the strategic direction
and policy from now up to 2012.

ENQUIRIES: RONEL BESTER - 083-242-7763

For additional information visit:
http://www.environment.gov.za