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News from EcoMetrix on Climate Change, Green Economy, Carbon Management, Renewable Energy and related Policies/Regulations, Funding Opportunities and Technologies


Carbon Pricing and Competitiveness in Developing Countries(May 2019)

The Department of Environmental Affairs (DEA), The World Bank and the National Business Initiative (NBI) organised a two-day workshop on Carbon Markets at the Sasol Place in Sandton, Johannesburg. Local and global experts discussed matters relating to Article 6 of the Paris Agreement and global trends on Carbon Pricing and Competitiveness.


Different speakers presented on the work that the World Bank has been involved in with regard to carbon pricing and competitiveness, the importance of Article 6, its implication for business as well the key political issues and expectations that could influence its implementation.


Mr. Henk Sa, partner at EcoMetrix Africa, participated in a panel discussion that reflected on how past experiences with carbon market mechanisms could be taken on board in the design of Article 6 of the Paris Agreement. HS noted that a mechanism that enables the private sector’s financial, technical and innovative capacities to be brought to bear is essential in the fight against climate change. He closed his remarks by stating that although Africa had benefited least from mechanisms like the CDM in the past, the institutional capacity has increased over the last decade, making the continent ready for the next wave of climate change investments.


South Africa Carbon Tax Bill signed Into Law (May 2019)

On Wednesday 22 May 2019, President Cyril Ramaphosa, signed into law the South African Carbon Tax Bill shortly after having been officially sworn into Office. The Bill was gazetted concurrently with the Customs and Excise Duty Amendment Act, 2019, that provides for the administration and collection of Carbon Tax revenue. The new legislations will come into effect on 1 June 2019. This means that companies within the tax net will have to prepare for compliance as the first tax period runs from 1 June to 31 December 2019.


The Carbon Tax Act, 2019, will set a precedence on the continent with regard to the implementation of measures to stimulate low- carbon development as well as climate resilience. Particularly for South Africa, it shows a willingness to set the country on the path to meeting its Nationally Determined Contributions (NDCs) in the Paris Agreement by curbing South Africa’s GHG emissions towards the peak, plateau and decline trajectory.


Mr. Lodewijk Nell, partner at EcoMetrix Africa, indicates that even though the Bill has been in the pipeline for 10 years, a lot of companies are not ready to implement this new legislation. He further points out that the Act provides for administrative, financial and operational opportunities that can assist with reducing one’s tax exposure.


Click the links to download the Carbon Tax Act, 2019, and the Customs and Excise Amendment Act, 2019


Call for Comments on Draft SARS Rules for the Implementation of the Carbon Tax Bill, 2019 (May 2019)

Under section 54AA of the Customs and Excise Amendment Bill, 2019, which was recently passed by both houses of Parliament and forwarded to the President for assent, the Commissioner is granted the mandate to craft rules pertaining to the administration and collection of Carbon Tax Revenues as well as matters connected therewith. The Rules, among other things, provide for the implementation of the Carbon Tax Bill, 2019, in respect of licensing and registration of emissions generating entities, submission of account and payment of the levy, as well as implementation provisions with regard to the period for submission of documents.


The deadline for comments on the Draft Amendment Rule has been extended from 20th May 2019 to 14 June 2019. They can be submitted directly via electronic mail to the addresses: and C&


Click here for a link to the SARS website with the call for comments and a copy of the Draft Rules


Tough Opposition during Public Hearing on the Carbon Tax Bill (March 2019)

On Tuesday 12th of March 2019, several submissions were made to the Select Committee of Finance on the Carbon Tax bill for consideration by the National Council of Provinces (NCOP) before taking a vote on the Bill. On the overall, most of the comments dealt with the anticipated social and economic impacts of the tax and practical matters concerning its implementation, including but not limited to the following:


  • The impact of the tax on electricity prices and how this would eventually lead to increased cost of doing business in South Africa
  • The promulgation of the Customs and Excise Amendment Act which is required for the Carbon Tax bill to take effect
  • The alignment of the Carbon Tax with the Carbon Budget system as part of the Post-2020 Mitigation System and other climate change policies still in draft form or not yet formulated
  • The state of readiness of government institutions to implement, develop and monitor the impact of the tax was questioned with regards to emissions baseline data and costs of administration of the tax to the tax payers, among others
  • Ringfencing of carbon tax revenue and recycling to environmental programmes


The submissions are reflective of how complex the process to develop this bill has been. By all accounts, many of the issues raised were not new but nonetheless remain pertinent issues that business, NGOs, labour and industry associations require clarity on. However, the extent to which the issues raised would necessitate an amendment of the Bill remains to be seen, which will invariably have implications on when the bill is officially signed into law.


Majority vote in Parliament in favour of the Carbon Tax Bill (February 2019)

On 19th February 2019, a clear majority in the South African National Assembly voted for the long-debated Carbon Tax Bill. Following this milestone, the bill will be submitted to the Council of Provinces before SA President Cyril Ramaphosa can sign it into law. No significant challenges are expected to arise in the Council. The clearing of this major legislative hurdle means that the time has really come for companies to start preparing for the Carbon Tax, which is now all but certain to become operational and effective in little over three months’ time on 1 June 2019. The tax allows companies to manage their exposure through a number of allowances of up to 95 percent, including a carbon offset allowance which can reduce an entity’s tax exposure up to 5 or 10 percent.


Carbon market modelling by EcoMetrix Africa shows that there is likely to be a considerable under-supply in the short to medium term of carbon credits that would be eligible to be used as offsets under the Carbon Tax. This could possibly lead to a revival of South Africa’s carbon market, which had hit a slump in 2012, just when offset projects were gaining traction.


Click here to download a copy of the Carbon Tax Bill.


2019 Budget Speech- Final news on the Carbon Tax Bill (February 2019)

Finance minister, Tito Mboweni, will deliver the much-anticipated Budget speech on 20th February 2019. One of the key issues expected to be mentioned, in line with the tax system’s commitment to advancing environmental protection and reducing greenhouse gas emissions, is the enactment of the Carbon Tax bill. However, this will largely depend on the debate and subsequent vote in parliament on 19th February 2019. The bill is expected to boast South Africa’s tax revenue which should be recycled to promote mitigation action. We should be on the lookout on how this tax revenue will be spent efficiently to advance South Africa’s Nationally Determined Commitments to reducing Greenhouse gas emissions.


South Africa moves one step closer to the Implementation of a Carbon Tax (February 2019)

During its first session of the year, the Standing Committee on Finance adopted the Carbon Tax bill, which if approved by the National Assembly and National Council of Provinces, and then signed by the president, will introduce a tax of up to R 120 per tonne of CO2 equivalent from June 1 of this year. It is expected that the bill will be voted on by the full parliament during the plenary sessions scheduled for the second half of February to ensure the matter is wrapped up well before the country holds its general elections in May.


Generally speaking, entities that consume energy and have a combined installed capacity of 10 MWth or more are subject to the tax. Although the design of the tax enables entities to reduce their exposure under the tax up to 90% – 95%, this does requires some preparation prior to the 1st of June.


To download the draft Carbon Tax Bill with the final revisions please click here.


Procedure for Greenhouse Gas Emission reporting (February 2019)

On 1st February 2019, the Minister of Environmental Affairs, Nomvula Paula Mokonyane, issued a notice of procedure to be followed for Greenhouse Gas Emissions registration and reporting. This notice mainly targeted Category A data providers specified under Annexure 1 of the National Greenhouse Gas Emission Reporting Regulations. It followed the inability of the National Atmospheric Emissions Inventory System (NAEIS) to meet the required registration and reporting requirements. It stipulated that:


  • Registration: All Category A data providers must submit, by email, completed Annexure 2 and 3 forms in an editable electronic format to the competent authority using the email address:

    • Extension of the Registration Period: A further 30 calendar days period, from promulgation of the notice in the Government Gazette, is granted for Category A data providers to register with the competent authority using Annexure 2 to the National Greenhouse Gas Emission Reporting Regulations.


        On the basis of Section 12 of the National Environment Management: Air Quality Act, 2004 (Act No.39 of 2004), the National Greenhouse Gas Emission Reporting Regulations and the notice provide for:


        • The form in which such measurements must be reported and the organs of state to whom such measurements must be reported


        The 2018 United Nations Climate Change Conference (COP24) (December 2018)

        COP24 was held in Katowice, Poland, between 2 and 15 December 2018. The main objective was to set out a so-called “rulebook” to implement the 2015 Paris Agreement, which will enter into force in 2020. This involved rules across the full spectrum of the agreement, such as on the structure and content of nationally determined contributions, on how to measure greenhouse gas emissions and actions to reduce these, as well as on reporting on climate finance contributions. Despite the daunting task, the COP24 was largely successful in that agreement was reached on all issues, except the so-called Article 6 voluntary market mechanisms. This relates to internationally transferred mitigation outcomes between countries (Article 6.2) and private entities (Article 6.4) and further talks on this have been deferred to the next year’s COP25 in Chile.


        Revised Carbon Offset Regulations extend Eligibility Criteria of Carbon Offsets (November 2018)

        National Treasury published the long awaited updated draft of the regulations on the Carbon Offsets in terms of the Draft Carbon Tax Bill. The regulations provide guidance on the eligibility and administrative procedures according to which Greenhouse Gas emission reductions generated locally can be utilised to reduce entity’s exposure under the carbon tax as scheduled for implementation on the 1st of June 2019. In comparison to the eligibility criteria outlined in previous versions of the regulations the number of eligible project types and time frames has been expanded this will enable more entities to utilise low cost mitigation options to offset their carbon tax liability. The deadline for comments is close of business on 14 December 2018.


        For further details please go to Draft for Comments Published


        Carbon Tax postponed till June 2018 (October 2018)

        During his first Medium-Term Budget Policy Statement South Africa’s new minister of finance, Tito Mboweni announced the postponement of the implementation of the Carbon Tax by six months from the 1st of January till the 1st of June 2019. The postponement will enable government to align the carbon budgeting system as proposed by the Department of Environmental Affairs (DEA) and the carbon tax as proposed by National Treasury (NT) to addressed concerns raised by business. In 2012 the National Development Plan (NDP) defined the carbon tax as the country’s primary GHG mitigation pricing instrument and forms an integral part of the country’s Nationally Determined Contribution to the Paris Agreement.


        For more information click here to go to the published speech.


        Madiba 100 celebrations: Obama on ‘promoting active citizenship’ in a rapidly changing world. (June 2018)

        The Nelson Mandela centenary celebration was an initiative of the Nelson Mandela Foundation and the festivities were held in Johannesburg in June 2018. The keynote speaker, among other notable speakers, was Barak Obama, former president of the USA. In his keynote lecture, he reiterated the strong beliefs of Nelson Mandela on the importance of democracy especially when tackling modern and pressing challenges such as climate change. In line with this, he emphasized the need to promote ‘inclusive capitalism’ across and between nations in the collective pursuit of the Sustainable Development Goals. This, he added, could be achieved through effective laws and regulations that root out corruption and its related injustices as well as the use of tools such as progressive taxation where the more affluent are taxed in line with their income.


        Such approaches ensure that a share of the world’s capital and resources shifts towards promoting investment and entrepreneurship at the grassroots level and in the impoverished communities. This could also go a long way to ensure that developing economies can access the resources to adopt efficient and alternative technologies such as renewable energy in order to sustainably leapfrog into the fourth industrial revolution.


        Click on the links to watch the speech or to read the full speech.


        EEP Africa opens the next Call for Proposals on 15 May 2018 (April 2018)

        The Energy and Environment Partnership covering Southern and East Africa (EEP Africa) is a multi-donor fund providing early stage grant and catalytic financing to innovative clean energy projects, technologies and business models. The EEP Innovation window provides early-stage grants and repayable grants between EUR 200,000 and EUR 1 million. The minimum co-financing is 30% of the total project budget. The focus areas of this window include:


        • Biofuels and biogas
        • Energy efficiency
        • Solar PV and thermal
        • Waste to Energy
        • Wind and hydro


        Eligible types of projects are feasibility studies, demonstration and pilot projects as well as projects aimed at replication and scale-up. For more information click here to go to the published fiche of this funding window.


        Should you wish to discuss your project with one of our funding and financing experts or need assistance with developing a successful application, please find our contact details here.


        Green Fund RfP regarding Green Economy Projects/Programmes in the Waste Sector (March 2018)

        The Department of Environmental Affairs’ Green Fund in liaison with the DBSA is inviting parties to apply for funding to implement innovative green economy projects or programmes in the waste sector. The deadline for online applications is 05 April 2018. The focus areas of this RfP include:


        • Anaerobic Digestion
        • Waste to Energy from Waste Water Treatment Plants
        • Waste Water Reclamation
        • Material Recovery Facilities (MRFs)


        For more information click here to go to the publication section of the Green Fund website.


        Should you wish to discuss your project with one of our funding and financing experts or need assistance with developing a successful application, please find our contact details here.


        2018 Budget Speech – Carbon Tax to be implemented by 1 January 2019 (Feb 2018)

        In his maiden budget speech, Minister of Finance Malusi Gigaba announces that the carbon tax will be implemented in 2019. In addition he indicates that further environmental fiscal reform is anticipated in the area of water resource management, mitigation of pollutants and waste recycling.


        As quoted from the budget speech:


        “Aside from raising revenue, the tax system is increasingly required to play a role in protecting the natural environment and promoting sustainable use of limited resources. Parliament is currently considering the draft Carbon Tax Bill, which will assist South Africa to meet its climate change commitments to reduce our carbon emissions. The tax will be implemented from 1 January 2019.


        As with greenhouse emissions, the polluter-must-pay principle must also apply to other activities which harm the environment, like the dumping of plastics into our oceans and threatening of marine life. Working with the Department of Environmental Affairs, we will shortly publish a policy brief to broaden the scope of environmental fiscal reform, to explore fiscal and regulatory measures to improve water resource management, mitigate the emission of pollutants and encourage recycling to reduce waste, such as plastic, which is polluting our oceans.”


        The second draft of the Carbon Tax Bill was recently tabled before Parliament and is under consideration with public commentary due by 9th March 2018.


        We urge companies to unpack how this tax will impact them for the purpose of providing company-specific feedback to National Treasury and being ready when the tax becomes effective.


        For more information on the carbon tax bill click here for the link.


        Second Draft Carbon Tax Bill has been published for Comments (Dec 2017)

        Following the first publication of the bill in November 2015, National Treasury has published a second Draft Carbon Tax Bill for comments including the following annexures:

        • Annexure 1: Explanatory Memorandum Draft Carbon Tax Bill, 2017
        • Annexure 2: Socioeconomic Impact Assessment for the Carbon Tax Bill
        • Annexure 3: Response Document to the 2015 Draft Carbon Tax Bill


        The documents are available on the website of National Treasury, click here for the link.


        The closing date for public comments is 9 March 2018.


        Please feel free to contact us to contact us to discuss the impact of the changes in the new draft. Moreover, we can assist with a detailed analysis regarding the impact on your specific business and advise on comments to National Treasury. Our team has an in-depth understanding of the carbon tax and serviced clients in various sectors analysing the previous draft and the related policy paper.

        Licensing Exemption lowers hurdle to develop Small-Scale Renewable Electricity (Nov 2017)

        The Minister of Energy recently amended Schedule 2 of the Electricity Regulation Act No. 4 of 2006. The legislation previously exempted a limited number of electricity-generating activities from requiring a license to operate a generation, transmission or distribution facility (e.g. in case of demo projects or non-grid connected supply of electricity other than for commercial use).


        With the amendment, the Regulation additionally exempts a number of activities from the licensing requirement, including the operation of a generation facility:


        • With an installed capacity of less than 1MW connected to the grid, to produce electricity for a single customer either through a wheeling agreement or not
        • With an installed capacity of less than 1MW not connected to the grid, to produce electricity for own use
        • Where a co-product, by-product, waste product or residual product of an underlying industrial process is used to produce electricity for own use
        • Where standby or back-up electricity is produced in case of an electricity supply interruption


        Although entities still need to formally register with the Regulator, the new legislation significantly lowers the (administrative) hurdle for enterprises to develop small-scale renewable energy generation projects for electricity supply. Our team of dedicated consultant has extensive experience in this area. contact details

        Should you wish to discuss the developments and opportunities arising as a result, please find our contact details here.


        Gigabe confirms: Carbon Tax Bill approved by Cabinet for Consideration by Parliament (Oct 2017)

        During the Medium-term Budget Policy Statement (MTBPS), Finance Minister Malusi Gigaba announced that the Cabinet has approved the release of the carbon tax bill to Parliament for formal consideration and adoption. The tax, of R120/tCO2e, tax targets large industrial emitters and is estimated to generate between 10 and 15 billion ZAR per year of revenue for the state. The MTBPS the Minister indicates that in the current limited economic growth environment the country’s debt-to-GDP ratio is rapidly increasing while tax revenues continue to decline. Just this year alone, SARS failed to collected an additional R50.8bn needed to meet its target. In his speech the minister indicated that the fiscal effort to address the growing budget deficit would be a mix of expenditure cuts and revenue increases.


        Although the implementation of the Carbon Tax has been delayed several times, it could be perceived as a measure to increase the state’s revenue and be introduced in the short term. In this light it is critical that entities subject to the Carbon Tax get a clear understanding of their exposure under it as well as the tax and emission mitigation options at their disposal to prevent being blind sighted by the introduction of the Carbon Tax which now seems imminent. Parties that want to make use of the Z-factor allowance for good energy performance (up to 5% reduction of tax exposure) are encouraged to submit a proposed performance benchmark to Treasury as soon as possible.


        First Submission of Pollution Prevention Plans – Deadline 21 December (Sep 2017)

        Although annual progress reports are due 31 March each year, the first pollution prevention plans need to be submitted on 21 December 2017 already, five months after promulgation of the regulations. Reports must include a process description, last year’s carbon footprint detailing emissions related to different activities, a monitoring methodology and a description of envisaged mitigation measures. It is important to ensure that the plan provides a realistic view on mitigation opportunities as it is the starting point for annual progress assessments. Moreover, it may have an influence on the implementation of future legislation and regulations like the energy performance allowance of the carbon tax (the Z-factor) and the the determination of carbon budgets under the envisaged carbon budget policy.


        For more information including the production processes subject to the regulation click here.


        Pollution Prevention Plans Promulgated (Jul 2017)

        On 21 July 2017, the Minister of Environmental Affairs declared a number of greenhouse gases (GHGs) priority air pollutants and promulgated the National Pollution Prevention Plans regulations. The regulations impose the obligation to compile and implement pollution prevention plan for production processes set out in its Annexure A. The regulations apply to any of the specified processes involving direct GHG emissions in excess of 0.1 Megaton carbon dioxide equivalents (CO2e) per annum.


        For more information and downloads click here.


        Greenhouse Gas Reporting Regulations Promulgated (Apr 2017)

        Following the draft Greenhouse Gas Reporting Regulations of June 2016, the Department of Environmental Affairs published the final GHG Reporting Regulations on 3 April 2017. The regulations introduce obligatory reporting on GHG emissions for organisations in control of or conducting certain GHG emitting activities with an aggregated capacity per activity above the capacity given for each activity in the threshold column of the table in Annexure 1. For more information and downloads click here.


        Revised Carbon Tax Bill Published and Tabled in Parliament by Mid-2017 (Feb 2017)

        Although the Budget Review 2017/2018 is not fully conclusive, it is envisaged that the carbon tax will become effective in January 2018 with the preceding publication for public consultation and tabling in parliament mid-2017. A quote from the relevant section in the Budget Review:

        During 2016, following comments received on the draft Carbon Tax Bill, government held additional public consultations. A revised Carbon Tax Bill will be published for public consultation and tabled in Parliament by mid-2017. The latest developments include the following:

        • During the first phase of the tax (until 2020), there will be no impact on the price of electricity
        • A revised regulation for the carbon offset allowance, enabling firms to reduce their carbon tax liability, will be published by mid-2017


        By the end of this year, government expects to provide clarity on the alignment of the carbon tax and carbon budget after 2020. For more information click: Budget Review Doc


        Europe Aid – SWITCH Africa Green Call for Proposals (Jan 2017)

        The European Commission launched a new call for proposals to select projects under SWITCH Africa Green. The total budget allocated is EUR 15.5 million and grants range from EUR 600,000 to EUR 1,200,000. The call is targeted at initiatives promoting the uptake of Sustainable Consumption and Production (SCP) practices under Micro and Small and Medium Enterprises (ESMEs) and business service providers, seizing green economy opportunities. Eligible countries include South Africa, Ethiopia, Ghana, Kenya and Uganda.


        For more information: link to call for proposals

        Need advice? Just contact us us to discuss the opportunity.


        Draft Carbon Tax Regulations Published – Is your business eligible to generate Offsets? (Jun 2016)

        Following the carbon tax offsets paper in 2014, national Treasury has released the draft regulations on 20 June 2016. Comments can be provided until the 29th of July 2016. The draft regulations further detail the working of the offset mechanism and most importantly the eligibility of organisations and activities to generate offsets. However, it will depend on many different project activity features whether one is eligible to use greenhouse gas emission reductions achieved under the carbon tax.


        Important features include whether one already benefits from participating under another governmental program or regulation, the date of approval of the offset project, whether it concerns sectors and activities defined as falling under the tax net or not and whether the project activity reduces Scope 1 or Scope 2 emission. Just to name a few. For further details please go to Draft for Comments Published


        Draft National GHG Emission Reporting Regulations Published for Comments (June 2016)

        On the 4th of June the DEA gazetted the draft regulations for comment within 30 days (deadline 7th of July). The regulations stipulate what organisations are obliged to report their Greenhouse Gas emissions to the South African National Atmospheric Emissions Inventory System (NAEIS). Whether one is required to report depends on the types of activities conducted and if the related total capacity installed is over the specified threshold. Activities and thresholds are detailed in Annexure 1 to the regulation. Download Regulations


        Section 12B Tax Act – A 100% Allowance for Small Scale Solar (Mar 2016)

        Section 12B allows for a deduction from corporate income tax on a 50|30|20 basis over three years in respect of investments in electricity from wind, energy, hydro (<30 MW) and biomass as well as the production of bio-diesel and bio-ethanol. From January 2016, a specific provision is made for small scale solar PV for self-consumption up to 1,000 kW, allowing a 100% investment allowance in year one.


        For many small to medium size businesses, this allowance can make solar electricity financially more attractive than grid electricity. However, make sure you choose the best incentive available for your specific business as the compounding of incentives is generally not allowed. Download 12B Abstract


        Report – Facilitation of the Large-Scale Uptake of Biogas for Transport (Feb 2016)

        In 2015, EcoMetrix has conducted a study for the Department of Environmental Affairs of South Africa regarding the economic and practical potential of compressed biogas (CBG) as an alternative transport fuel providing inputs to the potential further development of policies by the South African government. In support of this main objective, the study targeted the following results:

        • The development of a national biogas resources inventory
        • An assessment of the financial viability of the main CBG production processes
        • The identification of opportunities for policy interventions


        In February this year the biogas report was published: Download Biogas Report


        Energy Efficiency Tax Incentive increased from 45c to 95c per kWh (Jan 2016)

        Following the recently promulgated Taxation Laws Amendment Act, Act No. 25 of 2015, the Section 12L energy efficiency tax incentive has been amended and improved to increase the amount of the (measured and verified) deduction from 45c to 95 cents per kilowatt hour or kilowatt hour equivalent of energy saved. Furthermore, the increased rate is deemed to have come into operation on 1 March 2015 and applies in respect of years of assessment commencing on or after that date. (Source: SANEDI)


        Policy Alert – Draft National GHG Emission Reporting Regulations (May 2015)

        With the introduction of this fifth regulation in the space of GreenhouseGas (GHG) emissions it will become even more important for organisations to align monitoring and reporting efforts to prevent duplication of activities. The GHG Reporting Regulation will require companies to report annually on their GHG emissions specifying different methods depending the sector it belongs to. Annexure 1 to the regulation seems to include all industrial sectors including waste and food processing. Agriculture is however excluded from the list. Comments can be provided until the 10th of July 2015.


        To download the regulations click this link: Draft National GHG Reporting Regulations (795)


        Funding Alert – EEP Call for Innovative RE/EE Projects and Large Scale Demos (Feb 2015)

        The Energy and Environment Partnership Programme focuses on facilitating access to energy and inclusive growth, while contributing to climate change mitigation. This is done by supporting eligible renewable energy (RE) and energy efficiency (EE) projects in thirteen countries in Southern/East Africa among which South Africa. The types of projects eligible for support under the current call for proposal (deadline 13 April 2015) are RE/EE projects or businesses that are close to commercial maturity but require bridging finance and large scale RE/EE demonstration projects that show good potential for creating new markets.


        Press Release – Five Reasons for allowing Offsetting within SA’s Carbon Tax Net (Dec 2014)

        Now the dust has settled regarding the debate on the Carbon Offsets Paper published by National Treasury in April this year, EcoMetrix Africa would like to bring forward the following considerations as food for thought when finalizing the design of this element of the proposed South African Carbon Tax in 2015:


        1. Level Playing Field – Current Design Distorts Level Playing Field.

        2. Least Cost Option – Current Design may favour more expensive Options outside the Tax Net.

        3. Collaboration within the Tax Net – Collaboration between Affected Parties is not incentivised.

        4. Price Signal – Stronger Price Signal while Offsets within the Tax Net do not cost the Tax Payer a Cent.

        5. Critical Mass for Markets – Allowing Offsets within the Tax Net creates substantial Trading Volumes.


        For the full press release press this link: EcoMetrix Press Release - Ctax Offsetting (795)

        For the carbon tax offset paper press this link: carbon offsets paper (936)

        For the response from National Treasury to Comments: response to comments (953)


        Santa Shoebox Project – Share the Joy of Giving (Oct 2014)

        Help the Santa Shoebox Project distribute festive season gifts to thousands of underprivileged children in South Africa and Namibia by pledging your Santa Shoebox. EcoMetrix participated in this project supporting a group of children with a generously filled shoebox including both essentials and presents to make a small contribution to a joyful festive season for some underprivileged children in South Africa. If you are interested to also make a contribution, visit the website here.


        Carbon Offset Plan lacks Basic Understanding of Carbon Standards (May 2014)

        National Treasury’s Carbon Offset Paper published for public comments in April is a step in the right direction although it requires a basic understanding of the carbon standards that are proposes to be included in the offset mechanism says Henk Sa, Partner at EcoMetrix Africa. Four standards are proposed to be included: Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), Gold Standard (GS) and Climate, Community and Biodiversity Standard (CCBS). It is important to note that the GS and CCBS are not actual standards under which emission reductions can be certified but rather operate as add-ons that can be applied on top of the CDM and VCS. The GS consists of a number of additional requirements that is placed on CDM and VCS projects and is limited to activities within Renewable Energy, Energy Efficiency, Waste Handling and Disposal and Land Use and Forests sectors. The CCB Standard on its own does not lead to the delivery of quantified emissions reductions certificates and should be used in combination with CDM and VCS. The use of offsets, a cap and trade mechanism included in the carbon tax is probably the most novel feature of the tax, but for it to be effective and efficient, it is important that National Treasury takes on board advise for a full understanding of global carbon basics, something which currently is lacking.


        Carbon Offset Plan marginalizes Offset Opportunities (Apr 2014)

        End of April the South African government released the Carbon Offsets Paper (click link). Although this paper provides further clarity on how the carbon tax offset mechanism could be implemented, the ineligibility criteria mentioned may seriously limit offset opportunities. Lodewijk Nell, Partner at EcoMetrix Africa indicates that, based on a quick scan, the offset potential might be reduced from the anticipated 34 million tonne/year (see Table 4 of the paper) to 20 million in Phase 1 (2016-2020) and 10 million in Phase 2 (after 2020) when considering the exclusion of sectors and activities within the tax net. As the ineligibility criteria are not cast in stone, it would be beneficial to assess this and provide feedback to Treasury. Stakeholders are invited to provide comments on the paper before the 30 June 2014.


        Cape Town selected as Earth Hour Capital – Switch Off on 29 March 2014, 8:30 – 9:30 pm local time

        Join millions of people globally, switching lights off for an hour to raise awareness for the planet. Earth Hour is an recurring annual event initiated by the WWF. Cities all around South Africa have called upon their residents to switch of the lights in order to show their commitment to the fight against climate change. In Johannesburg for example, all public buildings and landmarks will go dark during the hour. An Earth Hour Concert will be held in Soweto, while the Joburg Zoo in Parkview will have a public lights out at the zoo camp. At the Orlando West Regional Park, the official South African Earth Hour celebrations will be held. Click link for more


        Southern African Renewable Energy Program receives Govt approval (March 2012)

        EcoMetrix Africa’s Southern African Renewable Energy (SARE) Programme has received approval from the South African Designated National Authority (DNA) to go ahead with the programme. The programmes promotes the development of renewable energy projects that supply energy to the grid. Technologies include solar, hydro, wind and geothermal. The programmes will be accessible in most countries on the sub-continent including South Africa, Mozambique, Botswana, Zimbabwe, Namibia, Zambia, Lesotho and Swaziland. For more information on this topic please contact us.


        Southern African Solar Technologies Programmes receives Govt approval (February 2012)

        EcoMetrix Africa’s Southern African Solar Thermal Energy Programme (SASTE) and Southern African Solar Electrical Energy Programme (SASEE) have received approvals from Lesotho to go ahead with the programmes. The programmes allow distributors and retailers of small scale solar technologies such as household PV panels and solar water heaters to access the international carbon markets and reduce the per unit price. The programmes will be accessible in most countries on the sub-continent including South Africa, Botswana, Zimbabwe, Namibia and Swaziland. The CDM programmes were initiated to support uptake of small scale solar technology which reduces household level reliance on fossil fuels. For more information on this topic please href=””>contact us.

        SA urged to act before EU carbon project window closes in December 2012 (25 January 2012)

        Engineering News reports from a Green Power Conference Event in Johannesburg that South African developers of Clean Development Mechanism (CDM) projects are urged to finalise their applications for registration of such project with the UN during the 1st quarter of 2012, or face bing excluded from the key European market. There was an agreement in Durban last month to extend the Kyoto Protocol beyond 2012, but the EU, the dominant market currently for carbon credits, had already confirmed that it would accept credits only from registered project from least developed countries after 2012. EcoMetrix Africa MD Henk Sa speaking at the event, indicated that he foresaw the evolution between now and 2015, of multiple regional or country markets which are unlikely to be mutually exclusive. For more information on this topic please contact us.

        Innovators Wanted: EcoMetrix Africa is looking for a Carbon Analyst (11 October 2011)

        EcoMetrix is looking for an innovative and resourceful recent graduate to fill an entry level position as a Carbon Analyst. The Carbon Analyst is responsible for evaluating the carbon aspects of manufacturing and logistical processes, the economic feasibility of new technology and assisting in the registration of Clean Development Mechanism projects. For more information please visit our Careers page.

        The Future of Carbon Markets in South Africa: SA could lose out on carbon financing if EU moves ahead with LDC plan (22 September 2011)

        Engineering News reports that South Africa risks losing carbon financing flowing from the Clean Development Mechanism (CDM) as the European Union (EU) – the largest buyer of Kyoto Protocol carbon credits – has indicated it would only purchase credits from projects located in least developed countries (LDCs) from 2013. There is concern among those involved with CDM projects in South Africa that the issue is being neglected, as other sources of funding, such as the yet to be established Green Climate Fund (GCF), appear to be gaining favour and popularity at the climate change negotiations, with developing countries hoping to tap into these ‘new’ sources of funding. Lodewijk Nell (Partner at EcoMetrix Africa), Andrew Gilder (Director, IMBEWU Sustainability Legal Specialists (Pty) Ltd) and Brett Jordaan (VP Global Carbon Markets, Evolution Markets) lead a “Thought Leader” discussion on this topic at Imbewu’s Rosebank offices on 21 September 2011 and were involved in a live discussion on CNBC Africa on 22 September 2011. For more information on this topic please contact us.


        Red Cap Kouga Wind Farm, Eastern Cape, passes key environmental and community milestones (22 July 2011)

        Renewable energy developer Red Cap has received environmental approvals for a phased wind farm project in the Eastern Cape and has also concluded an agreement with the Industrial Development Corporation (IDC) to induce direct community involvement in the project reports Engineering News.


        SA Delegation visits Global CCS Institute Australia (13 July 2011)

        A delegation of CCS experts lead by the South African Centre for CCS, is visiting several CCS sites in Australia where capturing and storing Carbon Dioxide (CO2) is put into practice. The objective of this trip is to learn from the extensive Australian CCS experiences and take this forward in assessing and detailing a plan for CCS demonstration in South Africa. As mentioned in the LTMS, CCS can make a significant contribution to SA’s mitigation strategy starting with a CSS demo by 2020 storing 20 megaton CO2 per annum. However, there are some major considerations with regard to storage capacity, technology to be employed and development cost. Lodewijk Nell, EcoMetrix’ CCS Expert on the delegation says: “It is of imminent importance to gather international knowledge from several sources in order to identify opportunities and risks involved in the different development stages leading to demonstration. In this way, we can fast track the process which started relatively late in South Africa while on the other hand getting a good grip on the mitigation potential, implementation risk and last but not least, the development cost involved.” The delegation has visited the Otway project in Queensland where a successful test injection has been completed using a depleted gas reservoir as a storage site and a second test injection project is on the way making use of a saline aquifer. The latter is a type of storage reservoir that is also offers substantial storage possibilities in South Africa. For more information please contact us.


        Government confirms inclusion of price competition in first (Refit) renewables round – CDM now more important (4 July 2011)

        The South African government has confirmed that price competition will feature in the procurement process for the first round (1,025MW available) of renewable energy projects with the 2009 renewable energy feed-in tariffs (Refit) to be used as a “ceiling” price against which project developers should tender their offers. Once the National Energy Regulator of SA has concurred with this strategy, National Treasury will release the tender, along with the selection criteria and a pricing dimension. Criteria expected to be included are technical viability, localisation, job creation, grid connectivity, environmental acceptability and local economic development spinoffs. During the request for Information (RFI) process, the government received information relating to proposed projects totalling 20,000MW (many of which were prepared on the basis of the 2009 Refit documentation). There is currently uncertainty in the market around Refit’s adverse impact on the financial eligibility of renewable energy projects under the CDM. However, REFIT does not necessarily exclude projects from being registered under the CDM. For more information please contact us.


        CDM will continue but in what form? UN (22 June 2011)

        Last week Christiana Figueres (head of the UNFCCC secretariat) commented in Bonn that the discussion around CDM is concerned with whether the CDM will undergo modification or continue as it is with additional market mechanisms, reports Reuters. She assured journalists that Parties to the Kyoto Protocol were not discussing the termination of the carbon market as a mechanism to combat climate change. The debate continued in South Africa yesterday where Andrew Gilder, of Embewu Sustainability Legal Specialists, and Henk Sa, of Ecometrix Africa, presented a joint analysis of the carbon market in South Africa and the opportunities and challenges facing project developers after the end of the Kyoto Protocol in 2012 to attendees at the Solar South Africa conference in Johannesburg. They went on to provide further insight to renewable energy project developers at the South African National Energy Association lecture later in the evening, explaining how project developers could benefit from both the South African REFiT program and the CDM. For a copy of the analysis presented please contact us.


        Red Cap Kouga Wind Farm looks to the CDM, Deadline Extended (16 June 2011)

        The Red Cap Kouga Wind Farm Development Company, assisted by EcoMetrix Africa, is currently inviting interested and affected parties to submit comments in regard to the registration of the project under the CDM. The deadline for submitting comments and queries regarding the CDM registration of this project has been extended to the 15th July 2011. More information is available here.


        Breaking News: Revision of smelter energy efficiency methodology approved (1 June 2011)

        EcoMetrix Africa recently submitted a request for revision of AM0038, a methodology for improving the electricial efficiency of submerged electric arc furnances under the CDM. The revision was approved today during the open session of the CDM Executive Board meeting (EB61), in Bonn, Germany. Under the revised methodology the projects are no longer restricted to SiMn smelters but rather submerged electric arc smelters producing only one of a number of alloys are allowed to claim carbon credits when improving electrical efficiency. Henk Sa, Managing Director at EcoMetrix Africa, commented that they have already recieved significant interest from South African smelter operations and have begun work on at least one PDD at the time of writing. He further commented that with the impending carbon tax, South African heavy energy users were eager to improve efficiences wherever possible, and the CDM provides a mechanism to fund energy efficiency projects that should not be overlooked by industry.


        Carbon Capture Readiness Workshop. (25 May 2011)

        Together with the South African Centre for CCS, EcoMetrix executed a workshop with industrial and governmental stakeholders in what way South Africa can prepare itself for the implementation of CCS in South Africa. Lodewijk Nell, Director – Advisory at EcoMetrix Africa, noted “CCS can make a substantial contribution to SA’s ambitious emission reduction targets. However, this ambition can only be realized if we prevent a lock-in of carbon by building large new industrial facilities that do not take into the futuire capture of CO2 from their process streams.”


        Red Cap Kouga Wind Farm, Eastern Cape, looks to the CDM (16 May 2011)

        The Red Cap Kouga Wind Farm Development Company, assisted by EcoMetrix Africa, is currently inviting interested and affected parties to submit comments in regard to the registration of the project under the CDM. The project involves the development of a 300MW wind farm, in several phases, and would make a signifcant contribution to the electricity supply of the Eastern Cape. The project is located near Humansdorp. More information is available here.


        EcoMetrix discusses the Clean Climate Fund & Trevor Manuels appointment as well as the mooted South Africa Carbon tax. (6 May 2011)

        EcoMetrix Africa welcomes Mr Manuels appointment to the Clean Climate Fund, and concludes that whilst a carbon tax offers a real option for South Africa to reduce its emissions, there will be economy wide impacts that need to be addressed before embarking on this course. View the CNBC Africa interview here.


        EcoMetrix and Ellies Holdings Launch CDM Programme in Southern Africa. (6 May 2011)

        EcoMetrix Africa launches two solar technologies programmes under the UNFCCC’s Clean Development Mechanism. Under the programme project developers, technology supplies and other parties can claim carbon credits for switching from fossil fuel energy sources such as electricity to solar technology. Ellies Renewable Energy, a division of JSE listed Ellies Holdings, and In-Toto Solutions have signed on as the first participants in the programme. Under the programme they will make solar technologies such as heat pumps, photovoltaic panels and solar water heaters more accesible to both consumers and industry. Read more about the programme here.