Johannesburg: Business should play a positive role in creating a new global climate change agreement that would be “sustainable and more successful than the Kyoto Protocol”, Business Unity South Africa (Busa) said on Tuesday. Busa emphasised that a balanced agreement would contain recognition of the developmental challenges facing developing countries, while, at the same time, addressing business commitments to a low carbon growth path without being prescriptive, but still supportive, of the adaptation initiative.
National studies have shown that South Africa would face significant challenges as a result of climate change in the areas of agriculture, biodoversity, health and water supply. Thus, international support for adaptation would be essential for a successful deal.
Busa said that a successful agreement would be regarded as one which was built on a number of principles, including: climate change being recognised as a fundamental issue for South Africa, which would have major impacts on society; requiring urgent action at a global level as business as usual was not an option for any country; the realization that actions on climate change could distort competition across borders; and the knowledge that market mechanisms and sound regulation would be required to achieve a low-carbon economy.
Busa also stressed that climate change must be solved in an integrated manner with other key issues in society such as: economic development to alleviate poverty; energy security; and affordable access to energy, job creation, and protection of biodiversity.
The organisation further added that all sectors of society and government had a role to play in moving to a low carbon economy, and a mix of policy instruments would be required to achieve this.
Busa said that developing countries would suffer the effects of climate change most acutely, and there needed to be a fair balance between what historical large emitters should do, and what emerging emitters like South Africa should be expected to do under the Copenhagen agreement.
Busa said it believed that there were key issues for a successful outcome that would enhance the role of South African business in achieving international climate change objectives, while at the same time achieving economic growth, job creation and alleviation of poverty.
Firstly, this would involve a level of mitigation effort appropriate for South Africa. Busa said that key areas in South Africa for transition to a low-carbon economy centred on: energy efficiency, more effective deployment of existing technologies like solar water heating; technology innovation such as carbon capture and storage; technology transfer through foreign investment; and credible and more effective carbon trading credit markets.
The organisation added that business accepted the need for a range of national policy instruments to address the historically high national carbon growth path, with international backing.
Busa further proposed three key issues for implementing mitigation measures.
The first, was a global trading market to encourage emissions reductions in a cost effective way and determine finance for developing countries.
“We need to consider the establishment of new sectoral carbon trading systems for economically advanced developing countries to access finance and cost effective emission reduction strategies in key sectors. Reform of the clean development mechanism (CDM) is needed for a more effective instrument, which includes considering it not being managed in the UN system,” said Busa.
Technology transfer from developed to developing countries was the second key issue highlighted.
“Innovative ways should be identified to ensure that low carbon technologies are integral to investment. International support can enhance the scale, scope and speed on local implementation if undertaken within the national development strategy. Additionally, the potential for South Africa to make a significant contribution to research into carbon capture and storage should be explored,” said Busa.
The third issue was measurement, reporting and verification, which Busa said should also build on existing international approaches to conformity assessment in the environmental field as the basis of monitoring and verification measures for greenhouse gas emissions, rather than building on the current verification approach used for the CDM, that has proved costly for developing countries.
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