Business will have to take a leadership role and engage with government on key policy, economic and technology-related issues to prepare the country for its role as host of the next UN climate summit.
This was the message from speakers in Johannesburg yesterday, discussing the road to the 17th Conference of the Parties (COP 17) of the UN Framework Convention on Climate Change (UNFCCC), being held in Durban in December.
Following the COP 16 in Cancun, Mexico, at the end of last year, the summit marks a major decision-making event both internationally and for SA.
Joanne Yawitch, deputy director-general for climate change at the Department of Environmental Affairs (DEA), noted that current climate negotiations are driven by a changing world order and rise of developing countries.
She added that much of what was noted in the Copenhagen Accord at the COP 15 in 2009 was formally agreed on in Cancun.
The agreement saw countries responsible for around 80% of global emissions (including China and the US) agreeing to emission reduction targets, as well as the establishment of a Green Climate Fund, whereby richer countries will aid poorer nations to develop along a greener path, contributing $100 billion annually by 2020.
”What's more important for SA, however, is what was not agreed to, because those are the issues we'll have to engage with during COP 17,” said Yawitch.
She explained that Cancun didn't reach a decision on key equity-related policies, or on whether there will be a second commitment period for the Kyoto Protocol.
SA faces the challenge of striking the balance between not promising 'big bang' outcomes, while still engaging with the major issues, said Yawitch.
“The political space we're coming into is very difficult, as 2012 is the year we have to decide on a second commitment period for the Kyoto Protocol. It's important that we're very realistic about what's possible. We mustn't build expectations too high, but not dumb them down either.”
One of the areas the Durban conference will have to address is setting out guidelines and modalities around the Green Climate Fund. The form aid from richer nations will take is a key consideration in developing countries' adaptation and mitigation plans.
“One of the big barriers to developing low-carbon processes in developing countries is very much linked to technology conditions and access to technology and intellectual property rights and patents at an affordable price,” explained Yawitch.
Another aspect of the country's role as host is its perception by the international community, which brings important business and development opportunities.
”Mexico used COP 16 to showcase the country in a really impressive way, regarding what Mexico is doing around climate change, environment, and sustainable development,” said Yawitch.
She added that SA will have to think seriously about how to showcase the country. “It's a huge networking opportunity that's coming, and a huge international platform for profiling the best of SA.”
She added, however, that people will also be looking for the “worst of SA” and that the nation, as energy-intensive country, will have to look very carefully at how it manages its profile. This will require serious discussion between government and all stakeholders involved, said Yawitch.
Down to business
Valerie Geen, director of climate and energy at the National Business Initiative, noted that business must be seen as a partner in climate negotiations, given that many of the solutions to climate change may rest at the door of business or involve it somehow.
Wendy Poulton, GM of corporate sustainability at Eskom, quoted an analogy used at one of the business side events at Cancun, comparing the negotiating process to the tortoise, and business to the hare. “The hare has to be forging ahead; do not wait for the international process.” She noted that while business was clearly concerned about the uncertainty issue, it also risked being left behind.
”Business is already doing a lot of things in technology transfer,” she added. “If you look at companies today, they transfer technology, they do research and development, and what we want from government is a process to incentivise that faster.”
The other development emerging from the Cancun business talks, said Poulton, was a very strong sense of more south-south co-operation and technology development between developing countries, such as South Korea, China and SA.
The DEA announced last week that it will conduct consultation workshops in various provinces to discuss the National Climate Change Response Green Paper.
The policy outlined in the Green Paper serves as the government's framework for meeting its commitment to help stabilise global greenhouse gas concentrations and to prevent the country from suffering the impacts of unavoidable climate change. It also presents the vision for the long-term transition to a low-carbon economy and society, says the DEA.
The first workshop was held on 17 January in the Western Cape and the final one is planned for 4 February in Gauteng.
Fred Goede, head of health and environment at Sasol, pointed out that many businesses are faced with the question of what they can do.
“It's important to get involved in the Durban side events and become part of the regulatory process. Join in the consulting process around the Green Paper on climate change, voice your issues and engage with the department.”
Rohitesh Dhawan, resources economist and sustainability adviser at KPMG, noted that one of messages emerging from the business events at Cancun was that “success in the green economy will be driven by business thorough government, not by government through business”.
He said it's pivotal to engage with the Green Paper and focus on green growth by identifying industries that tackle mitigation and adaptation, and create jobs. “Nationally appropriate mitigation actions within the private sector play an important role. Neither the private nor public sector have truly grasped the opportunities.”
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