Mechanical Technology June 2016

⎪ Sustainable energy and energy management ⎪

offset project registration lies in the steps of proving project additionality and establishing the project baseline. Two main tools are available in this respect: automatic additionality and standardised baselines. These tools are similar in na- ture in the CDM, the VCS and GS. Automatic additionality in the CDM allows for either technologies or projects in specific geographic areas that comply with certain predetermined conditions to be deemed automatically additional. In the case of technologies, the requirement is typically based on the rate of adop- tion of specific technologies in a region. Technologies that have low adoption rates are typically exempt from having to prove additionality during project registration. In the case of regions, small-scale projects implemented in areas that are classified as special underdeveloped zones (SUZ) are also exempt from having to prove additionality during project registration. Special underdeveloped zones The CDM deems small-scale projects that are implemented in special underdevel- oped zones (SUZ) to be automatically additional. As both the VCS and the GS allows for the CDM methodologies, this fast track option is, therefore, available under all three programmes considered. A special underdeveloped zone is an administrative unit where the proportion of the population with income less than US$2 per day, adjusted by purchasing power parity (PPP), is greater than 50%. In South Africa, the smallest administra- tive unit is a municipal ward. Where a large portion of the wards in an area qualify as special underdeveloped zones, the local municipality can qualify as a special underdeveloped zone. Even though South Africa is a high middle-income country, it is also the country with one of the highest levels of inequality in the world. South Africa can capitalise on the removal of barri-

A diagram showing the link between the proposed carbon tax, the offset scheme and low carbon development.

standardised baselines. All offset proj- ects, irrespective of the programme used, need to prove additionality. Traditionally this step requires sig- nificant inputs from experts and auditors to ensure that the criteria are met. If projects can be deemed automatically additional, a huge burden of proof is removed from the project. Emission reduction is defined as the difference between the emissions in the baseline and the emissions of the project. Proving emissions in the baseline can be challenging because it is mostly based on theoretical calculations. This requires inputs from experts and auditors and can be cumbersome to prove. The use of standardised baselines can make a big impact on the inputs required during project validation.

designed with the primary aim of main- taining environmental integrity. When the systems were initiated in the early 2000s a substantial number of checks and balances were put in place to ensure the integrity of the systems. The result was that the systems had very low risks of erroneous inclusion of projects but this came at a high price – a high administrative burden and a high risk of erroneous exclusion. Recent developments in both the CDM and the VCS have focused on the easing of the ad- ministrative burden. Many of the changes are however not automatically available. In the case of the CDM, it needs action from the Designated National Authority in a country to allow that country to make use of the changes. In the case of the VCS, methodologies need to be de- veloped to access the potential benefits. The two main areas of innovation lie in proving additionality and establishing

Removal of barriers Much of the administrative burden in

24

Mechanical Technology — June 2016