eThekwini Carbon Desk
Background
The eThekwini Carbon Desk was established through the Durban Industry Climate Change Partnership Project (DICCPP). The DICCPP was set up to create a mechanism for Industry in Durban to respond to climate change risks and opportunities. The programme was implemented by the United Nations Industrial Organisation (UNIDO) in partnership with the Durban Investment Promotion Agency (DIPA), the eThekwini Municipality and the Durban Chamber of Commerce Industry (DCCI).
Municipalities in South Africa have significant potential to generate carbon revenue . This is in part, due to their role as managers of large scale municipal infrastructure, but also due to their role in creating an “enabling environment” for local economic development. Most financially viable carbon credit projects require large volumes of Greenhouse Gas (GHG) emission reduction, large scale energy efficiency or large scale renewable energy production. Private sector institutions in South Africa have begun realizing this carbon revenue potential . However these projects have been limited to large corporations as the private sector often does not have the necessary scale to generate viable carbon credits. Conversely, local government in South Africa often have the necessary scale for viable carbon credit projects but, as a result of legislative and institutional barriers, have not been able to maximise the potential from the carbon market.
eThekwini Municipality has however been able to generate significant carbon revenue through the Clean Development Mechanism (CDM). The “Durban Landfill gas to Electricity Project” has set a precedent in South Africa for municipal carbon revenue generation and has proved that there is significant revenue potential from carbon market mechanisms available to municipalities.
There are significant additional carbon market opportunities within the eThekwini Municipal Area (EMA). The municipality has recently embarked on a municipal infrastructure energy efficiency programme. It was noted in the project documentation for this programme that the option for carbon credits would be investigated. The municipality could also target new housing, infrastructure and energy delivery projects for further potential carbon revenue potential. These energy efficiency interventions could constitute the foundation for a broader pool or portfolio of carbon credits for the municipality.
Carbon Desk Concept
Cartwright (2007) has noted that there are a number of benefits for municipalities to engage with the carbon market. These can be summarized into the following three categories.
- Generation of carbon revenue
- Preparation for anticipated mandatory GHG management legislation
- Realising potential technology and skills transfer through the carbon market
In order to maximize these carbon market benefits, Cartwright (2007) proposes the development of a “Local Government Carbon Portfolio” or Carbon Desk. The underlying concept for the municipal carbon desk is that the municipality generates a pool of carbon credits from a range of different energy efficiency, renewable energy and GHG mitigation projects. Costs associated with the registration and verification of credits can be reduced due to the collective nature of the projects and the municipality has the option of selling the credits at a higher price due to the amplified volume from a range of projects.
For further information please contact
Teboho Motshohi
Carbon Desk Manager
Durban Industry Climate Change Partnership Project
Tel +27 31 311 1288