Joint implementation initiatives in South Africa: A case study of two energy-efficiency projects

This paper explores the issues pertinent to Joint Implementation (JI) in South Africa by examining two prototype potential projects on energy efficiency with the potential for reducing greenhouse gas (GHG) emissions. The first is an energy-efficient lighting project based on the public electricity utility, Eskom's plan for a compact fluorescent lighting program in the residential sector. The analysis indicates that the CFL program could avoid emissions of up to 243 thousand tons of carbon over the first five years, at negative cost (that is, with a positive economic return). The second project involves the delivery of passive solar, energy-efficient housing to a low-income township in the Western Cape Province, at an incremental capital cost of approximately $2.5m for the 6000 houses. In this case, the avoided GHG emissions over the first five years amount to between 14 and 20 tons of carbon, and over the 50 year life-span of the project it will result to 140 to 200 thousand tons of avoided emissions at a cost of $13 to $17 per ton. The housing project has significant non-GHG benefits such as savings on energy bills and health, which accrue to the low-income dwellers. A number of important JI-specific issues and concerns emerge with respect to the two projects, which can also be applied to other potential JI opportunities in the country generally. These include the issues of carbon credit sharing, for which a number of scenarios are suggested, as well as estimating unknown macroeconomic impacts, such as the effects of CFLs on the country's incandescent lighting industry. Findings from an examination of both potential projects conclude that capacity-building within the country is critical to ensure that the technology being transferred balances efficiency, cost and quality appropriate to the South African context. Finally, assessment and evaluation, monitoring and verification criteria and institutions are called for to guarantee measurable long-term environmental, economic and other non-GHG related benefits of potential JI projects