South African Energy Policy FES Briefing Paper 11| August 2007 Page 5 Thus, there is no potential conflict with the Pe­tersburg Declaration as a whole but South Afri­can efforts to reduce poverty would depend on the balance struck between the various compo­nents of the Declaration. Measu­res to decrease energy intensities, carbon intensities and emissions need to be designed and imple­mented bearing in mind the ove­rall effects on all components of the South African economy: South Africa has stated that it supports such measures but that they need to be properly integra­ted into economic growth and re-distribution and social deve­lopment. In some cases, such as a number of household energy efficiency measu­res, emission reduction and poverty reduction goals can be achieved simultaneously. However, in others, such as carbon taxes on established large scale mineral beneficiation industries, the effect could sometime be limited to a negative impact on the local economy and knock effects leading to an increase in poverty. Also, the current costs and impacts of reform and de-regulation measures, which are expected to be warranted by the medium-to-long term benefits of open competitive markets, include negative impacts on poverty reduction pro­grammes in the short term. Poverty reduction within a framework of sustainable development is South Africa’s stated policy. South Africa un­derstands that trade-offs are required between short term costs and medium to long term bene­fits. However, these need to be made within the realities of democratic political processes and the urgent need in South Africa to address wide­spread and often acute poverty. Thus, contribu­tions from G8 regarding assistance with short term costs and immediate reductions in poverty ­while the longer term benefits of open and competitive markets are being secured through re-structuring, reform and de-regulation- are an important consideration. 2. Addressing climate change and sustainable development. South Africa is highly vulnerable to the effects of climate change. Large parts of South Africa are arid and water-supply systems are already stres­sed and in many cases already at their natural supply limits. Decreases and/or disruptions in patterns of rainfall will result in water shortages, desertification, destruction in ecosystems, large­scale negative impacts on human-health owing amongst other effects to significant extensions to areas carrying disease vectors for malaria and Bilharzias and economic disruption and damage. Base Case for Emissions. 9 International measures taken to mitigate climate change such as CO2 taxes or trade measures af­fecting energy-intensive industries could effect the South African economy for example by ma­king certain South African-based industries non­profitable and hence damaging the domestic economy. This might be problematic in terms of South African contributions to international ef­forts to reduce GGH emissions. South Africa has ratified the United Nations Framework Conven­tion on Climate Change(UNFCCC) 10 and: “ belie­ves that an acceptance of common but differen­tiated responsibilities, as outlined in the conven­tion, is the best and probably only way towards the sustainable management of the global commons ” . 11 The most appropriate implementa­tion strategies in this framework would be Clean Development Mechanisms(CDM), technology transfer and donor funding. 9 Clean Energy and Development for South Africa: Results. Alison Hughes, Mary Haw. Energy Re­search Centre, University of Cape Town. 28 Febru­ary 2007 Report 3 of 3.‘The energy and CO 2 tax (USD$ 20/ tonne) scenarios have similar results on GHG emissions: each leads to 20% reduction in GHG from base case: i.e. there is still a large 180% increase but less than the 230% increase for the base case. In the CO 2 tax case much of the reducti­on is owing to the choice of nuclear for electricity generation. Carbon capture and Storage(CCS) is not considered for CO 2 emission reduction. 10 In addition, the Department of Environmental Af­fairs and Tourism has developed a comprehensive national climate change response strategy. 11 South African Minister for Environmental Affairs and Tourism statement quoted in South Africa Ini­tial National Communication under the United Na­tions Framework Convention on Climate Change. South Africa. 2003