GCX Carbon and Energy Newsletter
April 2010  

Dear Subscriber,

With the 25% increase in electricity rates that took effect this month the incentive for all industries to adopt aggressive low-carbon strategies has never been greater. At the same time the World Bank has approved the controversial Eskom loan of $3.75 billion, which allows for further development of coal-fired power plants. South Africa's greatest source of carbon emissions is its electricity consumption, so through the sheer necessity of cost-saving strategies, carbon emission reduction has now become financially attractive. If this isn't enough, Carbon legislation will be a likely reality by the end of 2010 and cap and trade mechanisms are also under discussion. Regardless of government policy, businesses and consumers have a responsibility to take action. The principle of ‘Ubuntu – I am because you are’ needs to be brought into our lives and our boardrooms. We have a responsibility to ourselves, our neighbours and future generations to ensure the sustainability of our planet.

This edition is filled with articles on how businesses and individuals can take action towards a sustainable future for all through carbon emissions reductions plans, energy efficiency measures, environmental education for employees and much more.

Happy reading!

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A Carbon Emission Reduction Plan by GCX MD, Ed Gluckman

Ed Gluckman, MD of GCX, shares with us his views on the steps a business can take to embark on a climate change response programme and thereby reduce the companies carbon footprint. He makes some recommendations about how you can get started and the areas to focus on, all grounded in solid experience having worked with many clients in the past.
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Learning your carbon ABCs for the green-collar future

GREEN-collar workers are the new black, as Penny Haw so succinctly states in her Business Day article. As climate change legislation starts kicking in in SA, green increasingly becomes an urgent management issue for organisations. As mandatory greenhouse gas reporting affects every aspect of a business’s operations, employees at every level will have green responsibilities and so will have to have the associated green skills to do their jobs properly. The only way to get these greens skill is through green skills training courses such as those offered by GCX.
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GCX Carbon Footprint Analyst training courses in Calgary, Canada

educorGCX has partnered with Failsafe Canada Inc to offer GCX Carbon Footprint Analyst training courses in Calgary Canada. Our partners in Canada have recognised the need for carbon and energy training, and that GCX are the perfect training partner due to our expertise in carbon and energy management training. There are also plans to introduce the GCX Carbon Literacy course and the GCX Energy Efficiency Auditor course into Canada in the near future.
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SA organisations leading the environmental training pack

A growing number of SA’s big names and government departments have opted to up-skill staff through carbon and energy training despite no current legislation and a “failed” climate change deal in Copenhagen last year. By building internal capacity to measure, reduce, monitor and report on greenhouse gas emissions, South Africa is demonstrating clear commitment to fighting climate instability. Find out who is leading the pack by reading the full article.
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Upcoming courses

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South Africa news

African universities should step up climate research – Sonjica

If South Africa is to participate fully in global climate change research, adaptation initiatives and related climate change work, it is imperative that African Universities include the relevant training in their curriculum. The quickest way to do this is to leverage existing intellectual resources like those of GCX and other firms in this field. By forming partnerships with private organisations, Universities can develop the relevant curriculums quickly in response to the rising market demand.
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City of Cape Town to start selling Darling Wind Farm’s ‘green electricity’

The City of Cape Town last week announced its imminent plans to sell Green Electricity Certificates, generated at the Darling Wind Farm on the West Coast, to interested parties. This is an important step to reach the cities’ target to source 10% of its overall energy needs from sustainable sources by 2020. An initial 10 GWhs will go on sale initially and more will be sold as more is generated.
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Climate Change Leadership Awards Winners Announced

GCX is proud to say that 1 of the 3 winners of the CCLA 2010 being recognised for the leadership role they are playing in their industries, with regard to climate change, happens to also be a GCX client. The winners are: Corporate Services: Nedbank, Retail: Woolworths, Small to Medium Businesses: Rocking the Daisies. SA Post Office Community Award went to John Nzira of Urban Farming. The event itself was a low carbon event with local, organic food and wines served, living plants as décor, gifts were carbon absorbing Portulacaria trees and seating plans, menus and programmes were all presented electronically. 100 Trees were planted by Food and Trees for Africa per table to ensure the offsetting of the remaining carbon emissions.
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SA businesses want clear environmental regulation policy

In a recent report released by PricewaterhouseCoopers it was revealed that although 90% of SA companies believed that government exerts a strong influence on environmental practices through legislation and regulation, 77% of these businesses do not believe that the South African government has a consistent long-term environmental tax and regulation policy. It seems that although government does have a climate change green paper that is due for comment in June 2010, businesses feel they are not being consulted along the way. Governments, businesses and the public need to work together to create positive environmental change and the clarification of our governments climate change plans is a matter of urgency.
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SA facing increased risk of power failures

Despite Eskom’s recent tariff increases, required by Eskom to add additional power generating capacity to the grid, SA still faces an increased risk of power failures between 2011 and 2013. This will continue to be the case, unless co-generation projects come on line and consumers play their part in conserving more electricity. We are faced with chronic power shortages that are already affecting production at platinum and gold producers in SA. The message: If we don’t conserve energy, expect more blackouts.
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International

The Business Case for Environmental and Sustainability Employee Education

The business case for employee environmental education and engagement shows that a business can achieve its sustainability goals while at the same time reducing costs. There are wider reaching benefits to the employees themselves, as well as the communities in which they operate. In order to compete for company resources, building a strong business case for an employee education programme is vital. Contact us for more info.
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US Investors pressurise firms to publicly disclose carbon footprint

Investors in the US are increasing the pressure on public companies to disclose the risks and opportunities they face from climate change. They do this in the US by filing shareholder resolutions - seeking more information about how companies are measuring and managing their carbon footprints, preparing for risks, and moving to take advantage of potential opportunities. The resolutions filed in 2009 were up 40% on 2008, showing an increased interest in climate change related activities. In South Africa, companies participating in the Carbon Disclosure Project fulfill this requirement from investors to disclose this information.
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U.S. Utilities Increase Energy Efficiency Programmes 43% to $5.3B

“Implementing energy efficiency programmes are cheaper for utilities and their customers rather than adding new sources of electricity, according to an ACEEE report released last year. The report found that the average cost per kilowatt hour (kWh) of energy efficiency is about 2.5 cents, compared to 7 to 15 cents per kWh for adding new energy generation.” The figures in South Africa are comparable, so it makes sense for us to be developing energy efficiency solutions and programs instead of building more coal-fired power plants.
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The Business Case for Life Cycle Assessment

Life Cycle Assessment also known as Product Carbon Footprinting measures the overall environmental impact of a material or product over its entire life cycle. Conducting a product carbon footprint supports and improves related decision making, with the benefits far outweighing the challenges. GCX is now offering Product Carbon Footprinting services to our clients. If you would like to know more, contact us.
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What Your Employees Know About Green Innovation That You Don't

Many companies hire outside consultants to help them create innovative new products or processes, or to help them green their business. What these companies often don’t realise is that there are gems of ideas right under their noses, from their very own employees. The people in the trenches are the closest to the products and systems they work with, and are usually the first to spot the reduction opportunities. If employees are engaged, asked and provided with infrastructure that supports sustainability (vision, goals, metrics and reward); you’ll be amazed at the results.
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Tokyo imposes city cap & trade

1400 large power users in Tokyo city will face mandatory emissions caps that will require them to reduce their emissions by 6 to 8 percent over 5 years. Those who beat those targets will earn tradable credits. This initiative is hoped to pave the way for a national cap and trade scheme to enable Japan to reduce emissions by 25% from 1990 levels by 2020.
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Angolan parliament approves new biofuels law

Angola’s parliament has paved the way for multi-billion dollar investments to flow into the country by approving a new law to regulate the production of biofuels there. Angola thereby hopes to lessen its dependence on oil and to re-develop its farming sector.
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Cisco HQ Reduces Water Use by 42 million gallons

Water shortages and rationing in South Africa is already a daily reality in some cities and towns across the country, and the need to use our scarce water resources wisely is becoming crystal clear. All companies can benefit from conducting a water audit, and implementing water conservation measures. Cisco’s example illustrates a saving of 42 million gallons of water per year, and cost savings of hundreds of thousands of dollars too, through simple water conservation measures.
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