Dear Subscriber,

The financial impacts of climate change have rapidly become a tangible reality in South Africa. Taxation on new vehicles will be effective in September; details on SA’s imminent carbon tax will be discussed in the middle of the year and all this on top of the painful 25% tariff hikes from our energy provider Eskom.

The effects of climate change in their many forms have made their way from the green portfolio where they were quietly whispering warnings for so long onto the financial portfolio where they are now loudly on the agendas of most industries. Climate Change, Carbon Emissions, Energy Efficiency and Sustainability have emerged as key factors to address in effective business strategy - Zuma’s announcement of a 34% carbon emisions reduction target will ensure this.

Becoming informed, upskilling workforces, contracting experts and making company-wide behaviour shifts is now imperative to South African business owners and government, because in the words of the legendary Bob Dylan “...You better start swimmin' or you'll sink like a stone for the times they are a-changin'

Happy reading!

Energy Efficiency Auditor Courses

It’s proven over and over, the most effective way to beat energy costs, is through energy efficiency, Due to Eskom’s tariff hikes we foresee huge demand for achieving energy efficiency as a country, This will result in a growing demand for energy efficiency experts who can advise on how best to achieve energy reductions.

Our Energy Efficiency Auditor course aims to qualify these experts with the skills to identify inefficiencies in the systems they work with such as, pumps, motors, refrigeration, boilers, heating, cooling and insulation.

Carbon Disclosure Project responses due 31st May

Companies wanting to submit their CDP reports this year best hurry as the 31st of May deadline is soon upon us. Having launched at No.10 Downing Street in 2000, CDP has become the global standard mechanism by which companies report their greenhouse gas emissions to investors. In 2007 the first South African report submission for the global CDP survey was launched by Marthinus Van Schalkwyk who invited the JSE Top 40 companies to submit responses. 74% of those companies submitted and since then the number of voluntary CDP submissions have increased considerably each year.

The reporting and submission process can often be a laborious and daunting one, for which most South African companies are ill-prepared. This is is why many companies choose to outsource this process to GCX, who assist with the development, collation and submission of CDP reports.

The process begins with an essential planning stage with key personnel in a series of meetings. During these sessions GCX conducts interviews with these key stakeholders and translates their responses into a format that complies with the requirements of the CDP. Once the information is in the correct format and is appropriate for public consumption, GCX is then responsible for the submission of the report onto the online CDP system.

“The Carbon Disclosure Project does us all a great service in bringing these matters to the attention of the investment and business communities. It is an important catalyst for change – the change without which the world will be a very dangerous place.”
Sir Christopher Bland, Chairman BT Group.

Historic GCX / ICG launch and bursary for Food and Trees For Africa

The official launch of the ICG and GCX certified Carbon Footprint Analyst course was held last week at the Vineyard Hotel in Newlands where Joanne Rolt, Programme Manager of Food and Trees for Africa (FTFA) was awarded with a bursary. The historic launch celebrated the first correspondence course of its kind to be available to all South Africans through Intec and Damelin College in any part of the country, who aspire to begin careers in carbon management and consulting.

This marks the beginning of a new scope of education in the country with new professions being born and new employment opportunities that signal change. As mandatory carbon reporting and carbon taxation are becoming near realities, all businesses around the country will need the skills of certified Carbon Footprint Analysts. GCX is very proud to have collaborated with the education experts at ICG to produce this world class course.

GCX‘s Climate Change Leaders

The Climate Change Leadership Awards is being held on Thursday 11th of March in Sandton to acknowledge the companies that are taking voluntary action to lessen their impact on climate change through responsible practices, accountability and transparency. However there are many companies in GCX’s portfolio that deserve to be acknowledged and applauded for the leadership they are displaying and the action they are taking in addition to the official awards."Click here if you would like to see who these companies are and here for some of our case studies"

South Africa news

Eskom 24,8% tariff hike for 2010/11

The approved 24.8% Eskom tariff hike will become effective from 01 April 2010. Although lower than the 45% initially applied for by Eskom. It is estimated that 250 000 jobs will be lost as a result and will impact production, consumers wallets and economic growth. To understand how the pricing will affect your household over the next three years click here

In every crisis there is opportunity and in this case increased prices will drive awareness around conserving energy and for the need to conduct business and our lives in an energy efficient way.

Carbon tax discussion document to be released by mid-year

Due to South Africa’s commitment to reduce emissions by 34% by 2020, the National Treasury is proposing the implementation of a carbon tax, with details to be released in a document mid-year. South Africa’s private sector will bear the brunt of the transition to a low carbon economy with only approximately 20% of the funding required to come from the public sector.

Deloitte Tax Director Duane Newman advises that business becomes educated on the facts, implications and opportunities brought about by climate change and that all new projects aim to qualify for carbon credits, capital grants and incentives, research and development tax allowances and energy savings allowances.

Emissions tax for new vehicle owners from Sept 1st

Anyone looking to buy a new car from 1st of September 2010 onwards needs to add an extra R5 000 – R10 000 to the current vehicle price to accommodate for the emissions tax that will be levied by the National Treasury. New passenger vehicles will be taxed based on their certified CO2 emissions at R75 per g/km for each g/km above 120 g/km. This emissions tax is hoped to encourage South African’s to buy more energy-efficient and environmentally friendly cars.

Energy audits contribute to efficient building management

How green is our budget?

Pravin Gorhan’s budget speech was based on growth and to achieve this he said he is going to ‘do things differently’. Odd then that 33bn is being allocated to defense, yet only 6bn to environmental protection. Growth is built on resources and should resources run dry – like energy or water – progress halts, this we have already seen. Furthermore, South Africa’s very optimistic commitment of a 34% emission cut by 2020 is totally unsupported by the budget speech. Will it be the private sector or the developed countries we’ll be looking to, to achieve our governments targets?

International

Last decade was the warmest ever, says NASA

Its astounding that despite the hard facts, there are those who “do not believe in global warming” as if it falls into the same category as the tooth fairy and Father Christmas. Although there is cooling that occurs in some regions, like this last winter in Europe, on average, the annual temperature on earth is rising. This last decade was the warmest ever according to NASA, making immediate action by governments and organisations critical.

Sun, wind and wave-powered: Europe unites to build renewable energy 'supergrid'

The building of a European ‘supergrid’, is hoped to start within the next decade, which would supply solar, wind and wave energy to wherever it is needed on the European continent. An ambitious project but one that avoids the building of over 100 coal fired power stations and utilises truly ‘free’ and most importantly, infinite natural resources. This is a long-term, sustainable solution that relies on true collaboration between nations to achieve renewable energy targets where everyone comes up a winner.

World's top firms cause $2.2tn of environmental damage, report

3000 of the world’s top firms cause $2.2 trillion of environmental damage! This figure is larger than the national economies of all but 7 countries in the world! Should these companies be held financially accountable, it would cost them 1/3 of their annual revenue.

Carbon index cranks up pressure on blue chips

A carbon ranking of the world’s largest companies which aims to help fund managers build carbon emissions into their investment decisions is soon to be launched. The Environmental Tracking (ET) Carbon Rankings index ranks companies by market capitalization, with an added weighting for emissions reduction performance. Understanding carbon accounting to help with these investment decisions becomes more important for accountants, investment bankers, financial and fund managers.

Vehicle-to-grid power earns cash for drivers

The first all-electric car that will be able to supply unused power back into the electric grid has been unveiled in the US. Vehicle to grid technology is already in use in the US with hybrid cars that use electricity and gas to store energy in their batteries and then feed it back to the grid. The same technology will be used to draw power from all-electric vehicles. Grid management companies currently pay about $30(R240) per hour when drawing power from a car, so drivers are earning money while they sleep.  

Eating Rain forest Cake

Consumers "eat" rain forests each day - in the form of beef-burgers, bacon and beauty products - but without knowing it. The delivery mechanism is a global supply chain with its feet in the forests and its hands in the till. Because of growing demand for beef, soy and palm oil, which are in much of what we consume, as well as timber and biofuels, rain forests are worth more cut down than standing up based on our current financial models.

The paperless office is possible, says JP Morgan

Cutting paper use can save firms a dollar (R8.00) a sheet says a JP Morgan report . By implementing digital processes for previously paper based processes such as pay slips, invoices and bills, a company can reduce its paper use considerably, if not completely for some processes. The report also contains a free online Eco Analysis worksheet which helps you to work out how much money you can save by going paper-free.

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