Moving towards a carbon pricing strategy to leverage the decarbonisation of mining operations in South Africa

Abstract

The aim of this study was to develop a carbon pricing strategy to accelerate decarbonisation in the mining sector. A qualitative study was conducted to draw policy lessons from comparative analysis of the carbon tax policy regimes of the European Union, Switzerland, Canada and the United Kingdom (UK) in order to establish the carbon pricing strategies that will induce South African miners to invest in renewable energy technologies. A review of South Africa’s carbon tax regime highlights that the policy shortcomings may be attributable to low carbon prices, excessive free emission allowances and continued subsidy support of fossil fuels. The comparative benchmarking exercise indicates that significant decarbonisation occurs when there is a cap of emissions for energy-intensive industries, followed by an emissions trade or a penalty system. Furthermore, the carbon price needs to exceed cost of abatement so as to encourage investment in decarbonisation measures. A net present value simulation determines that a carbon price of ZAR 668.62 per tonne of CO2 would need to be levied in order to incentivise mining entities to invest in solar PV. The current study advances knowledge on carbon pricing within the theoretical underpinnings of Pigou theory of corrective taxes. The study recommends that a fixed CO2 emissions cap that declines yearly ought to be integrated into the South African carbon pricing regime. The carbon emission cap should further be supported by higher carbon prices for emissions exceeding the threshold so as to ensure that the national emission reduction pledges are successfully achieved.

Maikemisetso a thutopatlisiso eno e ne e le go tlhama togamaano ya peotlhotlhwa ya khabone go itlhaganedisa phokotso ya selekano se se ntshediwang mo tikologong sa khabonedaeokosaete mo lephateng la meepo. Go dirilwe thutopatlisiso e e tlhalosang maitemogelo le dikakanyo tsa batsayakarolo go bona thuto mo pholising, go tswa mo tshekatshekong e e neng e bapisa mekgwatsamaiso ya pholisi ya lekgetho la khabone ya European Union, Switzerland, Canada le United Kingdom (UK) ka maikaelelo a go tlhoma ditogamaano tsa peotlhotlhwa ya khabone tse di tlaa tlhotlheletsang baepi ba Aforika Borwa go beeletsa mo dithekenolojing tsa metswedi e e ka ntšhwafadiwang ya maatla. Tshekatsheko ya mokgwatsamaiso wa lekgetho la khabone wa Aforika Borwa e gatelela ntlha ya gore ditlhaelo tsa pholisi di ka tswa di bakilwe ke ditlhotlhwa tse di kwa tlase tsa khabone, ditetlelelo tse di sa duelelweng tsa selekano se se feteletseng sa khabone e e ntshiwang le tshegetso e e tsweletseng ya ketleetso ya metswedi e e ka se kgoneng go ntšhwafadiwa ya maatla. Tiragatso ya go lekanyetsa ka go bapisa e kaya gore go nna le phokotso e e bonalang ya selekano se se ntshiwang sa khabonedaeokosaete fa go na le tekanyetso ya selekano se se ka ntshiwang mo madirelong a a dirisang maatla a mantsi thata, mme e latelwa ke thotloetso ya go fokotsa selekano sa dikgotledi kgotsa tiriso ya kotlhao. Mo godimo ga moo, tlhotlhwa ya khabone e tlhoka go feta tlhotlhwa ya phokotso go rotloetsa peeletso mo mekgwatirisong ya go fokotsa selekano se se ntshiwang sa khabonedaeokosaete. Phopholetso ya bolengpalo jwa lotseno le dipoelo tsa ga jaana e tlhomamisa gore tlhotlhwa ya khabone ya ZAR 668.62 ka tono nngwe le nngwe ya CO2 e tlaa tlhoka go duedisiwa lekgetho go rotloetsa ditheo tsa meepo go beeletsa mo tirisong ya sediriswa se se fetolelang lesedi la letsatsi ka tlhamalalo go nna motlakase. Thutopatlisiso ya ga jaana e bona kitso ka ga peotlhotlhwa ya khabone mo metheong e e tshegetsang tiori ya ga Pigou ya makgethotshiamiso. Thutopatlisiso e atlanegisa gore tekanyetso ya selekano se se tlhomameng sa CO2 se se welang tlase ngwaga le ngwaga e tshwanetse go tsenyelediwa mo mokgwatsamaisong wa Aforika Borwa wa peotlhotlhwa ya khabone. Tekanyetso ya selekano sa khabonedaeokosaete e e ntshiwang e tshwanetse go tshegediwa go ya pele ka ditlhotlhwa tse di kwa godingwana tsa dilekano tsa khabone tse di ntshiwang mme di feta seelo se se beilweng go netefatsa gore go fitlhelelwa ka katlego ditsholofetso tsa bosetšhaba tsa phokotso ya selekano se se ntshiwang.

Maikemišetšo a nyakišišo ye e be e le go godiša mokgwa wa tekanyo ya khapone go potlakiša phokotšo goba phedišo ya khapontaoksaete mo lekaleng la meepo. Go šomišitšwe mokgwa wa nyakišišo wa boleng go hlaola dithutwana tša pholisi go tloga go tshekatsheko ya go bapetša ya molao wa pholisi ya motšhelo wa khapone wa Kopano ya Yuropa, Switzerland, Canada le United Kingdom (UK) go utolla mekgwa ya tekanyo ya khapone yeo e tla huetšago baepi ba Afrika Borwa go beeletša go ditheknolotši tša mohlagase wa go šomiša moya goba letšatši. Tshekatsheko ya molao wa motšhelo wa khapone wa Afrika Borwa o tšweletša gore mafokodi a pholisi a ka ba a hlotšwe ke ditheko tša khapone ya fase, ditumelelo tša tokollo ya go lokologa ye kgolo le go tšwela pele ka thekgo ya ditšhelete ya go thekga dibešwa tša malahla le gase. Mošomo wo wa go bapetša katlego o laetša gore phokotšo goba phedišo ya khapontaoksaete ye bohlokwa e direga ge go na le kaonafalo ya tokollo ya diintasteri tša mohlagase wa go tsenelela, wa latelwa ke phetogo ya ditokollo goba lenaneo la dikotlo. Se sengwe gape, theko ya khapone e hloka go feta tefo ye e fokoditšwego gore go hlohleletšwe peeletšo go ditekanyo tša phokotšo goba phedišo ya khapontaoksaete. Mohlwaela wa tšhelete o laodiša gore theko ya khapone ya R668.62 ka tone ya CO2 e tla swanela go lefelwa motšhelo go hlohleletša makala a meepo go beeletša go PV ya sola. Nyakišišo ya gonabjale e godiša tsebo ka ga theko ya khapone ka go motheo wa kakaretšo ya teori ya Pigou ya metšhelo ya mohola. Nyakišišo e šišinya gore ditokollo tša go se fetoge tša CO2 tšeo di fokotšegago ngwaga le ngwaga di swanelwa go kopanywa ka go molao wa theko ya khapone wa Afrika Borwa. Tokollo ya khapone e swanetšwe go thekgwa gape ke tefo ya godimo ya khapone ya ditokollo tša go feta mathomong go kgonthiša gore ditshepišo tša phokotšego ya tokollo ya bosetšhaba di fihlelelwa ka katlego.