Main sectors: MINING, ENERGY and CLIMATE CHANGE, INDUSTRY
National Treasury, with funding from the World Bank.
The design of the carbon tax at the time of this project provided a tax benefit for companies whose performance was better than the average, also known as the “Z-factor”. This study was commissioned to explore how a benchmark could be set for different products or processes against which individual company operational performance could be assessed.
The Green House approach:
Working in conjunction with the European consultancy Ecofys, The Green House conducted an extensive review of how benchmarking is conducted internationally. This was followed by comprehensive data gathering on energy usage and emissions in individual processes, where this was available in the public domain, to determine the types of information that might be available for benchmark setting. Using this information, the project team developed a set of recommendations for setting benchmarks for different industrial sectors and products.
The study provided a starting point for Treasury to engage with businesses on potential approaches for setting benchmarks.