Development of an industry mandated “Intended Nationally Determined Contribution” (INDC)

Main sectors: ENERGY and CLIMATE CHANGE, INDUSTRY

Client:

Business Unity South Africa

Problem Statement:

In advance of the Paris Climate Change Conference (COP) in 2015, countries had to submit their proposals for, amongst others, their contributions to reducing global greenhouse gas emissions, in the form of Intended Nationally Determined Contributions or INDCs. BUSA sought to provide inputs into the process of development of the mitigation component of South Africa’s INDC and approached DNA Economics and The Green House to develop these inputs.

The Green House approach:

In order to fulfil the project requirements, the project team conducted a thorough analysis of South Africa’s historical position and commitments in the international climate negotiations; the implications of INDCs and what they were required to include; and the interface with national climate change policies, legislation and other activities. From this analysis a number of potential options for the INDC were proposed, one of which was selected by BUSA as their prepared option to pursue. This option was communicated to DEA as business’s preferred position.

Outcomes:

The project provided a set of insights to BUSA regarding the implications of the INDC, and proposed a set of options for their structuring which was considered to be congruent with historical action and yet suited to the uncertain economic environment in South Africa, at least in the short to medium term.