sectoral economic costs and benefits of ghg mitigation - IPCC

Gina Roos
emissions 6.5% to this. Under the IPCC methodology, the total energy sector contributed 89% of
the total CO 2 equivalent emissions. Further breakdowns of contributions in the energy sector are
given in Table 1 below.
Table 1 Contributions to CO 2 equivalent Emissions from the Energy Sector in 1990
Sector
Contribution
Electricity production 37.7%
Agriculture 11.3%
Fugitive 9.9%
Transport 9.3%
Heat production 8.8%
Manufacturing & Other 14%
Industrial processes 6.6%
Waste 2.4%
Source: van der Merwe and Scholes (1999)
Enteric fermentation and manure handling were the major contributors to CH 4 emissions, while
fertilisers, manure handling and burning of rangelands contributed the majority of N 2 O
emissions.
Industrial Energy Demand
According to the South African National Energy Association (SANEA), industry had 62% of the
energy market share in 1996, followed by transport 21%, residential 10%, commerce ad services,
4% and agriculture 3%. The total energy carrier market share was split between oil products
32%, coal 28%, electricity 22%, combustible renewables 16% and gas 1% (SANEA, 1998). Of
the 62% of energy consumed by industry and mining, coal contributed 53%, electricity 32% and
liquid fuels 13%. Of the electricity produced in 1996, 91.4% was supplied by coal-fired power
stations.
Further it was highlighted that South Africa is relatively energy intensive compared with other
developing countries. This was attributed to the following:
• the large primary minerals’ extraction and beneficiary sector;
• huge and accessible coal resources;
• a synthetic fuels industry which is based on coal and natural gas as opposed to crude oil;
• low energy prices;
• a relatively low level of energy efficiency.
The government’s stated intention after the 1994 elections was to encourage development of
downstream industries with a focus on labour intensity and value-added.
Despite having a high energy intensity compared with other developing countries, South African
industries exhibit energy intensities similar to those of other developing countries, between 15 –
50% higher than those of industrialised countries (SANEA, 1998). This is consistent with
previously derived energy development curves whereby energy intensity and consumption both
increase to a peak, after which although energy consumption continues to increase, energy
consumption per unit of GDP improves. SANEA (1998) report that a 10- 20% energy saving
through improved energy efficiency could lead to an effective increase of 1.5 – 3% in gross
domestic product (GDP) within the time frame of such savings. This study will be re-examined
in the course of the Mitigation component of the South African Country Study.
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