South Africa: Sasol’s Bid for Carbon Credits Opposed

If you're new here, you may want to subscribe to our or .

| Sourced From |

Johannesburg — PETROCHEMICALS group Sasol’s decision to apply for carbon credits for the natural gas pipeline from Mozambique to Secunda has come under attack from environmental group Earthlife Africa, which argues that the project should not qualify for the carbon credits.

The clean development mechanism, an arrangement in the Kyoto Protocol that encourages investment in projects that mitigate greenhouse gas emissions, gives companies such as Sasol the opportunity to earn money by producing and selling what are called certified emissions reductions credits. But Sasol’s application to register the 645km natural gas pipeline from Mozambique to Secunda faces stiff opposition from Earthlife Africa.

“There is a strong suspicion that Sasol’s application is no more that a particularly lucrative piece of greenhouse,” Earthlife said.

The organisation said that while Sasol’s decision to opt for natural gas, instead of opening a new coal mine to supply its Secunda plant, would reduce greenhouse gas emissions, the project should not qualify for the clean development mechanism.

In terms of the mechanism’s “additionality clauses”, projects that can benefit are those that, if it were not for the prospect of the carbon credits, would not have come into being. The clause applies retrospectively to projects from January 1 2000.

Earthlife energy policy officer Tristen Taylor said Sasol’s switch to natural gas in the Secunda plant would do little to curb the company’s contribution to greenhouse gas emissions, because the firm’s total emissions are “due to rise”.
Relevant Links

* Southern Africa
* Economy, Business and Finance
* Company News
* Energy
* Petroleum
* South Africa

Sasol spokeswoman Jacqui O’Sullivan confirmed that the company had applied for credits under the clean development mechanism for its investments to replace coal with gas from Mozambique.

“We believed at the outset that the claim has merit, but are also aware of certain sectors that take a different view.

“Sasol is well aware of the extent of its carbon dioxide emissions, and has made several long strides to reduce the impact of its current operations,” O’Sullivan said.