Investor Presentaiton
(2) THE ABILITY TO MEET THE EU'S REQUIREMENTS FOR
CO2
CÓ₂ (ACCOUNTING AND PAYING A CARBON PRICE)
Under DA28 fossil CO2 captured from electricity production is eligible to 2035 and fossil CO2 from other industrial
processes is eligible carbon to 2040, provided that the CO2 has been "taken into account upstream in an effective carbon
pricing system". Raises the remaining two concerns:
(2) The ability to meet the EU's requirements for CO2 (accounting and paying a carbon price): CO₂ must be
accounted for at the source where it would have originally been emitted even though it is not actually emitted, and a
carbon tax must be paid on this CO2.
Emissions associated
with energy
(electricity, heat)
required for capture
of CO₂ need to be
counted (towards e₁)
→ Less energy-
intensive processes
or proof of sourcing
CO₂
renewable energy
only can reduce e
CO
CO
CO
Carbon that has
been accounted
for through
"effective" carbon
Industrial CO2 source
(CO₂ diverted from original
fate of being released to
atmosphere)
pricing is
"diverted" from its
original fate of
being released to
the atmosphere
→ Savings can be
credited (towards
e)
Emissions from
transport and
distribution of
CO2 need to be
counted (towards
e)
Electricity required
for electrolysis
and qualifying as
fully renewable
acc. to D.A to Art.
27 REDII can be
attributed zero
GHG emissions →
does not factor
into e
Emissions from
transport and
distribution need
to be counted
(towards e)
CO₂ emitted
(on combustion of the
RFNBO)
LCA treatment
(carbon-neutral):
-1 tco₂/tCO2
GHG and reporting Considered an emission (scope 1) for
Carbon Tax
treatment:
which allowances must be
surrendered (carbon tax paid)
BUSA
+1 tCO₂/tCO2
Carbon is
released into the
atmosphere
→ Emissions need
to be counted
(towards o)
•
The South African GHG reporting,
and carbon tax systems are only set
up to cater for emissions actually
emitted.
Could have implications for
achieving NDC commitments.
End-user does not need to surrender
allowances/pay a carbon tax and
emissions are not counted as scope 1View entire presentation