Carbon Timeline (opens in new window)

CEF has long played a significant part in regulating our energy resources by way of financing and promoting the acquisition, manufacture and marketing of coal and various coal products and any matter connected with the effective management of these products.

CEF regulates the acquisition, generation, marketing, distribution and research of any other forms of energy.

CEF maintains a close relationship with the Department of Minerals and Energy (DME), in the management of some cash resources for the DME, as well as the calculation of monthly petrol and diesel prices.

At the same time CEF is championing the search for appropriate energy solutions to meet the future needs of South Africa, the South African development community and the Sub-Saharan African region. Research and development of these resources include oil, gas, electrical power, solar- and hydro energy, low smoke fuels, biomass, energy efficiency initiatives, wind and other renewable energy resources.

The CEF Group controls entities with commercial, strategic, regulatory and developmental roles. The operating subsidiaries and divisions include:

 PetroSA

 iGas

 Petroleum Agency SA

 OPCSA

 SA National Energy Research Institute

 Strategic Fuel Fund Association

 National Energy Efficiency Agency

 and the South African Supplier Development Agency

This group of companies focuses on many different aspects of energy development, promotion and trading, pollution prevention and control, and renewable energy and low-smoke fuels.

Included in the CEF Group is the Energy Development Corporation, a division that was established to focus specifically on the development of cleaner, sustainable and affordable forms of energy.

The EDC works closely with a variety of local and international organisations and government departments, all investors in several different sustainable energy generation projects such as Wind Farm, Biogas and Hydro energy projects to name but a few.

CEF is a strong African carbon player with the CEF Carbon differentiated offering being built on sustainable, renewable projects. CEF is a major investor in various carbon projects, and offers wider options to the carbon value chain with a range of trading and finance options.

Why is carbon constraint so important?
In recent times, global warming, limited natural resources and the adverse effect that human industry has had on our environment, have been at the forefront of global consciousness. The impact of humankind on our environment is no longer something we can turn a blind eye to. Scientists have provided us with sufficient evidence of the man-made contribution to the Global Warming phenomenon and the impact it has on Climate Change.

The Kyoto Protocol to the United Nations Framework Convention on Climate Change aims to curb the air pollution blamed for global warming. About 165 countries, accounting for 55% of greenhouse gas emissions, have ratified the treaty with pledges to cut these emissions by 5.2% by the end of 2012. Of these 165 signatories, 35 countries and the EU are required under the treaty to reduce greenhouse gas emissions below levels specified for each of them.

The Third Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCCC) established the Clean Development Mechanism in December 1997. It allows industrialized countries with emission-reduction commitments to meet part of these commitments by investing in projects in developing countries that reduce greenhouse-gas emissions while contributing to the local sustainable development needs of the host country. To allow CDM projects to occur, host countries need to establish a Designated National Authority (DNA) to evaluate and approve the operation of CDM projects in their country.

CDM in South Africa
South Africa has established a Designated National Authority to fulfil this function as well as other functions related to the successful implementation of the CDM in South Africa, including the promotion of investment in CDM projects. We are already seeing a growing market for green and renewable technologies, which is further driving the Carbon Markets. South Africa and the African Market have a very small share, less than 3% of the world carbon market. CEF is keen to ensure that South Africa is better placed in this market, and also to contribute towards the goals of mitigating climate change.

In response to this, CEF has established CEF Carbon to develop CDM projects and trade the resulting Carbon Credits (CER’s).

CEF Carbon has an established presence in London, which is fast becoming the World Carbon Hub. It also has a team of specialists both in South Africa and in London.

We work with both sellers and buyers of carbon credits in all the main carbon markets, offering a full range of transaction services, including financial advice, legal and carbon due diligence. Working with project developers, our objective is to help our clients maximize their returns and minimize the risks in developing CDM projects and monetizing the resulting Carbon credits.

CEF is adequately positioned to provide CDM services for the following reasons:

 Dedicated, experienced and responsive CDM specialists with a knowledge of the global markets.

 Fully integrated financial and world-class legal advisory services.

 Unmatched experience in the structuring and execution of Carbon deals.

 In-depth understanding of the key regulatory bodies involved in the CDM process.

 Extensive International network of carbon buyers in both the voluntary and compliance markets.

What can CEF Carbon do for you and your business?
CEF Carbon offers an integrated Carbon solution to our clients. Through its existing project development capabilities, financial positions and existing CDM projects, CEF is ideally placed to stimulate further growth in the CDM space in South Africa. We work with local project developers of renewable energy, financial institutions, as well as international clients.