Climate Change News South Africa

Emission control legislation will require large capital expenditure

New analysis from Frost & Sullivan has found that companies across the chemical, cement, oil and gas, mining, power generation, metal, glass, tyre, and sugar industries will apply for exemption from the first round of emission control, coming into effect in 2015.
Emission control legislation will require large capital expenditure
© Gina Sanders – za.fotolia.com

This is the result of the National Environmental Management: Air Quality Act, 2004, which requires companies to lower their emissions in order to meet legislative requirements coming into force 1 April 2015, and again 1 April 2020.

As the costs involved in complying with two emission control changes would be too prohibitive, most companies will undertake one large capital expenditure project to meet the revised levels, due to come into force in 2020. The time taken to acquire board approval, select the appropriate supplier, and install the equipment can take months, if not years, from start to finish.

"Many of the companies across industries will need to allow for massive capital expenditure projects - into the tens of millions in some instances - in order to meet the revised 2020 emission levels," notes Frost & Sullivan consultant, Andrew Minor. "The question is how will companies achieve this in a cost effective way that is pleasing to all stakeholders across a struggling economy?"

International partnerships

Companies like J&C Engineering, a South African-based industrial emission control company, have taken the initiative to support the legislation to reduce emissions, by entering into strategic international partnerships with companies, such as Beth Filters, a German manufacturer of air filtration devices and international leader in its field.

This strategic partnership allows J&C to offer turnkey solutions to the market, and a broader array of cost effective solutions to the industry to help emitters meet the revised emission levels.

"The new air quality target places more stringent limits on industries to reduce their emissions to acceptable levels," notes director of J&C Engineering, Joseph Edward Peel. "This strategic alliance will now offer the private sector cost effective emission control solutions to smaller industry participants, including boilers, foundries and the chemical sectors."

While the legislation for reducing emissions may have high cost implications to industry, the legislation is a positive step towards lowering harmful pollutant levels, supporting the global drive to decrease harmful emissions across relevant industries, and enhance environmental sustainability and access to clean resources.

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