NOTE: Clean Development Mechanism (CDM) is one of the flexible mechanisms of the Kyoto Protocol that enables South African developers to develop projects that mitigate global climate change and contribute to sustainable development. The resultant greenhouse gas (GHG)reductions may be presented to industrial countries with GHG targets for investment in the projects or puchase carbon credits. The Kuyasa CDM project is a collaborative partnership between the City of Cape Town and SouthSouthNorth, a non-profit developmental organisation. The project is an intervention in an existing low-income housing development of 2309 homes in Kuyasa Khayelitsha, as well as in future housing development of 100 hectares in this area.
The Kuyasa Clean Development Mechanism will retrofit 2310 households in Khayelitsha (which previously used as much as 25% of their income on energy services). These housing units previously had electricity but no hot water storage geysers (providing hot water on demand) they also had no ceiling insulation. The households were dependent on batch heating for hot water and inefficient methods for space heating, during the four coldest months of the year.
Individuals: The retrofits have resulted in improved thermal performance of the housing units through the introduction of energy efficient lighting, ceilings, ceiling insulation, and solar water heaters. The results from technical research and social monitoring of the Kuyasa project highlights a 5% temperature increase in winter, a 5% decrease in summer through energy efficiency practices, and a saving of up to 40% on electricity bills thanks to less need for artificial heating and cooling. This has meant reduced electricity consumption per housing unit and significant reductions in Carbon Dioxide (CO2 ) emissions per unit - a saving in the annual cost of energy services to households by approximately $96 per household. Society:Retrofitting the homes in Kuyasa, has reduced localised and national air pollution, with subsequent decreases in pulmonary pneumonia, carbon monoxide poisoning and other respiratory illnesses. Reducing the household cost of energy through reduced energy demand and consumption, has made more disposable income available for the residing poor families. A decrease in accidents, damage to property and loss of human life as a result of fire is also a direct benefit. Economy:The project's high sustainable development contribution and poverty alleviation aspects continually draw attention from all quarters, including investors. The project prior to its completion in July 2007 will create employment in the way of 100 person years (employment of 1 person for 100 years, or 2 people for 50 years etc.) for installation of technologies and associated infrastructure (excluding local manufacture of the technologies which will add to this figure). The Net Present Value of the income from the emissions reductions will cover 20% to 30% of the capital costs of the installation of these technologies, based on the current nature of the carbon market.Environment:The City of Cape Town has become the first African city to prepare an Energy and Climate Change strategy. As part of the city's commitment to a renewable target of 10% renewable energy supplied by 2020 the City has finalised an agreement to purchase green electricity from the country's first independent commercial windfarm that will generate an estimated 13.2 Gigawatt-hours per year of clean electricity. The South African government has set a target of an additional 10,000 Gigawatt hours a year in renewable energy for the national power grid by 2013.