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| Navigating the Legal Landscape: By Catherine Lee,* K. Reynolds,** and A. Toefy** Overview 2005 saw dramatic growth in the global market for carbon credits. More buyers are interested in Africa and prepared to compete for credits through a public tender process provided it is a clear and reasonable process. The South African Constitution says that when local authorities procure goods and services, they must do so in accordance with systems that are "fair, equitable, transparent, competitive and cost effective." Since 2000, several new laws and related regulations have been adopted to provide substance to this constitutional mandate. The Municipal Finance Management Act (MFMA) and the Supply Chain Management (SCM) Regulations are two such examples that have changed the way municipalities do business. Their goal is to institutionalize openness and accountability, but they also raise questions. For example, do these laws and regulations apply to the sale of carbon credits? If so, what kind of carbon credit tender process will pass legal muster and still attract good buyers on terms that are beneficial to a municipality? Can such a process be concluded in time to take advantage of the time limited opportunity created by the Kyoto Protocol? In this paper, we will discuss some of the legal issues that confront South African municipalities. We will provide municipalities with a roadmap for navigating the complex landscape of South African legislation, utilizing an approach that will enable them to comply with applicable laws and still realize the benefits of the CDM. Download full paper: Navigating the Legal Landscape: A Municipal Guide to Selling Carbon Credits in South Africa (10 pages - PDF file, 352K) * Lee International, 200 Main Street, Westbrook, Maine 04092 USA, 1-207-854-8500, cathy@go-worldlee.com ; ** Mallinicks Attorneys, Granger Bay Court, Beach Road, V&A Waterfront, Cape Town 8000, 27-21-410-2200, kreynold@mallinicks.co.za , atoefy@mallinicks.co.za |
