Download australian alliance to save energy

CIR
SPEECH
17 June 2015
AUSTRALIAN ALLIANCE TO SAVE ENERGY (A2SE)
DOUBLING AUSTRALIA’S ENERGY PRODUCTIVITY (2XEP) BY
2030
BRIEFING
CANBERRA, JUNE 17, 2015
BRYAN CLARK, DIRECTOR OF TRADE AND INTERNATIONAL AFFAIRS
I am pleased to be with you today and to join with the Australian Alliance to Save
Energy in discussing 2xEP, an initiative that will examine the benefits of doubling
energy productivity by 2030. 2xEP will improve business competitiveness, deliver a
substantial increase in GDP and allow us to achieve emission reduction targets.
But first let’s put this in context.
Australia is a major energy supplier to the world, and our economy has benefitted
from a secure and affordable supply of energy. This has been a major component in
Australia’s competitive advantage.
ACCI’s membership consists primarily of consumptive energy users. Therefore ACCI
has been a major protagonist against unilateral carbon pricing where we would add
costs to our economy that would reduce our competitiveness against products from
other countries that had not applied the same cost increases.
That said, we strongly support efforts to improve the productivity of the energy that
enters a business – that is, on the demand side rather than the supply side.
Much recent debate has focussed on how energy is generated rather than how it is
used. Business has a major cost incentive to ensure that these inputs are used
efficiently and that the outputs from this consumption of energy is maximised.
We support the concept of a National Energy Productivity Plan, called for in the
Energy White Paper, but achieving the improvement goals will need industry
partners.
Similar efforts are going on throughout our own membership and internationally. For
example, the US Chamber of Commerce has created an Institute for 21st Century
Energy.
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CIR
SPEECH
17 June 2015
Within our own membership, the Victorian Employers’ Chamber of Commerce and
Industry has run an initiative called Carbon Down and the Plastics and Chemicals
Industry Association has an initiative called energy+.
We can draw upon this experience, within and outside Australia, to assist us to
create an effective program to increase energy efficiency for Australian businesses.
ACCI is always pleased to see industry-led initiatives rather than a heavy-handed
regulatory approach from government. That said, we need a partnership between
industry and government. Government has a strong role in implementing an
appropriate policy framework, based on comprehensive cost-benefit analysis that
incentivises desired behaviour.
ACCI is technology-agnostic when it comes to the generation of energy. We believe
that market forces are the best determinant of energy supply mix and that this
should not be artificially distorted. But on energy productivity, it is important that
businesses have access to information about their options when they are looking to
change their technology and practices.
There are important lessons from the work our members are doing.
A key consideration is that businesses have invested capital. That is, they already
have light fittings, boilers, waste management systems, production equipment,
motor vehicles, etc. Unless there is a significant subsidy or other incentive to change
(and we don’t generally support subsidies) a business will run its current assets until
they are depreciated to a nil value and it is time to renew equipment. But once it is
ready to change, a business becomes receptive to new, alternate and more efficient
technology.
So a program to improve energy efficiency needs to have options for zero-cost
efforts that can be implemented almost immediately, and information available
ahead of decisions about equipment and technology changeover in the longer term.
I have focussed on business, as that is our membership, but the principles apply to
households and other users of energy.
A program like 2xEP assists to deliver Australia’s national contribution to cutting
greenhouse gas emissions, and also contributes to other nations’ efforts. This means
our influence on global emissions, air quality and quality of life could extend far
beyond our own local conditions.
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CIR
SPEECH
17 June 2015
Our region, the Indian and Pacific Ocean rims, has many developing and aspirational
countries that are rapidly urbanising and have large populations moving into the
middle class. These countries face the challenge of developing sustainably and
deploying best-in-class technology as they go. They need not repeat the mistakes of
the already-developed world. Rather they can leapfrog us through “smart cities”,
efficient public transport, low emissions generation and similar initiatives.
Australia has many professionals and site-level managers whose skills could be
deployed to assist in this development. In doing so we can drive new and enhanced
export earnings through our service offerings.
We are not talking about something that will take long to develop or require lots of
research. Many measures are close at hand and known to industry. Whatever the
measures, we lack a coordinated and coherent approach that informs energy
consumers so they can act and react appropriately for their business.
ACCI is Australia’s largest business representative body. We represent more than 40
chambers of commerce and industry associations that in turn represent more than
300,000 businesses. We can offer a reach that no one else can. But we can’t do it
alone.
We need the government to partner with our initiative, along with A2SE and
likeminded organisations, to encourage improved energy efficiency in order to
improve business competitiveness, to deliver a substantial increase in GDP and to
allow us to achieve emission reduction targets.
Thank you.
(Check against delivery)
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