Download Rosh Ireland, Director, Env. Policy Unit

Western Australian Greenhouse Strategy
Rosh Ireland
Director
Environmental Policy
DPC
www.greenhouse.wa.gov.au
UNITED NATIONS FRAMEWORK CONVENTION ON
CLIMATE CHANGE (UNFCCC)
ARTICLE 2
OBJECTIVE
The ultimate objective of this Convention and any related legal instruments that
the Conference of the Parties may adopt is to achieve, in accordance with the
relevant provisions of the Convention, stabilization of greenhouse gas
concentrations in the atmosphere at a level that would prevent dangerous
anthropogenic interference with the climate system. Such a level should be
achieved within a time-frame sufficient to allow ecosystems to adapt naturally
to climate change, to ensure that food production is not threatened and to
enable economic development to proceed in a sustainable manner.
Policy Position on Kyoto Protocol
The State Government:
 Supports ratifying the Kyoto Protocol
 Recognises weaknesses and limitations of
the Kyoto Protocol, yet believes Australia
must be part of international action to reduce
climate change
Greenhouse Task Force
We have not faced an issue like climate change
before
We have strong protective institutions in place for
familiar large scale threats – wars, epidemics,
natural disasters
We have no equivalent to respond to climate change
We need to build capacity to assess, mitigate and
adapt.
PROPOSITIONS
1.
THERE IS SOLID WORLDWIDE SCIENTIFIC AGREEMENT THAT
GREENHOUSE GAS EMISSIONS ARE DRIVING ACCELERATING CLIMATE
CHANGE
2.
CHANGES IN TEMPERATURE AND RAINFALL ARE ALREADY EVIDENT IN
WESTERN AUSTRALIA AND ARE EXPECTED TO BECOME WORSE
3.
THE RISK OF SEVERE IMPACTS IS SUFFICIENT TO JUSTIFY STRONGER
ACTION TO REDUCE EMISSIONS AND TO ADAPT
4.
THE COSTS AND RISKS ASSOCIATED WITH GRADUAL TRANSITION TO A
LOW CARBON ECONOMY ARE LESS THAN THE COSTS AND RISKS OF NOT
MAKING THE TRANSITION
5.
THE LOWEST COSTS AND GREATEST OPPORTUNITIES CAN BE REALISED
BY ACTING NOW
What targets?
•2 degrees maximum average warming
(European Union and many scientists)
• several countries (eg France, UK) have adopted
targets to cut by 50% or more
•EU aims to raise renewable energy to 12% by 2010
and reduce energy consumption by 20% by 2020.
California: Governor's Executive Order
•By 2010 emissions will be reduced to 2000 levels, or by 11%
•By 2020, emissions will be reduced to 1990 levels, or by 25%
•By 2050, emissions will be reduced to 80% below current levels
Australian Chief Scientist, Dr Robin Batterham:
“80% by the end of the century. 50% by 2050, I
think is realistic”
Australian Climate Group
“60% by 2050”
Premier of NSW
City of Melbourne
60% by 2050
Zero net emissions by 2020
How solid is science basis of targets?
“
BUSINESS AS USUAL” SCENARIO TO 2100
•World population increases from 6.1 billion in 2000 to 9.8 billion in
2050, stabilizing by 2100 at about 11 billion.
•Economic growth averages 2.8% per year from 2000 to 2020 and
2.5% per year over the whole century, in real terms. World
economic product grows from ~$45 trillion in 2000 to ~$180 trillion
in 2050 and ~$500 trillion in 2100.
•Energy intensity of economic activity falls at the historical rate of
1%/yr. Energy use increases about 2.5 fold by 2050 and quadruples
by 2100.
•Carbon intensity of energy supply falls at 0.2%/yr. Carbon
emissions from fossil-fuel burning go from just over 6 billion
tonnes/yr in 2000 to some 20 billion tonnes/yr in 2100
GDP per capita increases in the developed world at over 2% per
annum
World Electricity Generation
30000
TWh
25000
TWH IEA 2000
Renew.
Hydro
Nuclear
Gas
Oil
Coal
20000
15000
10000
5000
0
Source IEA
2000
1971
1997
2010
2020
WA’s Emissions Profile
Western Australia’s emissions:
 are about the highest in the world on a per
capita basis
 increased by 2.8% per year (1990-2002)
 are projected to rise 39% from 57.2 MT (1990)
to 82 MT (2008)

Growth has been masked by one off land clearing savings
Greenhouse Task Force
There are huge opportunities to save money
and reduce emissions
‘50-75% of annual resource inputs to
industrial economies are returned to the
environment as wastes within a year.’
US EPA
A US Energy Policy Coalition reported that US energy consumers
could save $22 billion by 2030 if recommendations for higher
efficiency in just three sectors were adopted (residential furnaces
and boilers, commercial air conditioning and transformers).
GREENHOUSE POLICY ELEMENTS
– Greenhouse Unit established
– Western Australian Greenhouse Strategy
launched September 2004
– Plan for Renewable Energy
– renewable energy for desalination plant
– solar hot water and LPG vehicle subsidies
– Perth to Mandurah railway
– Carbon Rights Act
Greenhouse Task Force
Abatement - Government Leadership

Government is committed to 12% reduction in its own
stationary energy use over 5 years

Agencies to report their energy consumption, energy
costs, GHG emissions.

Government to purchase 5% renewable electricity by
2006-07
reducing emissions from vehicle fleets and introducing
an offset scheme for vehicle emissions
energy efficient new Government homes


Greenhouse Task Force
Wider Abatement
Major emitters to report to WA Greenhouse
Gas Inventory annually, and prepare
strategies to minimise anticipated emissions
 Development of Greenhouse Registry and
Greenhouse Abatement Fund
 Support development of national and
international trading markets
 EPA assessment of projects with significant
greenhouse emissions

Greenhouse Task Force
Process

Greenhouse Interdepartmental Committee
– Sub group on carbon rights and offsets
– Sub group on adaptation (cooperative project with
AGO)
High level stakeholders group
 Public Seminars
 http://www.greenhouse.wa.gov.au/
 Report on first year of the strategy in prep

Greenhouse Task Force
PLAN FOR RENEWABLE ENERGY
a renewable energy target of 6 per cent by 2010 for the South West
Interconnected System
powering the desalinisation plant with renewable energy
implementing a solar schools program, involving installation of solar
power systems for up to 100 schools
up to $2.5 million for Kalgoorlie-Boulder Sun Farm project
$6 million subsidy for new renewable energy projects
support for the Research Institute for Sustainable Energy (RISE)
SEDO grants and information programs
Greenhouse Task Force
Employment & Energy Supply:
Renewables Favor Environment AND Jobs
Germany, Electricity Market Share, 1998
Generation Generation
Jobs
Jobs per 1%
Source Market Share Supported Market Share
Wind
1.2%
15,000
12,500
Nuclear
33%
38,000
1,152
Coal
26%
80,000
3,077
Source: Working for the Environment, Worldwatch Institute,
Working Paper 152, September 2000.
GREENHOUSE AND ENERGY TASKFORCE
• Dr Roy Green will chair a new Taskforce to advise the Government on
practical and economically feasible ways to manage greenhouse gas
emissions from the stationary energy sector.
• Develop proposals for energy conservation initiatives similar to the
water conservation measures developed through the State Water
Strategy
• Develop policy proposals on greenhouse offsets that will provide clear
ground rules
• the Chief Scientist to co-ordinate a far-sighted energy technology
innovation strategy, in partnership with the energy industry and energy
technology researchers
Greenhouse Task Force
ENABLING A LOW-CARBON FUTURE SHOULD BE A STRATEGIC
BUSINESS OBJECTIVE (UK Corporate Leaders Group)
SCIENCE IS SUFFICIENTLY COMPELLING TO WARRANT ACTION.
WE URGE GOVERNMENTS TO:
•MOVE EXPEDITIOUSLY TO ADOPT CLIMATE STABILISATION
TARGETS THAT WILL DEFINE THE SCOPE AND SCALE OF
MITIGATION NEEDED IN THE YEARS AHEAD.
•ESTABLISH A LONG TERM MARKET-BASED POLICY
FRAMEWORK EXTENDING TO 2030.
•DEFINE GREENHOUSE GAS EMISSION RIGHTS THROUGH A
CAP AND TRADE SYSTEM.
(World Economic Forum June 2005)
USE OF ECONOMIC INSTRUMENTS PROVIDES THE MOST COST
EFFECTIVE ROUTE (Royal Society)
Interjurisdictional Emissions Trading Working Group
All jurisdictions except the Commonwealth
Premiers and Chief Ministers’ communique March 05
Next report to Premiers due end 2005
Wide consultation when ideas sufficiently developed
Greenhouse Task Force
KEY DESIGN ELEMENTS
as the basis for further investigation and analysis of the model
for a national emissions trading scheme
A cap and trade approach be used as the basis for scheme design;
The scheme be national and sector based;
In setting the cap, consideration be given to the overall national
emissions abatement target, and how the abatement responsibility is
allocated between sectors covered by the scheme and those outside
the scheme;
The scheme initially cover the stationary energy sector (including
electricity, gas and coal);
Greenhouse Task Force
KEY DESIGN ELEMENTS II
The scheme cover all six greenhouse gases under the Kyoto Protocol;
Permit allocation be made on the basis of a mix of administratively allocated and
auctioned permits, with both long and short term (annual) permits;
A penalty should be set to encourage compliance and to establish a price ceiling for
the permit market;
Offsets be allowed;
Mechanisms be included to address any adverse effects and structural adjustments;
and
Mechanisms be included to allow a transition for participants who have taken early
abatement action and new entrants.
Greenhouse Task Force
COAG Climate Change Policy Working Group
Charged to examine the scope for national cooperation
on climate change policy, focussing on areas of common
ground between jurisdictions where practical progress
can be made.
This would include consideration of the scope to
improve investment certainty for business, encourage
renewable energy (including ethanol) and enhance
cooperation in areas such as technology development,
energy efficiency and adaptation
Greenhouse Task Force
“Achieving sustainability does not meaning
slowing down our economy. It means
speeding it up, and directing its energy
toward the redesign and redevelopment of
the systems that are the cause of our
dilemma”.
Alan AtKisson, Believing Cassandra (1999) p204
Western Australian Greenhouse Strategy
"If we move now we can seize
new business and employment
opportunities in the emerging
global economy that is growing in
response to climate change.“
Tony Coleman – Chief Risk Officer
Insurance Group Australia
Greenhouse Task Force
www.greenhouse.wa.gov.au
www.greenhouse.wa.gov.au