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Tasmanian Climate Action Council’s advice to the Tasmanian Government on the Tasmanian Wedges Report1 Opportunities to Reduce Tasmania’s Greenhouse Gas Emissions Tasmanian Greenhouse Gas Emission Reduction Project – Understanding the Potential for Reducing Tasmania’s Greenhouse Gas Emissions: McLennan, Magasanik Associates (February 2010). (Available at: www.climatechange.tas.gov.au) 1 Table of contents Chair’s Foreword ....................................................................................................... i Executive Summary ................................................................................................. ii The Wedges Report ...........................................................................................................ii Overarching Issues for Government .................................................................................. iii Opportunities by sector ...................................................................................................... v Need for decisive action .................................................................................................. viii 1. Context and Background .................................................................................. 1 2. The Tasmanian Wedges Report and Key Findings ......................................... 2 3. Overarching Issues in the Transition to a Low Carbon Tasmania ................ 4 3.1. Government leadership and action ......................................................................... 4 3.2. Implications of the CPRS deferral ........................................................................... 6 3.3. Setting of interim targets ......................................................................................... 7 3.4. Avoiding new or additional emissions intensity........................................................ 9 3.5. Imported energy.................................................................................................... 11 4. Opportunities by sector .................................................................................. 13 4.1. Energy .................................................................................................................. 13 4.2. Manufacturing and Industrial Processes ............................................................... 19 4.3. Transport .............................................................................................................. 21 4.4. Agriculture ............................................................................................................ 25 4.5. Forestry ................................................................................................................ 28 4.6. Waste management .............................................................................................. 29 4.7. Community ........................................................................................................... 32 5. Summary of Recommendations ..................................................................... 36 Appendix ................................................................................................................. 48 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Chair’s Foreword Over the past two years, Tasmania has generated considerable momentum on climate change action, with its Climate Change (State Action) Act 2008, and the establishment of both the Tasmanian Climate Change Office (TCCO) and the independent Tasmanian Climate Action Council (TCAC). The Tasmanian Government is acting in its own back yard too by reducing its own emissions following its Australia first whole-of-government emissions audit, and with the help now of a network of climate change champions across each of the Agencies. Early reports on those efforts are now available on the TCCO website. Over its first year of operation, the TCAC has focused on providing the Premier and Minister Assisting the Premier on Climate Change with advice for climate change leadership by the Tasmanian Government, including the adoption of a principle based approach to climate efforts where Tasmania strives for: leadership; shared responsibility; best practice; accelerated outcomes; creative thinking and innovation; and openness and transparency on all climate change action across government, business and the community. Amongst its recommendations, the TCAC has advised that planning schemes need to incorporate sustainability objectives; that the built environment must be transformed to achieve emissions reductions; that business must be engaged in climate change mitigation; that state infrastructure planning must prioritise climate change preparedness; and that the community must be engaged in climate action. Recently the TCAC has been charged with reviewing and responding to the Tasmanian Wedges Report in order to present its advice to Government on priority actions, now in the context of no likely national carbon price in the near future. The TCAC argues in its advice here that urgent action is still highly desirable. Tasmania is well placed to act decisively on climate change. It has the renewable energy capacity, the considerable gains to be made from adopting energy efficiency, the economic development opportunities to be associated with a low emissions brand, and carbon rich storage in its forests and agricultural lands. So it is with much pleasure that the TCAC presents its advice here to the Minister for Climate Change, Nick McKim MP, and through him to the Tasmanian Government, the Parliament, and to the Tasmanian community and its businesses and industries. We hope that our advice stimulates debate about climate action for years to come, and we look forward to robust political and community debate about pathways to a more sustainable, low carbon future where Tasmania can show leadership at all times, indeed where in the future it is known globally for doing so. Associate Professor Kate Crowley Chair, Tasmanian Climate Action Council Page | i Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Executive Summary The Wedges Report In January 2010, the Tasmanian Government sought the advice of the Tasmanian Climate Action Council (the Council) on the findings of the report Tasmanian Greenhouse Gas Emission Reduction Project - Understanding the Potential for Reducing Tasmania’s Greenhouse Gas Emissions (commonly referred to as the Tasmanian Wedges Report). The Government specifically sought the Council’s advice on recommended policy actions and initiatives, consistent with Tasmania’s legislated emission reduction target2. Details of the context and background to the Wedges Report and to the Government’s request for advice are set out in Section 1 of this report to government. The Council considers that the Wedges Report has delivered on its core objective to identify and quantify greenhouse gas emission reduction opportunities, and the related costs, for Tasmania. While the Wedges Report’s emissions abatement modelling has assumed that a national Carbon Pollution Reduction Scheme (CPRS) would be in place in mid-2011, the Council does not consider that the delay of a price on carbon until 2013, at the earliest, materially impacts on the Wedges Report’s findings. In framing its advice to government, the Council specifically draws attention to the two critical findings of the Wedges Report. First, that under a business-as-usual scenario, Tasmania's greenhouse gas emissions are projected to increase by around 45% by 20503. Second, that sufficient abatement options, if fully realised, are available for Tasmania to meet its legislated emission target. Key findings of the Wedges Report are summarised in Section 2 of this report. 2 The State’s legislated emissions reduction target, as set out in the Climate Change (State Action) Act 2008, requires emissions to be reduced to at least 60% below 1990 levels by 2050. 3 The Wedges Report projects Tasmania’s emissions to rise from around nine million tonnes of CO2 equivalent (Mt CO2e) in 2007 to around 13 Mt CO2e in 2050 under a business as usual scenario. Page | ii Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Overarching Issues for Government Section 3 of this report sets out the overarching issues that the Council believes the Government will need to address in making the transition to a low carbon Tasmania, consistent with the legislated emission reduction target. Government leadership The Council considers that leadership by the Tasmanian Government in responding to climate change will be critical. The Council recommends that the Tasmanian Government demonstrates the required leadership by: Ensuring that the right policy settings are in place to facilitate investment in, and deployment of, low carbon technologies, while driving the changes needed in market and consumer behaviour over the coming decades. Focusing action on emission reduction across those areas of the economy in which Tasmania has a significant comparative advantage and where the most significant economic opportunities exist, including: o renewable energy development, generation and transmission; o energy efficiency across industry, business and the community; and o innovative and sustainable agriculture. Implementing a whole-of-government approach to ensure that all Government policy, investment, development, and infrastructure decisions take due account of climate change, its potential impacts and emission reduction targets. Adopting an active role in communicating the importance of climate change mitigation and the importance of, and progress towards, the State’s emissions reduction target. National policy setting The Wedges Report is clear that Tasmania’s abatement action will need to be embraced alongside national policy action including an effective carbon price and renewable energy targets. In light of developments around the deferral of the proposed CPRS, it is therefore important that the Government actively lobbies for early implementation of an effective national carbon price. Page | iii Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council The setting of interim targets The Wedges Report stated that the setting of interim targets to allow for a smooth adjustment to the 2050 target is not recommended at this stage. However, the Council believes that interim targets are important and needed, despite the uncertainty around national targets, and that it is appropriate for the Council to provide advice on their setting. However, due to the complexity of the issues involved, and the need for further consideration and discussion, the Council’s formal advice on the setting of interim targets will be provided, separately to this advice on the Wedges Report, later this year. Avoiding emissions lock-in It is clear from the Wedges Report that if the Tasmanian Government is to optimise the State’s future transition to a low carbon economy, it must take immediate action to prevent ‘business as usual’ investment decision-making that results in ‘locking in’ additional emissions intensity into the system. It is more efficient and cost-effective in the long-term to prevent the lock-in of new emissions intensity than it is to retrospectively introduce changes to existing infrastructure or plant or be forced in the future to contemplate the early retirement of capital stock. The Council believes all sectors of government, especially the State’s planning system and State Economic Development and Infrastructure Strategies, are critical in this regard. Given that the State’s large industrial facilities already account for around a third of Tasmania’s total emissions, it is important the Government seek to attract only ‘best in class’ large scale industrial developments – to accelerate the future deployment of low carbon technologies. Imported energy The Wedges Report modelling suggests the majority of the projected rise in Tasmania’s electricity demand would be supplied from imported coal-fired electricity. Under current national carbon accounting methodologies, however, imported electricity emissions are not included as part of Tasmania’s emissions inventory and are therefore outside the scope of emissions subject to the State’s legislated reduction target. As a result of this accounting treatment of imported electricity generation, the Tasmanian Government has less incentive to invest in or encourage energy efficiency improvements to reduce this rise in energy demand. Despite this, the Council notes that there are strong economic (as well as environmental) incentives for Tasmania to address these imported emissions and to tap the benefits from Page | iv Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council harnessing Tasmania’s renewable resources. The Government needs to raise awareness of the State’s growing dependence on imported coal-fired electricity and to set a separate target for renewable energy exports. Opportunities by sector The Wedges Report identified a range of emissions reduction opportunities across the major sectors of Tasmania’s economy. The Council has considered these and made a number of recommendations in Section 4 of this report. The focus of the Council’s recommendations includes stationary energy (energy generation and fuel combustion), industrial processes and transport, which collectively account for three quarters of Tasmania’s emissions abatement potential. The Council has also considered Tasmania’s other important sectors of agriculture and forestry as well as the community sector and waste management. Energy Tasmania has a number of comparative advantages in terms of renewable and low emission electricity generation (hydro, wind, gas, biomass, solar, tidal and geothermal). The Council believes this must be a priority for action by the Government. Consequently, the Council recommends the Government immediately develop a comprehensive State Renewable Energy Strategy as part of an over-arching goal of achieving net electricity export status by 2020. In line with this, efficient planning arrangements, efficient networks and good grid connectedness will be required if Tasmania is to ultimately attract a higher portion of the available capital for renewable energy projects. Energy efficiency must also be a priority and the Council recommends that the Government develops a state based energy efficiency strategy that includes clear energy efficiency targets and the funding of demonstration projects. The Council recommends that the recently established Tasmanian Renewable Energy Development Board be given a clear mandate to oversee the growth of the local renewables industry and the necessary policy settings and market conditions needed for attracting private investment. Page | v Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Industrial processes The Wedges Report found that the manufacturing sector accounts for 31% of Tasmania’s total greenhouse gas emissions. The vast majority of these emissions arise from direct fuel combustion and industrial processing at the State’s six largest industrial facilities. This presents a significant challenge but also a unique opportunity for reducing Tasmania’s emissions. The Council recommends that the Government develops individual emissions reduction ‘partnerships’ with the State’s largest industrial emitters and actively pursues opportunities to convert direct coal combustion to gas or biomass cogeneration (or tri-generation) systems. Transport While transport is currently the third largest source of emissions in Tasmania, it presents a challenge in achieving significant near-term reductions due to the lag time between initial investment and the eventual, measurable benefits of any action. The Wedges Report identifies new generation biofuels for freight vehicles and buses as representing some 44% of the potential transport emission savings. In line with this finding, state strategies for supply and production of biofuels for transport should be developed. The Council also believes that all long term planning initiatives, particularly those relating to Tasmania’s freight transport system, must fully factor in emissions and efficiency impacts and requirements. Additionally, initiatives to reduce demand for passenger vehicle travel need to be pursued. Agriculture International emissions reporting methodologies applying to agriculture are likely to change significantly in coming decades and the inclusion of soil carbon in emissions reporting, for example, could significantly alter the State’s agricultural emissions profile. So, until fuller carbon accounting for agriculture, land use and land use change is developed and adopted, the setting of a meaningful emission abatement policy direction will remain problematic. Under current accounting rules, however, the agriculture sector currently accounts for 25% of Tasmania’s emissions, making it the State’s second largest source of emissions. While reforestation of agricultural land provides the clearest short term abatement opportunity in the sector, the Council believes that any policies to actively promote farmbased forest replanting will need to be balanced with policies that adequately protect existing and future farming. Page | vi Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Beyond reforestation, Tasmania must be an early adopter of sustainable farming approaches as they prove to be commercially viable. This includes more holistic sustainable farming systems - including optimal feed mix, fertilizer usage, minimum tillage, and other landcare strategies. The Council believes that sustainable farming provides a number of important abatement opportunities and long-term productivity gains for Tasmanian agriculture, particularly in the high emission livestock (sheep and cattle) farming sectors. The Council also believes that the Tasmanian agricultural sector has an opportunity to be a ‘fast follower’ in the adoption of alternative fuel sources such as biofuels and the production and application of alternative fertilizers such as seaweeds and compost solutions. Forestry Like agriculture, meaningful emissions abatement policy development in the forestry sector remains problematic as internationally agreed emissions accounting rules currently do not cater for a range of forestry emissions sources and bio-sequestration opportunities. Given this, the Government should commission a complete and independent carbon cycle assessment of Tasmania’s forestry estate (regrowth, old growth and plantation) to guide policy towards managing the forestry estate in a sustainable and profitable manner and optimising climate change outcomes. The significant potential for forestry biomass (waste or dedicated) as a renewable energy resource should also be assessed as identified in the Wedges Report. Waste management While the waste sector accounts for around only 4% of Tasmania’s total greenhouse gas emissions, the Wedges Report found that it was possible for 80% of these emissions to be abated. Although this abatement potential is modest in the big picture, it is relatively cost effective and would provide important signalling benefits for the community. Beyond recycling and public education programs, the Tasmanian Government should evaluate waste to energy options wherever large quantities of waste are produced and disposed of, including the use of waste organic material as an energy source for power generation or process heat, and for the production of char material (stable carbon). Community Community action is already identified as a priority in the current Tasmanian Government climate change policy and the Wedges Report identified the need to reduce barriers to behavioural change across the community. Page | vii Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council The Council recommends that the Government develop a comprehensive Community Climate Action Strategy to focus action on: community-based engagement and education; energy, water and transport efficiency initiatives; and recycling and waste minimisation. Initiatives to improve the energy and water efficiency of the Tasmanian housing stock over the next decade are particularly important, as is the enhancement of public transport opportunities. The Tasmanian Government should also begin development of a state based adaptation strategy to prepare the Tasmanian community for more extreme weather events, whilst helping communities to adjust to the social, economic and environmental impacts that ultimately arise from global warming scenarios. Need for decisive action Critically, the lack of effective national policy means that the Tasmanian Government must act decisively to ensure that the State’s projected emissions growth is addressed and reversed. Without decisive near-term action to reduce emissions in some of the State’s key emissions sectors, future efforts to meet the State legislated emissions reduction target will become increasingly difficult and expensive. Policy making at the State level must be carefully prioritised over the coming years to ensure that State actions complement any future introduction of an effective national carbon price. In particular, the Tasmanian Government should ensure that barriers to private investment and other actions facilitating a transition toward a low carbon economy are identified and addressed. It is particularly important that Tasmanians and Tasmanian businesses are prepared to respond to the impacts of a future carbon price and to take up the most cost effective opportunities to reduce emissions. The Council believes that if the Government adopts the recommendations set out in this report, Tasmania will be firmly on the path towards meeting its legislated emission reduction targets. Page | viii Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 1. Context and Background The Climate Change (State Action) Act 2008 established a greenhouse gas emissions target to reduce Tasmania’s emissions to at least 60 per cent below 1990 levels by 2050. The Act also established the Tasmanian Climate Action Council (the Council) with a mandate to provide independent advice to the Government on climate change issues affecting Tasmania, including: The setting of any interim emissions reduction targets for the State and the setting of any emissions reduction targets for specific sectors of the State economy; Progress being made towards achieving the State’s legislated 2050 emissions reduction target and any other State emissions reduction targets; The effectiveness of initiatives or methods employed to achieve those emissions reduction targets; Any alternative or additional measures capable of being employed to achieve the emissions reduction targets; The extent to which any methods prescribed by the regulations are being achieved or should be revised; Progress being made towards identifying and implementing strategies for adapting to the expected impacts of climate change; and Other matters relating to the mitigation of, and adaptation to, climate change. To inform the formulation of policies required to meet the State’s legislated emissions reduction target, the Government engaged McLennan Magasanik Associates (MMA) in December 2008 to identify and quantify greenhouse gas emission reduction opportunities and related costs for Tasmania. Following the release of the resulting MMA Report, titled Tasmanian Greenhouse Gas Emission Reduction Project - Understanding the Potential for Reducing Tasmania’s Greenhouse Gas Emissions (and commonly referred to as the Tasmanian Wedges Report), the Tasmanian Government sought the advice of the Tasmanian Climate Action Council on the Report’s findings. Specifically, the Government requested the Council’s advice on recommended policy actions and initiatives, consistent with Tasmania’s legislated emission reduction target. While basing its advice principally upon the findings of the Wedges Report, the Council has also drawn on other relevant information available to the Council and the Government. Page | 1 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 2. The Tasmanian Wedges Report and Key Findings The Tasmanian Wedges Report4 was publicly released in February 2010. The Wedges Report projected that, under a business-as-usual scenario, Tasmania's greenhouse gas emissions would increase by around 45% by 2050 – rising from around nine million tonnes of CO2 equivalent (Mt CO2e) in 2007 to around 13 Mt CO2e in 2050. Importantly, the Report found that sufficient abatement options, if fully realised, were available for Tasmania to meet its legislated emission target. However, the Report’s emissions abatement modelling was also based on the assumption that the now deferred national Carbon Pollution Reduction Scheme (CPRS), as well as an expanded Renewable Energy Target (RET), would be in place, in line with the Federal Government’s policies in 2009. An effective national price on carbon is fundamental in achieving significant emissions reductions in Tasmania. In terms of Tasmania’s specific abatement options, the Wedges Report found that: Three quarters of the abatement potential lies within three sectors: stationary energy (energy generation and fuel combustion); industrial processes; and transport; Tasmania has important opportunities to meet the projected growth in electricity demand through increased renewable energy generation, cogeneration opportunities and energy efficiency measures; and Tasmania potentially has sufficient renewable energy generating capacity to both meet future State energy demand and export surplus electricity to the mainland. Tasmanian Greenhouse Gas Emission Reduction Project – Understanding the Potential for Reducing Tasmania’s Greenhouse Gas Emissions: McLennan, Magasanik Associates (February 2010). (Available at: www.climatechange.tas.gov.au) 4 Page | 2 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council The Wedges Report also proposed a range of possible actions addressing barriers to achieving the legislated target and maximising the State's ability to secure opportunities created by the transition to a low carbon economy. These included: Developing Tasmania's renewable energy resources – specifically, hydro, wind, solar, geothermal, wave, tidal and biomass as key State renewable resources; Removing policy and other barriers to the uptake of energy efficiency measures; Encouraging planning that enables building design and location to maximise energy and transport efficiency and that accommodates alternative transport technologies; Establishing a research and development program to adapt emerging abatement technologies for the Tasmanian environment, such as algal carbon capture and mitigation measures relevant to the agricultural sector; Investigating the greenhouse gas emission benefits of modified forestry practices; Improving public transport facilities, including walking and cycling tracks; Facilitating the future development of networks for electric vehicle battery recharge and replacement; and Developing education programs for farmers on new emission reduction practices. The full Wedges Report can be viewed at: http://www.climatechange.tas.gov.au/government_action/wedges_report Page | 3 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 3. Overarching Issues in the Transition to a Low Carbon Tasmania 3.1. Government leadership and action The Government has a clear opportunity to demonstrate a leadership position on climate change mitigation by ensuring effective policy settings that facilitate investment and deployment of low carbon technologies, and drive changes in market and consumer behaviour over the coming decades. Without effective Government leadership, the task of reducing emissions becomes more uncertain, less cost effective and more difficult to achieve. The Government should therefore focus on developing and prosecuting a leadership role, in particular across those areas of the economy in which Tasmania has a significant comparative advantage and where the most significant additional economic opportunities exist including: Renewable energy development, generation and transmission; Energy efficiency across industry, business and the community; and Innovative agriculture, business management and sustainable industry expansion. The Council also considers that in adopting a leadership position on climate change action, the Government cannot afford to accept ‘lowest common denominator’ policies and targets that ultimately fail to address the challenge of climate change or fail to drive the necessary changes in investment patterns and consumer behaviours. This will simply result in lost opportunities for the Tasmanian economy and failure in meeting its legislated emissions reduction target. A number of Tasmania’s current climate change action commitments and policies arguably fall well short of best practice5 in areas where Tasmania has clear advantages and opportunities to lead on climate change action. 5 For example, commitment timeframes for the introduction of energy efficiency building standards; passenger transport; infrastructure and exemptions to the national phase out of electric hot water system. Page | 4 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council The Government also has a clear role in educating and communicating on climate change in order to elevate public awareness across Tasmania on the need for action and associated opportunities for the State. As a near-term priority, the Government should ensure any policy barriers to emissions reduction at business and community levels are identified and addressed. This would assist Tasmanians and Tasmanian businesses to operate as efficiently as possible under a likely future carbon price scenario, while ensuring they are able to take up the most cost effective opportunities to reduce emissions. The Government should also adopt a whole-of-government approach to ensuring that potential costs associated with an effective forward carbon price are factored into all of its own major policy, investment, expenditure, infrastructure and development decisions. The Tasmanian Treasury is well placed to devise such a mechanism and to make such assessments as an integral part of its current responsibilities around the budget process. Routine assessments of emission implications and future climate change impacts should be a mandatory and intrinsic component of all government decision-making. The Government will also need to pay considerable attention to the ongoing monitoring and communication of the effectiveness of its policy actions and how these efforts translate over time to emission reductions and enhanced climate outcomes with reduced future risks. Council Recommendations: The Tasmanian Climate Action Council recommends the Tasmanian Government: 3.1.1. Implements a whole-of-government mechanism to ensure all Government major policy, investment, development and infrastructure decisions appropriately account for climate change and its impacts as well as the State’s emission reduction target. 3.1.2. Develops and prosecutes a leadership role across those areas of the economy in which Tasmania has a significant comparative advantage and where the most significant economic opportunities exist. 3.1.3. Ensures that any policy barriers to emissions reduction at the business and community levels are identified and addressed. Page | 5 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 3.1.4. Ensures that all climate action policies, including existing mitigation and adaptation policies, have clear outcomes / targets and are benchmarked against national and international best practice. 3.1.5. Leads by example by ensuring that Tasmanian Government efforts to reduce its own emissions are properly implemented, monitored and reported. 3.1.6. Actively communicates the importance of climate change mitigation and the importance of, and progress towards, the State’s emissions reduction target. 3.2. Implications of the CPRS deferral The Wedges Report concludes that it is possible to achieve Tasmania’s legislated emission reduction target if the available abatement options are fully realised. For this to be achieved, however, the Report is clear that State-based abatement action needs to be embraced alongside an effective national carbon price and renewable energy targets. The abatement option modelling for the Wedges Report was in fact based on the assumption that the CPRS would be implemented in July 2011 (as announced by the Federal Government in May 2009). The Report regarded the CPRS as a key driver for the necessary investment in low emission initiatives. Consequently, the Federal Government’s recent announcement that the CPRS will be delayed until 2013, at the earliest, has implications for the Wedges Report findings and for the Council’s advice. Certainly, the emission reduction challenges facing Tasmania are more difficult in the absence of an effective price on carbon and a meaningful national emissions reduction target. A national emission reduction policy framework is clearly necessary to deliver the scale of action required. Without this broader national framework and effective carbon price, meeting Tasmania’s legislated targets could become arguably more costly and difficult to achieve. However, on the assumption that a national carbon price, of some kind, is implemented in or soon after 2013, the Council finds that the conclusions and modelling of the Wedges Report remain appropriate and relevant to informing its advice to Government. Page | 6 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council The Council also finds there are significant opportunities for action based on the Wedges Report’s findings that can be taken in the near term, regardless of the CPRS deferral. Leadership by the Tasmanian Government in this regard is imperative to effective action across the State. Critically, without decisive State action to address the State’s emissions intensive sectors, future efforts to meet the State’s legislated emissions reduction target will become more difficult and expensive even with a national CPRS or future carbon price in place. Given the impact of the deferral of the CPRS on the effectiveness of State policy and action, the Government must continue to advocate for a national policy framework that effectively and efficiently delivers carbon pricing at levels sufficient to drive the necessary investments in emissions reduction technologies and large scale renewable energy development. The Council of Australian Governments (COAG) process will be important in this regard. In particular, the Government must factor in the impact an eventual carbon price will have on the State of Tasmania and its own policy initiatives and operations. Council Recommendations: The Tasmanian Climate Action Council recommends the Tasmanian Government: 3.2.1 Advocate for an improved national emission reduction policy framework incorporating the early implementation of a national CPRS, or effective carbon price. 3.2.2 Commit to near term action based on the Wedges Report’s findings, regardless of the CPRS deferral. 3.3. Setting of interim targets In commenting on the setting of interim targets, the Wedges Report stated that “setting targets ... to allow for a smooth adjustment to the 2050 target is not recommended at this stage. A Federal Target will be provided under a CPRS and longer term targets would be impossible to set now since (Federal) targets for 2020 will not be known until around 2014”6. 6 The Wedges Report, page 11. Page | 7 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council However, given the deferral and challenges surrounding the uncertainty of the introduction of the CPRS, the Council believes that interim targets are important and needed and that it is appropriate for the Council to provide some initial comments on the setting of interim targets. Tasmania’s interim emission reduction targets will need to serve several different purposes and therefore should be constructed to fit those purposes. The Council believes two broad categories of interim emission targets are needed in order to drive Government, industry and community based actions, namely: i. Interim targets that represent the maximum emissions acceptable, at say five-year intervals, to ensure an achievable pathway or trajectory to the 2050 legislated target; and ii. Interim targets that provide a roadmap of actions for specific sectors of the economy and emission sources. The first group of interim targets will be essential in monitoring Tasmania’s progress toward achieving its legislated target but, on their own, will not ensure future success. The second group of interim targets will need to be differentiated across sectors as some sectors will need to make earlier and more aggressive emission reductions, while reductions in other sectors are dependent on new technologies, processes or incentives which may take longer to plan, implement or commercialise. Such sector targets should include both outcomes and performance based indicators and time lines. The Council also notes that progress toward interim targets will need to be closely monitored and revised from time to time as the Tasmanian economy develops and new technologies reach full commercialisation, as well as to reflect any future changes in national policy settings. The degree of progress toward meeting interim targets may also necessitate revision and recalibration of subsequent targets to ensure the legislated 2050 target is met. This advice provides some recommendations for immediate action targets. However, due to the complexity of the issues, and the need for further consideration and discussion, the Council believes formal advice on the setting of interim targets should be provided separately to its advice on the Wedges Report. The Council anticipates providing its initial advice to the Government on the setting of interim targets later in 2010. Page | 8 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 3.4. Avoiding new or additional emissions intensity One of the key challenges associated with achieving substantial reductions in emissions is that the emissions intensity of existing equipment and infrastructure (e.g. industrial plant and energy generation facilities) is effectively ‘locked in’ for the lifetime of the operational asset; in some cases for 30-50 years. A decision taken today to invest in new infrastructure or plant, such as a new fossil-fuel energy asset, effectively ‘locks in’ the emissions intensity of the asset for its full life-cycle. Similarly, new investments in road networks, parking, transport corridors and infrastructure, need to be carefully assessed in terms of the future ancillary or ‘knock-on’ effects they can have in ‘locking-in’ additional transport sector emissions intensity. Significant levels of emissions intensity already exist within the economy as a result of previous investment decisions and these present difficult challenges for the Tasmanian Government to overcome. Consequently, if the Tasmanian Government is to optimise the State’s future transition to a low carbon economy it must take immediate action to prevent ‘business as usual’ investment decision-making that results in the further ‘locking in’ of additional emissions intensive infrastructure. Clearly, it is more efficient and cost-effective in the long-term to address these issues up front than it is to retrospectively introduce changes to existing infrastructure or be forced in the future to contemplate the early retirement of capital stock. This will require significant leadership by the Government and represent a notable shift in the dynamics of whole-of-government policy decision-making. Council Recommendations: The Tasmanian Climate Action Council recommends the Tasmanian Government: 3.4.1. Takes immediate action to establish processes to prevent ‘business as usual’ investment decision-making that results in the ‘locking in’ of new or additional emissions intensive infrastructure. Page | 9 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 3.4.1. Planning, economic and infrastructure policies The State planning system, State Economic Development and Infrastructure Strategies and government investment decision-making processes are all critical in preventing further ‘locking-in’ of additional emissions intensity as well as adaptation to future climate change impacts. These are important policy tools not just for reducing emissions but for delivering the economic competitiveness and efficiency that successful transition to a low carbon economy will provide. The challenge is to ensure that future infrastructure investment in Tasmania is directed towards development that is innovative and that contributes to meeting the State’s legislated emission reduction target. Council Recommendations: The Tasmanian Climate Action Council recommends that the Tasmanian Government: Reviews relevant legislation underpinning Tasmania’s planning system to 3.4.2. ensure developments and investments avoid the locking in of emissions intensity consistent with the State’s transition to a lower carbon economy. 3.4.3. Develops an implementation plan for the Tasmanian Infrastructure Strategy that prioritises climate-ready transition for the State’s infrastructure, particularly for energy and transport, ensuring all infrastructure stock is audited for climate vulnerability and readiness. 3.4.4. Amends development approval processes to require all new developments in the State to be ‘best in class’ for energy efficiency and emissions management. 3.4.2. Industrial facilities A small number of large industrial facilities currently account for around a third of the State’s emissions profile – see discussion in Section 4.2. In itself, this should not imply that new, large-scale industry should be avoided. In a future scenario where the State’s renewable energy generation capacity exceeds local demand, additional large energy intensive industrial facilities could be attracted to the State and, in doing so, contribute to global emissions reduction efforts. Page | 10 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Given the emission reduction task, the Council believes that the Tasmanian Government should seek to attract industrial developments that are ‘best in class’ in terms of the deployment of low carbon technologies. This will also be important in supporting the State’s brand and credentials as a leader in renewable energy and low carbon intensity going forward. Council Recommendations: The Tasmanian Climate Action Council recommends that the Tasmanian Government: 3.4.5. Establishes a central requirement for all new major industrial facilities to deploy ‘best in class’ energy efficiency and emissions management. 3.5. Imported energy Modelling in the Wedges Report suggests that, under a business-as-usual scenario, the majority of the projected rise in Tasmania’s electricity demand will be met by imported coalfired electricity. Increased emissions from electricity generation on the mainland and imported to Tasmania are projected to reach over 11 Mt CO2e by 2050 (which is greater than the State’s total emissions in 2007). However, under Australia’s national greenhouse accounting methodologies, Tasmania’s imported electricity emissions are not counted as part of the State’s emissions. Therefore the large projected emissions increase from imported electricity is outside of the scope of emissions subject to the State’s legislated reduction target. The implication of this is that the Tasmanian Government has less incentive to invest in or encourage energy efficiency improvements, or to reduce emissions from electricity generation despite the fact that such improvements or reductions would reduce imports from the mainland that have much larger embodied emissions than electricity generated in Tasmania. Despite this, there are still strong economic incentives for Tasmania to develop policies to address these growing emissions from ‘imported’ coal-fired electricity by harnessing less emissions intensive resources including renewables, biomass sources and gas and waste heat cogeneration. Page | 11 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council The Council believes the Government should build greater business and community awareness of the extent and impacts of the State’s growing reliance on imported coal-fired electricity. The Council also believes that the Government should address the imported electricity challenge as part of its emissions reduction programs involving renewable energy and cogeneration initiatives, consistent with a goal of achieving net electricity export status. Council Recommendations: The Tasmanian Climate Action Council recommends the Tasmanian Government: 3.5.1. Builds business and community awareness of the State’s growing and predominant reliance on imported coal-fired electricity and implications for Tasmania. 3.5.2. Establish and pursue, alongside the legislated State emissions reduction target, an emission reduction target associated with maximising the State’s export of renewable electricity. Page | 12 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 4. Opportunities by sector 4.1. Energy The Wedges Report identifies emissions reduction opportunities in the energy sector within several specific categories.7 These opportunities are associated with: direct combustion for energy and heat; electricity generation and importation; and electricity consumption. Council’s advice in relation to each of these areas is discussed below. 4.1.1. Direct combustion for energy/heat Wedges Report findings: The projected growth in direct combustion emissions is mostly attributable to the six (6) largest industrial facilities in the State, which currently account for around 31% of the State’s total direct greenhouse gas emissions (p.18) Under the business-as-usual scenario, Tasmania’s emissions from direct combustion are projected to steadily grow from 2.2Mt CO2e in 2007 to 4.6Mt CO2e by 2050 (p.42). The report shows a large potential to reduce Tasmania’s emissions from direct combustion by 3.9Mt CO2e and to avoid 0.9Mt CO2e of imported emissions by 2050 (p.57). Discussion: Tasmania’s direct combustion for energy and/or heat accounts for 25% of Tasmania’s emissions. Much of this involves the burning of coal or liquid fuels, with coal combustion representing 14.1% and liquid fuels 4.6% of Tasmania’s emissions in 2007. Most of the State’s direct combustion emissions, however, result from production at a small number of large industrial facilities. Emissions from these facilities come from a range of sources and processes and are discussed in detail, together with recommendations in Section 4.2 - Manufacturing and Industrial Processes. 7 Emissions associated with the transport sector can also correctly be considered ‘energy’ sector emissions but will be discussed in a separate section of this advice. Page | 13 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 4.1.2. Electricity generation and renewable energy Wedges Report findings: Emissions from electricity generation in the State are currently relatively low, at 7% of the State’s total emissions, due to Tasmania’s high and growing level of imported electricity8, hydro-electric generation and existing gas-fired electricity generation plants (p.30 & 40). Tasmania has a number of comparative advantages in terms of renewable and low emissions electricity generation (hydro, wind, gas, biomass, solar, tidal and geothermal) (p.54). The displacement of the projected growth in imported electricity emissions could reduce emissions at source by up to 17Mt CO2e in total by 2050 (6Mt CO2e by 2020) (p.55). Discussion: The Wedges Report found that Tasmania has a number of comparative advantages in terms of renewable and low emissions electricity generation (hydro, wind, gas, biomass, solar, tidal and geothermal). Despite this, the Report’s modelling showed that the majority of the projected rise in Tasmania’s electricity demand under the business-as-usual scenario would be supplied from imported coal-fired electricity (see Section 3.5 above). In light of this, the Council considers that renewable energy must be a priority for action by Government. In addition, the Council believes that in light of the economic and environmental benefits for Tasmania, the Government should adopt the goal of becoming a net electricity exporter by 2020 through focused and sustained policy and incentive programs that: drive down the cost of renewable electricity generation; improve energy efficiency and reduce consumption; and address any market barriers and failures. Given the potential that exists for Tasmania to develop its significant renewable energy resources, the Council considers that Tasmania has 8 Under business-as-usual, the majority of the modelled rise in Tasmania’s electricity demand is likely to be supplied from imported coal-fired electricity, with such imported emissions projected to grow steadily to reach over 11Mt CO2e by 2050 (more than the State’s total emissions in 2007) (p.40). Page | 14 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council a particular opportunity to not only replace imported coal-fired electricity but to provide low emission intensity electricity to other Australian States. Attaining such an ambitious net electricity exporter goal will also require any market barriers and failures, including those associated with the National Electricity Market (NEM), to be addressed. The Wedges Report provides examples of possible measures such as “supporting technological development and deployment of technologies that improve energy efficiency and assisting companies apply for or otherwise attract funding for technologies that improve energy efficiency”9. Examples of relevant Federal Government programs include: the Green Building Fund and the Re-tooling for Climate Change program. Pursuing such measures, in line with achieving net electricity export status, would deliver economic advantages to the State, including making the State economy more resilient to the effects of higher future carbon costs, while delivering clear environmental benefits of lower emissions for both the State and the nation. In terms of fostering the expansion of renewable energy, the Tasmanian Government will be competing with other Australian and international jurisdictions in seeking to attract private investment capital for renewable energy projects. The Federal Government's Mandatory Renewable Energy Target (MRET) will assist in mobilising investment in renewable energy but it doesn’t necessarily influence where the investment gets allocated geographically. If Tasmania is to attract a higher proportion of the available capital, additional policy initiatives and incentives will be required over and above a Renewable Energy Certificate (REC) price and the national MRET. In particular, efficient planning approvals processes, good networks and grid connectedness, attractive renewable resource potential, as well as direct incentives, help investors to manage-down their risks. In particular, opportunities to secure funding under any current or future Federal Government renewable energy programs should also be actively pursued. The Federal Government’s new $650 million Renewable Energy Future Fund announced in the 2010 Budget provides an important opportunity for the Tasmanian Government to develop a business case for renewable energy funding and to influence the Fund’s development. As part of this, the Government should prioritise Tasmanian based climate-ready infrastructure and State development proposals that showcase renewable solutions that are necessary for the rest of Australia to effectively and efficiently transition to a low carbon economy. 9 Wedges Report, page 23. Page | 15 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council The Tasmanian Government should also develop initiatives that directly assist Tasmanians and Tasmanian businesses to access funding available under relevant Federal Government programs. And the Government should actively promote Tasmania’s potential as a location for industry seeking a renewable energy base. The recently established Tasmanian Renewable Energy Development Board should be given a clear mandate to oversee the growth of the renewable energy industry including the necessary policy settings and conditions required to attract private investment for renewable energy. Council Recommendations: The Tasmanian Climate Action Council recommends the Tasmanian Government: 4.1.1. Establish a Renewable Energy State target linked to the attainment of ‘net electricity export’ status by 2020 and further increases in renewable energy exports over the longer-term. 4.1.2. Immediately develop a comprehensive Renewable Energy Strategy, incorporating: o direct incentives (such as gross feed-in tariffs, demonstration grants, or payroll tax exemptions) for new renewable energy developments; o improvements to transmission infrastructure, including smart-grid technologies; o assistance for investors to buy-down project development risks; and o priority planning and development assessment processes for State significant, large-scale renewable energy projects. 4.1.3. Develop a Renewable Energy prospectus for Tasmania, outlining the State’s renewable energy strategy and Tasmania’s capacity to provide climate change solutions for the nation through renewable energy exports and renewably powered industries. 4.1.4. Actively pursue any available funding under Federal Government renewable energy programs including: o Developing a business case for funding as part of the new $650 million Federal Government Renewable Energy Future Fund; and Page | 16 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council o Targeting opportunities for Tasmania to secure demonstration projects, particularly where they complement the State’s own identified emissions reduction priorities and showcase solutions to the rest of the nation. 4.1.5. Develops initiatives that directly assist Tasmanians and Tasmanian businesses to access Federal Government climate action funding, including through provision of information, awareness building and support for the development of business cases. 4.1.3. Electricity consumption Wedges Report findings: Electricity demand growth represents one of the largest future contributors to Tasmania’s projected growth in greenhouse gas emissions. In the commercial and residential sectors, improvements to, for example, energy efficiency in refrigeration, water heating and higher star rated buildings represent an estimated 1Mt CO2e/year of abatement potential by 2050 (pp61-62). Reducing electricity demand in the industrial sector provides some 0.8Mt CO2e of abatement potential by 2050 (p.61). A range of immediate opportunities exist to reduce electricity demand in the residential, commercial and industrial sectors, many of which also represent some of the least costly abatement opportunities, providing a net financial return over time (p.62). Many of the existing barriers to the uptake of energy efficiency abatement opportunities are also relatively clear and able to be easily addressed (p.85). Discussion: Energy efficiency is a clear opportunity where the Government can demonstrate leadership in addressing climate change. Firstly, enhancing energy efficiency is a basic prerequisite to addressing the forecast increase in electricity demand and reducing mainland electricity imports. Secondly, it will directly assist action to increase the proportion of renewable energy generation in the State. Page | 17 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Thirdly, with the ability to provide long-term investment returns to the State’s economy, the early adoption and uptake of low cost energy efficiency measures will enhance the social and economic progress and prosperity of the State. Finally, it will help alleviate the indirect effects of future carbon price scenarios. Market barriers do exist, however, in both the business and community sectors. Government has a key role in ensuring these barriers are clearly identified and addressed. Wellresourced, well-designed State Government policies and awareness programs would facilitate early adoption of energy efficiency measures, reduce emissions, reduce household and business costs and facilitate transition to a lower carbon economy. Consequently, efficiency standards and complementary measures should be adopted within the framework of a state based energy efficiency strategy, including energy efficiency targets and demonstration projects. Tasmania has a clear opportunity to turn its small market into an advantage for attracting small-scale national demonstration projects and programs. In addition, business energy efficiency programs need to be integrated into the State’s Economic Development Strategy. Similarly, community based measures need to be developed and implemented under the proposed Community Climate Action Strategy. In establishing efficiency standards, the small market status of Tasmania also needs to be recognised. As opposed to going it alone, Tasmania should look to leverage off established national and international standards and adopting ‘best-practice’ efficiency levels within those standards. The State Government also has a clear role in raising awareness of, and gaining access to, any available Federal Government funding mechanisms for business and community based energy efficiency programs. Council Recommendations: The Tasmanian Climate Action Council recommends that the State Government: 4.1.6. Develop a state based energy efficiency strategy including an energy efficiency target for Tasmania. 4.1.7. Assists both business and the broader community to access Federal Government programs to improve energy efficiency in households and businesses. Page | 18 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 4.1.8. Identify energy efficiency opportunities within Tasmanian Government managed premises, under the Framework to Reduce the Tasmanian Government’s Greenhouse Gas Emissions, including mechanisms for efficiency benchmarking, performance targets and reporting. 4.1.9. Fund demonstration projects aimed at achieving energy efficiency improvements in Housing Tasmania properties. 4.1.10. Adopt ’best-practice’ energy efficiency standards within established national and international energy efficiency standards 4.1.11. Actively pursue funding available under national energy efficiency programs to implement energy efficiency demonstration projects. 4.1.12. Introduces building standards and programs that improve energy efficiency in the business and private sector as an integral part of the State’s Economic Development Strategy. 4.2. Manufacturing and Industrial Processes Wedges Report findings: The manufacturing sector accounts for 31% (2.7Mt CO2e) of Tasmania’s total greenhouse gas emissions with most of these emissions arising from the State’s six largest industrial facilities through direct fuel combustion and industrial processing. (pp18-19) Industrial processing accounts for 16% of emissions in Tasmania compared with only 5% for Australia. (p.15) Significant short term opportunities exist to reduce emissions from direct fuel combustion through industry uptake of gas or biomass co-generation (1.8 Mt CO2e). (p.57) In the industrial processing sector, while significant opportunities exist to reduce emissions (estimated to be of the order of around 2.6 Mt CO2e by 2050), there is limited potential for early take-up of abatement measures due to the need to develop new technology solutions. (pp 68-69 & 90) Page | 19 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Discussion: The Council notes the Wedges Report’s findings that a relatively small number of large industrial facilities in Tasmania account for a large proportion of the State’s total greenhouse gas emissions. These emissions arise largely from direct fuel combustion and the industrial processes involved which vary considerably across the State’s largest industrial facilities. The fact that a large proportion of Tasmania’s emissions arise from the operations of a relatively small number of large industrial facilities presents a significant challenge and a unique opportunity for reducing Tasmania’s emissions. However, the successful development of new low carbon technological solutions will be critical to realising these emission reductions opportunities. Given that failure to develop the needed technologies could compromise Tasmania’s ability to reach its emissions reduction target, the Council considers that the Government’s strategic involvement with this sector should be considered. It would seem appropriate for the Tasmanian Government to examine opportunities to work closely with the individual businesses involved to develop a long-term understanding of the emissions reduction potential of individual facilities and to implement solutions. Such a ‘partnering’ approach with the operators of individual large industrial facilities would enable the Tasmanian Government to ensure that available emissions reduction opportunities, as they emerge, are efficiently adopted and that any important barriers to their introduction are minimised. Such an approach would also assist the Tasmanian Government’s early identification of any key risks from delays or failure of expected technological developments. Importantly, it could provide the basis for the development of formalised emissions intensity agreements. The Report also concludes that the most significant short-term opportunity to deliver emissions reduction in large industrial operations relates to those facilities that undertake direct coal combustion. These facilities offer significant opportunities to reduce emissions by converting to gas or biomass cogeneration (or tri-generation) systems where possible. The Council believes the Tasmanian Government should therefore investigate and remove any barriers to cogeneration in key industrial facilities, including any infrastructure barriers. Given the importance of these facilities to the State’s economic and employment base, it is important that the Government takes a strategic role in ensuring that the current and future energy security requirements of major industry are met in the context of their transition to cogeneration. Any cooperative initiatives will need to ensure such needs are simultaneously addressed alongside emission reduction objectives. Page | 20 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Council Recommendations: The Tasmanian Climate Action Council recommends that the State Government: 4.2.1. Initiates a consultative dialogue to understand the processes, emissions reduction opportunities, timelines, and any barriers to the development and deployment of new technologies that reduce emissions intensity in each of the State’s large industrial facilities. 4.2.2. Develops individual emissions reduction ‘partnerships’ with the State’s largest industrial emitters involving: o an investigation of industrial scale cogeneration (and tri-generation) opportunities; o support mechanisms to incentivise fuel-switching at these facilities, particularly large industrial coal users to lower emission direct combustion alternatives where possible; and o an assessment of infrastructure support needs and fuel supply requirements. 4.3. Transport Wedges Report findings: Transport is currently the third largest source of emissions in Tasmania (1.8 Mt CO2e in 2007). (p 15) Transport activities account for 21% of emissions in Tasmania compared to 14% for Australia. (p 15) Around 85% of transport emissions come from private and commercial vehicle use on roads. (p 31) Abatement options in this sector could reduce emissions by 1.8 Mt CO2e by 2050, depending on technology development, long-term planning and behavioural change. (p 62) Page | 21 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Many transport abatement initiatives have low cost, assuming other co-benefits are recognised, and have the potential of offering significant long-term abatement well beyond 2050. (p 62) The bulk of the savings would come from the use of biofuels, improvements in vehicle efficiency, freight efficiency improvements, urban transport improvements and more efficient driving habits. (p 99) Discussion: A challenge in achieving significant near-term reductions in transport emissions is the likely lag time between the initial investment and eventual, measurable benefit of any action. In addition, major transport abatement opportunities are highly dependent on continuing development, commercialisation and adoption of new fuel and engine technologies, such as new generation biofuels for freight vehicles and buses (44% of potential savings10). Smaller, but better understood, abatement opportunities rely on shifting consumer behaviour and attitudes, “behavioural change” outcomes, including increased use of public and alternative transport, and the uptake of more efficient cars and driving habits. While these “behavioural change” opportunities can be sought now, their longer-term success demands greater attention to the long-term emissions implications of urban and infrastructure planning. There are other significant opportunities for government to act immediately, on several fronts, to leverage emission reduction outcomes from a range of existing policy and planning initiatives. For example, while Tasmania may not be able to directly influence the pace of biofuel technology development, the Tasmanian Institute of Agricultural Research (TIAR) and the University of Tasmania have capabilities in agronomy, resource assessment and value-chain mapping that could greatly assist the understanding of potential biofuel supply chains in Tasmania, possibly in association with current food bowl and irrigation development projects, and with long-term structural adjustment in the dairy and vegetable industries. 10 Wedges Report, page 63 Page | 22 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council The future of the State’s freight transport system presents another important area of opportunity. The recent re-establishment of a State-owned rail corporation provides an opportunity for consideration of the appropriate role for rail in Tasmania’s transport system. The Wedges Report finds a “low greenhouse benefit in shifting from road to rail”11, whilst identifying significant abatement potential in road freight efficiency through improved load factors. Maintaining the status quo leaves Tasmania with inefficiencies in both road and rail systems, whilst reassigning the freight task between road and rail in different parts of the system may enable greater focus on maximising economic performance and emissions reductions in each mode. Emission implications of longer-term transport and freight scenarios should also be considered as part of the State-wide Infrastructure and Economic Development Strategies currently being developed, in connection with the regional planning initiatives in the South, North and North West. This should include consideration of any proposed changes to port operations, maintenance of unused rail infrastructure, and the capacity of power transmission infrastructure to support future widespread use of electric passenger vehicles. The planning reform process, provides an important opportunity to develop and apply consistent provisions regarding urban settlement and public and alternative transport aimed at achieving reduced reliance on private vehicle use in built up areas, while providing attractive options for travel by bus, walking and cycleways. A number of relatively low cost opportunities are immediately available to reduce transport emissions. First, the State Government should continue to lead the transition of Tasmania’s passenger vehicle fleet to greater fuel efficiency through its own purchasing policies. The logical future expansion of this policy would provide for the adoption of emerging technologies, such as electric and hybrid vehicles, to accelerate availability and support for low emissions technology in the Tasmanian market. Second, vehicle emissions can be reduced by influencing driver behaviour. Reduced highway speed limits and eco-driving training offer practical ways of reducing emissions that are within the immediate grasp of both regulators and individual citizens. The Wedges 11 Wedges Report, page 187 Page | 23 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Report notes that associated increases in travel times are offset by reduced fuel and accident costs12. Third, passenger transport emissions can also be reduced by providing alternatives to travel. The Wedges Report suggests that road and air travel for meetings could be reduced by up to 10%13 by creating better public and business access to video conferencing facilities. In Tasmania, a network of such facilities could be established using existing libraries, Learning and Information Network Centres (LINCs) and On Line Access Centres, taking advantage of the early roll-out of national broadband in the State where available. Council Recommendations: The Tasmanian Climate Action Council recommends that the State Government: 4.3.1. Develops a State strategy for biofuel production, addressing supply chain and infrastructure, to reduce fossil fuel use in transport (as well as a broader renewable energy source) and increase the State’s energy security. 4.3.2. Improves the efficiency of Tasmania’s freight transport system including: o rationalising road and rail freight systems to focus investment on longterm efficiencies; and o working with the road transport industry to investigate efficiency gains through improved logistics and load factor management. 4.3.3. Reduces demand for passenger vehicle travel including: o developing practical and attractive alternative transport systems in builtup areas; o promoting community behaviour change including access to local resources, car pooling, walk to school programs and support for walking/cycling transport options; o establishing public access teleconference facilities to replace road and air travel for meetings; and 12 Wedges Report, page 184 13 Wedges Report, page 194 Page | 24 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council o 4.3.4. developing key performance indicators to measure policy impacts. Improves fuel efficiency of vehicle transport including: o extending investment in fuel efficient government and corporate fleets; o investigating options to promote eco driver education (and associated fuel savings) through workplace training, learner and in-school programs; and o 4.3.5. undertaking a staged introduction of reduced highway speed limits. Embeds transport emissions considerations in all long term planning initiatives including: o providing support for urban design and town planning that reduces demand for private vehicle use through provision of walkable cities and attractive alternative transport options in built-up areas; and o ensuring that state-wide and regional economic development, infrastructure and land use strategies support development of efficient transport corridors and modes, including key emerging transport technologies such as electric vehicle infrastructure. 4.4. Agriculture Wedges Report findings: The agriculture sector currently accounts for 25% of Tasmania’s emissions which is the second largest source of the State’s emissions. Livestock emissions dominate, accounting for 75% of agricultural emissions and 19% of Tasmania’s total emissions. Abatement opportunities in this sector are limited, highly uncertain and very dependent on environmental and climatic conditions. The major known abatement opportunity involves the sequestration of carbon by converting agricultural land to forests – up to 20% of Tasmania’s arable land is considered open to conversion to forest plantations. Page | 25 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Discussion: The dynamic nature and complexities of Tasmania’s farming sector complicates emissions modelling in the sector. It is also important to note that international emissions reporting methodologies applying to agriculture are likely to evolve significantly in coming decades. For example, the inclusion of soil carbon in emissions reporting could significantly alter the State’s agricultural emissions profile and the current potential emissions reduction value of particular actions in the sector. Reforestation of arable agricultural land provides the clearest short term abatement opportunity in the sector. A significant reforestation exercise, however, may create community conflict as productive agricultural land (a scarce resource in its own right) is targeted for conversion to forest plantations. Clearly, a government policy framework that adequately protects existing farming land whilst actively promoting environmentally appropriate, farm-based forest plantings, is a priority. Tasmania’s agricultural sector is likely to remain dominated by livestock production and particularly by sheep and cattle farming, both of which have high emissions profiles. That said, the promotion of more holistic, sustainable farming systems provides an opportunity to foster a number of abatement opportunities including: optimal feed mix and management; fertilizer usage; minimum tillage; grazing system management; biological agriculture; organics; and landcare programmes. Combined, these have the potential to deliver significant emission reductions as well as long-term productivity gains. Future research and development may produce abatement opportunities for the livestock sector in the medium to long term. Research is currently underway to investigate methods such as selective livestock breeding and vaccination to reduce emissions associated with enteric fermentation. Given its agricultural emissions profile, Tasmania must be an early adopter of such technologies as they are proven to be commercially viable. Although much of the research and development will likely be undertaken elsewhere, a significant opportunity exists for the Tasmanian agricultural sector to become a leader in innovation. Opportunities include biomass, the introduction of alternative fuel sources such as biofuels (discussed in Section 4.3 on Transport) and the production and application of alternative fertilizers such as seaweeds, sewage and compost solutions. Page | 26 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Council Recommendations: The Tasmanian Climate Action Council recommends that the State Government: 4.4.1. Develops a policy framework for farm-based reforestation of agricultural land, including: o promoting environmentally appropriate reforestation activities by farm businesses. 4.4.2. Supports the development of a sustainable farming system model, which complements the reforestation policy, and focuses on the following shortterm outcomes: o encouraging farmers to adopt a holistic approach to sustainable farm management which includes components such as minimum tillage, optimised fertilizer application, on-farm energy efficiency, efficient grazing systems, breeding programs, biological agriculture, organics and landcare projects; o active involvement and leadership through established agribusiness networks such as Natural Resource Management (NRM) bodies, Landcare groups, Southern Farming systems, Grassland societies, Breed societies and the Tasmanian Farmers and Graziers Association (TFGA); and o active adaptation action, including through mentoring development of farm strategies and business plans to mitigate climate impact risks. 4.4.3. Support research and education on the on-farm carbon cycle, including the carbon stored in soils and vegetation, which take into account the cool temperate climate of Tasmania so as to underpin good climate policy for the agricultural sector. 4.4.4. Promote and support agribusiness innovation as a key enabler for emissions reduction including via the State’s economic development strategies, particularly with regard to the production and use of biofuels, biomass and alternative fertilizers. Page | 27 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 4.5. Forestry Report’s findings: Forestry and land use change currently contribute only 1% of Tasmania’s total emissions. There is significant potential for forestry biomass (waste) as a renewable energy resource. Discussion: Like agriculture, forestry remains a very difficult sector to model emissions. As is the case with agriculture, internationally agreed forestry emissions accounting methodologies exclude reporting on a range of emissions sources and sequestration opportunities. Until more comprehensive carbon accounting for forestry, land use, land use change is developed and adopted the setting of meaningful policy direction for this sector is expected to remain problematic. However, given Tasmania’s significant and diverse forest estate and its potential for improved carbon sequestration, it is important that Tasmania proactively manages any potential risks associated with the international accounting developments for the sector and capitalises on any opportunities presented. Further research to maximise opportunities for Tasmania should focus on: improved understanding of the complete carbon cycle of various forestry systems (regrowth, old growth and plantation); emissions reduction opportunities associated with different rotation lengths; the sequestration value of the State’s conserved and managed forests; and the potential impact of any proposed use of forestry biomass for energy production. The implication of such factors needs to be fully understood so that the forestry estate can be managed in a sustainable and profitable manner that optimises climate change outcomes. Page | 28 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Council Recommendations: The Tasmanian Climate Action Council recommends that the State Government: 4.5.1. Commission the development of a complete and independent carbon cycle assessment of Tasmania’s forestry estate (regrowth, old growth and plantation). 4.5.2. Develops policy based on the full carbon assessment of the forestry estate, covering: o the potential use of forest biomass as a potential renewable energy source; o emissions reduction, including opportunities associated with different rotation lengths; and o managing the State’s conserved and managed forests to optimise their sequestration value. 4.5.3. Articulate the concept of a sustainable forestry estate to the wider community, including the need for “no regrets actions” to ensure positive effects on forestry and State emissions. 4.6. Waste management Report’s findings: The waste sector accounts for around 4% (0.4Mt CO2e) of Tasmania’s total greenhouse gas emissions and waste emissions are expected to grow to around 0.9Mt CO2e by 2050. (p15 and 70) Under a maximum abatement scenario, around 80% of emissions from the sector could be abated. Identified abatement options are relatively inexpensive, well understood and already commercialised such as flaring and using captured methane for power generation. New technologies that use waste organic material as an energy source for power generation or process heat, or producing char material (stable carbon) as a by-product, offer additional abatement possibilities. (p70 and 105) Page | 29 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Discussion: Emission reduction opportunities in Tasmania’s waste sector are modest, but they are also relatively cost effective and would provide important signalling and leadership benefits for the community. Significant practical opportunities exist for improvement in waste minimisation, management and recycling in Tasmania and should be considered a short to medium term priority for the Tasmanian Government, as part of a broader aim to approach best practice waste management in the State. In particular, opportunities exist to develop collaborative approaches to work with Federal, State and Local Governments to assist businesses and consumers to minimise waste. This would represent not only a ‘low cost’ emission reduction opportunity but also an important opportunity to demonstrate the State’s ‘clean green’ brand. Consistent with the Council’s recommended priority focus on renewable energy generation, the Tasmanian Government should also pursue options to work with local governments to facilitate the exploitation of waste to power opportunities at all large waste and waste water facilities. The use of organic material as an energy source for power generation or process heat, producing char material (stable carbon) as a by-product, should also be considered over the medium term. Recycling, and aluminium recycling in particular, offers low cost resource efficiency and emission reduction gains. There is clearly a role for both the Tasmanian Government and local governments to investigate and implement measures to improve recycling rates, while recognising the need to tailor this to Tasmania’s relatively small population and the possible need to export recycled material for reprocessing. Industrial composting infrastructure opportunities should also be pursued, including supporting the Tasmanian food, tourism and hospitality sector to adopt bio plastics in packaging along with re-use. Improved public recycling facilities should be introduced as a community leadership measure (Section 4.7 Community). Container deposit legislation and other community focused advanced waste management strategies should also be introduced. Page | 30 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Council Recommendations: The Tasmanian Climate Action Council recommends that the State Government: 4.6.1. Work with the Federal Government, other state/territory and local governments to develop waste minimisation policies, standards and timelines for waste minimisation, including packaging waste and a food waste diversion program. 4.6.2. Support lean manufacturing innovation and education programs to assist Tasmanian businesses to minimise packaging and process waste. 4.6.3. Audit the State’s waste facilities to identify opportunities for: o the introduction of waste to energy technology and associated waste management infrastructure, especially in regional areas, in line with the State’s commitment to renewable energy generation; 4.6.4. o local recycling of large scale, commercial waste streams; and o an integrated whole food supply system. Support community behavioural change initiatives that lead to reductions in overall waste and better educational outcomes; 4.6.5. Assist local governments to undertake local education and action to increase recycling rates, including through the provision of better public recycling facilities. 4.6.6. Introduce container deposit legislation. Page | 31 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 4.7. Community Report’s findings: Adoption of energy efficient appliances, machinery and services can provide low cost reductions in electricity demand. (p.59) Encouraging consumers to take up energy improvements is one of the most cost effective measures for increasing energy efficiency. ( p103) Almost 0.9Mt CO2e of abatement could be delivered by 2050 by improving energy efficiency of refrigeration and water heating appliances and mandating higher star ratings of buildings at a net benefit to the community. (p.66). The Tasmanian Government could assist individuals in pursuing Federal Government assistance and advocate for the expansion of these schemes or new schemes where opportunities for efficient emission reductions are identified. Discussion: The household and community sector must be a priority for short-medium term action on climate change and the Council believes such action should focus on energy efficiency and transport. The Wedges Report itself identified the importance of practical action to reduce barriers to behavioural change through: improvements in energy (Section 4.1) and transport efficiency (Section 4.3); waste management, minimisation and recycling (Section 4.6); leveraging existing community action and providing longevity and funding consistency for community programs; and educating the community about the co-benefits of effective climate change action such as improved health, social and environmental benefits and reduced household costs. The Council notes the Tasmanian Government has already developed and implemented a number of important community climate change programs. An opportunity now exists to consolidate these, and new community measures, into a clear and consistent Community Climate Action Strategy. Page | 32 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council It is important to note that long-life purchases, such as homes, vehicles and large appliances, have the capacity to ‘lock’ additional emissions intensity into the system, or alternatively, provide an opportunity to advance the State’s transition towards a low carbon economy. Consequently community focused climate change policies should be structured to improve awareness and capture productivity, health, social and environmental benefits, in addition to their important emission reduction outcomes. Community based engagement and education is vital in informing and motivating people to act and it needs to go well beyond simply providing households information. The Tasmanian Government must take a leadership role in ensuring that the community understands the importance and urgency of the climate change problem. It is also important that the Government ensures that its progress toward emission reduction targets, and any future interim emission targets, is afforded a high public profile. Unlocking the power of local ideas and collaborative action, with the empowerment of individuals and communities should be at the forefront of Tasmania’s action to meet its legislated emission reduction target. The Tasmanian Government should also lead by example to improve the energy and water efficiency of the Tasmanian housing stock over the next decade by: providing audit and retrofit programs targeting low income households; coordinating and optimising community access to and usage of existing Federal and State energy and water efficiency programs; developing energy and water performance standards for housing, covering both new construction and existing stock, with such standards met prior to the sale or lease of properties; and leveraging energy efficiency programs and requirements to support the creation of new green industries and jobs. A significant opportunity exists in Tasmania for the Government to work with Government Business Enterprises (GBEs) to provide improved services and information that support community action on climate change. Examples include new utility service opportunities, such as smart metering and smart grid technologies, as well as improved household utility billing information that supports energy efficiency awareness and action. Mandating energy efficiency standards and setting targets are priorities in encouraging the widespread uptake of energy efficiency opportunities by Tasmanian communities. Tasmanian standards should leverage established national and international standards - see discussion in Section 4.1.3 - Electricity Consumption. Page | 33 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council Low cost opportunities also exist through community-focused behavioural change relating to: reducing private vehicle usage and increasing public transport use; and promoting collaboration around food and energy supplies. The provision of public transport and transport infrastructure is a core State Government responsibility and the Tasmanian Government should embed emissions reduction goals as a key component of its investment in this sector. This should include action to redress the current imbalance in public funding provided to road infrastructure relative to public transport infrastructure and services. Given the scientific consensus that global warming of 1 to 2°C is now considered unavoidable, the Tasmanian Government needs to prepare the Tasmanian community for more extreme weather events, whilst helping communities to adjust to the social, economic and environmental impacts that will arise. The Tasmanian Government should begin development of a state based adaptation strategy that is harmonised with national adaptation efforts. Council Recommendations: The Tasmanian Climate Action Council recommends that the State Government: 4.7.1. Develops a practical Community Climate Action Strategy, focussing on energy, transport efficiency and waste, that encompasses: o support for community based engagement and education, including direct support for climate action organisations; o coordination and optimisation of community access to and usage of existing Federal and State energy and water efficiency programs, including smart metering; o community-focused behavioural change initiatives including energy efficiency incentives such as smart metering, food gardens, reducing private vehicle use, increasing public transport use and waste minimisation; and o the development of practical tools to support consumer uptake of efficient products. Page | 34 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 4.7.2. Facilitate the overhaul of the Tasmanian housing stock over the next decade for water and energy efficiency, including: o audit and retrofit programs targeting low income households; o energy and water performance standards for both new construction and existing housing stock to be met prior to the sale or lease of properties. 4.7.3. Development of a state based adaptation strategy linked to national adaptation initiatives that specifically addresses the needs of: o low income communities; and o those regions most exposed to rising sea levels, drought and industrial restructuring. Page | 35 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council 5. Summary of Recommendations The Council’s recommendations to the Tasmanian Government are comprehensive and cover a range of sectors and action areas for the State. A summary of Council’s recommendations is provided below. To assist the Government in prioritising its actions to reduce Tasmania’s greenhouse gas emissions, the Council’s recommendations are set out in the table below according to their priority (high, medium or lower priority) and whether action is required now, in the short term (1-2 years) or in the longer term (1-5 years). RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term OVERARCHING ISSUES Government leadership and action 3.1.1. Implement a whole-of-government mechanism to ensure all Government major policy, investment, development and infrastructure decisions appropriately account for climate change and its impacts as well as the State’s emission reduction target. 3.1.2. Develop and prosecute a leadership role across those areas of the economy in which Tasmania has a significant comparative advantage and where the most significant economic opportunities exist. 3.1.3. Ensure that any policy barriers to emissions reduction at the business and community levels are identified and addressed. 3.1.4. Ensure that all climate action policies, including existing mitigation and adaptation policies, have clear outcomes / targets and are benchmarked against national and international best practice. Page | 36 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term 3.1.5. Lead by example by ensuring that Tasmanian Government efforts to reduce its own emissions are properly implemented, monitored and reported. 3.1.6. Actively communicate the importance of climate change mitigation and the importance of, and progress towards, the State’s emissions reduction target. Implications of the CPRS deferral 3.2.1. Advocate for an improved national emission reduction policy framework incorporating the early implementation of a national CPRS, or effective carbon price. 3.2.2 Commit to near term action based on the Wedges Report’s findings, regardless of the CPRS deferral. Avoiding emissions ‘lock in’ 3.4.1. Take immediate action to establish processes to prevent ‘business as usual’ investment decision-making that results in the ‘locking in’ of new or additional emissions intensive infrastructure. 3.4.2. Review relevant legislation underpinning Tasmania’s planning system to ensure developments and investments avoid the locking in of emissions intensity consistent with the State’s transition to a lower carbon economy. 3.4.3. Develop an implementation plan for the Tasmanian Infrastructure Strategy that prioritises climate-ready transition for the State’s infrastructure, particularly for energy and transport, ensuring all Page | 37 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term infrastructure stock is audited for climate vulnerability and readiness. 3.4.4. Amend development approval processes to require all new developments in the State to be ‘best in class’ for energy efficiency and emissions management. 3.4.5. Establish a central requirement for all new major industrial facilities to deploy ‘best in class’ energy efficiency and emissions management. Imported energy 3.5.1. Build business and community awareness of the State’s growing and predominant reliance on imported coal-fired electricity and implications for Tasmania. 3.5.2. Establish and pursue, alongside the legislated State emissions reduction target, an emission reduction target associated with maximising the State’s export of renewable electricity. OPPORTUNITIES BY SECTOR Energy 4.1.1. Establish a Renewable Energy State target linked to the attainment of ‘net electricity export’ status by 2020 and further increases in renewable energy exports over the longer-term. 4.1.2. Immediately develop a comprehensive Renewable Energy Strategy, incorporating: o direct incentives (such as gross feed-in tariffs, demonstration grants, or payroll tax exemptions) for new renewable energy Page | 38 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term developments; o improvements to transmission infrastructure, including smartgrid technologies; o assistance for investors to buy-down project development risks; and o priority planning and development assessment processes for State significant, large-scale renewable energy projects. 4.1.3. Develop a Renewable Energy prospectus for Tasmania, outlining the State’s renewable energy strategy and Tasmania’s capacity to provide climate change solutions for the nation through renewable energy exports and renewably powered industries. 4.1.4. Actively pursue any available funding under available Federal Government renewable energy programs including: o Developing a business case for funding as part of the new $650 million Federal Government Renewable Energy Future Fund; and o Targeting opportunities for Tasmania to secure demonstration projects, particularly where they complement the State’s own identified emissions reduction priorities and showcase solutions to the rest of the nation. 4.1.5. Develop initiatives that directly assist Tasmanians and Tasmanian businesses to access Federal Government climate action funding, including through provision of information, awareness building and support for the development of business cases. 4.1.6. Develop a state based energy efficiency strategy including an energy efficiency target for Tasmania. Page | 39 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term 4.1.7. Assist both business and the broader community to access Federal Government programs to improve energy efficiency in households and businesses. 4.1.8. Identify energy efficiency opportunities within Tasmanian Government managed premises, under the Framework to Reduce the Tasmanian Government’s Greenhouse Gas Emissions, including mechanisms for efficiency benchmarking, performance targets and reporting. 4.1.9. Fund demonstration projects aimed at achieving energy efficiency improvements in Housing Tasmania properties. 4.1.10. Adopt ’best-practice’ energy efficiency standards within established national and international energy efficiency standards. 4.1.11 Actively pursue funding available under national energy efficiency programs to implement energy efficiency demonstration projects. 4.1.12 Introduce building standards and programs that improve energy efficiency in the business sector as an integral part of the State’s Economic Development Strategy. Manufacturing and Industrial Processes 4.2.1. Initiate a consultative dialogue to understand the processes, emissions reduction opportunities, timelines, and any barriers to the development and deployment of new technologies that reduce emissions intensity in each of the State’s large industrial facilities. Page | 40 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term 4.2.2. Develop individual emissions reduction ‘partnerships’ with the State’s largest industrial emitters involving: o an investigation of industrial scale cogeneration (and trigeneration) opportunities; o support mechanisms to incentivise fuel-switching at these facilities, particularly large industrial coal users to lower emission direct combustion alternatives where possible; and o an assessment of infrastructure support needs and fuel supply requirements. Transport 4.3.1. Develop a State strategy for biofuel production, addressing supply chain and infrastructure, to reduce fossil fuel use in transport (as well as a broader renewable energy source) and increase the State’s energy security. 4.3.2. Improve the efficiency of Tasmania’s freight transport system including: o rationalising road and rail freight systems to focus investment on long-term efficiencies; and o working with the road transport industry to investigate efficiency gains through improved logistics and load factor management. Page | 41 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term 4.3.3. Reduce demand for passenger vehicle travel including: o developing practical and attractive alternative transport systems in built-up areas; o promoting community behaviour change including access to local resources, car pooling, walk to school programs and support for walking/cycling transport options o establishing public access teleconference facilities to replace road and air travel for meetings; and o developing key performance indicators to measure policy impacts. 4.3.4. Improve fuel efficiency of vehicle transport including: o extending investment in fuel efficient government and corporate fleets; o investigating options to promote eco driver education (and associated fuel savings) through workplace training, learner and in-school programs; and o undertaking a staged introduction of reduced highway speed limits. 4.3.5. Embed transport emissions considerations in all long term planning initiatives including: o providing support for urban design and town planning that reduces demand for private vehicle use through provision of walkable cities and attractive alternative transport options in built-up areas; and o ensuring that State-wide and regional economic development, infrastructure and land use strategies support development of Page | 42 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term efficient transport corridors and modes, including key emerging transport technologies such as electric vehicle infrastructure. Agriculture 4.4.1. Develop a policy framework for farm-based reforestation of agricultural land, including: o promoting environmentally appropriate reforestation activities by farm businesses. 4.4.2. Support the development of a sustainable farming system model, which complements the reforestation policy, and focuses on the following short-term outcomes: o encouraging farmers to adopt a holistic approach to sustainable farm management which includes components such as minimum tillage, optimised fertilizer application, onfarm energy efficiency, efficient grazing systems, breeding programs, biological agriculture, organics and landcare projects; o active involvement and leadership through established agribusiness networks such as Natural Resource Management (NRM) bodies, Landcare groups, Southern Farming systems, Grassland societies, Breed societies and the Tasmanian Farmers and Graziers Association (TFGA); and o active adaptation action, including through mentoring development of farm strategies and business plans to mitigate climate impact risks. 4.4.3 Support research and education on the on-farm carbon cycle, including the carbon stored in soils and vegetation, which take into account the Page | 43 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term cool temperate climate of Tasmania so as to underpin good climate policy for the agricultural sector. 4.4.4. Promote and support agribusiness innovation as a key enabler for emissions reduction including via the State’s economic development strategies, particularly with regard to the production and use of biofuels, biomass and alternative fertilizers. Forestry 4.5.1. Commission the development of a complete and independent carbon cycle assessment of Tasmania’s forestry estate (regrowth, old growth and plantation). 4.5.2. Develop policy based on the full carbon assessment of the forestry estate, covering: o the potential use of forest biomass as a potential renewable energy source; o emissions reduction, including opportunities associated with different rotation lengths; and o managing the State’s conserved and managed forests to optimise their sequestration value. 4.5.3. Articulate the concept of a sustainable forestry estate to the wider community, including the need for “no regrets actions” to ensure positive effects on forestry and State emissions. Page | 44 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term Waste management 4.6.1. Work with the Federal Government, other state/territory and local governments to develop waste minimisation policy, standards and timelines for waste minimisation, including packaging waste and a food waste diversion program. 4.6.2. Support lean manufacturing innovation and education programs to assist Tasmanian businesses to minimise packaging and process waste. 4.6.3. Audit the State’s waste facilities to identify opportunities for: o the introduction of waste to energy technology and associated waste management infrastructure, especially in regional areas, in line with the State’s commitment to renewable energy generation; o local recycling of large scale, commercial waste streams; and o an integrated whole food supply system 4.6.4. Support community behavioural change initiatives that lead to reductions in overall waste and better educational outcomes. 4.6.5. Assist local governments to undertake local education and action to increase recycling rates, including through the provision of better public recycling facilities. 4.6.6. Introduce container deposit legislation. Page | 45 RECOMMENDATIONS PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term Community 4.7.1. Develop a practical Community Climate Action Strategy focusing on energy, transport efficiency and waste that encompasses: o support for community based engagement and education, including consideration of direct support for climate action organisations; o coordination and optimisation of community access to and usage of existing Federal and State energy and water efficiency programs, including smart metering; o community-focused behavioural change initiatives including energy efficiency incentives such as smart metering, food gardens, reducing private vehicle use, increasing public transport use and waste minimisation; o the development of practical tools to support consumer uptake of efficient products. 4.7.2. Facilitate the overhaul of the Tasmanian housing stock over the next decade for water and energy efficiency, including: o audit and retrofit programs targeting low income households; o energy and water performance standards for both new construction and existing housing stock to be met prior to the sale or lease of properties. 4.7.3. Develop a state based adaptation strategy linked to national adaptation initiatives that specifically addresses the needs of: Page | 46 RECOMMENDATIONS o low income communities; and o those regions most exposed to rising sea levels, drought and industrial restructuring. PRIORITY MEDIUM HIGH Now Short term Long term Short term Long term LOWER Short term Long term Page | 47 Appendix Members of the Tasmanian Climate Action Council: Associate Professor Kate Crowley (Chair) Dr Noel Purcell (Deputy Chair) Dr John Church Rhys Edwards Roger Jaensch Ben Kearney Adam Kirkman Nel Smit James Walch For further information on the Tasmanian Climate Action Council’s activities and advice please visit the Council’s page on the Tasmanian Climate Change Office website: www.climatechange.tas.gov.au/action_council This page includes links to the Council’s public Communiqués, formal representations and 2009 Annual Report. To view the Tasmanian Government current climate change policy, please view the Tasmanian Framework for Action on Climate Change at: www.climatechange.tas.gov.au Page | 48 Tasmanian Climate Action Council | GPO Box 123 | HOBART TAS 7001 | www.climatechange.tas.gov.au/action_council