04/11/2016

NSW Sets Net-Zero Carbon Emissions Goal By 2050 As Australian Pollution Climbs

Fairfax - Peter Hannam

Hunter Valley's Bayswater coal-fired power plant is earmarked to close by 2035. Photo: Rob Homer
NSW, home to Australia's largest economy, will set a goal of net zero carbon emissions by 2050 and allocate $500 million over five years to help spur the transition to renewable energy.
The aspirational target comes as new analysis of Australia's emissions point to national pollution far overshooting the 2030 goals committed to by the Turnbull government at last year's climate summit in France. The Paris agreement comes into force globally on Friday.
By releasing a goal for NSW to be carbon neutral by mid-century, the state is falling into line with states such as South Australia but also federal Labor's target.
A draft NSW strategic plan will be open to public feedback ahead of formalising policies by mid-2017. Potential spending includes $200 million from the Climate Change Fund to accelerate the take-up of emerging energy technologies such as renewables and batteries.
A similar sum is earmarked to boost energy efficiency so homes and businesses become less wasteful, and $100 million will be spent on minimising impacts of climate change that are unavoidable given past pollution.
There are no interim targets, such as 2030, at this point. Nor are there guarantees that policies promoting increased emissions, such as new coal mines or increased land clearing, will be blocked.
Still, Fairfax Media understands the new framework is aimed at elevating the issue of climate change and carbon emissions within cabinet, providing a prism through which other policies will be assessed.
One industry expert, who declined to be named, described the government's move as "amazing", coming from a Coalition-led state.
"It will be hard for any government to go back on," the person said. "It also forces the federal government to look at its policies [for 2050]."
One aim is to signal to investors that NSW wants a lion's share of the billions of dollars needed to meet the federal Renewable Energy Target by 2020.
NSW's Environment Minister Mark Speakman. Photo: John Veage
"New jobs and investment will flow as the world responds to climate change, and we will help our state make the most of these opportunities," Premier Mike Baird and Environment Minister Mark Speakman say in the foreword to the strategic plan.
NSW lags most states in renewables. It sources about 9 per cent of its electricity from renewable energy, barely half that of Victoria and a quarter of SA despite having good resources of wind and sunshine.
Environment and Energy Minister Josh Frydenberg is expected to attend the Marrakesh climate conference later this month. Photo: Philip Gostelow
The draft policy notes that major coal-fire power plants in the state will close by 2035, increasing the need for replacement energy.
Alan Pears, an energy efficiency expert from RMIT University, said the NSW reports indicate huge returns on investments in energy saving.
"Program commitments are a few tens of millions of dollars but savings are in billions," he said. "So why not go a lot harder?"
Proposed actions include boosting the use of electric vehicles by changing stamp duty to encourage their adoption, and buying more such cars for government use.
Steps to limit the impact from climate change could include lifting the height of the Warragamba dam wall and increasing the canopy coverage of suburbs and towns to reduce the heat island effect, the draft policy said.
John Connor, head of The Climate Institute, welcome the Baird government's move.
"The adoption of a 2050 net zero emission objective is an important and historic development, shifting policy and accountability from the ambiguity of 'low' carbon objectives," he said. "Now to action."
"With NSW now joining Victoria, South Australia and the ACT, over half of national emissions are now covered by governments targeting net zero emissions by 2050."
Mr Connor was a member of the NSW Climate Council that advised the government on its new policy framework.

Tracking higher
While NSW is signalling a change of tack, more climate action will be needed at a national level, an international group says.
Australia's emissions are rising, and on current policies will be 52 per cent higher than 1990 levels, according to the Climate Action Tracker.
To meet the federal government's pledge at the Paris climate summit last year of cutting pollution levels between 26-28 per cent of 2005 levels by 2030, emissions must fall 1.9 per cent annually on average. (See chart below.)
Instead, they are rising about 1.2 per cent a year, "dramatically illustrating the dichotomy between climate rhetoric and climate action", the group said.

The group blamed a rise in emissions from the electricity sector in the wake of the Abbott government's scrapping of the carbon price in mid-2014 for part of the increase.
It also said the federal government is continuing to "create political uncertainty on the future of renewable energy", including after South Australia – the state most reliant on renewable energy – suffered a blackout during a major storm in September.
A spokesman for federal Environment and Energy Minister Josh Frydenberg said climate change was a key government priority.
"The Australian government is meeting its emission reduction targets, improving the environment and playing its part in the international effort to respond to the challenge of climate change," he said.
"We successfully met our first Kyoto target by 128 million tonnes and we are on track to beat our 2020 target by 78 million tonnes."
Larissa Waters, Greens environment spokeswoman, said Tony Abbott-era climate policies are allowing pollution to rise.
"Unless the Abbott-Turnbull pollution target and climate policies are dramatically improved during next year's climate policy review, this government [will] be a global laggard," Senator Waters said.
"We need an orderly shut-down of dirty coal power stations, no new coal mines, and a massive roll-out of  job-creating clean energy."

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Climate Change: Australia Falling Behind Rest Of World On Emissions Cuts, Says Report

The Guardian - Gareth Hutchens

Climate Council questions Australia’s ability to meet Paris Agreement pledge and predicts it will face pressure from world leaders at meeting next week
Sturt Daley, site manager, stands atop a wind turbine nacelle at Capital Wind Farm in Bungendore. A new report says Australia is lagging behind on its professed goals to cut emissions. Photograph: Bloomberg via Getty Images
Australia is lagging behind other countries on tackling climate change after signing the historic Paris Agreement last year, a new report shows.
The Climate Council’s new report, “Towards Morocco: tracking global climate progress since Paris,” questions Australia’s ability to meet its 2030 emissions reduction target.
It says Australia is likely to face serious pressure next week when world leaders meet in Marrakesh, Morocco, for the first time since the landmark Paris agreement was signed.
Eighty-seven countries have ratified the Paris agreement, including 10 of the largest polluters. These countries cover more than 55% of global emissions. The Paris agreement will come into force on 4 November.
The world’s top three emitters of carbon dioxide – China (27%), the US (15%) and India (7%) – have ratified the agreement.
Australia has not yet ratified the agreement.
Prof Will Steffen, a climate change expert and researcher at the Australian National University, told Guardian Australia it was “virtually certain” that 2016 would be the hottest year on record.
“I think Australia will face quite a bit of pressure at the meeting, because when you look at the targets we made in Paris, they’re weak compared to other countries in the G20,” he said.
“And even with those weak targets, we’re not on track to meet them. So I think there’s going to be some very direct questioning of Australia about its effort, about what its plans are and what policy instruments it plans to use in coming years to significantly reduce emissions.”
The Climate Council report says Australia’s emissions reduction target of 26% to 28% by 2030 (on 2005 levels) relies on the introduction of energy productivity and vehicle efficiency measures, which the federal government has yet to bring into force.
“The most recent update of Australia’s greenhouse gas emissions shows our emissions are rising,” the report says.
“Countries including China and the United States have put more than 30 questions to the federal government, asking for detail about how Australia will meet its 2030 emissions reduction target and raising concerns about a lack of transparency over how the government calculates and reports emissions.”
A year ago in Paris, at the 21st session of the Conference of the Parties for the United Nations Framework Convention on Climate Change (UNFCCC), world leaders agreed to limit global temperature rise to well below 2C above pre-industrial levels.
The agreement was signed by 197 countries, including Australia.
But the Climate Council says if Australia is to fairly contribute to staying below the 2C target, a “more rapid downward trend in emissions from all sectors of the economy is required, with much stronger action to reduce our emissions.”
There has been widespread expert criticism of the government’s Direct Action climate policy. Experts argue the framework is not sufficient to deliver the emissions reductions Australia signed on to in Paris.
There has also been a change of political emphasis in the Turnbull government over renewable energy.
Greg Hunt, the then federal environment minister, at the Paris conference, gave state governments clear encouragement to develop their own renewable energy schemes. “I have encouraged the states that if they want to do something extra, [they should] apply reverse auctions to the renewable energy target (RET) in the way the Australian Capital Territory has done,” Hunt said last December in Paris.
But since the election, the Turnbull government has been sharply critical of state-based renewable energy targets that will help Australia meet its Paris commitments.
State governments argue the commonwealth will not be able to meet the emissions reduction targets agreed in Paris without the state-based RET schemes.Correspondence from a senior federal official to the energy regulators after an energy council meeting in August seen by Guardian Australia underscores that point, suggesting the state-based schemes will deliver just under 40% of renewables in the national electricity market by 2030.
The Coalition has agreed to review the Direct Action climate policy in 2017, but the government has played down expectations that review will lead to a significant strengthening of the current policy framework, despite the widespread criticism of the current regime.
The South Australian government has signalled it wants to build broad support across the states for a form of carbon trading to apply to the electricity sector.

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Hazelwood Will Close In March, French Bosses Tell Power Plant Workers

FairfaxJosh Gordon | Adam Morton | Benjamin Preiss | Darren Gray

The Hazlewood power plant is to be closed down. Photo: Eddie Jim
Hazelwood power station will operate until the end of March next year and then shut down quickly after that, workers have been told.
Engie, the majority owner of the plant, has also told workers that 230 jobs will be needed on site to 2017 and 2018.
Beyond that, some workers will be required on site for a few more years.
It is understood that workers have also been assured that their entitlements will be guaranteed under the enterprise bargaining agreement.
The company is also offering workers skills training and counselling to help them with their transition.
It's understood that management have also told workers that Hazelwood is not a viable business to sell.
In a briefing that began at about 10am, workers were also told that Engie would spend more money on its other power station in the Latrobe Valley, Loy Yang B, near Traralgon.
Engie's Australian chief executive Alex Keisser said the 1600 megawatt Hazelwood power station had been operating in a "difficult national energy market environment for a considerable period".


"Hazelwood is now more than 50 years old. It has been a wonderful contributor to the National Electricity Market but we have now reached the point where it is no longer economic to operate," Mr Keisser said.
Mr Keisser said Engie would need to invest "many hundreds of millions of dollars" to keep it viable and, most importantly, safe to operate.
A worker entering the Hazelwood plant on Thursday morning. Photo: Eddie Jim
"Over the past few years a range of options have been investigated for the business, including revamping existing infrastructure, repowering with gas-fired gas turbines or biomass or reducing the number of operating units.
"None of these options has proven to be economically viable and as a result, the extremely difficult decision has now been taken to close all eight generating units by 31 March next year."
Some workers have been seen boarding buses. Photo: Eddie Jim
Premier Daniel Andrews will be announcing support for the Hazelwood workers in Morwell at 12.30.
Federal environment and energy minister Josh Frydenberg is also set to hold a press conference at 12.15 to discuss the plant's future and federal support for the valley.
The Prime Minister has pledged to work with the Victorian government to support workers who've lost their jobs.
"This is a very, very tough time for the valley," Malcolm Turnbull told reporters in Sydney.
The Prime Minister said the federal government had established a ministerial task group "to provide the support the community needs to ensure there are jobs and opportunities".
The federal government would work with the state government in a "collaborative way", Mr Turnbull said.
"Our thoughts today are with the tough times for the men and women who work at Hazelwood and of course the many others in that community whose jobs depend on that power station."

Left in the lurch
The Hazelwood closure marks a historic shift away from the state's reliance on burning brown coal for electricity.
CFMEU Victoria mining and energy president Trevor Williams said Hazelwood workers "would be devastated, although some of us have seen this coming for quite some time".
Speaking outside the Hazelwood power station in Morwell, Mr Williams said the closure was "another kick in the guts for the Latrobe Valley".
He said the union wanted a staged closure to ease the impact on the 1000 workers at the power station and mine and on the local community.
"It would be fair to say that some of the workers there would think that they've been left in the lurch, and also the Latrobe Valley community," he said.
"My understanding is it's going to be a total closure of the station and mine, which is something that we don't support.
"Although we'd like to see Hazelwood continue to run, if it needs to be closed we believe it should be done in a phased out way, which would give us an opportunity to make arrangements for the workers in the plant to be redeployed to other power stations in the Latrobe Valley," he said.
"Some of the people who work there have not worked anywhere else."
Before news emerged of the closure Wendy Farmer, from community group Voices for the Valley, said it was a day of mixed feelings for herself and the community.
"The community have known for the last 10-20 years that this day would happen, we've just never known when. The last six months has really been a time of being left in limbo," she said.
As revealed by Fairfax Media, the plant owners, Engie and Japanese company Mitsui, are expected to shut the plant completely in less than five months.

Ageing equipment
Built between 1964 and 1971, Hazelwood produces up to a quarter of Victoria's electricity when operating at full capacity and is responsible for 3 per cent of national greenhouse gas emissions.
The closure has been driven by a strategic decision from the Paris-headquartered Engie, which owns a 72 per cent stake in the plant, to move away from coal as an energy source.
It also follows the plant being saddled with at least four repair notices from WorkSafe Victoria for ageing equipment. It is understood the repairs would require millions of dollars of investment to modernise the station.
It is not expected to threaten the state's power supply due to a surplus of generation capacity in Victoria, but its removal will increase the wholesale price of electricity.
An analysis commissioned by the Andrews government estimated the rise could be between 4 and 8 per cent.
The Latrobe Valley is one of the most disadvantaged parts of Victoria, having struggled to recover since losing about 15,000 jobs when the electricity system was privatised in the 1990s.
Unemployment is as high as 19.7 per cent in Morwell and 14.6 per cent in Moe.
Mr Frydenberg and Victorian Treasurer Tim Pallas have both recently met with senior Engie executives in Paris.
In a meeting with Engie chief executive Isabelle Kocher last week, Mr Frydenberg emphasised the company's obligations to its workers.

Hazelwood mine area overlaid on Melbourne CBD

The state government announced this week that Mr Andrews would personally oversee a taskforce to attract new businesses to the Latrobe Valley and encourage existing businesses to expand.
It follows a pledge of $40 million in the state budget to help the valley cope should coal plants close.
Hazelwood is one of four large coal plants that for decades has provided the overwhelming bulk of Victoria's electricity, and been fed to other states through the national grid.
The remaining three plants – Yallourn, Loy Yang A and Loy Yang B – continue to operate, though Loy Yang A is subject to industrial action that its owner, AGL, has warned could force it offline.

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