What it is and why it matters
What is the Review?
In Australia's toxic political climate, climate change policy has been the biggest casualty. But there is a glimmer of hope. In setting their emission reduction targets and policies, the Government committed to reviewing those policies, and they are doing it now.
The review is taking place throughout 2017 and the first step, the one happening right now, is public consultation on a discussion paper that has been released for comment. Submissions can be made until May 5.
Why is it important?
Australia has one of the worst track records on climate.
We know that we need strong policy to reduce emissions and avoid the risks climate change poses to all Australians. In fact, 73% of Australians agree that we need stronger leadership on climate. Our Government is failing on climate, and it's time they heard just how important we think this is.
It's up to us to demand strong climate action.
Write a submission to the review
The review is calling for public submissions – let's give them what they want. You don't have to be a climate scientist or policy wonk to make a submission. Climate change affects every one of us, and you don't need to be an expert to know that our current policy doesn't stack up, so have your say.
Head to the website and follow the instructions. Below we've gathered some resources and talking points to make writing a submission easy.
Make a submission
Follow these steps to submit to the review:
The talking points below are set out in direct response to the sections in the review's discussion paper. Use as many or as few as you like in your submission, and you can of course add your own!
In 2015 Australia signed on to the Paris Agreement, committing to taking strong action on climate change and a global goal to hold temperature increase to well below 2°C, and pursue efforts to keep it below 1.5°C above pre-industrial levels.
As part of the Paris Agreement countries submitted targets and plans known as Intended Nationally Determined Contributions (INDCs). Australia submitted one of the weakest INDCs of all developed nations, with a target to reduce emissions by 26-28% below 2005 levels by 2030*. The policies to achieve these targets were even weaker, ignoring cheaper and more effective options, and opting for a "Direct Action" scheme with an "Emissions Reduction Fund" where the Government pays companies for reducing emissions.
How has that policy worked so far?
Experts and reports, including those by the Government themselves, suggest that Direct Action is one of the most expensive and least effective options, not to mention there's no way to assess whether any genuine reductions have been made.
And what about emissions? They're rising. As emissions are stalling or dropping in other countries around the world, appallingly, emissions are up 7.5% in Australia since the carbon price was removed.
*The Government target of 26-28% emission reductions below 2005 levels by 2030 is too low to limit warming to 2°C, and is equivalent to a level of global action that would result in 3-4°C of global warming (Climate Institute, Climate Council, Climate Change Authority, Climate Action Tracker, IPCC).
Australia's Paris Target and The Climate Imperative
The many lines of evidence, and 97% of climate scientists, confirm that global warming is happening and it is because of our emissions. This is the greatest challenge of our time.
The risks are great, and the damage significant (Department of Environment, World Resources Institute on the IPCC). Already climate change is influencing extreme weather events that are wreaking havoc around the country, and the world (Attribution Research, Extreme Weather of 2016,
Australian Government Climate Change Website, Australian Climate Change Science Program).
Heatwaves are becoming more frequent and more intense (Harvard, National Acadamies Study). Bushfires, drought and floods too (Climate Council 1, 2, 3, Australian Climate Change Science Program).
The Reef, our premier tourist attraction, is terminal (The Conversation, The Guardian Special Report, ARC Centre of Excellence for Climate System Science, National Geographic).
Our own health suffers at the hands of climate change and fossil fuels (Lancet Study, Climate Council). As does agriculture and the economy (Climate Council 1, 2, 3, UNDP, Assets study). Geopolitical stability rests in the balance as climate change magnifies the issues underlying global conflict (Centre for Policy Development, Defence White Paper).
The systems upon which civilisation is based are at risk. It is our duty to do everything in our power to avoid these risks and consequences. Indeed, the Paris Agreement, ratified by 130 countries including Australia, commits to:
Policy and targets should be informed by the evidence of what is needed, and ambition for what is possible. They should consider the most effective and efficient way to achieve emission reductions, without ruling out options for ideological reasons.
Policy should be created that ensures households, especially low income and vulnerable households, are not disadvantaged, and so those who have been advantaged pay their fair share. Policy should respect the rights of first nations people.
Climate change policy, and all policy, should be created to include these factors, while simultaneously aiming for ambitious outcomes based on evidence – these are not opposing forces, but complementary ones. Further, as an issue that affects every aspect of the environment, economy and society, climate change should be a factor in all policy.
For climate change, the evidence, scientists and experts tell us that to avert the risks of warming policies need to reduce global emissions to zero as soon as possible, and then draw carbon out of the atmosphere (Intergovernmental Panel on Climate Change – IPCC, Stockholm Environment Institute, The Climate Institute, IPCC SYR AR5 p101).
The longer we wait, the harder it gets (Dr James Hansen, Mercator Research Institute). To preserve a safe climate long term scientists tell us we must reduce the amount of CO2 in the atmosphere to below 350 parts per million (Dr James Hansen and colleagues) from it's current level of over 400 (NASA). To stay within the aspirational Paris guardrail of 1.5 degrees warming we can only emit 353 Gt of CO2 from now on.
And that's only a 50/50 chance. In currently operating fields and wells we have 942 Gt (Sky's Limit Report). This is stark, but simple math. It means our target is zero. Zero new fossil fuel projects. And zero emissions.
Australian climate policy should reject any new fossil fuel projects, and pass legislation for bold emission reduction targets and strong renewable energy ones (ACT Climate Change Policy, Climate Council).
Discussion Question: What process could Australia use to implement its Paris commitment to review targets every five years?
Any review process should include analysis of whether policy has actually been effective in achieving the target outcomes. For climate change targets and policy, this includes a review of how effective policy has been in reducing emissions.
Considering that global warming is a global commons problem (that no country can solve its own climate problem by itself), and considering the risks and opportunities that climate change poses – addressing climate change should be a race to the top.
In reviewing its emission reduction targets Australia should compare the targets of all other countries and aim to be leading the pack. As the Australian Climate Change Authority (2014) states: "It is clearly in Australia's interest to persuade and encourage other nations to strengthen their contributions to international action.
Australia is likely to be more persuasive and encouraging if its own goals are viewed as a fair contribution by others."
Discussion Question: What are the issues in the transition to a lower emissions economy with respect to jobs, investment, trade competitiveness, households (including low income and vulnerable households) and regional Australia?
Luckily, the solutions and technology for a lower emissions economy are available (IPCC, Beyond Zero Emissions – BZE, ClimateWorks, Science), and provide many benefits in addition to averting the risks of climate change: cleaner air, better health, less health costs, more energy security with distributed networked grids, lower energy costs, more jobs, cleaner water, preserved ecosystems (International Renewable Energy Agency – IRENA, The Conversation, Union of Concerned Scientists).
The idea that the environment is at odds with the economy is a fallacy. Climate change action will benefit the economy and society. This can be illustrated for all the sectors mentioned in the discussion paper.
Australia has the opportunity to be leaders and innovators. To manage and inspire the transition to a better future. Australians want this (The Climate Institute, CSIRO). For ourselves, our children, and our grandchildren.
Sectoral Analysis: Electricity
As the discussion paper states, the electricity sector remains Australia's largest source of carbon emissions. This sector should therefore receive priority in Australia's efforts to drive down emissions.
The Government review of the National Electricity Market (NEM) currently underway is a positive first step, as is the Interim Report that states "current policy settings do not provide a clear pathway to the level of reduction required to meet Australia's Paris commitments."
We have zero emission sources of energy (Australian Energy Market Operator – AEMO, Stanford – The Solutions Project, Homegrown Power Plan, Dr Andrew Blakers), and they provide many benefits.
First, renewables are now cheaper than other fossil fuel sources of electricity for reliable baseload supply (Reputex), and new supply (The Conversation). Renewables are rapidly on their way to becoming cheaper than old fossil fuel electricity (Climate Council), and that's while fossil fuels receive a free ride, as they avoid paying for the health and environmental impacts they cause (International Monetary Fund – IMF, IPCC, ).
To level the playing field even further, we should remove the free ride fossil fuels get. This means removing subsidies for fossil fuels, and charging for externalities – the fossil fuel impacts that are currently borne by taxpayers (IMF, Australian Conservation Foundation – ACF, IPCC, UNFCC, International Energy Agency -IEA, OECD, Lowy Institute, Garnaut Review, British Columbia example).
Renewables will employ more people (Climate Council). The jobs in renewable energy also pose less health risks to workers than those in fossil fuels (Union of Concerned Scientists). Australia should develop a transition plan for fossil fuel workers and communities to shift to renewables (Hillary Clinton Coal Community Plan 1, 2).
Global investment is shifting from fossil fuels to renewables: "We see a broad shift of spending toward cleaner energy, often as a result of government policies," said IEA Executive Director Fatih Birol.
"Our report clearly shows that such government measures can work, and are key to a successful energy transition. But while some progress has been achieved, investors need clarity and certainty from policy makers. Governments must not only maintain but heighten their commitment to achieve energy security and climate goals." (IEA, Bloomberg New Energy Finance)
Australia has a comparative advantage to be trade competitive as a renewable energy superpower. As countries shift from fossil fuels to renewables a huge opportunity exists to supply renewable solutions, but this window will close as the replacement of fossil fuels with renewables nears completion (BZE).
To benefit from the energy transition businesses and nations must invest during this wave of change, and Australia is well placed with plentiful access to renewable resources.
Households will benefit from the lower cost of renewables, and increased security that renewables can provide through distributed networks and microgrids. Australians will benefit from the safer jobs, and from the environmental and health benefits of cleaner air and water. These benefits will also flow to vulnerable and low income households.
However policy should explicitly ensure that these households are not further disadvantaged, particularly as people experiencing disadvantage will be first and worst impacted by climate change (ACOSS, Australian Academy of Science, World Bank) – another reason why effective climate change policy is necessary and provides many co-benefits.
Rural and regional areas receive a high proportion, 30-40%, of the investment in renewables, and these projects bring jobs to the area and offer farmers additional revenue streams (Climate Council). The transition to clean energy will also reduce the health burden of burning fossil fuels, which is primarily borne by rural and regional areas.
Renewables can also provide more distributed and therefore reliable energy, with lower costs for rural and remote communities, who traditionally pay much higher prices than their urban counterparts. Further, climate change disproportionately affects rural and regional communities with extreme weather stress and agricultural impacts.
Mitigating climate change will reduce the impacts rural communities based on agriculture face.
Sectoral Analysis: Households, small to medium sized enterprises (SMEs) and the Built Environment
The discussion paper outlines how households account for 12% of emissions, and SMEs 7%. These emissions could be reduced with strong energy efficient building codes with an aspirational goal of zero emission buildings (IPCC, BZE, VIC Government).
Household policies would have many benefits. For example, implementing the measures such as those in Beyond Zero Emissions building plan would result in tens of thousands of jobs from retrofit projects alone; household savings of $40 billion over the next 30 years; reducing the residential energy sector's annual energy use by 53%, and; reducing energy use in the non-residential sector by 44% (BZE).
The National Energy Productivity Plan sets a goal of a 40% improvement in energy productivity by 2030 (NEPP), but this is far lower than what research suggests is possible. A report by Climateworks found that the potential exists to nearly double the energy productivity of the Australian economy by 2030 by investing in the modernisation of our energy system and taking advantage of recent technological developments (ClimateWorks).
The Australian Alliance for Energy Productivity is also working on a roadmap that will set the course for a doubling of energy productivity by 2030, and is working with all levels of government on energy productivity plans (2xEP). An Energetics report on a doubling of energy productivity by 2030 illustrates the benefits of such a plan, including 10% emission reductions and a $59.5bn gain to GDP (Energetics).
The Equipment Energy Efficiency program is part of the National Energy Productivity Plan, and implementing the recommendations from the Greenhouse and Energy Minimum Standards (GEMS) will help strengthen it (Energy Rating, GEMS Review 1, 2).
Sectoral Analysis: Resources, Manufacturing, Waste
The discussion paper sets out that Resources, Manufacturing and Waste accounts for 28% of Australia's emissions, but it is difficult to determine where this figure came from. The Department of the Environment and Energy 2016 paper, Australia's emissions projections 2016 provides a sectoral analysis for Direct Combustion (which includes resources and manufacturing) and Waste, each accounting respectively for 95 and 12 Mt CO2‑e of the total 527 Mt CO2‑e emitted in 2015, or 20% of emissions.
Around 20 Mt CO2‑e of these emissions come from the direct combustion of fossil fuels for energy, which a shift to 100% renewable electricity would completely eliminate. A similar case exists for the 8 Mt CO2‑e from coal mining.
The shift to renewables already has strong co-benefits of more jobs, lower electricity costs, increased health benefits and lower health costs, and cleaner air and water.
The industry and manufacturing sector is the largest subsector, accounting for 36 Mt CO2‑e emissions. Beyond Zero Emissions is currently working on an Industry Plan that will illustrate how this sector can reduce emissions, which will fill an important gap in the roadmap to a low and zero emissions economy.
Sectoral Analysis: Transport
Transport accounts for 18% of Australian emissions and provides another large opportunity to reduce emissions.
Strong targets for more efficient transit and urban planning to reduce the emissions of transport can significantly reduce emissions, and the Ministerial Forum on Vehicle Emissions can help provide those (Climate Change Authority, Centre for Climate and Energy Solutions, Sustainable Cities Institutes, Union of Concerned Scientists, BZE, IPCC).
The Ministerial Forum should also be tasked to examine three significant developments which will transform the light vehicle transport sector in the next two decades: the uptake of plug-in electric vehicles (EVs), autonomous vehicles and the trend towards new models of vehicle sharing.
Incentives to facilitate rapid fuel switching, and ensuring traffic regulations do not inhibit trials or uptake of autonomous vehicles or vehicle sharing will facilitate the shift to low and zero emission transport.
These disruptive shifts could significantly reduce the traffic and congestion costs Australia faces (DIRD report) by reducing the congestion and traffic on the road.
Sectoral Analysis: Land Use and Agriculture
Rural and regional areas receive a high proportion, 30-40%, of the investment in renewables, and these projects bring jobs to the area and offer farmers additional revenue streams (Climate Council). The transition to clean energy will also reduce the health burden of burning fossil fuels, which is primarily borne by rural and regional areas.
Renewables can also provide more distributed and therefore reliable energy, with lower costs for rural and remote communities, who traditionally pay much higher prices than their urban counterparts. Further, climate change disproportionately affects rural and regional communities with extreme weather stress and agricultural impacts.
Mitigating climate change will reduce the impacts rural communities based on agriculture face.
The Emissions Reduction Fund has been good for farmers, but not at reducing emissions. However, it is a good example of how policy can support rural and regional areas. Those principles should be considered while developing stronger policy in the agricultural and land use sectors that reduce emissions.
As the Climate Change Authority Special Review of Australia's climate goals and policies states, Australia will need a toolkit of both strengthened and new policies to meet the Paris targets.
We recommend that Australia develops strong land use policy that protects and uses the opportunity soil and agriculture offers us for drawing more carbon out of the atmosphere, reduces agricultural emissions, and increases our ability to draw carbon out of the atmosphere through reforestation and afforestation (IPCC, Union of Concerned Scientists, BZE, Climate Change Authority).
Research, Development, Innovation and Technology
Research, development and technology have played an important factor in reducing emissions. It is thanks to renewable technology development that we have zero emission sources of energy and can reduce our emissions while maintaining our lifestyles.
Further, as most of the 2 degree scenarios in the IPCC reports require untested technology, research and technology will become even more important.
Key to these areas is consistent, sufficient funding. Cuts to CSIRO and ARENA run counter to the discussion paper's claim that "Innovation is central to meeting the ambition of the Paris Agreement."
Funding for these institutions should be reinstated.
International Units
Considering that global warming is a global commons problem (that no country can solve its own climate problem by itself), and considering the risks and opportunities that climate change poses – addressing climate change should be a race to the top.
In reviewing its emission reduction targets Australia should compare the targets of all other countries and aim to be leading the pack. As the Australian Climate Change Authority (2014) states: "It is clearly in Australia's interest to persuade and encourage other nations to strengthen their contributions to international action.
"Australia is likely to be more persuasive and encouraging if its own goals are viewed as a fair contribution by others."
Australia should do everything it our power to do our fair share in reducing emissions before using International Units to make up for it. This is also important for issues of equity.
Some countries have been responsible for far more carbon emissions than others, and have enjoyed a higher level of material comfort for it. It is morally corrupt to deny developing nations the same opportunities, and the Green Climate Fund is available to transfer.
Australia's commitment of $200 million to the Green Climate Fund from 2015-2018 is a positive step. Australia should strengthen this leadership and contribute its fair share, which research suggests is 2.4% of the global commitment.
International Units should be a last resort, so that Australia can experience the benefits to jobs, investment, trade, households and regional communities that will come with action to reduce emissions.
In Australia's toxic political climate, climate change policy has been the biggest casualty. But there is a glimmer of hope. In setting their emission reduction targets and policies, the Government committed to reviewing those policies, and they are doing it now.
The review is taking place throughout 2017 and the first step, the one happening right now, is public consultation on a discussion paper that has been released for comment. Submissions can be made until May 5.
Why is it important?
Australia has one of the worst track records on climate.
We know that we need strong policy to reduce emissions and avoid the risks climate change poses to all Australians. In fact, 73% of Australians agree that we need stronger leadership on climate. Our Government is failing on climate, and it's time they heard just how important we think this is.
It's up to us to demand strong climate action.
How can you get involved?
We need you to make sure the Government can't ignore the voice of Australians – and there are several ways you can get involved:
The review is calling for public submissions – let's give them what they want. You don't have to be a climate scientist or policy wonk to make a submission. Climate change affects every one of us, and you don't need to be an expert to know that our current policy doesn't stack up, so have your say.
Head to the website and follow the instructions. Below we've gathered some resources and talking points to make writing a submission easy.
Make a submission
Write or, better yet, call your MP
What's the best way to make sure our politicians know we care about climate change? Tell them! Politicians and staffers are busy people who don't have time to read every tweet or Facebook post, not even every email. The best way to reach them is by picking up the phone, and a written letter is the next best thing. Find your MP here. And hey, if you can't do that, use our easy online tool and send a message directly to Frydenburg and Turnbull.
Send a letter
What's the best way to make sure our politicians know we care about climate change? Tell them! Politicians and staffers are busy people who don't have time to read every tweet or Facebook post, not even every email. The best way to reach them is by picking up the phone, and a written letter is the next best thing. Find your MP here. And hey, if you can't do that, use our easy online tool and send a message directly to Frydenburg and Turnbull.
Send a letter
Write your own submission
If you, your group, or organisation
would like to make a submission here are some talking points that you
can use to make it simple. The louder the chorus, the harder it is for
our Government to ignore us.Follow these steps to submit to the review:
- Use as many, or as few, of the talking points below to write your submission. Feel free to add more too!
- Complete a cover sheet
- Email your submission (in Microsoft Word or PDF format), along with your cover sheet to climatechangereview@environment.gov.au by 5pm May 5
The talking points below are set out in direct response to the sections in the review's discussion paper. Use as many or as few as you like in your submission, and you can of course add your own!
- Background on Australia's climate change policies
- Australia's Paris Target and The Climate Imperative
- Sectoral Analysis: Electricity
- Sectoral Analysis: Households, small to medium sized enterprises (SMEs) and the Built Environment
- Sectoral Analysis: Resources, Manufacturing, Waste
- Sectoral Analysis: Transport
- Sectoral Analysis: Land Use and Agriculture
- Research, Development, Innovation and Technology
- International Units
In 2015 Australia signed on to the Paris Agreement, committing to taking strong action on climate change and a global goal to hold temperature increase to well below 2°C, and pursue efforts to keep it below 1.5°C above pre-industrial levels.
As part of the Paris Agreement countries submitted targets and plans known as Intended Nationally Determined Contributions (INDCs). Australia submitted one of the weakest INDCs of all developed nations, with a target to reduce emissions by 26-28% below 2005 levels by 2030*. The policies to achieve these targets were even weaker, ignoring cheaper and more effective options, and opting for a "Direct Action" scheme with an "Emissions Reduction Fund" where the Government pays companies for reducing emissions.
How has that policy worked so far?
Experts and reports, including those by the Government themselves, suggest that Direct Action is one of the most expensive and least effective options, not to mention there's no way to assess whether any genuine reductions have been made.
And what about emissions? They're rising. As emissions are stalling or dropping in other countries around the world, appallingly, emissions are up 7.5% in Australia since the carbon price was removed.
*The Government target of 26-28% emission reductions below 2005 levels by 2030 is too low to limit warming to 2°C, and is equivalent to a level of global action that would result in 3-4°C of global warming (Climate Institute, Climate Council, Climate Change Authority, Climate Action Tracker, IPCC).
Australia's Paris Target and The Climate Imperative
The many lines of evidence, and 97% of climate scientists, confirm that global warming is happening and it is because of our emissions. This is the greatest challenge of our time.
The risks are great, and the damage significant (Department of Environment, World Resources Institute on the IPCC). Already climate change is influencing extreme weather events that are wreaking havoc around the country, and the world (Attribution Research, Extreme Weather of 2016,
Australian Government Climate Change Website, Australian Climate Change Science Program).
Heatwaves are becoming more frequent and more intense (Harvard, National Acadamies Study). Bushfires, drought and floods too (Climate Council 1, 2, 3, Australian Climate Change Science Program).
The Reef, our premier tourist attraction, is terminal (The Conversation, The Guardian Special Report, ARC Centre of Excellence for Climate System Science, National Geographic).
Our own health suffers at the hands of climate change and fossil fuels (Lancet Study, Climate Council). As does agriculture and the economy (Climate Council 1, 2, 3, UNDP, Assets study). Geopolitical stability rests in the balance as climate change magnifies the issues underlying global conflict (Centre for Policy Development, Defence White Paper).
The systems upon which civilisation is based are at risk. It is our duty to do everything in our power to avoid these risks and consequences. Indeed, the Paris Agreement, ratified by 130 countries including Australia, commits to:
- an overarching goal to hold global average temperature increase to well below 2 degrees and pursue efforts to keep warming below 1.5 degrees above pre-industrial levels
- aim to reach global peaking of greenhouse gas emissions as soon as possible and rapid reductions thereafter to achieve a balance between emissions and removals of greenhouse gases in the second half of this century (Paris Agreement)
Policy and targets should be informed by the evidence of what is needed, and ambition for what is possible. They should consider the most effective and efficient way to achieve emission reductions, without ruling out options for ideological reasons.
Policy should be created that ensures households, especially low income and vulnerable households, are not disadvantaged, and so those who have been advantaged pay their fair share. Policy should respect the rights of first nations people.
Climate change policy, and all policy, should be created to include these factors, while simultaneously aiming for ambitious outcomes based on evidence – these are not opposing forces, but complementary ones. Further, as an issue that affects every aspect of the environment, economy and society, climate change should be a factor in all policy.
For climate change, the evidence, scientists and experts tell us that to avert the risks of warming policies need to reduce global emissions to zero as soon as possible, and then draw carbon out of the atmosphere (Intergovernmental Panel on Climate Change – IPCC, Stockholm Environment Institute, The Climate Institute, IPCC SYR AR5 p101).
The longer we wait, the harder it gets (Dr James Hansen, Mercator Research Institute). To preserve a safe climate long term scientists tell us we must reduce the amount of CO2 in the atmosphere to below 350 parts per million (Dr James Hansen and colleagues) from it's current level of over 400 (NASA). To stay within the aspirational Paris guardrail of 1.5 degrees warming we can only emit 353 Gt of CO2 from now on.
And that's only a 50/50 chance. In currently operating fields and wells we have 942 Gt (Sky's Limit Report). This is stark, but simple math. It means our target is zero. Zero new fossil fuel projects. And zero emissions.
Australian climate policy should reject any new fossil fuel projects, and pass legislation for bold emission reduction targets and strong renewable energy ones (ACT Climate Change Policy, Climate Council).
Discussion Question: What process could Australia use to implement its Paris commitment to review targets every five years?
Any review process should include analysis of whether policy has actually been effective in achieving the target outcomes. For climate change targets and policy, this includes a review of how effective policy has been in reducing emissions.
Considering that global warming is a global commons problem (that no country can solve its own climate problem by itself), and considering the risks and opportunities that climate change poses – addressing climate change should be a race to the top.
In reviewing its emission reduction targets Australia should compare the targets of all other countries and aim to be leading the pack. As the Australian Climate Change Authority (2014) states: "It is clearly in Australia's interest to persuade and encourage other nations to strengthen their contributions to international action.
Australia is likely to be more persuasive and encouraging if its own goals are viewed as a fair contribution by others."
Discussion Question: What are the issues in the transition to a lower emissions economy with respect to jobs, investment, trade competitiveness, households (including low income and vulnerable households) and regional Australia?
Luckily, the solutions and technology for a lower emissions economy are available (IPCC, Beyond Zero Emissions – BZE, ClimateWorks, Science), and provide many benefits in addition to averting the risks of climate change: cleaner air, better health, less health costs, more energy security with distributed networked grids, lower energy costs, more jobs, cleaner water, preserved ecosystems (International Renewable Energy Agency – IRENA, The Conversation, Union of Concerned Scientists).
The idea that the environment is at odds with the economy is a fallacy. Climate change action will benefit the economy and society. This can be illustrated for all the sectors mentioned in the discussion paper.
Australia has the opportunity to be leaders and innovators. To manage and inspire the transition to a better future. Australians want this (The Climate Institute, CSIRO). For ourselves, our children, and our grandchildren.
Sectoral Analysis: Electricity
As the discussion paper states, the electricity sector remains Australia's largest source of carbon emissions. This sector should therefore receive priority in Australia's efforts to drive down emissions.
The Government review of the National Electricity Market (NEM) currently underway is a positive first step, as is the Interim Report that states "current policy settings do not provide a clear pathway to the level of reduction required to meet Australia's Paris commitments."
We have zero emission sources of energy (Australian Energy Market Operator – AEMO, Stanford – The Solutions Project, Homegrown Power Plan, Dr Andrew Blakers), and they provide many benefits.
First, renewables are now cheaper than other fossil fuel sources of electricity for reliable baseload supply (Reputex), and new supply (The Conversation). Renewables are rapidly on their way to becoming cheaper than old fossil fuel electricity (Climate Council), and that's while fossil fuels receive a free ride, as they avoid paying for the health and environmental impacts they cause (International Monetary Fund – IMF, IPCC, ).
To level the playing field even further, we should remove the free ride fossil fuels get. This means removing subsidies for fossil fuels, and charging for externalities – the fossil fuel impacts that are currently borne by taxpayers (IMF, Australian Conservation Foundation – ACF, IPCC, UNFCC, International Energy Agency -IEA, OECD, Lowy Institute, Garnaut Review, British Columbia example).
Renewables will employ more people (Climate Council). The jobs in renewable energy also pose less health risks to workers than those in fossil fuels (Union of Concerned Scientists). Australia should develop a transition plan for fossil fuel workers and communities to shift to renewables (Hillary Clinton Coal Community Plan 1, 2).
Global investment is shifting from fossil fuels to renewables: "We see a broad shift of spending toward cleaner energy, often as a result of government policies," said IEA Executive Director Fatih Birol.
"Our report clearly shows that such government measures can work, and are key to a successful energy transition. But while some progress has been achieved, investors need clarity and certainty from policy makers. Governments must not only maintain but heighten their commitment to achieve energy security and climate goals." (IEA, Bloomberg New Energy Finance)
Australia has a comparative advantage to be trade competitive as a renewable energy superpower. As countries shift from fossil fuels to renewables a huge opportunity exists to supply renewable solutions, but this window will close as the replacement of fossil fuels with renewables nears completion (BZE).
To benefit from the energy transition businesses and nations must invest during this wave of change, and Australia is well placed with plentiful access to renewable resources.
Households will benefit from the lower cost of renewables, and increased security that renewables can provide through distributed networks and microgrids. Australians will benefit from the safer jobs, and from the environmental and health benefits of cleaner air and water. These benefits will also flow to vulnerable and low income households.
However policy should explicitly ensure that these households are not further disadvantaged, particularly as people experiencing disadvantage will be first and worst impacted by climate change (ACOSS, Australian Academy of Science, World Bank) – another reason why effective climate change policy is necessary and provides many co-benefits.
Rural and regional areas receive a high proportion, 30-40%, of the investment in renewables, and these projects bring jobs to the area and offer farmers additional revenue streams (Climate Council). The transition to clean energy will also reduce the health burden of burning fossil fuels, which is primarily borne by rural and regional areas.
Renewables can also provide more distributed and therefore reliable energy, with lower costs for rural and remote communities, who traditionally pay much higher prices than their urban counterparts. Further, climate change disproportionately affects rural and regional communities with extreme weather stress and agricultural impacts.
Mitigating climate change will reduce the impacts rural communities based on agriculture face.
Sectoral Analysis: Households, small to medium sized enterprises (SMEs) and the Built Environment
The discussion paper outlines how households account for 12% of emissions, and SMEs 7%. These emissions could be reduced with strong energy efficient building codes with an aspirational goal of zero emission buildings (IPCC, BZE, VIC Government).
Household policies would have many benefits. For example, implementing the measures such as those in Beyond Zero Emissions building plan would result in tens of thousands of jobs from retrofit projects alone; household savings of $40 billion over the next 30 years; reducing the residential energy sector's annual energy use by 53%, and; reducing energy use in the non-residential sector by 44% (BZE).
The National Energy Productivity Plan sets a goal of a 40% improvement in energy productivity by 2030 (NEPP), but this is far lower than what research suggests is possible. A report by Climateworks found that the potential exists to nearly double the energy productivity of the Australian economy by 2030 by investing in the modernisation of our energy system and taking advantage of recent technological developments (ClimateWorks).
The Australian Alliance for Energy Productivity is also working on a roadmap that will set the course for a doubling of energy productivity by 2030, and is working with all levels of government on energy productivity plans (2xEP). An Energetics report on a doubling of energy productivity by 2030 illustrates the benefits of such a plan, including 10% emission reductions and a $59.5bn gain to GDP (Energetics).
The Equipment Energy Efficiency program is part of the National Energy Productivity Plan, and implementing the recommendations from the Greenhouse and Energy Minimum Standards (GEMS) will help strengthen it (Energy Rating, GEMS Review 1, 2).
Sectoral Analysis: Resources, Manufacturing, Waste
The discussion paper sets out that Resources, Manufacturing and Waste accounts for 28% of Australia's emissions, but it is difficult to determine where this figure came from. The Department of the Environment and Energy 2016 paper, Australia's emissions projections 2016 provides a sectoral analysis for Direct Combustion (which includes resources and manufacturing) and Waste, each accounting respectively for 95 and 12 Mt CO2‑e of the total 527 Mt CO2‑e emitted in 2015, or 20% of emissions.
Around 20 Mt CO2‑e of these emissions come from the direct combustion of fossil fuels for energy, which a shift to 100% renewable electricity would completely eliminate. A similar case exists for the 8 Mt CO2‑e from coal mining.
The shift to renewables already has strong co-benefits of more jobs, lower electricity costs, increased health benefits and lower health costs, and cleaner air and water.
The industry and manufacturing sector is the largest subsector, accounting for 36 Mt CO2‑e emissions. Beyond Zero Emissions is currently working on an Industry Plan that will illustrate how this sector can reduce emissions, which will fill an important gap in the roadmap to a low and zero emissions economy.
Sectoral Analysis: Transport
Transport accounts for 18% of Australian emissions and provides another large opportunity to reduce emissions.
Strong targets for more efficient transit and urban planning to reduce the emissions of transport can significantly reduce emissions, and the Ministerial Forum on Vehicle Emissions can help provide those (Climate Change Authority, Centre for Climate and Energy Solutions, Sustainable Cities Institutes, Union of Concerned Scientists, BZE, IPCC).
The Ministerial Forum should also be tasked to examine three significant developments which will transform the light vehicle transport sector in the next two decades: the uptake of plug-in electric vehicles (EVs), autonomous vehicles and the trend towards new models of vehicle sharing.
Incentives to facilitate rapid fuel switching, and ensuring traffic regulations do not inhibit trials or uptake of autonomous vehicles or vehicle sharing will facilitate the shift to low and zero emission transport.
These disruptive shifts could significantly reduce the traffic and congestion costs Australia faces (DIRD report) by reducing the congestion and traffic on the road.
Sectoral Analysis: Land Use and Agriculture
Rural and regional areas receive a high proportion, 30-40%, of the investment in renewables, and these projects bring jobs to the area and offer farmers additional revenue streams (Climate Council). The transition to clean energy will also reduce the health burden of burning fossil fuels, which is primarily borne by rural and regional areas.
Renewables can also provide more distributed and therefore reliable energy, with lower costs for rural and remote communities, who traditionally pay much higher prices than their urban counterparts. Further, climate change disproportionately affects rural and regional communities with extreme weather stress and agricultural impacts.
Mitigating climate change will reduce the impacts rural communities based on agriculture face.
The Emissions Reduction Fund has been good for farmers, but not at reducing emissions. However, it is a good example of how policy can support rural and regional areas. Those principles should be considered while developing stronger policy in the agricultural and land use sectors that reduce emissions.
As the Climate Change Authority Special Review of Australia's climate goals and policies states, Australia will need a toolkit of both strengthened and new policies to meet the Paris targets.
We recommend that Australia develops strong land use policy that protects and uses the opportunity soil and agriculture offers us for drawing more carbon out of the atmosphere, reduces agricultural emissions, and increases our ability to draw carbon out of the atmosphere through reforestation and afforestation (IPCC, Union of Concerned Scientists, BZE, Climate Change Authority).
Research, Development, Innovation and Technology
Research, development and technology have played an important factor in reducing emissions. It is thanks to renewable technology development that we have zero emission sources of energy and can reduce our emissions while maintaining our lifestyles.
Further, as most of the 2 degree scenarios in the IPCC reports require untested technology, research and technology will become even more important.
Key to these areas is consistent, sufficient funding. Cuts to CSIRO and ARENA run counter to the discussion paper's claim that "Innovation is central to meeting the ambition of the Paris Agreement."
Funding for these institutions should be reinstated.
International Units
Considering that global warming is a global commons problem (that no country can solve its own climate problem by itself), and considering the risks and opportunities that climate change poses – addressing climate change should be a race to the top.
In reviewing its emission reduction targets Australia should compare the targets of all other countries and aim to be leading the pack. As the Australian Climate Change Authority (2014) states: "It is clearly in Australia's interest to persuade and encourage other nations to strengthen their contributions to international action.
"Australia is likely to be more persuasive and encouraging if its own goals are viewed as a fair contribution by others."
Australia should do everything it our power to do our fair share in reducing emissions before using International Units to make up for it. This is also important for issues of equity.
Some countries have been responsible for far more carbon emissions than others, and have enjoyed a higher level of material comfort for it. It is morally corrupt to deny developing nations the same opportunities, and the Green Climate Fund is available to transfer.
Australia's commitment of $200 million to the Green Climate Fund from 2015-2018 is a positive step. Australia should strengthen this leadership and contribute its fair share, which research suggests is 2.4% of the global commitment.
International Units should be a last resort, so that Australia can experience the benefits to jobs, investment, trade, households and regional communities that will come with action to reduce emissions.
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