2017 Climate Change Policy Review - Terms of reference
Ahead of the scheduled review of climate policies set for 2017, in November 2016 Energetics developed a report for the Federal Government to assist in the framing of the terms of reference.
This report did not consider the Safeguard Mechanism nor the Emissions Reduction Fund in any detail, as we assumed that the terms of reference would cover such critical issues relating to existing climate policy.
Instead our input to the development of the Terms of Reference considered the convergence of a number of issues, primarily:
the impact of climate policy on energy generation and security of supply
energy productivity and the rate of decarbonisation
the opportunities for our land sector into the future as Australia participates in a growing international carbon offsets market.the advantages of bringing forward action on climate change as both a fiscally responsible approach and to reverse the current upward trend in national emissions.
Read our submission
Australia’s 2030 emissions reduction target is within reach
In May, 2016, the Department of the Environment released the report Modelling and analysis of Australia’s abatement opportunities: Meeting Australia’s 2030 emissions reduction target.
Written by Energetics, which has worked with Australia’s largest energy users for more than 30 years, the report outlines the approaches available to Australia within the existing framework of policies and announced programs, to reduce greenhouse gas emissions and achieve our 2030 national target of 28% on 2005 levels.
Today, Energetics is making available a new interactive chart showing the effect of timing different emissions reduction opportunities between now and 2030.
View the graph here.
Where are the major opportunities? Use the interactive graph to see what can be achieved.
Energy productivity (44%): measures include projects to improve energy efficiency as well as vehicle and fuel efficiency. By ensuring the return from even dollar spent on energy is maximised, not only are emissions reduced, an array of business productivity improvements also result. Noting too, measures to improve vehicle fuel efficiency also deliver a strong economic benefit as the net cost to Australia of imported transport fuels is high.
Land-use changes and agricultural measures (38%): the experience of the ERF auctions suggests that the scheme is effective at encouraging low emissions farming practices and land use changes. Recently, Minister Hunt flagged the opening up of Australia to international carbon offset markets. Emissions reductions through land use and land change activities, is where Australia has greater potential than many others to drive emissions reductions and provide a source of new revenue for Australia in an international carbon trading market.
Renewable energy (residential, commercial and remote area) and management of industrial processes can each contribute a further 5% of emissions reductions.
More than 70 abatement opportunities were assessed within these groupings. The opportunities can be found across all Australian sectors and all economic segments.
What were the key findings of the report?
1. Australia can reach its 2030 abatement target under the current policy framework. Large emitters must be effectively engaged and programs pursued without delay. Energetics’ modelling of over 70 emissions reduction measures has found that approximately 960 Mt CO2-e of abatement can be achieved by 2030.
2. Modelling over the period 1993 – 2015 shows the emissions intensity of the Australian economy fell on average by 2.3 percent each year, suggesting that national emissions are decoupling from economic growth.
3. Australia will achieve its 2020 cumulative abatement target under the Kyoto protocol, equivalent to 5 per cent below 2000 levels by 2020. Energetics has identified further abatement opportunities that can be pursued, to reach an absolute 2020 target.
Energetics considered only abatement opportunities that were able to be delivered within the 2021 - 2030 timeframe, and allocated each opportunity to the most appropriate Government/COAG policies or programs. We assumed that existing policies and funding will be implemented.
The analysis did not model other policy levers such as an emissions trading scheme, new regulations or an extension to the RET, that are not part of the existing and announced suite of policies.
Energetics’ report has been cited numerous times in the media. Below we have listed and linked the various articles.
The Australian: As The Australian is a subscription-only newspaper we cannot publish these articles, but if you have a subscription please follow the links below.
The Guardian: Energetics’ report was discussed in The Guardian. Please see the link below if you would like to read the full article.
Footprint: The article can be accessed with a free footprint login.
© 2016 Energetics. All rights reserved.
"Energetics" refers to Energetics Pty Ltd and any related entities.
This report is protected under the copyright laws of Australia and other countries as an unpublished work. This report contains information that is proprietary and confidential to Energetics and subject to applicable Federal or State Freedom of Information legislation, shall not be disclosed outside the recipient's company or duplicated, used or disclosed in whole or in part by the recipient for any purpose other than for which the report was commissioned. Any other use or disclosure in whole or in part of this information without the express written permission of Energetics is prohibited.
The information contained in this document is of a general nature only and does not constitute personal financial product advice. In preparing the advice no account was taken of the objectives, financial situation or needs of any particular person. Energetics is authorised to provide financial product advice on derivatives to wholesale clients under the Corporations Act 2001 AFSL No: 329935. In providing information and advice to you, we rely on the accuracy of information provided by you and your company. Therefore, before making any decision, readers should seek professional advice from a professional adviser to help you consider the appropriateness of the advice with regard to your particular objectives, financial situation and needs.
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Energetics would like to acknowledge the contribution of the following people and businesses to this report GPT, Low Carbon Living CRC, Telstra and Qantas.