Australian Carbon Trust

Transcription

1 Australian Carbon Trust Accelerating the move to a low carbon economy Tony Coleman

2 Australian Carbon Trust s goal is to accelerate the move to a low carbon economy ACT provides finance and advice to catalyse investment in and take-up of energy-efficient technologies and practices for cost-effective carbon reductions

3 Independent Board with diverse business and Government experience Professor Robert Hill (Chairman) former Minister i for the Environment, Chancellor of the University of Adelaide and Professor of Sustainability at the United States Studies Centre at University of Sydney: Tony Coleman Director of Lonergan Edwards Associates Don Matthews National President of the Australian Industry Group Martijn Wilder Partner with Baker & McKenzie and head of B&M s Global Climate Change and Emissions Trading Practice Australian Carbon Trust Board with Minister Combet and Parliamentary Secretary Dreyfus

4 Australian Carbon Trust overview Australian Carbon Trust was established by the Federal Government and commenced operations in 2010: independent public company limited by guarantee ~$100m initial funding Australian Carbon Trust manages two innovative programs: an Energy Efficiency Program to provide finance and advice to eligible businesses and the public sector for the retrofit of commercial properties the Carbon Neutral Program which provides accreditation for organisations that t have products or operations being certified as carbon neutral under the National Carbon Offset Standard

5 Energy Efficiency Program overview The key features of the Energy Efficiency i Program: provides financing and advisory services to business focussed on existing non-residential buildings uses commercially available technology solutions The Program has the following objectives/kpis: to deliver cost effective carbon reduction at a cost to the economy of less than $23/tCO2 saved to leverage as much third party finance as possible, and as a minimum achieve match funding (i.e. at least $1 for $1) across the portfolio to promote investment in and use of energy efficient technologies & practices

6 Energy Efficiency Program overview Th h ld lt i b t t f th 1 illi t f The program should result in abatement of more than 1 million tonnes of CO2 at very low cost per tonne abated, even before any price is placed upon the CO2 emissions saved

7 Energy Efficiency cost to the economy Considered d on an individual id project basis The resulting net cost for Australian Carbon Trust and the project proponent, divided by the lifetime carbon savings of the project Net project cost calculation: Cost to the economy Saving to the economy ACT investment t cost Business investment cost Business energy cost savings Resulting cost/saving to the economy

8 2020 Buildings emissions reduction societal cost curve Cost to society A$/tCO 2 e Residential Commercial New builds Additional potential1 Residential building envelope advanced Residential building envelope Residential HVAC Commercial retrofit water heating 300 Commercial retrofit insulation Residential lighting high efficiency halogen Commercial new builds Commercial retrofit cooking and refrigeration 10 Residential appliances and electronics Residential lighting CFLs to LEDs Commercial retrofit HVAC Commercial retrofit energy waste reduction Commercial new builds elevators and appliances Commercial retrofit lighting Residential new builds Commercial retrofit appliances Commercial retrofit electronics 25 Reduction potential MtCO 2 e per year

9 Initial focus on the buildings sector Opportunity for cost-effective emission reductions Agriculture Societal cost A$/tCO 2 e 120 Forestry Power High up-front capital costs limit otherwise profitable activities Focus on providing financing mechanisms to overcome these constraints Capital intensity Capex/tCO 2 e ,000 1,200 1,400 1,600 1,800 2, Industry Transport Buildings -180 Source: Climate Works Australia Low Carbon Growth Plan and Commercial Buildings Emission Reduction Opportunities, April 2010 Size of bubble represents emissions reduction potential of sector

10 ACT will target all sectors, with greatest potential for impact in retail, office and education buildings Energy consumption in existing Commercial buildings include a broad non-residential buildings range of sectors not just offices (% of 2020 projected total of 61,000GWh) The largest sectors retail, offices and Other 6% education account for 59% of total Food Service 6% energy use Wholesale 6% Non-food 18% Retail Energy savings of 23,000 GWh across all Health 7% 28% sectors equates to average energy savings of 37% on projected 2020 levels Accommodation 8% Food 10% Community 8% Offices 20% Education 11% Source: Climate Works Australia Low Carbon Growth Plan & Commercial Buildings Emission Reduction Opportunities, December 2010

11 Australian Carbon Trust Initial Energy Efficiency Financing Programs Investment t of up to $23.7 million over the next three years with: Fully implemented, these programs will leverage > $300 million from private sector Pilot programs progressively scaled up to > 600 individual businesses and public sector organisations

12 Financial Vehicle: NAB and Eureka Funds Management NAB, Eureka Funds Management and Australian Carbon Trust will develop and deliver a NAB Environmental Upgrade Loan program anticipated to grow to over $200 million over the next two years This will fund the energy efficiency retrofit of non-residential buildings, initially starting in Melbourne as part of the $2 billion City of Melbourne 1200 Buildings program: potential to be scaled up Australia-wide

13 Financial Vehicle and Strategic Alliance: Energy Efficient Leases This initiative will provide up to $100 million in financing dedicated to retrofit of commercial buildings across Australia with energy efficient equipment, offering: equipment Finance equipment Lifecycle management equipment renewal (return/replace/reuse/recycle)

14 Strategic Alliance: Origin Energy Origin Energy and Australian Carbon Trust will provide business customers end to end service, identifying energy saving opportunities and facilitating finance in a way that lowers the cost for business to take up energy efficiency technologies This could be offered to any of Origin s ~15,000 business customer sites in non-residential buildings, industry and infrastructure markets nationally

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