Policies and initiatives to reduce the Developments in renewable energy environmental impact of energy use in Asialegislation
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1 Policies and initiatives to reduce the Developments in renewable energy environmental impact of energy use in Asialegislation in Australia Pacific Dr Tom Houghton Curtin University main campus, WA
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3 Speakers Prof Ying Fan - Dean of School of Economics and Management, Beihang University in China Prof Peter Newman Director, Curtin University Sustainability Policy Institute Nathan Ling Corporate Development, Synergy
4 Developments in renewable energy legislation in Australia Dr Tom Houghton Curtin University main campus, WA
5 Curtin and its Faculty of Business (CBS) Part of a university that is very strong in energy: Largest university in Western Australia (>60,000 students) Largest Engineering School in WA Largest Business School in WA (~15,000 students) Strong links to Australian industries CBS comprises 7 separate schools: Graduate School of Business (~ 1000 students) Schools of Management, Marketing, Accounting, Economics and Finance, Information Systems, Law Teaches Australia s only dedicated MBA in Oil & Gas Assists APPEA (Australia s oil and gas peak body) educate government, regulators, company staff etc. Engineering building 215, main campus, WA Curtin Graduate School of Business, Perth, WA Curtin Business School and the Business of Oil and Gas
6 Some Oil & Gas Capabilities at Curtin Petroleum Geophysics Spatial Sciences Chemical Engineering Petroleum Geology Petroleum Engineering Business Petroleum Geochemistry Curtin University: petroleum fields of expertise Marine Sciences Corrosion Engineering Lean Construction Remote Sensing Subsea Engineering Supercomputing Curtin Business School and the Business of Oil and Gas
7 Contents Historical perspective Investment patterns Recent policy changes Impact on investment COP21 Commitments Implications for Australia s future
8 The contribution coal makes to Australia s economy is an important contextual backdrop Source: Department of Industry and Science (2015) Australian Energy Statistics, Table O.
9 After early promise, climate change legislation in Australia has had a rocky ride Phase 1: Global Leadership World first emissions trading scheme in NSW Push towards carbon market based approach at federal level Renewable portfolio standard Phase 2: Toward Consensus Ratified Kyoto Developed legislation to enact ETS Bi-partisan support Phase 3: Change of direction Failure ETS bill in Senate Switch to proposal based on carbon tax RET split into large and small scale Phase 4: Failing Support Carbon tax revoked Wind energy commission established RET target reduced Direct action
10 Policies have succeeded in achieving reasonable pull through of wind capacity 7% 0% 4% 22% 14% 1% 1% 5% 46% Coal CCGT OCGT Gas Other Solar Wind Hydro Biomass Other Source: AEMO, WA Department of Finance, Territories Generation
11 GWh Since 2008 / 09 wind and solar production have shown 18% and 77% CAGR respectively x x Wind Biomass Biogas Solar PV Source: Department of Industry and Science (2015) Australian Energy Statistics, Table O.
12 Policy since 2012 has been marked by uncertainty Source: Source: 41TWh 33TWh
13 Large scale investment weakened following announcement of policy review in Feb 2014 $2.05bn 12mos to Feb % decline $206.9m 12mos to Feb 2015 $0 in Q and one project worth $6.6m in Q Consistent with global trends but more marked than in other major economies Fell from 11 th to 39 th in rankings by investment Renewable energy sector lost almost 2,500 jobs Retrenchment of financiers such as Banco Santander
14 However, the volumes of solar being installed has shown resilience in 2015 Increasing average system size
15 Australia s commitments at COP21 Australia managed to get to day 10 of the conference before receiving it s first Fossil of the Day gong Source: Source: Coal will remain critical for promoting prosperity, growing economies, and alleviating hunger for years to come
16 Key undertakings by signatories to the COP21 agreement 1.5º Mitigation: Ambitious 1.5 degree temperature rise limit Adaptation: Response to already present impacts of climate change $100bn Finance: Unlock a minimum of 100 billion dollars per year from 2020 onwards Transparency: On both the measurement and reporting of greenhouse gas emissions Capacity Building: Global cooperationknowledge and technology transfer Source: Econometrica. Icons from and
17 Implications for future development Significant revision to targets going to be required post election (must be held before January 2017) Recognise need to shift investment and skills towards nonfossils Greater transparency on emissions and commitment to emissions reduction Further commitment of funds to support developing countries and those most vulnerable to the threat of climate change Source:
18 Recent policy (political?) announcements: A basis for optimism? Turnbull was previously a supporter of public transport and a proponent of the ETS Pledge of $1bn over 5 years for climate action (although this appears to be a reallocation of existing foreign aid budget) Emphasis on innovation in step with broader Government strategy although unclear what that will mean at this stage However, recent changes to the governance of the Renewable Energy Agency leaves room for doubt Looking for major policy pledges in manifesto
19 Any Questions?
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