Newsletter
October 2008
Exhibition space fully booked; accommodation booking fast;
register now to confirm your place
Carbon Market Expo Australasia takes the place this year of the annual EBA Business and Sustainability Summit. So please support the extension of EBA's work into market development by registering now at the special EBA member discount rate.
Over 100 speakers and 90 exhibitors will participate in Australia's first international Carbon Market Expo & Conference on the Gold Coast, 29-31 October. Climate Change Minister Penny Wong will deliver a keynote address. This will be the greatest gathering of global and domestic carbon market practitioners and businesses ever assembled in Australia. It is an ideal opportunity for businesses wishing to find out more about the Australian emissions trading scheme, and how to measure, manage and offset their own emissions profile to discuss these issues with global carbon market leaders and to survey the full range of carbon market products and services exhibiting in the trade fair. The full Expo program is available on the expo website at http://www.carbonexpo.com.au/. Accommodation is rapidly filling - so use the online registration form to secure your participation at this landmark event.
EBA News
After four years EBA's National Secretariat Manager Robyn Stone has decided to leave for new pastures, she will be very much missed and we wish her well with her new venture.
This may be the time to relocate the entire office to Sydney - what are your thoughts on this? And if you know of someone who would like to work for Australia's most proactive industry group please do let us know. A job description will be available shortly.
Contents
Perception
EBA News
EBA Member News
Australia News
International News
Welcome to new EBA members
EBA Events
Diary of Events
Career Opportunities and Search
Perception
Invest in reducing climate change risk to economies and security
We cannot afford to tinker at the edges of the climate change problem. This is the most serious economic and security issue facing Australia. Environment Business Australia therefore supports the statement from Professor Ross Garnaut "Australia should also offer to play its part in an ambitious agreement. Its fair share of a 450 ppm agreement would be to reduce emissions by 25% from 2000 levels by 2020 and by 90% by 2050."
Unleashing and supporting the private sector's innovation is key to realising 25% GHG emissions cuts by 2020. In spite of current turmoil on world markets investment in energy projects will continue to occur. What is vital is that this money flows to low carbon energy infrastructure. The success, or otherwise, of this will be determined by the policy signals and levers that Government brings to bear over the next 5 years.
Environment Business Australia CEO Fiona Wain said "There is commercial 'upside' available in new projects and practices that deliver goods and services but also reduce greenhouse gas emissions across the economy."
"It is Asia where the battle against climate change will be either won or lost, Australia's efforts should therefore focus on building resilience into the domestic economy, developing major clean energy projects that stimulate economic activity and job creation and the transfer of expertise and technology to countries in the region" said Fiona Wain.
Five core steps to tackle climate change
1 - Energy efficiency
Energy efficiency is the first step with cities and the built environment offering the single largest and most cost-effective source of GHG abatement. Public transport and efficient vehicles are a vital component of transition.
2 - Recycling
Recycling materials, embodied energy and organic waste is the second step and can turn the waste sector's 3% of national emissions into a 10% reduction in GHG emissions by 2020.
3 - Biological carbon sinks
The third step is the replacing of forest and native vegetation cover and replenishing soil carbon. This provides carbon sinks that help buffer against drought and erosion while earning farmers carbon credits. Australia should ramp up its efforts to help developing countries avoid deforestation.
4 - Large scale renewable energy projects
The fourth step is the development of major renewable energy infrastructure. It is conceivable that by 2030 Australia could have 'mega clean energy parks' with solar thermal and PV, geothermal, wind and marine energy providing baseload energy to the grid; at the same time being a regional hub for manufacturing and minerals processing.
5 - Cleaner fossil fuels
The fifth step is trialling a portfolio of cleaner coal technologies including carbon capture and storage.
The first three steps are low-cost, low-risk bridging steps to deliver GHG abatement and carbon offsets. They need to be put in place very rapidly.
Steps 4 and 5 have longer-term beneficial economic outcomes. They are projects that need to be scaled-up immediately.
Funding the transition to a low carbon economy
Alongside targets, global foresight demands a massive injection of funding to immediately scale up existing solutions and pull through the next generation of technology. Professor Garnaut puts Australia's share of investment in innovation deployment at $2.7 billion per annum.
A transformational change in how we manage the economy is required. This must happen at scale and at speed. Soft starts and incremental steps will not serve Australia well. All infrastructure expenditure should be directed to low carbon outcomes. In Australia additional funding could be drawn from:
- Reallocation of part of the Defence budget
- The Future Fund
- Treasury
- Revenue from the Carbon Pollution Reduction Scheme (CPRS)
- Reallocation of current Government spend and investment; forward procurement commitments
- Institutional investors such as pension funds
- Private sector project financing
Market turmoil
Regional stability and international security must not take a back seat to turmoil in economic markets. The global market has been misguided by short-termism and by subsidies designed for a previous era. The perverse outcomes are now evident.
A robust environment is the context for global commodities and wellbeing and it must be recognised as the foundation of our economy. There is no priority more important and action to reduce risks can no longer be delayed.
WWF attacks BCA report
WWF chief Greg Bourne - who as BP Asia Pacific chief spearheaded a partially successful 2003 push to change the BCA's position to one favouring ratification of the Kyoto Protocol - has hit out at its research report claiming major companies would have to close under the Rudd Government's proposed compensation arrangements for emissions-intensive, trade-exposed industries. "These companies have known for 20 years that carbon pollution would have to be cut," Bourne said. "Why should the public pay for their negligence or deception?" "Where is the 'winners' report" which highlights those companies that have thought ahead and will benefit from the changes?" Bourne said. "This report lacks all transparency and shows that the BCA, which is supposed to provide leadership and find opportunities for innovation and new business, has been hijacked by wealthy self-interested parties who continue to expect working families to foot their compensation bills," he said. Bourne said it was "remarkable" that the modelling assumes businesses involved in the emissions trading scheme won't change or adapt in any way over the next 30 years. "Some of these companies are complaining of having to take their business overseas yet are continuing to record huge profits and will continue to enjoy favourable conditions in this country even after the carbon pollution reduction scheme has started," Bourne said. In 2003, Bourne backed a move to overturn BCA opposition to ratification of the Kyoto Protocol. The campaign ended with the council adopting a neutral position on ratification.
EBA Member News
ACCIONA Energy acquires Mount Gellibrand wind farm
ACCIONA Energy, a world leader in renewable energy, has acquired the Mount Gellibrand wind farm from German developer Pro Ventum International. Having secured the site 20km west of Winchelsea ACCIONA Energy expects construction to be under way late next year, with completion during 2011. The site has planning approval for a maximum 116 wind turbines, generating up to 232 megawatts. ACCIONA Group Managing Director - Asia Pacific, Brett Thomas, said the Mount Gellibrand acquisition was an important addition to the company's Australian portfolio, and forms part of an ambitious growth plan for renewable energies by the business in Australia. ACCIONA Energy has an operating wind farm at Cathedral Rocks in South Australia and is building the Waubra Wind Farm, near Ballarat. "We have some 25 projects in Australia in various stages of development with a total forward portfolio of over 2300 megawatts", said Mr Thomas. Over the coming months ACCIONA Energy will finalise a range of planning requirements and will commence a program of community engagement.
SB08: New zero-emission house launch - Delfin Lend Lease
CSIRO and a consortium of industry and government partners (including Sustainability Victoria, Delfin Lend Lease and Henley Property Group) have come together to design, build and monitor Australia's first Zero Emission House (ZEH) for the mass housing market. This new type of carbon-neutral house - the first of its type - is about to be constructed by Henley Property Group in the Delfin Lend Lease Laurimar development, 30km north of Melbourne CBD. About 13 per cent of the total annual CO2 emissions in Australia is from energy usage in residential buildings. There is huge potential to improve the performance of the existing housing stock and encourage the industry and the market for new housing to immediately contribute to GHG emissions reduction efforts. The ZEH demonstration house will not release any CO2, or other greenhouse gas, into the atmosphere as a result of producing or consuming energy on the entire site and will use up to 70 per cent less energy than a traditional home of similar size, and will incorporate other sustainability features. The project is being undertaken as part of CSIRO Energy Transformed Flagship's Low Emission Distributed Energy research program, which focuses on developing low-emission technologies and solutions for a rapid response to climate change. www.csiro.au
The Great Artesian Basin Sustainability Initiative
From SKM Magazine. Australia's Great Artesian Basin (GAB) is one of the world's largest groundwater resources. It underlies parts of Queensland, New South Wales, South Australia and the Northern Territory. As a water resource, its sustainability and ongoing management is of critical importance. The Australian Government has recognised this fact and established the Great Artesian Basin Co-ordinating Committee (GABCC). The fundamental objective for the coordinated management of the GAB is to maximise the benefits the community obtains from the use and existence of GAB water resources while minimising the adverse impacts associated with its use. Between 2007 and 2008, Sinclair Knight Merz was commissioned by the Australian Government through the Department of the Environment and Water Resources to undertake a mid-term review of Phase 2 of the Great Artesian Basin Sustainability Initiative (GABSI). This review provides an outline of the hydrogeological, environmental, social and economic aspects of the GABSI, with a particular focus on Phase 2. It highlights the fact that under the first two years of GABSI Phase 2, water wastage from the GAB had been reduced by an estimated 23,027ML/annum and modelled artesian pressures within several management zones across Queensland and New South Wales are predicted to eventually increase by up to 5 metres (at some time in the future). To learn more about this project and its implications, you can download a copy of the mid-term review from the Great Artesian Basin Co-ordinating Committee website.
For further information, contact: Richard Sharp tel: +61 2 6246 2701
Lochard introduces WebTrak FlyQuiet to efficiently and effectively manage aircraft noise.
September 2008. Lochard, the world's leading provider of Airport Noise Management Systems, announced the release of WebTrak FlyQuiet, their latest value-adding service for Airports. WebTrak FlyQuiet actively monitors, manages and improves aircraft operators' compliance with airport noise abatement procedures to reduce aircraft noise. WebTrak FlyQuiet identifies flights that don't comply with noise procedures and communicates this information to the aircraft operator. The operator can rapidly communicate with their pilots and pinpoint the reason for any deviations. This enables airports to reinforce procedures and improve future compliance. Aircraft operators can quickly investigate noise and flight track violations themselves and collaboratively work with airports and pilots to ensure they "fly quieter". WebTrak FlyQuiet is the latest in the WebTrak suite of modules designed to assist airports with noise management, particularly as it affects their local community. So far more than 30 airports around the world, from Long Beach, California to London Heathrow in the United Kingdom, are utilising WebTrak services. WebTrak FlyQuiet is an online tool that leverages off an airport's existing infrastructure and displays information about how well an aircraft operator is doing at meeting noise program goals. A secure website is provided for each operator to review their flights, noise levels, weather and associated ATC audio recordings. It also monitors performance trends and provides report summaries and documentation about procedures at the airport. WebTrak-Fly Quiet continues Lochard's approach of developing web-based modules, each focused on performing a specific task. WebTrak-Fly Quiet is the third such module after the successful launches of WebTrak-Display and WebTrak-Investigate. For further information contact info@lochard.com . Lochard systems are installed in over 130 of the world's leading airports, spanning 25 countries, including Chicago O'Hare, Denver, Los Angeles, San Francisco, Seattle, Miami, Vancouver, Montreal, London Heathrow, Amsterdam, Manchester, Nice, Sydney and Hong Kong. Lochard's cornerstone strengths in quality and innovation help optimize airport efficiency, maximize environmental capacity and build better relations with local communities. www.lochard.com
New Energetics survey shows big energy users hitting efficiency barriers
A new survey of Australia's largest energy users shows an improvement in attitudes and behaviour towards energy efficiency, but significant barriers remain in the lead up to the introduction of an emissions trading scheme. The Energetics survey found that there are three main barriers to participation in the federal government's mandatory Energy Efficiency Opportunities (EEO) scheme (www.energyefficiencyopportunities.gov.au), which was introduced in 2006 and requires energy-intensive businesses to identify and report on energy efficiency opportunities. The three main barriers to energy efficiency investment were: The lack of a price on carbon emissions; A need for financial or tax incentives; Resource limitations - businesses lack the staff time, skills and budget resources to meet EEO requirements. The EEO scheme appears to have been effective in changing business culture as well as finding savings opportunities with nearly 40 percent of respondents indicating they have used it to drive their energy management beyond minimum compliance requirements. Participation is mandatory for the 220 companies that consume more than 500 terajoules of energy per year, with initial savings assessments due for completion by 30 June this year, and all assessments due by 2011.
Energetics is a leading energy and carbon management consultancy that currently services 125 companies in the manufacturing, commercial, mining/minerals, government, energy and water utility sectors. Energetics surveyed a random sample of participating companies to gauge the EEO scheme's effectiveness and to help define barriers to implementing the savings identified. Twenty-five percent of all participating companies responded to the survey. The Energetics Energy Efficiency Opportunities Participant Survey is available from www.energetics.com.au
New PB-CUSP research reveals urban sprawl costs double
Parsons Brinckerhoff (PB) and Curtin University Sustainable Policy Institute (CUSP) have measured the cost of fringe development as more than double that of inner city development. The PB-CUSP report found the consolidated costs, per 1,000 dwellings, for urban and fringe developments are $309 million and $653 million respectively. Professor Peter Newman and Roman Trubka from Curtin University of Technology and PB's Director of Sustainability Darren Bilsborough lead this ground-breaking research. Professor Peter Newman said this was the first research to consider the full price of urban development - that is the cost to government, people and the planet. "This research opens up the debate on how sustainability relates to Australian cities," said Professor Newman. Mr Bilsborough outlined the research findings in more detail. "Fringe development costs the government approximate $85 million extra to provide essential infrastructure such as power, water, sewerage and roads. "The costs to people include $250 million more in transport costs and $4.23 million in health costs due to higher car use and lower levels of physical activity for people in fringe developments. "Plus we calculated 4,400 tons of greenhouse gas is saved for 1,000 inner city dwellings, which is roughly equal to the amount emitted from 200 homes - or an estimated dollar value of approximately $19.32 million. Parsons Brinckerhoff (PB) is one of the world's leading planning, environment and infrastructure consultancies, with over 10,000 staff based in offices across six continents. In Australia and New Zealand, PB's multidisciplinary team of 1,800 professionals offers a comprehensive range of multidisciplinary services and total project delivery on projects of any scale. See www.pb.com.au and www.pbworld.com
Greenfleet newsletter now available
http://www.greenfleet.com.au/news/newsletters.asp
In this issue we look at transport trends in Australia and around the world; introduce the new Greenfleet Meeting Centre for online meetings; celebrate a million tree partnership between Scouts Australia and Greenfleet; interview energy efficiency expert Alan Pears; invite Victorian students to enter the STAV energy efficient car competition; and much more.
URS recognised for excellence in program evaluation
2008 Excellence Award for ‘Our Rural Landscape' Program. The Australasian Evaluation Society (AES) has awarded engineering, environment and corporate advisory firm URS with an Award for Excellence in Evaluation for their ‘Our Rural Landscape' Program. The Program received the 2008 Excellence in Evaluation Award for Best Evaluation Study following a four-year Victorian Government strategic R&D initiative to develop profitable and sustainable farming systems. The ‘Our Rural Landscape' (ORL) Program was a major investment into rural research and development work in the State of Victoria; and looked to develop systems that addressed community concerns, maintained the natural environment and protected Victoria's access to international markets. The ORL project was delivered via 14 innovative, major projects ranging from biosecurity, food safety and genetic technology, environmental foot-printing, biodiversity and landscape management, product value chains, to social policy. This included concerns around the grains, aquaculture, horticulture, dairy, grazing and seafood industries and involved some 120 staff across 23 locations. URS has been a leader in evaluation for over 15 years, bringing together experience gained from delivering international development projects for funders like the World Bank, and from delivering agricultural and rural natural resources management projects (including research and development) across Australia. URS has introduced a number of innovations including incorporating resource economics into mainstream evaluations.
URS provides engineering, environmental, and corporate advisory expertise to business and government customers within the Asia Pacific and around the globe; operating with a network of around 50,000 personnel in 34 countries; in Asia Pacific URS has 18 offices with around than 1,500 professionals. (www.ap.urscorp.com) URS Asia Pacific is a wholly owned subsidiary of URS Corporation. (NYSE Code URS) URS Corporation offers a comprehensive range of professional planning and design, systems engineering and technical assistance, program and construction management, and operations and maintenance services for transportation, commercial/ industrial, facilities, environmental, water/wastewater, homeland security, installations and logistics, and defence systems. Headquartered in San Francisco, the Company provides engineering and technical services to federal, state and local governmental agencies as well as private clients in the chemical, pharmaceutical, oil and gas, power, manufacturing, mining and forest products industries.
Veolia Environmental Services' five-point plan to integrate waste sector into CPRS
29 September 2008: Veolia Environmental Services announced a five-point plan to seamlessly integrate the waste sector into the Government's Carbon Pollution Reduction Scheme.
The waste sector accounts for merely 3% of the nation's total greenhouse gas (GHG) emissions but if the issues of measurement and liability for the treatment of emissions from previously landfilled waste are not addressed appropriately under the new CPRS the waste sector will be unfairly left with inaccurate emissions measurement and an estimated $2 billion greenhouse gas liability from waste landfilled prior to the commencement of the CPRS. Managing Director of Veolia Environmental Services, Doug Dean said, "We support the Australian Government's efforts in fighting climate change and in particular the introduction of the CPRS. Veolia's five-point plan, if implemented by Government, will ensure the best possible outcome is achieved for the environment, the waste industry and waste generators." "... Waste management companies should not be held liable for emissions from waste deposited in landfills prior to the commencement of the scheme. This is akin to backcharging energy producers for emissions produced from 1988." Along similar lines Professor Ross Garnaut indicated the inclusion of the waste sector in the CPRS should be deferred until the issues on grandfathering and measurement are resolved. The waste sector is not covered by the current European ETS and will not be covered by New Zealand's scheme until 2013.
Australia News
FTSE4Good comes to Australia
UK index provider FTSE is launching an Australian version of the FTSE4Good index - the FTSE4Good Australia 30 Index - initially made up of the existing Australian components of the global index. Companies are assessed against the FTSE4Good inclusion criteria by research provider, the Ethical Investment Research Service (EIRIS), which in Australia partners with the Centre for Australian Ethical Research (CAER). BHP Billiton, Rio Tinto, Westpac, National Australia Bank and Westfield are the top five components of the index, which will eventually be developed separately to the global index.
Australia awards carbon credit registry contract
Point Carbon 26 Sept 08. Australia has signed a contract with US-based environmental services firm Perrin Quarles Associates (PQA) to design its carbon credit registry for use under the Kyoto protocol and the carbon pollution reduction scheme (CPRS). The A$600,000 (US$500,000) contract was announced by Climate Change Minister Penny Wong. Australia needs a functioning registry before it is deemed eligible to use the Kyoto protocol market mechanisms. The registry tracks the transfer of UN-regulated carbon credits to and from Australia and enables Australia to keep the governmental credits it has available as per its target under the Kyoto agreement. Companies participating in the domestic emissions reduction scheme will open accounts in the registry, and deliver and receive carbon credits using the software system. PQA designed the registries for New Zealand and Canada. The NZ registry has already been linked to the UN software, and NZ companies can freely trade UN credits with account holders in other finalised registries.
Australian carbon jolts to record high
Point Carbon 26 Sept 08. Australian emissions units (AEUs) for financial year 2011/2012 were traded at A$21.75, the highest price seen in the fledging carbon market, brokers and traders said. The 2011/2012 transaction saw 20,000 credits change hands, and an additional 10,000 AEUs for the following year were traded at A$22.75. The deal between two unnamed counterparties was announced by brokerage Newedge, and is the first strip trade publicly reported in the Australian market. The last trade seen in AEUs, reported as far back as late July, went through at A$21.50. "These transactions represent continued growth of interest in the Australian carbon pollution reduction scheme and recognise the move toward the new trading environment in this commodity," said Gary Cox, manager environmental derivatives at Newedge.
ASX expects boost from carbon permit derivatives
The Australian | September 25, 2008
THE Australian Securities Exchange will become a major trader of carbon permit derivatives and expects the financial diversification to be a major source of revenues growth. ASX chief executive Robert Elstone said the structure of the exchange's involvement in trading would depend on the design of the broader emissions trading system. Mr Elstone said the ASX would make revenue gains on the trading of carbon derivatives five to 10 years after the trading system is introduced. Mr Elstone said there would be a multiplier effect for the ASX, given the derivative trade and the market's assessment of high-emitting companies. "From the evidence we have seen, Australia will have one of the best architectural domestic trading systems."
New Energy Products & Carbon Trading Pre-Launch Markets Briefings
The Australian Securities Exchange is pleased to invite you to attend its briefings to learn more about contract specifications and launch schedule for the following: Thermal Coal, Victorian Gas, New Zealand Electricity, Renewable Energy Certificates, Carbon Pollution Permits. For further details please visit http://www.asx.com.au/products/energy_environment/index.htm
Anthony Collins, General Manager, Energy & Environment, Australian Securities Exchange.
Opposition leader Malcolm Turnbull announced environment team in shadow cabinet
The Hon Greg Hunt MP, Shadow Minister for Climate Change, Environment and Water.
Senator Fiona Nash, Shadow Parliamentary Secretary for Water Resources and Conservation
The Hon Ian Macfarlane MP, Shadow Minister for Energy and Resources.
Mr Don Randall MP, Shadow Parliamentary Secretary for Energy and Resources
Mr Steven Ciobo MP, Small Business, Tourism, Independent Contractors and the Arts.
The Hon Andrew Robb AO MP, Shadow Minister for Infrastructure, COAG and Shadow Minister Assisting the Leader on Emissions Trading Design.
The Hon Warren Truss MP, Shadow Minister for Trade, Transport, Regional Development and Local Government.
The Hon John Cobb MP, Shadow Minister for Agriculture, Fisheries and Forests.
Senator the Hon Eric Abetz, Shadow Minister for Innovation, Industry, Science and Research
Senator the Hon Helen Coonan, Shadow Minister for Foreign Affairs
Senator Marise Payne, Shadow Parliamentary Secretary for International Development Assistance
Australia unveils A$100 million clean coal institute
19 Sep 08. Australian Prime Minister Kevin Rudd announced his government will set up a A$100-million (US$81 million) global institute to promote technology that captures and stores carbon emissions. Carbon capture and storage (CCS) technology is seen as potentially significant means to cut emissions as world energy demand is increasing and global greenhouse gas emissions are expected to rise 56 per cent from current levels by 2030, according to International Energy Agency (IEA) data. CCS captures emissions off smoke-stacks of fossil-fuel burning plants and buries it underground, preventing it from being released into the atmosphere. "The Institute will aim to accelerate carbon projects through facilitating demonstration projects and identifying and supporting necessary research - including regulatory settings and regulatory frameworks," said a statement from Rudd's office. The Australian government will contribute A$100 million to the global institute annually, and is in talks with other governments on how the institute should be run. "Despite the growth of renewable energy, fossil fuels, especially coal, will remain major sources of the world's energy in the coming decades. Around 80 per cent of Australia's electricity currently comes from coal fired power generation," the statement said.
The Climate Institute has released two new studies
- Pathways and complementary measures for the electricity sector - http://www.climateinstitute.org.au/images/reports/mmagr.pdf
The Climate Institute commissioned McLennan Magasanik Associates (MMA) - one of Australia's leading electricity sector modellers - to produce an independent report on the cost effectiveness of various policies that governments may use to achieve emission reduction targets and take part in the global switch to clean energy. This report is restricted to the electricity supply sector, representing around a third of Australia's emissions. The main conclusion of the report is that energy efficiency reduces the investments required in the electricity sector to meet the emissions target (-80% on 1990 by 2050) by about $43 billion. The Government's proposed Renewable Energy Target (RET) also improves the cost effectiveness of the policy mix, by a further $5-6 billion due to fast-tracked market experience and innovation.
- The economic efficiency of the current proposals to address carbon leakage - http://www.climateinstitute.org.au/images/reports/eitiepolicyaug08.pdf
While there is a prima facie rationale for an EITEI assistance scheme, the impact of getting the EITEI assistance policy wrong could be substantial given the large amount of assistance proposed in the Government's ETS Green Paper (between $3-6 billion a year with carbon prices of between $20-40/tonne). Emissions leakage is likely to be partial and claims of industry fleeing offshore have been widely exaggerated. It is likely that current proposals from Government and the Business Council of Australia are, on balance, likely to reduce rather than enhance the efficiency and effectiveness of emissions trading.
Australian pension funds urged to monitor carbon risk
09 Sep 08. Plans to trade carbon in Australia pose a significant risk to Australian pension funds but also opportunities, according to a new report entitled ‘Carbon Counts 2008: The Carbon Footprints of Australian Superannuation Investment Managers,' commissioned by the Australian Institute of Superannuation Trustees (AIST). The report revealed a 36 per cent difference in the carbon intensity in the equity portfolios of 14 funds surveyed. "When a price for carbon is established in Australia there will be winners and loses and the winners will be those companies which are more carbon or energy efficient and the funds that are overweight in them," said Simon Thomas, CEO of Trucost, a UK-based research firm that authored the report. Emissions associated with the portfolios surveyed by Trucost showed that they had an exposure to total 5.9 million tonnes of carbon dioxide equivalent (mtCO2e). At a carbon price of A$20 (US$16.13), this would mean a carbon costs of more than A$118 million. However, 5.9 million tonnes CO2e represent only 2 per cent of the emissions from the 216 companies analysed, in line with the funds' 2 per cent ownership of the total market capitalisation of these companies, the report stressed. "Trustees and portfolio managers could reduce the greenhouse gas emissions associated with holdings to manage exposure of carbon costs. Asset managers could carbon optimise portfolios that employ any investment strategy, while maintaining financial returns," Trucost's Thomas said. "While it's still early days in the brave new world of carbon-pricing, this research suggests that far from being a doom and gloom scenario for super funds and their members, there may be just as many investment opportunities as there are risks, particularly for those funds that get on the front foot of this issue," said Fiona Reynolds, CEO of AIST.
ACT Australian CleanTech Index had a solid result in August 2008
Outperforming the benchmark S&P Small Ordinary Indices for the month, the ACT Australian CleanTech Index rose from 111.4 to 113.1 over August recording a 1.5% gain. This compared to the S&P ASX Small Ordinaries Index gain of 0.8% and the S&P ASX200 gain of 2.6%. This brings the calendar year to date loss for the ACT Australian CleanTech Index to 16.1%, some 4.0% better than the ASX200 and 8.8% better than the ASX Small Ordinaries. The market capitalisation of the 73 stocks in the ACT Australian CleanTech Index exceeds A$14 billion. The month's performance was driven by strong results from Quantum Energy, Sims Metal Group and Coffey Environments partially offset by poor results from Babcock & Brown Wind Partners and Geodynamics. The ACT Australian Cleantech Index is updated each month and published on the Australian CleanTech website at www.auscleantech.com.au, in the Ethical Investor magazine and in WME's Environmental Management News.
Mark Vaile chairman of renewable energy company, CBD Energy Limited.
Mark Vaile, Australia's former Deputy Prime Minister, is to become chairman of renewable energy company, CBD Energy Limited (ASX: CBD). With Mark Vaile becoming Chairman, Gerry McGowan now focuses on being Managing Director. Other appointments include non-executive director, Mr Jim Link, company secretary, Mr Richard Pillinger, and CFO, Ms Yvonne O'Reilly .Gerry McGowan can be contacted for comment on this news on (02) 9363 9910.
International News
Australia signs MOU with Clinton Climate Initiative.
25 September 2008. New York.
Australian Prime Minister Kevin Rudd signed a Memorandum of Understanding (MOU) with the Clinton Climate Initiative of the William J. Clinton Foundation.
Under the MOU Australia and the Clinton Climate Initiative will work together to help tackle climate change, and collaborate to; Deploy carbon capture and storage technology to large scale projects; Examine policies to encourage large scale solar power generation in Australia; Design collaborative policies in conjunction with large cities and other organisations on improving energy efficiency. The Clinton Foundation will work with the Australian Government through Australia's Global Carbon Capture and Storage (CCS) Initiative announced by Prime Minister Rudd last week. The Australian Government will draw on the Clinton Climate Initiative expertise in considering policies to encourage large scale solar power generation in Australia, and explore opportunities for collaboration in the energy efficiency area across government, business and the community.
Powerful UK business grouping calls for cross-party effort to deliver a low carbon economy
The Prince of Wales's UK Corporate Leaders Group on Climate Change, consisting of some of the largest corporations in the UK, has written today to the leaders of the UK's major political parties to call for "transformational change" across the economy to meet the scale of the threat posed by climate change. The leaders of eighteen major UK and international companies including B&Q, Centrica, LloydsTSB, Shell, Tesco and Vodafone, argue that while the "global economic slowdown may cause some to question whether the UK can afford to act so boldly, action cannot be delayed" and that "decisive action will stimulate economic activity and job creation". The Corporate Leaders Group, developed and run on behalf of The Prince of Wales by the University of Cambridge Programme for Industry, argues that "incremental change will not do" and that "there will need to be significant investment in major infrastructure projects in order to achieve year on year reductions in emissions". The group has recommended that the UK adopt a 'working assumption' that a legally-binding deal will be signed by all countries at the UN Framework Convention on Climate Change negotiations in Copenhagen next year, implying that "the European Union should cut greenhouse gas emissions by 30% by 2020, not 20%".
The group offers strong support for The Climate Change Bill currently in Parliament as a "crucial framework for emissions reduction" but calls for an "urgent cross-party effort to develop a comprehensive package of policy measures to change every major sector of the economy". It describes some of the "key elements" of the package, including higher energy efficiency standards, support for low-carbon technologies and products, "bold new specifications" for public sector procurement and measures to deliver a robust carbon market. On this last point, the group supports the "progressive shift to auctioning of allowances" under the EU's Emissions Trading Scheme. A full copy of the letter can be downloaded at: http://www.cpi.cam.ac.uk
Sam Laidlaw, Chief Executive, Centrica said:
"If we are really to make inroads into reducing emissions of carbon dioxide, the key will be to put an increasingly high price on carbon. The EU Emissions Trading Scheme has made a good start, but it is essential that in phase 3 of the scheme from 2013, member states are forced to ratchet down further the caps on emissions. It is also crucial that full auctioning of allowances to emit CO2 is introduced for power generators, which will ensure the cost of carbon is fully incorporated into investment decisions."
Global expenditure on clean energy R&D "should be increased tenfold": Harvard professor
Worldwide expenditure on R&D into clean energy should urgently be increased tenfold from US$50 billion to US$500 billion per annum, to combat looming shortfalls in oil and other fossil fuels production and the unprecedented environmental and climatic damage their use is causing, an international expert on climate change, Harvard Professor Paul Hoffman, has warned. "World oil production is a roughly US$10 trillion a year industry, yet only about 0.5% (US$50 billion) of this amount is spent annually on alternative energy R&D, far less than the 5% norm for R&D. Globally, governments, industry and the research sector need to remedy this shortfall urgently" Professor Hoffman said. "Although oil consumption continues to rise, there are increasing signs that world oil production has flattened out and may soon begin to fall. And although global coal reserves are ultimately far larger than those of oil and natural gas, burning coal is exacting a higher price in terms of greenhouse gas emissions.
Google and GE allies in quest for clean energy
AFP, 17 September 2008 - Internet titan Google and technology colossus General Electric said Wednesday they are joining forces to promote a "smart" US electric power grid and clean energy. The companies said they will work together on green energy technologies and lobby US political leaders to support "visionary policies" on renewable energy. "Both companies believe that our economic, environmental and security challenges require that we use electricity more efficiently, generate it from cleaner sources, and electrify our transportation fleet," the US firms said in a joint release. "This 21st century electricity system must combine advanced energy technology -- a major GE focus -- and cutting edge information technology -- a major Google focus." During the past two years, Google has launched a series of clean energy initiatives that include investing in geothermal, solar and wind-generated electricity. Google has a team of engineers working on a "renewable energy cheaper than coal" project with a goal of making energy from earth-friendly sources more affordable than electricity made by burning carbon-spewing fossil fuel. The benefits of renewable electricity can't fully be realized without updating US power transmission lines into a "smart grid" that lets people track and control what types of power they use and when, according to Google.
Germany leads 'clean coal' pilot
BBC News, Germany. Beneath the gargantuan grey boiler towers of Schwarze Pumpe power station which pierce the skies of northern Germany, a Lilliputian puzzle of metal boxes and shining canisters is about to mark a moment of industrial history. This mini power plant is a pilot project for carbon capture and storage (CCS) - the first coal-fired plant in the world ready to capture and store its own CO2 emissions. Next week the pilot - an oxyfuel boiler - will be formally commissioned. A cloud of pure oxygen will be breathed into the boiler. The flame will be lit. Then a cloud of powdered lignite will be injected. The outcome will be heat, water vapour, impurities, nine tonnes of CO2 an hour, and a landmark in clean technology.
Because the CO2 will then be separated, squashed to one 500th of its original volume and squeezed into a cylinder ready to be transported to a gas field and forced 1,000m below the surface into porous rock where it should stay until long after mankind has stopped worrying about climate change. This is the technology once lavishly described by the former UK Chief Scientist Sir David King as "the only hope for mankind". The plant operators, Vattenfall, have worked furiously for two years to get the pilot running. "We are very proud - we think this is the future for coal," says Vattenfall's Hubertus Altmann. They funded the 70m-euro project themselves because they wanted to lead a technology they believe solves the conundrum of providing energy security through plentiful coal supplies whilst avoiding the CO2 emissions officially blamed for climate change.
New International Journal Devoted to Energy Efficiency
The journal Energy Efficiency was inaugurated early this year and covers important trends in the field, including technical, policy, and behavioral issues; barriers and solutions to overcome them; how to design and implement programs; evaluations and case studies; measurement of impacts and other important methodological issues; and a range of other issues that need to be discussed and understood in order to scale up energy efficiency to make our economies more competitive, and meet the challenge of climate change. The publisher, Springer, is providing free on-line access to the journal during 2008. Submit articles on your work and research that you think might be of interest to other energy-efficiency professionals. You may also want to share this notice with your colleagues working in the field, whether they are in policy, program implementation, business strategy and development, academia, or advocacy and promotion. Contact: Peter du Pont, Ph.D. Chief of Party, ECO Asia Clean Development & Climate Program communications@cleanenergyasia.net, www.cleanenergyasia.net
Australian to chair World Green Building Council
Victoria's Building and Plumbing Industry Commissioner Tony Arnel has been elected Chair of the World Green Building Council (WorldGBC). A founding director and current Chair of the Green Building Council of Australia (GBCA) and a member of the WorldGBC Board since 2007. "It is a challenging and exciting time for the WorldGBC, particularly as evidence mounts about the dire consequences of unabated global warming and climate change and the need for urgent and substantive action," Mr Arnel said. "We know that the built environment has a pivotal role to play in greenhouse gas abatement, and is capable of delivering carbon emission reductions more readily and more cost-effectively than any other sector. The number of Green Building Councils worldwide is now 20, with the admission today of Argentina and South Africa as full members and The Netherlands, Romania and Spain as emerging members of the WorldGBC. Member nations represent more than 50 per cent of global construction activity and more than 15,000 companies and organisations worldwide. He said the growth and interest in green buildings worldwide was nowhere more evident than in Australia, where the GBCA membership has grown to more than 600 organisations and the number of Green Star certified buildings has gone from zero to 70 in five years. "It may not be widely known, but as a country we should be proud of the fact that we have the world's second largest green building council, after the USGBC," Mr Arnel said.
Clean energy creates global growth in jobs
Source: www.news.com.au
Development of alternative energy should create more than 20 million jobs around the world in coming decades as governments adopt policies to address the depletion of resources, according to a UN report, which estimates that some 2.3 million people already work in clean energy jobs, with half of them in biofuels. Speedy creation of the jobs will depend on countries implementing and broadening policies including capping emissions of greenhouse gases, and the shifting of subsidies from the oil and natural gas sector, to new energy including wind, solar and geothermal power, it said. "If we do not transform to a low-carbon economy we will miss a major opportunity for the fast tracking of millions of new jobs," Achim Steiner, UNEP director, told reporters. He said movement toward the jobs will occur even if the world does not come to a new agreement by the end of next year on stabilising and then cutting greenhouse gases because the global population is headed toward 8 billion or 9 billion by 2050, while new resources like metals, oil and gas are becoming more expensive to find. But if the world waits 10 years to take serious action on greenhouse gases the costs for moving to a green economy will be much higher, he said.
