14. Kyoto ‘2’ – signatures required
Algeria Gambia Kiribati Mozambique Portugal Sweden
Chile
Antigua & Georgia Kyrgyzstan Switzerland
Barbuda China Myanmar Qatar
Argentina Colombia Germany Lao DPR Namibia Republic of Korea Thailand
Armenia Cook Islands Ghana Latvia Macedonia
Nauru Republic of Moldova
Austria Costa Rica Greece Liberia Togo
Netherlands Romania
Azerbaijan Cuba Grenada Liechtenstein Trinidad & Tobago
Nicaragua Rwanda
Bahamas Cyprus Guatemala Lithuania Tunisia
Niger Saint Lucia
Bangladesh Czech Republic Guinea Luxembourg Turkmenistan
Nigeria St Vincent &
Grenadines
Barbados Denmark Guyana Madagascar Tuvalu
Djibouti Niue Samoa
Belgium Honduras Malawi Uganda
Dominica Norway Saudi Arabia
Belize Hungary Malaysia Ukraine
Dominican Republic Oman Senegal
Benin Iceland Maldives U. A. E.
Ecuador
Pakistan Seychelles
Bhutan India Mali United Kingdom
Egypt
Bolivia Indonesia Malta Palau Slovakia Tanzania
El Salvador
Botswana Ireland Marshall Islands Panama Slovenia Uruguay
Equatorial Guinea
Brazil Israel Mauritius Papua New Guinea Solomon Islands Uzbekistan
Estonia
Bulgaria European Community Italy Mexico Paraguay South Africa Vanuatu
Burundi Jamaica Micronesia Peru Spain Venezuela
Fiji
Cambodia Japan Mongolia Philippines Sri Lanka Viet Nam
Finland
Cameroon Jordan Morocco Yemen
France Poland Sudan
Kenya Lesotho
Not on board: Australia, NZ, Canada, Russia, Japan, USA
Renewable energy is the boom industry of today. The renewables industry is worth at least $USD260 billion annually. It has seen a 17% increase in 12 months and has grown six-fold since 2004, despite the GFC.1Globally, renewable energy sources now supply an estimated 20.3% of global electricity – and comprise more than 25% of total power-generating capacity (total capacity was approximately 5,360 GW in 2011).2It is safe to say - it has officially outgrown its ‘niche player’ status. In fact it is being hailed as a ‘new industrial revolution.’In 2011 about 50 new countries expanded into the renewable energy technology market. By 2012, at least 118 countries have renewable targets in place. FYI - Kenya aims to meet half of its electricity using clean geothermal energy by 2018.3Last year, solar power surpassed all forms of conventional and renewable resources to become the most-installed energy source in Europe, according to the European Photovoltaic Industry Association (EPIA).4The market for renewable energy can only increase.Sources:1. The Frankfurt School of UNEP Collaborating Centre for Climate & Sustainable Energy Finance,‘Renewables 2012 Global Status Report’, p. 7, accessed at http://www.map.ren21.net/GSR/GSR2012_low.pdf 2. ‘Renewables 2012 Global Status Report’, p. 13.3. ‘Renewables 2012 Global Status Report’, p. 41.4. European Photovoltaic Association, ‘Global Market Outlook for Photovoltaics until 2016’ (May 2012), p. 59, accessed at http://files.epia.org/files/Global-Market-Outlook-2016.pdfSee AlsoBloomberg New Energy Finance, Global Trends in Renewable Energy Investment 2012, accessed at http://fs-unep-centre.org/sites/default/files/media/globaltrendsreport2012_3.pdfhttp://www.climateactionprogramme.org/news/europe_experiencing_solar_boom/http://ec.europa.eu/commission_2010-2014/tajani/headlines/news/2012/05/120529_en.htm
Australia is playing its part in this technological shift. The Government’s Clean Energy Future Package, largely funded by the capital collected by the carbon price, is vital to Australia’s effort to stay competitive in the renewable energy race. In 2011, for the first time ever, global clean energy investment exceeded investment in fossil fuels1, led by sky-rocketing investments in countries like America, China, India and Brazil. In 2011 alone, US $257 billion was invested in clean energy, worldwide. 2These investments now underpin between 2.3-3 million jobs3 in clean energy industries worldwide. Some experts put this figure as high as five million4. The Clean Energy Future Package is Australia’s method of making sure we are part of this clean economy global boom.Sources:1 http://articles.latimes.com/2011/nov/25/business/la-fi-renewables-201111252 Bloomberg New Energy Finance, Global Trends in Renewable Energy Investment 2012, p, 5, accessed at http://fs-unep-centre.org/sites/default/files/media/globaltrendsreport2012_3.pdf3 Deutsche Bank Group (2011), Investing in Climate Change in 2011. The Mega-trend Continues: Exploring Risk and Return.4 http://www.map.ren21.net/GSR/GSR2012_low.pdf. P. 27
Funding collected via the carbon price is the backbone for this investment in Australia’s clean technology industry.In the first 12 months alone (July 2012 – July 1013) the carbon price will raise approximately $10 billion1. This pie chart above shows the proportion, in broad categories, of where money raised from the price on pollution will go.While more than half the money collected from Australia’s top carbon polluters will be returned to households ….Source:1: Securing a Clean Energy Future, The Australian Governments Climate Change Plan, Appendix C, Table 1, P 131http://www.cleanenergyfuture.gov.au/question-and-answer/where-will-the-money-raised-from-the-carbon-price-go/http://www.reuters.com/article/2011/07/12/us-macarthur-idUSTRE76B06W20110712Notes to presenters:contrary to the industry commentary that a price on carbon would be the end of the coal sector, US based energy giant Peabody Energy Corp staged a $4.7 billion takeover bid for the Queensland based Macarthur Coal Ltd on the afternoon after the announcement of the carbon price. Macarthur Coal received a takeover offer from Peabody Energy and ArcelorMittal. The offer valued Macarthur Coal at over $4.5 billion or around about $15.50 a share.
$16 billion of the money raised by putting a price on pollution, is to fund clean energy programs and sustainable land management – as indicated above …The money raised by the carbon price buys us beneficial reforms in almost every sector of society. It will fund assistanceto households and industry to help people transition and provide $16 billion Australian dollars of clean energy programs and land sector measures, including carbon farming. Some of these projects are already underway (ARENA) many others will roll out in this next financial year. We are off the starting blocks. Source:Securing a Clean Energy Future, The Australian Governments Climate Change plan. Pp. 121 – 129Notes to presenters:CEFC = Clean Energy Finance CorporationARENA = Australian Renewable Energy AgencyFunding is cumulative to 2018-19
Australia is making the biggest clean energy investment in our history. The Clean Energy Finance Corporation (CEFC), headed by banking executive Jillian Broadbent (pictured above) will start investing AUD$10 billion from July 2013. This injection of funds will spur private investment – in partnership with the CEFC. The CEFC is independent from government control. It combines the power of public funds with the ingenuity of private business.The Clean Energy Finance Corporation (CEFC) has an initial government investment of $10 billion to realise its mandate of:the commercialisation and deployment of renewable energy and storage technologies and investment in the gridthe commercialisation and deployment of energy efficiency and low emissions technologiesthe transformation of existing manufacturing businesses to re-focus on making the inputs for these sectors.Importantly, in combination with Australia’s 20 per cent Renewable Energy Target (RET), the CEFC will deliver a diversity renewable energy types such as solar thermal, geothermal, and wave, as ‘insurance to Australia securing the lowest cost of energy in a carbon constrained world.’1Source:1 Clean Energy Finance Corporation (2012), Clean Energy Finance Corporation Expert Review: Report to Government. Note to presenters:Just to clarify – a separate body titled The Climate Change Authority, headed by Anthea Harris, is an independent body able to make recommendations for new targets and strategies to regulate the amount of carbon pollution. It will be based in Melbourne, has been set up to provide advice on the government's policies for reducing carbon pollution.
This is a picture of Victoria’s Waubra wind farm. PricewaterhouseCoopers tells us this project has boosted the economy of its region, near Ballarat, by $346 million and created nearly 1700 jobs for the area. Moreover the recent PricewaterhouseCoopers modelling pointedly states that the “renewable energy infrastructure, construction and maintenance creates more jobs per dollar invested than conventional power generation." The report says the investment of $226.5 million had increased the Victorian industry output by $685 million and created 1882 new full-time jobs. In NSW, investment of $52.4 million in the construction and operation of Gunning wind farmhad created 358 full-time jobs in its region, reduced regional unemployment by 0.4 per cent and added $69.3 million to gross product for the area.A recent Sinclair Knight Merz (SKM) study, commissioned by the Clean Energy Council, details that a typical 50 megawatt (MW) wind farm pays host farmers some $250,000 per year, is constructed by workers who spend up to $1.2 million locally, and contributes up to $80,000 annually to community projects, according to a landmark study into the economic benefits of wind farms.1It found that for every 50 megawatts (MW) of capacity (enough to power nearly 21,000 homes annually), the average wind farm creates up to 48 direct jobs during construction, and then employs around five ongoing permanent staff.Clean energy means jobs.Sources:1. ‘Landmark report shows economic benefits of windfarms’, 15 June 2012, accessed at http://www.cleanenergycouncil.org.au/mediaevents/media-releases/June-2012/120615.htmlhttp://www.cleanenergycouncil.org.au http://www.power-eng.com/news/2012/06/12/wind-power-a-jobs-generator-pwc.html
Let’s look at what is happening right now in Australia. Australia is one of the first countries in the world where solar power is starting to reach what is known as 'grid parity‘, meaning it costs no more than traditional energy from the grid. So, even without solar subsidies it makes good economic sense to install the panels on your house.1In just one year, 2010, solar panel module prices fell by 40% while global capacity jumped by a staggering 74%.2 Global investment in solar technology has jumped 52% in 12 months (to USD$147 billion)3.Solar panels installed in Germany, Italy, Spain, Denmark and Australia can now compete with the retail cost of electricity in those countries, even as government feed-in subsidies are lowered.4Australians are taking notice of this boom. A recent report from the Australian Energy Market Operator* tells us over the last four years, roof top solar installed capacity has rocketed from rising from 23 MW in 2008 to an estimated 1,450 MW by the end of February 2012. 5 This is still only 0.6% of Australia’s energy mix, but installed capacity is forecast to reach 5,100 MW by 2020 and almost 12,000 MW by 2031 (based on a moderate growth scenario).6That’s enough energy to power 144,800 new homes, each year.7In addition to rooftop panels, the Australian Solar Institute has predicted a growth rate in large-scale concentrated solar installations of at least 20% per year.8Sources:1 Australian PV Association (on behalf of the International Energy Agency), ‘PV In Australia 2011’, p.1, accessed at http://www.apva.org.au/2 REN21, ‘Renewables 2012 Global Status Report’, pp. 48-49, accessed at http://www.ren21.net/REN21Activities/Publications/GlobalStatusReport/tabid/5434/Default.aspx.3 REN21, ‘Renewables 2012 Global Status Report’, p. 61, accessed at http://www.ren21.net/REN21Activities/Publications/GlobalStatusReport/tabid/5434/Default.aspx.4. Bloomberg New Energy Finance, Global Trends in Renewable Energy investment 2012, p, 52, accessed at http://fs-unep-centre.org/sites/default/files/media/globaltrendsreport2012_3.pdf5 Australian Energy Market Operator, ‘Rooftop PV Information Paper 2012’, p. 11, accessed at http://www.aemo.com.au/en/Electricity/Forecasting/~/media/Files/Other/forecasting/Rooftop_PV_Information_Paper_20_June_2012.ashx.6. Australian Energy Market Operator, ‘Rooftop PV Information Paper 2012’, p. 12, accessed at http://www.aemo.com.au/en/Electricity/Forecasting/~/media/Files/Other/forecasting/Rooftop_PV_Information_Paper_20_June_2012.ashx.7. The average Australian household consumes 7.5mw/h per year per householdhttp://www.abc.net.au/news/2011-09-07/solar-industry-celebrates-grid-parity/28755928. ‘Realising the Potential of Concentrating Solar Power in Australia’, http://www.australiansolarinstitute.com.au/SiteFiles/australiansolarinstitutecomau/RPSCPA_Report_180512_Web.pdf (p. 31)*The AEMO is an independent organisation which works with Australian energy consumers by developing markets that offer affordable, safe and reliable energy supplies. AEMO is responsible to the Council of Australian Governments (COAG) through SCER, while the AER is accountable to the Commonwealth Government as a constituent entity of the Australian Competition and Consumer Commission (ACCC).
Pictured above is Professor Paul Dastoor leader of a Newcastle University team that has developed solar paint - solar panel cells so thin that they can literally be painted onto your roof. Australia is home to innovative research in the solar technology - which will make rooftop solar even cheaper and easier to install. Newcastle is traditionally associated with coal and Prof.Dastoor tells us that he and his team are excited about diversifying. “We know we are not going to be able to mine this coal forever. What we are offering is low-cost, environmentally sustainable technology, being developed right here in this University, that could help this region and Australia make the transition to a more diverse, progressive economy,“ Professor Dastoor explained.Already, in partnership with CSIRO, Dastoor’s team has developed solar cell technology to a point where semi-conducting cells mixed with water can be printed on simply flexible plastic with an inkjet printer. “We make plastic chip packets so cheaply that we throw them away when we are finished with them," he says, "which gives you an indication of how inexpensively we could manufacture this (plastic) product.’’Solar paint could be available to buy in just five years. And how much do they need in financing to commercialise the project? Just $15 million over three years. That’s only 0.15% of the CEFC ‘s $10 billion fund.“This is something that could be on every roof – domestic and business – in Australia. We see it as replacing traditional solar panels entirely.” Sources:http://www.newcastle.edu.au/research-centre/coe/http://www.newcastle.edu.au/research/achievers/something-new-under-the-sun.htmlProfessor Paul Dastoor, in conversation (12 June 2012)
This is a photo of a collector installed at the Bridgewater facility in Victoria, Australia. It is the first functioning demonstration plant of Australian developed concentrated solar power (CSP) technology. Industry tells us that Australia needs to stay in the race – or risk losing its advantage.A recent report says that Australia could lose the opportunity to be a world leader if it did not set out a clear roadmap for the technology.1“With concentrated solar power exploiting its world-leading solar resources, Australia can claim a significant place in the global clean energy supply chain,” it says. “Delaying action will see that opportunity missed.”SourcesAustralian Solar Institute, Figure 11, ‘Aspirations of CSP in Australia’ in the report ‘Realising the potential of Concentrating Solar Power in Australia’, accessed at http://www.australiansolarinstitute.com.au/reports/.aspx.Note to presentersThe Bridgewater facility is operating and the largest concentrated solar plant in Australia, with a capacity of up to 500kW output.
The graphs above tell the story of why now is the time to invest in clean energy Australia is the lucky country in more ways than one. We all know that our coal and mineral deposits have made us into a resource superpower, but did you know that a comprehensive government survey of Australia’s energy resources concluded that our solar, wind and tidal energy resources “were among the best in the world”?1If we do nothing to capitalise on these natural resources, we face an uncertain future. Look at the graph of coal and oil prices over the last twenty years. 2 The International Energy Agency believes that the production of oil peaked in 2006, while the rise of economies like China and India mean that oil demand will continue to grow.3 Under these conditions, oil prices are not going to go down again, and are likely to keep growing.Meanwhile, renewable energy keeps getting cheaper, and by 2009-2010 8% of Australia’s electricity production came from renewable energy 4there is bipartisan agreement to lift that figure to 20% by 2020.5 On these trends, renewable energy will be competitive with fossil fuels in a matter of years, not decades.6Renewable energy is a sound investment in Australia’s future.SourcesDepartment of Resources, Energy and Tourism, ‘Energy in Australia 2012’, p. 33, accessed at http://www.bree.gov.au/documents/publications/energy/energy-in-australia-2012.pdf. Sources1. Geoscience Australia and the Australian Bureau of Agricultural and Resource Economics, ‘Australian Energy Resource Assessment’, p. 5, accessed at https://www.ga.gov.au/products/servlet/controller?event=GEOCAT_DETAILS&catno=70142.2. International Energy Agency, ‘World Energy Outlook 2010: Executive Summary’, p. 6, accessed at http://www.iea.org/Textbase/npsum/weo2010sum.pdf3. Ibid.4. “The Coalition supports a 20 per cent Renewable Energy Target,” in ‘The Coalition’s Plan for Real Action on the Environment, Climate Change and Heritage’, p. 14, accessed at http://www.liberal.org.au/~/media/Files/Policies%20and%20Media/Environment/Environment%20Policy.ashx5. Department of Resources, Energy and Tourism, ‘Energy in Australia 2012’, p. 33, accessed at http://www.bree.gov.au/documents/publications/energy/energy-in-australia-2012.pdf6. ‘IEA sees renewable energy growth accelerating over next 5 years’, July 5 2012, accessed at http://www.iea.org/newsroomandevents/pressreleases/2012/july/name,28200,en.htmlCharts:1. US Department of Energy, ‘2010 Solar Technologies Market Report’, p. 60, accessed at http://www.nrel.gov/docs/fy12osti/51847.pdf.2. The World Bank, ‘GEM Commodities’, (Australian Coal, Crude Oil), accessed at http://data.worldbank.org/data-catalog/commodity-price-dataNote to presenters:These graphs are not intended to be directly comparable (solar is not yet cheaper than coal), they illustrate the trends in costs.
Pictured is Northern Power station, one of two aging power stations at Port Augusta which produce 40% of South Australia’s energy from fossil fuels. With the right investment, plant owners Alinta Energy are open to the reality of decommissioning the coal plants and replace them with a cutting-edge solar thermal plant. The decision is not yet final. But Jeff Dimery, Head of Alinta, says, “We’re exploring the idea of building a renewable facility…and solar thermal would be ideal, as there is a good sun resource in the region.” The local community is behind the project, as is Port Augusta’s Mayor Joy Baluch. So what’s standing in the way?As Jeff Dimery explains, “The technology requires funding, and it’s a case of needing to convince government that it is one of the better projects. We intend to explore it.” With the business community and the local community both behind building a solar thermal plant – Alinta just need the investment. Now they have someone to talk to. Port Augusta is exactly the kind of project that the Clean Energy Future package was made to support. Sources:http://www.climatespectator.com.au/commentary/brown-coal-solar-thermalhttp://www.ourworldtoday.com.au/news/article/big-solar-for-port-augustahttp://www.abc.net.au/am/content/2012/s3480713.htm
This transition is underway – (CLICK ON THE SLIDE TO PLAY A SHORT MOVIE) Professor Will Steffen the executive director of the Australian National University (ANU) Climate Change Institute tells us in the recently released documentary The Inertia Trap – it is time to talk about this change as a positive one.He explains that: ‘’This missing part of the climate change story is that the transition we need to make is actually not a negative one. Yes we have some transition challenges – to make these changes – but in fact, at the end of the day, our grandchildren will be better off – just like we are better off than our grand parents.”
Let’s not lose sight of all the things which are important to us as Australians. Around $1 billion will be spent over 6 years to make sure the landscape we experience now – is still vital and part of future generations of Australian's sense of place.Already the first round of the Clean Energy Future Package’s Biodiversity Fund has been given to community-based projects to keep the landscape and special places alive and well for future generations to enjoy and experience.This work will do more than store carbon in the environment – it will mean our children, and our children’s children will be connected to the places which define our experience of what it means to be part of the natural world.Source:http://www.environment.gov.au/cleanenergyfuture/biodiversity-fund/index.htmlNotes to presentersSpecifically, the Biodiversity Fund will:- support a project to restore Queensland’s Condamine catchment landscape, in collaboration with the local community- provide $2.6 million to rehabilitate South Australia’s remnant coastal corridor, the Samphire Coast, over the next six years- support a project to protect Victoria’s iconic River Red Gums and restore native vegetation along the Hopkins River- revegetate more than 100,000 hectares of land nation-wide - protect more than 13 million hectares from invasive species- provide more than $26.1 million to support Indigenous groups in long-term biodiversity conservation and carbon storage projects- provide further $21.7 million to revegetation and rehabilitation projects that create additional indigenous employment in remote communities
This is Portland Mayor, Geoff White. Portland, in the state of Victoria was the first council to receive a development application for wind turbines, in 2005. Now has enough in the shire to provide energy for several local towns combined.It is home to an aluminium smelter but also made a decision to be a renewable energy hub. In 2005 the first blade was produced in Portland to build one of what is now four wind farms.1Cllr White explains: “...because of the issues that surround climate change globally. We would like to think that here in this Shire we are doing our bit to find our way forward to deal with the climate change issues that are emerging".The economists at the International Energy Agency tell us that if current trends continue, and we go on building high-carbon energy generation, then by 2015 at least 90% of the available "carbon budget" will be swallowed up by our energy and industrial infrastructure, and by 2017 the whole of the carbon budget will be spoken for.2We are the generation responsible for what happens next in terms of climate change. It’s not just about money, it’s about much more than that - how we want to live and what we want our country to look like in the near future.Sources:1. Ecolibria, ‘Vestas Blades’, accessed at http://www.ecolibria.com.au/Case-Studies/Vestas-Air-and-Soil-Sampling 2. The Guardian, ‘World headed for irreversible climate change in five years, IEA warns’, accessed at http://www.iea.org/journalists/headlines.aspNote to presenters:The factory where the blades were built for the Portland windfarm has subsequently closed. It closed because the market wasn’t large enough to support it – which is the thrust of the discussion around investing the clean energy boom.
