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Energy Efficiencies Opportunities Program drives emissions and financial savings for industry

Written by Bruce Thomas

Wednesday, 10 March 2010 19:19

The Department of Resources, Energy and Tourism has released the first report on actions under the Energy Efficiency Opportunities (EEO) program. “First Opportunities, A Look at Results from 2006-2008 for the Energy Efficiency Opportunity program” notes the following:

Opportunities have been identified to save more than 6 million tonnes of CO2-e per year (1.1% of Australia’s total emissions for 2006-07)
As of December 2008 corporations reporting under the program had assessed 1,019 PJ of total energy use “identifying opportunities with energy savings of 67.7 PJ, or 6.6% of their assessed energy use….yielding a potential financial return of $736 million if these projects are implemented.[i]”

To put this energy saving in context, 67.7 PJ is the equivalent total energy consumption of 1.4 million Australian households.

It is interesting to note that the aluminium, ferrous metals and oil and gas industries who strongly opposed the introduction of the CPRS (i.e. a price on carbon) were at the forefront of those identifying substantial opportunities to save energy by way of the EEO program.

The identified energy savings are expected to deliver net annual financial benefits of $736 million from projects with a payback period of less than 4 years. Of these identified financial savings, $530 million relates to projects with a payback period of less than two years.

With energy prices continuing to increase, the argument to implement energy efficiency measures is compelling.

Whilst the EEO program is directed at large Australian businesses, the opportunity for the SME sector to improve efficiency, reduce emissions and save money should not be overlooked.

Developing the requisite skills within organisations to drive energy efficiency and other emissions strategy must be a high priority for all sectors of the business community, civil society and households.

The provision of competency based workplace training is the most efficient means of gaining these skills.

Electricity prices have, and will continue, to increase. The Financial Review today reports that Western Australian electricity prices need to increase by 75% over four years to reflect the true cost of electricity.[ii]

[i] First Opportunities Report http://www.ret.gov.au/energy/Documents/energyefficiencyopps/PDF/EEO_FirstOpportunitiesReport_2010_FINAL.pdf

[ii] Australian Financial Review 8 March 2010, page 8.

True cost of oil not reflected at the bowser

Written by Bruce Thomas
Sunday, 07 March 2010 14:05
Terry Tamminem, until recently head of the Californian Environmental Protection Agency, was quoted yesterday [i] as suggesting that the price of petrol would need to rise from current levels of $1.20 to $3.60 per litre if all externalities: health costs congestion impact on the environment energy security measures are taken into account. The community bears the cost via higher taxes. Due to the lack of transparency in the true cost of bringing products and services to market, there exists an unchallenged acceptance of these costs. Trebling petrol prices (an increase of $2.40 per litre) to incorporate externalities makes the impact of a price on carbon pale into insignificance. Using the accepted conversion factor of 2.5 kg of carbon dioxide emissions from burning a litre of petrol, a carbon price of $20 per tonne equates to a price impact of 5 cents per litre; less than the weekly fluctuation in Sydney petrol prices from Tuesday through to Saturday.Examples of technological breakthroughs that have resulted in improved fuel efficiency include hybrid vehicles and high performance diesel engines.
Last Updated on Tuesday, 09 March 2010 16:01
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Byron Bay court ruling puts councils on notice to consider climate change impacts when making planning decisions

Written by Rob Nicholls

Thursday, 04 February 2010 18:50

In a landmark decision on Monday 1^st February, the NSW Land and Environment Court ruled against Byron Shire Council which sought to prevent a resident building a barrier to protect his property that was threatened by coastal erosion.

The court has also ordered that the council must "maintain, monitor and repair beach stabilisation works at four other vulnerable sites".[1]

Whilst a lack of a coordinated national approach to coastline management and the impact of climate change has been identified as a factor, the decision by Byron Shire Council to put the local planning ordinance in place and then try to legally defend has been singled out as a major concern.

Although local governments are not supported by a uniform national approach to climate change planning, the apparent lack of knowledge, skills and expertise in climate change risks, adaptation strategies and mitigation appears to be a shortcoming of growing concern.

For councils that manage areas of low-lying coastal land there is a strong and clear message that is being sent that if "they allow development without taking into account climate change impacts they will be held liable".[2]

Councillors who are not equipped with the skills, expertise or frameworks in climate change risk management are not only a risk to the council but also to ratepayers and residents who are affected by council decisions.

It's not enough to have general knowledge and awareness around climate change, today's key decision makers must have access to demonstrable competencies and capacity that only accredited training programs in climate change risk and carbon management can deliver.

Formal learning and demonstration of associated competencies and skills is an important area of development to ensure a consistent and serious approach to the management of climate change risks by councils. This learning platform is also an opportunity for knowledge sharing through case studies to further support improved decision making.

For individual councillors ,it may eventually arise that liability insurance will only be available to those who can demonstrate they have completed appropriate certified training, including training in climate change risk and carbon management

[1] "Coastal Councils want legal sea change", The Australian Financial Review, p3, 030210

[2] ibid, quote by Mark Bartley, DLA Phillips Fox

India to create energy efficiency credits to tackle carbon emissions

Written by Bruce Thomas
Friday, 22 January 2010 13:57
The Indian Government has announced the introduction of a market in energy efficiency credits which is expected to grow to a total volume of 740 billion rupees ($US17.5 billion) by 20115. "Businesses exceeding energy efficiency targets will get credits they may trade on power exchanges with companies that fail to meet the goals, Bureau of Energy Efficiency Director- General Ajay Mathur said in an interview in Mumbai."[i] India has already announced plans to reduce carbon intensity (CO2 emissions per unit of GDP) by up to 25% from 2005 levels by 2020. The energy efficiency targets are expected to be announced by March 2010.
Last Updated on Friday, 22 January 2010 14:23
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Government to formalise greenskills workplace training

Tuesday, 01 December 2009 16:08

On the 20th November the states and territories endorsed the National Green Skills Agreement.

This agreement represents a commitment by the Australian and State and Territory Governments to work together with training organisations and business to ensure that skills for sustainability are an integral part of all vocational education and training (VET).

"This is an important milestone development to responding to the critical green skills training needs that the Australian workforce requires for enabling business to transition to the low-carbon economy." said Rob Nicholls, CTI's Director Innovation & Organisational Adaptation.

Just as importantly, the agreement provides for a green skills training framework that employers and candidates can confidently rely on.

"As all VET accredited green skills training will be underpinned by the strict guidelines of the Australian Quality Framework, organisations and individuals will be able to easily identify and select courses that are best practice, deliver to the needs of business and which support competency-based and assessed outcomes' said Rob.

Green Skills is very broadly defined and it is currently difficult for people to make fully informed decisions about which training courses will not only deliver the relevant workplace skills to their staff, but also whether the training is credible, reliable, comes with some guarantee and is formally recognised.

"We are seeing an increase in the number of short courses and training programs in the discipline of carbon management being offered by private training organisations, but it's almost impossible to determine under what guidelines, standards or frameworks the training has been developed. This in itself is a risk to the participants who undertake the course as they can't be assured of the quality of the training they are receiving, including the qualifications of those delivering it. The establishment of standards is critical to the credibility of green skills training" said Rob.

The move to formalise green skills workplace training will ensure that accredited training can be quickly identified, where the seal of guarantee will be the governments VET logos and registration on the National Training Information Service.

More information about the National Green Skills Agreement can be found on the Deputy Prime Minister's media release.

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