broadacre – carbon inventory introduction site / company name and logo here presenter/s names here...
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Broadacre – Carbon inventory introduction
Site / company name and logo here
Presenter/s names hereThis is an AgriFood Skills Australia Ltd project developed in partnership with Energetics Pty Ltd and funded by the Australian Government under the Clean Energy and Other Skills Package
• Climate change • Resource depletion
– Energy– Water– Materials
• Increased emissions, contamination & waste
• Reduced air quality • Loss of biodiversity
2
What is the problem?
How is economic activity affected by climate change?
Agriculture, tourism and insurance•Directly affected - more droughts, floods and bush fires.
Carbon taxes, energy tariffs and emissions trading.•To address climate change, emissions must be reduced
Impact upon other sectors•Energy sector costs flow through to energy intensive sectors – mining, manufacturing
Other indirect impacts include •Reduced demand for products
•Disruption to business activities
•Potential litigation•Brand and reputation risk
Longer term global impacts potentially:•Large scale refugee movement
•Political instability •Social unrest.
Risks specific to Australia
Access to Water • Australia is the driest
continent on earth • Many industry sectors
are dependent on access to water for operation.
Market related risks• Climate change risks in
other countries may differ remarkably – regulations, consumer behaviour
Energy pricing• Low energy costs, greenhouse
intensive coal sources• Costs to increase – oil prices,
carbon, lack of investment, drought conditions
Regulatory uncertainty• Carbon Price and Emissions
Trading.• Uncertainty - difficulty in long-
term infrastructure/ asset planning.
Things to consider when managing carbon – organisational boundariesDecisions must be made as to how emissions will be aggregated. Three approaches include:•Equity share•Financial control•Operational control
Operational control is default boundary! – required for reporting to Australia’s National Energy and Greenhouse Reporting System (NGER)
What is operational control? Defined in Australian law as the right to introduce or implement operating, health and safety or environmental policies
Things to consider when managing carbon – operational boundaries
Scope 3 “Emissions from services You use and products You
produce”
Nat Gas
PetrolProcess emissions
LPG
Scope 2 “Fuel burnt for You”
Scope 1“Fuel You Burn”
Electricity
Reporting / reduction programs
• NGER (Australian) – Mandatory reporting of national energy consumption and production and greenhouse gas emissions above legislated thresholds.
• EEO (Australian) – Mandatory identification of energy efficiency opportunities by energy users above thresholds.
• CDP (International) – Voluntary requests for greenhouse and energy disclosure from over 2,500 organisations. CDP acts on behalf of 534 global institutional investors
NB: No longer considered “voluntary” for Australia’s top 200 companies
The business case for carbon management– emissions & profit
Figure 8: Carbon intensity by sector (VicSuper Carbon Count 2009)
The business case for carbon management – carbon labeling
uk carbon trust
.
Aldi – first company in Australia to introduce
Carbon Reduction Labels.
Suppliers now required to• report GHG emissions
• commit to GHG reductions
Aldi – first company in Australia to introduce
Carbon Reduction Labels.
Suppliers now required to• report GHG emissions
• commit to GHG reductions
Woolworths and the Australian Food and Grocery Council conducting study on benefits of carbon
labeling
Woolworths and the Australian Food and Grocery Council conducting study on benefits of carbon
labeling
The business case for carbon management – carbon trading
• Japan – currently designing ETS that is likely to be implemented in 2011
• NZ – ETS started 1 July 2010• China - likely to have an ETS• EU – existing ETS may legislate a 30% reduction target• UK Coalition - setting a floor price for carbon• US – multiple regional ETS’
From 1 July 2012 – Australia has a price on carbon set at $23 per tonne of CO2-e – following a number of other
countries
NB: Emissions trading works: EU verified emissions showed a decrease of 11% in 2009
The business case for carbon management – carbon price
Q: Who pays the Carbon price?Q: Who pays the Carbon price?
Some pay directly eg. Large users of coal such as coal fired power stations
Some pay directly eg. Large users of coal such as coal fired power stations
Some pay indirectly eg. Consumers of electricity / smaller users of fuelsThink petrol excise – you pay, but payment collected upstream
Some pay indirectly eg. Consumers of electricity / smaller users of fuelsThink petrol excise – you pay, but payment collected upstream
The business case for carbon management – what level of price?
What might a carbon price be?
Interim tax$23
Introduced 1 July 2012
Permit price5% reduction
target for 2020= $25 in 2013
Transition to trading scheme
(variable price)= $20 - $35 in
2015
Regulationeg. ban on all
coal - fired generators
(incl. boilers)
NB: Very costly for someNB: Very costly for some
Costs spread across the economy
Risk and opportunity identificationThese include:• Physical – damage to functioning of assets / take advantage of shifting climatic
zones
• Regulatory – exposure to / seize opportunities around:
- current and future requirements;
- administrative burden;
- direct and pass-through carbon price costs
• Litigation – CEO liability or opportunity (NGER and EEO)
• Competitive – business environment will change – advantage or risk?
• Reputational – information is in public domain
The business case for carbon management
Experience shows that sustainability makes good business sense
• Embedding sustainability within an organisation’s broader business strategies frequently results in organisational and technical innovations that generate both top- and bottom-line returns.
• Reducing inputs to a business, due to a carbon-constrained economy, reduces costs.
• Reducing inputs requires new or improved products or even new business lines.
Additional slides for management presentation
• Insert following slides as required
Summary graph from baseline tool
Insert summary graph from baseline tool
Energy Cost Tonne CO2 -e
$48,135
$300,844 $2,465
$29,664
$906,400
$7,334
$5,771
$186,875
$399$229,441
Financial Year 2012 Energy Usage, Resources Cost and GHG Emissions
Natural Gas Electricity Diesel Water
The size of your footprint
Insert summary graph 1 from inventory
012345678
Total annual emissions (kt CO2-e)
Scope 1 v scope 2 emissions
Insert Summary graph 2 from inventory
Scope 1 emissions
24%Scope 2 emissions
76%
Energy use by emissions source
Insert summary graph 3 from inventory
0102030405060
Annual energy consumption (TJ)
Carbon price impact
• Insert summary slide 4 from inventory
Scenario 1 Tax ($10/tCO2-
e)
Scenario 2Permits: 5%
target ($23/tCO2-e)
Scenario 3Permits: 25%
target ($32/tCO2-e)
Scenario 4 Regulation
without price
$-
$50
$100
$150
$200
$250
$300
$350
Carbon liability under 3 pricing scenarios
Indirect liabil-ityDirect liabilityTotal
Unknown fin-ancial impact without fur-ther and site specific ana-lysis
Unknown fin-ancial impact without fur-ther and site specific ana-lysis