One step forward in Australia

2008 marks a dramatic step forward for Australian action on Climate. With an election win old news Prime Minister Rudd ratified the Kyoto Protocol for Australia; a significant about turn on the ignorance displayed under the Howard government.

The move towards reducing Australia GHG emission is significant already. The government are moving on:

• The introduction of a national emissions trading scheme no later than 2010,
• The introduction a target for 20% renewable electricity by 2020,
• and the creation a series of funds including:

1. $500M for a clean coal fund,
2. $500M for a renewable energy fund,
3. $240M for a clean business fund; and,
4. $150M for an energy innovation fund

Now I am more a fan of the renewable energy push that a “clean coal” approach, but given our reliance on coal in Australia, and the proportion it contributes to essential energy services it seems like an indispensable part of a CO2 reduction formulae. My support for renewables comes from an inherent feeling that we need to start looking at sustainability of the population on earth; and sustainability starts with renewable energy sources, not expendable fossil fuel sources at any rate; so why not start now.

I am just returning from a two week session on energy production and distribution in New York. It was interesting to get the view of those in the US vs Canada vs Europe and of course we have the Aussie contingent. It is hard to generalize, but I still see a number of the Americans arguing that Climate Change is not an issue; and therefore the status quo on electrical generation mix is fine, whilst the Europeans take a very dynamic approach to changing the way we produce and distribute energy. Distributed generation, in the form of Wind Energy, Solar Energy and Co-generation; Micro generation (ie Solar Voltaic’s on houses) are all going through increasing cycles of investment and government sponsorship. In Canada and Australia I feel that we are lagging the European community, but sensitive to the degree of change necessary to stem the headlong rush to climate avalanche predicted by some. Whilst there remains a fraction of a chance that climate change might cumulate in an “avalanche” how can we continue to be satisfied with the status quo of atmospheric CO2 increases and accelerated increases in the CO2 atmospheric mix.

What is fascinating (and becoming obvious) is the way the US will take a back seat in renewable energy innovation. Whilst the US has led the charge in IT innovation (even thought the original micro processor and micro computers were designed in England) they are missing the boat in renewable energy. I point you to the attitude of conservation of fossil fuel resources and vehicle consumptions. In this regard the US mentality needs a reset. The Europeans however are thought leaders. What will be the governing factor is the liberal capital investment attitude taken in the American community vs the conservative approach in Europe.

However, government drive is also a key element. The European community have proposed a set of ambitious and comprehensive international agreements for the period after 2012, when the Kyoto Protocol’s first compliance period ends. The 27-member EU bloc has proposed that developed countries collectively reduce emissions 30% by 2020 and 60-80% by 2050 compared with 1990 levels.

Despite some global lag in government initiatives, a recent report published by the law firm Clifford Chance saw four out of every five companies globally believing more regulation is needed to curb climate change. Businesses around the world want governments to take a more coordinated approach to climate change and introduce more regulations to help them adapt. Businesses setting their strategies on climate change want to see clarity in governmental policy and thinking so that they avoid uncertainty. They are sending clear signals about the need for fair and consistent regulation on this issue, ideally based on a coherent global approach. The majority of companies surveyed said they are taking steps to mitigate risk that go beyond current requirements. The report also reveals that firms expect new business opportunities from climate change, including development of renewable energy technologies. Pity about America missing the Bali climate change meeting.

So, if the impetus is already there; Australia has changed their political agenda and the private sector and popular opinion is headed in the right direction. Europe is on board. A change of government in America is what is needed, but we have to wait a whole year to see that evolve.