tag:theconversation.com,2011:/fr/topics/clean-energy-policy-35963/articlesclean energy policy – The Conversation2024-02-26T21:18:58Ztag:theconversation.com,2011:article/2231642024-02-26T21:18:58Z2024-02-26T21:18:58ZRenewable energy innovation isn’t just good for the climate — it’s also good for the economy<p>As the climate crisis escalates, there are urgent and difficult choices that need to be made to drastically <a href="https://www.ipcc.ch/2023/03/20/press-release-ar6-synthesis-report/">reduce our carbon emissions</a> before more <a href="https://www.ipcc.ch/report/ar6/wg2/chapter/summary-for-policymakers/">irreparable damage</a> is done. </p>
<p><a href="https://www.iea.org/news/new-iea-report-highlights-the-need-and-means-for-the-oil-and-gas-industry-to-drastically-cut-emissions-from-its-operations">Many have argued the energy industry needs to change</a> to <a href="https://www.theguardian.com/environment/2023/mar/20/ipcc-climate-crisis-report-delivers-final-warning-on-15c">reduce carbon emissions</a>, but one concern that remains is the consequence this will have on economic prosperity. </p>
<p>Discussions vary across interest groups. Do we need to outright <a href="https://priceofoil.org/2023/08/16/shut-down-60-percent-existing-fossil-fuel-extraction-1-5c/">replace the fossil fuel industry with the renewable energy industry</a> as soon as possible? Should we slowly <a href="https://doi.org/10.1038/s41467-018-07999-w">phase out fossil fuels while making clean renewable replacements</a>? Or, should we <a href="https://oilprice.com/Energy/Oil-Prices/Why-We-Still-Need-Oil-Gas-For-Decades-To-Come.html">continue with a powerful fossil fuel industry</a> while separately growing a renewable industry in parallel? </p>
<p>How these different choices could impact our economies seems unclear, and it is this lack of clarity that opens up the field for frustrating discussions. At the recent COP28 climate summit in the United Arab Emirates, the conference president shockingly said that there is <a href="https://www.theguardian.com/environment/2023/dec/03/back-into-caves-cop28-president-dismisses-phase-out-of-fossil-fuels">“no science”</a> behind any decision to phase-out fossil fuels from our energy systems — a statement which he later <a href="https://www.theguardian.com/environment/live/2023/dec/04/cop28-backlash-after-president-claims-no-science-behind-fossil-fuel-phase-out">claimed was “misinterpreted.”</a> </p>
<p>My recent research <a href="https://doi.org/10.1016/j.jclepro.2024.141018">examines energy industry restructuring options for a green transition to renewable energy</a> from an economic perspective.</p>
<p>Although economic analysis is helpful, it is not sufficient on its own for making these important decisions. So, my research also draws on <a href="http://www.un-documents.net/our-common-future.pdf">sustainability</a> which involves considering the conditions faced by future generations, and a concept known as <a href="https://www.merriam-webster.com/dictionary/equifinality">equifinality</a> reminding us to keep our minds open to many possible approaches that may satisfy the same objectives.</p>
<h2>Renewable energy innovation and GDP</h2>
<p>My research indicates that renewable energy innovation contributes to higher GDP. Contrary to some commonly held beliefs, a clean transition is, and has been for at least a decade, good for the economy — even in earlier stages of its development. </p>
<p>My findings also suggest that <a href="https://www.cfr.org/backgrounder/how-us-oil-and-gas-industry-works">government and industry support for the fossil fuel industry</a> negatively affects a country’s renewable energy innovation. The two industries are not compatible. </p>
<p>When the fossil fuel industry invests in itself, it also <a href="https://www.canadianenergycentre.ca/the-oil-and-gas-sectors-contribution-to-canadas-economy-2/">appears to improve GDP</a>, which creates confusion about the best way to ensure economic prosperity while transitioning to clean energy.</p>
<p>But this investment, often made through <a href="https://www.cbc.ca/news/canada/cop28-fossil-fuel-lobbyists-1.7048746">lobbying</a>, only prolongs the existence of the fossil fuel industry by keeping renewable energy competition out. This creates a false dichotomy between reducing emissions and improving GDP when, in fact, clean innovation can achieve both simultaneously.</p>
<p>My research indicates that clean innovation makes a stronger economy <em>and</em> reduces emissions. If we want to reinforce that dual progress, rather than accepting trade-offs, then we have to stop supporting the fossil fuel industry which aims to slow it down.</p>
<h2>Helping renewable energy thrive</h2>
<p>Economically speaking, the fossil fuel industry is <a href="https://competition-policy.ec.europa.eu/about/why-competition-policy-important-consumers_en">negatively impacting consumer welfare</a> by maintaining <a href="https://www.cbc.ca/news/canada/calgary/oil-gas-enserva-report-industry-canadian-energy-sector-1.7059687">higher-than-necessary prices due to limited competition</a>. This, in turn, bumps up GDP through inflated profits, having subsidised an already dominant polluting industry, reducing clean innovation and delaying cleaner progress — obviously not the way to grow a healthy economy. </p>
<p><a href="https://www.investopedia.com/terms/g/gdp.asp#toc-gdp-vs-gnp-vs-gni">In fact, GDP is not a standard of living measure or a measure of innovative competitiveness</a>. To address inflation and the cost of living crisis, we should be promoting more competition across industries. This is a more productive type of capitalism that brings wider benefits to all of us, including more innovation, lower prices, and better products for domestic and export markets.</p>
<p><a href="https://www.ipolitics.ca/opinions/we-must-stop-investing-in-the-fools-gold-that-is-fossil-fuel">Government subsidies</a> that boost the fossil fuel industry hinder consumer welfare and the transition to clean energy. Some examples include subsidies to fund more <a href="https://www.desmog.com/2023/12/08/report-canada-u-s-carbon-capture-and-storage-ccs-public-subsidies-funding-oil-change-international/">carbon capture and storage technology</a> and the use of fossil energy in <a href="https://environmentaldefence.ca/federal-fossil-fuel-subsidies-tracking/">hydrogen storage systems</a>. </p>
<p>Instead of funding these backward subsidies, governments should implement <a href="https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/putting-price-on-carbon-pollution.html">pollution taxes</a> while also supporting renewable energy innovation. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/state-owned-energy-companies-are-among-the-worlds-most-polluting-putting-a-price-on-carbon-could-help-213501">State-owned energy companies are among the world's most polluting – putting a price on carbon could help</a>
</strong>
</em>
</p>
<hr>
<p>My research demonstrates that pollution taxes work well with clean innovation capabilities. Supporting research and innovation in renewable energy and using a carbon tax as a tool can boost the economic benefits of transitioning to clean energy.</p>
<p>The findings of my work suggest that a robust economy is related to industry restructuring so that renewable energy innovation can thrive. Fostering novel scientific discoveries in clean energy innovation should be prioritized while reducing non-competitive industry formations and organizations, such as fossil fuel oligopolies and industry associations.</p>
<h2>Making decisions with the future in mind</h2>
<p>Increasing public awareness and understanding of <a href="https://news.harvard.edu/gazette/story/2021/09/oil-companies-discourage-climate-action-study-says/">fossil fuel industry games</a> is a way to accelerate change. It’s important to recognize that industries at different <a href="https://www.investopedia.com/terms/i/industrylifecycle.asp">life cycle stages</a> contribute to the economy in different ways. </p>
<p>A newer rising industry with determined entrepreneurs, like that of renewable energy, invests in innovation to create value. On the other hand, a declining industry plays end-game strategies, like engaging in self-promotional activities, to maintain their existing position and <a href="https://www.investopedia.com/ask/answers/061115/how-strong-are-barriers-entry-oil-and-gas-sector.asp">create barriers to new industry entries</a>. </p>
<p>However, consumer welfare increases with competition, not collusion. Economic analysis is not sufficient on its own for decision-making in this area because positive economic outcomes can be generated by different kinds of strategies supporting an industry’s life cycle goals.</p>
<p>Government policy decisions should be made based on economic analyses alongside broader sustainability criteria. Ignoring the equifinality argument and reverting to discussions about <a href="https://www.bloomberg.com/news/articles/2023-12-13/cop28-deal-signals-role-for-gas-in-transition-to-clean-energy">replacing coal with gas as a bridge</a> only ensures fossil fuels remain in use for at least another generation of infrastructure. </p>
<p>Communities should apply sustainability and equifinality lenses to decision-making, understanding that there are many possible means to an end. For example, if a community has specific concerns about one type of renewable energy system, they should explore <a href="https://www.un.org/en/climatechange/what-is-renewable-energy">other alternative clean energy options</a> instead of defaulting to fossil fuels. </p>
<p>An educated public should reject simplistic and single-sided arguments and understand there are usually more nuanced solutions to problems supported by evidence-based analysis. By embracing a more holistic approach, we can develop more sustainable societies by opening up renewable energy possibilities.</p><img src="https://counter.theconversation.com/content/223164/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Deborah de Lange receives funding from SSHRC and ESRC. She is a member of/volunteer for the Liberal Party of Canada and The Writers' Union of Canada.</span></em></p>Recent research about energy industry restructuring options for a green transition indicates that innovation in renewable energy positively influences GDP.Deborah de Lange, Associate Professor, Global Management Studies, Toronto Metropolitan UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2226162024-02-08T03:13:07Z2024-02-08T03:13:07ZFirst Nations people must be at the forefront of Australia’s renewable energy revolution<p>Australia’s <a href="https://www.taylorfrancis.com/chapters/edit/10.4324/9781003242499-10/getting-right-katie-quail-donna-green-ciaran-faircheallaigh">plentiful</a> solar and wind resources and proximity to Asia means it can become a renewable energy superpower. But as the renewable energy rollout continues, Aboriginal and Torres Strait Islander people must benefit. </p>
<p>Renewables projects can provide income and jobs to Aboriginal land owners. Access to clean energy can also help First Nations people protect their culture and heritage, and <a href="https://www.sciencedirect.com/science/article/pii/S2667095X23000296#bbib0060">remain on Country</a>. </p>
<p>This is not a new idea. Policies in the United States and Canada, for example, actively seek to ensure the energy transition delivers opportunities to Indigenous people.</p>
<p>The Australian government is developing a <a href="https://www.energy.gov.au/energy-and-climate-change-ministerial-council/working-groups/first-nations-engagement-working-group/first-nations-clean-energy-strategy">First Nations Clean Energy Strategy</a> and is seeking comment on a <a href="https://consult.dcceew.gov.au/first-nations-clean-energy-strategy-consultation-paper">consultation paper</a>. Submissions close tomorrow, February 9. If you feel strongly about the issue, we urge you to have your say.</p>
<p>We must get this policy right. Investing meaningfully in First Nations-led clean energy projects makes the transition more likely to succeed. What’s more, recognising the rights and interests of First Nations people is vital to ensuring injustices of the past are not repeated.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/beyond-juukan-gorge-how-first-nations-people-are-taking-charge-of-clean-energy-projects-on-their-land-213864">Beyond Juukan Gorge: how First Nations people are taking charge of clean energy projects on their land</a>
</strong>
</em>
</p>
<hr>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/iziFTbt52Mw?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">A video by author Adam Fish exploring the Eastern Kuku Yalanji community of Wujal Wujal in Queensland and their struggle for renewable energy..</span></figcaption>
</figure>
<h2>Good for business, and people</h2>
<p>Indigenous peoples have recognised land interests covering around <a href="https://www.theguardian.com/australia-news/ng-interactive/2021/may/17/who-owns-australia">26% of Australia’s landmass</a>. <a href="https://theconversation.com/how-can-aboriginal-communities-be-part-of-the-nsw-renewable-energy-transition-181171">Research</a> shows Aboriginal land holders want to be part of the energy transition. But they need support and resources. </p>
<p>This could take the form of federal grants to make communities more energy-efficient or less reliant on expensive, polluting diesel generators. Funding could also be spent on workforce training to ensure First Nations people have the skills to take part in the transition. Federal agencies could be funded to support grants for First Nations feasibility studies of renewable energy industry on their land.</p>
<p>As well as proper investment, governments must also ensure First Nations people are engaged early in the planning of renewable projects and that the practice of free prior and informed consent is followed. And renewable energy operators will also need to ensure they have capability to work with First peoples. </p>
<p>The <a href="https://www.firstnationscleanenergy.org.au/first_nations_can_help_australia_respond_to_the_united_states_inflation_reduction_act">First Nations Clean Energy Network</a> – of which one author, Heidi Norman, is part – is a network of First Nations people, community organisations, land councils, unions, academics, industry groups and others. It is working to ensure First Nations communities share the benefits of the clean energy boom.</p>
<p>The network is among a group of organisations calling on the federal government to invest an additional A$100 billion into the Australian renewables industry. The investment should be designed to benefit all Australians, including First Nations people.</p>
<p>In Australia, the Albanese government has set an emissions-reduction goal of a 43% by 2030, based on 2005 levels. But Australia’s renewable energy rollout is not happening fast enough to meet this goal. Climate Change Minister Chris Bowen has <a href="https://www.smh.com.au/politics/federal/get-to-yes-or-no-as-quickly-as-possible-bowen-wants-fast-decisions-on-renewables-20240111-p5ewmj.html">called for</a> faster planning decisions on renewable energy projects.</p>
<p>To achieve the targets, however, the federal government must bring communities along with them – including First Nations people.</p>
<p>As demonstrated by the US and Canada, investing <a href="https://www.taylorfrancis.com/chapters/edit/10.4324/9781003242499-10/getting-right-katie-quail-donna-green-ciaran-faircheallaigh">meaningfully and at scale</a> in First Nations-led clean energy projects is not just equitable, it makes good business sense.</p>
<h2>Follow the leaders</h2>
<p>The US Inflation Reduction Act of 2022 made A$520 billion in investments to accelerate the transition to net zero. <a href="https://www.scirp.org/journal/paperinformation?paperid=123806">Native Americans</a> <a href="https://www.sciencedirect.com/science/article/pii/S2214629623003845">stand</a> to <a href="https://www.whitehouse.gov/wp-content/uploads/2023/04/Inflation-Reduction-Act-Tribal-Guidebook.pdf">receive</a> hundreds of billions of dollars from the laws. This includes funding set aside for Tribal-specific programs.</p>
<p>Canada is even further ahead in this policy space. In fact, analysis <a href="https://climateinstitute.ca/wp-content/uploads/2022/02/ICE-report-ENGLISH-FINAL.pdf">shows</a> First Nations, Métis and Inuit entities are partners or beneficiaries of almost 20% of Canada’s electricity-generating infrastructure, almost all of which is producing renewable energy. In one of the most recent investments, the Canadian government in 2022 invested <a href="https://www.rcaanc-cirnac.gc.ca/eng/1481305379258/1594737453888">C$300 million</a> to help <a href="https://www.sciencedirect.com/science/article/pii/S0360544222031735?casa_token=SXoJWgJwAikAAAAA:aQrTM16T_OPLQEgVk31foMzZt79T5YxOz9k3v2CEsWe8fIPPneIBw6Q0DRWIHQPzqzHNbZ0">First Nations, Inuit and Métis Peoples</a> launch clean energy projects.</p>
<p>Policymakers in <a href="https://www.sciencedirect.com/science/article/pii/S2214629623003031?casa_token=oA-q7QLSoi0AAAAA:ERC46yk_BCTFm5BnyPv9Nn2jFiFrc7XjRw_H0GKPRI_HsBq_0l8mZqxlYbim7l1zcQPAskA">both</a> <a href="https://cdnsciencepub.com/doi/full/10.1139/er-2018-0024?casa_token=H26U1EGKnakAAAAA%3ALnTYxXudwDujnWnyWqUbK9Mo4R9ekhETvW7g8dthacWDox3TFSi-Jm4B4A5qpIIo1KaWEpaCU2k">countries</a> increasingly realise that a just transition from fossil fuels requires addressing the priorities of First Nations communities. These investments are a starting point for building sustainable, globally competitive economies that work for everyone.</p>
<p>As the US and Canada examples <a href="https://www.sciencedirect.com/science/article/pii/S0308597X22004316">demonstrate</a>, the right scale of investment in First Nations-led projects can mean fewer legal delays and a much-needed social licence to operate.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/renewable-projects-are-getting-built-faster-but-theres-even-more-need-for-speed-221874">Renewable projects are getting built faster – but there's even more need for speed </a>
</strong>
</em>
</p>
<hr>
<h2>Dealing with the climate risk</h2>
<p>First Nations people around the world are on the <a href="https://www.sciencedirect.com/science/article/pii/S0959652620306429?casa_token=AAadBFs9XWUAAAAA:eFX4w39-yt7SjqNVXgIbHF-bCGiHu-v4UyyEF6k7Fsl_wt85KdjFXkTYBGhvA6prSPD3DnU">frontline of climate change</a>. It threatens their homelands, food sources, cultural resources and ways of life.</p>
<p>First Nations have also experienced chronic under-investment in their energy infrastructure by governments over generations, both in <a href="https://theconversation.com/many-first-nations-communities-swelter-without-power-why-isnt-there-solar-on-every-rooftop-204032">Australia</a> and <a href="https://www.sciencedirect.com/science/article/pii/S2214629621002280">abroad</a>.</p>
<p>Investing in First Nations-led clean energy projects <a href="https://www.mdpi.com/2071-1050/12/22/9569">builds climate resilience</a>. This was demonstrated by the federal government’s Bushlight program, which ran from 2002 to 2013. It involved renewable energy systems installed in remote communities in the Northern Territory, Western Australia and Queensland.</p>
<p>Bushlight’s solar power meant that communities were not dependent on the delivery of diesel. So they still had power if roads were closed by flooding or other climate disasters.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-can-aboriginal-communities-be-part-of-the-nsw-renewable-energy-transition-181171">How can Aboriginal communities be part of the NSW renewable energy transition?</a>
</strong>
</em>
</p>
<hr>
<h2>Australia must get moving</h2>
<p>The Biden government’s Inflation Reduction Act prompted a <a href="https://www.reuters.com/world/asia-pacific/japan-eyes-over-14-bln-green-transformation-spending-govt-2023-08-23/">swift</a> <a href="https://www.esade.edu/faculty-research/sites/default/files/publicacion/pdf/2023-05/The%20EU%20Response%20to%20the%20U.S.%20Inflation%20Reduction%20Act.pdf">reaction</a> from governments around the world. But after 15 months, Australia is yet to respond or develop equivalent legislation. </p>
<p>We must urgently <a href="https://www.afr.com/politics/federal/labor-pushed-to-create-100b-australian-inflation-reduction-act-20230907-p5e2y7">develop our response</a> and seize this unique opportunity to become world leaders in the global renewables race. That includes ensuring First Nations participate in and benefit from these developments.</p>
<hr>
<p><em>The First Nations Clean Energy Strategy consultation paper can be found <a href="https://www.energy.gov.au/energy-and-climate-change-ministerial-council/working-groups/first-nations-engagement-working-group/first-nations-clean-energy-strategy">here</a>. Feedback can be provided <a href="https://consult.dcceew.gov.au/first-nations-clean-energy-strategy-consultation-paper">here</a>.</em></p><img src="https://counter.theconversation.com/content/222616/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Adam Fish volunteers research for the First Nations Clean Energy Network.
He received funding from the Digital Grid Future Institute at the University of New South Wales.</span></em></p><p class="fine-print"><em><span>Heidi Norman receives funding from Australian Research Council and James Martin Institute. </span></em></p>Australia lags the US and Canada when it comes to involving Indigenous people in projects on their land. With the growth of renewable energy we have an opportunity to make a fresh start.Adam Fish, Associate Professor, School of Arts and Media, UNSW SydneyHeidi Norman, Professor, Faculty of Arts, Design and Architecture, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1706332021-10-31T19:08:32Z2021-10-31T19:08:32ZReaching net zero is every minister’s problem. Here’s how they can make better decisions<figure><img src="https://images.theconversation.com/files/428649/original/file-20211026-19-1oyflhs.jpg?ixlib=rb-1.1.0&rect=0%2C7%2C4900%2C3051&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>The federal government has finally committed to achieving net-zero emissions by 2050 – a target Prime Minister Scott Morrison will take to this week’s crucial United Nations climate summit in Glasgow.</p>
<p>Though unlegislated, the target represents a rare moment of bipartisanship in Australia’s climate wars, and brings the federal government into line with the <a href="https://www.climatecouncil.org.au/resources/nt-puts-australia-on-track-for-net-zero-climate-target/">states’ and territories’ own net-zero targets</a>.</p>
<p>Yet the target is much closer to a ceasefire than a peace treaty. Without changes to how climate policy gets done in Australia, there will be many more skirmishes about how we should get to net zero, and how much carbon we emit along the way.</p>
<p>Australia can’t afford further delay: governments need to act now to avoiding locking in emissions, or there will be little chance of reaching net zero by 2050.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/view-from-the-hill-morrisons-net-zero-plan-is-built-more-on-politics-than-detailed-policy-170669">View from The Hill: Morrison's net-zero plan is built more on politics than detailed policy</a>
</strong>
</em>
</p>
<hr>
<h2>Government-as-usual won’t cut it</h2>
<p>Australian governments typically have a single minister for climate change or emissions reduction, who often has responsibility for the energy or environment portfolios too. But to reach net zero will take policies that span energy, industry, transport, agriculture, land use, even trade. Climate change is a whole-of-government issue. It’s every minister’s problem.</p>
<p>Now all governments are committed to net zero by 2050 or earlier, they need to ensure their policies are consistent with this target. Every government decision on planning, infrastructure, resource extraction, forests, national parks, and land management potentially locks in future emissions. </p>
<p>At a minimum, governments should stop subsidising further expansion of fossil fuel production – taxpayers should not be on the hook for industry handouts such as the A$217 million in federal funding for <a href="https://www.minister.industry.gov.au/ministers/pitt/media-releases/roads-investment-open-major-gas-project-northern-territory">gas industry road upgrades</a> in the Northern Territory or the Queensland government’s <a href="https://www.abc.net.au/news/2020-10-01/adani-carmichael-coal-mine-royalties-deferred-qld-election/12716272">royalty holiday</a> for the proposed Carmichael coal mine. </p>
<p>And governments <a href="https://grattan.edu.au/report/towards-net-zero-practical-policies-to-reduce-agricultural-emissions/">should not weaken</a> existing land-clearing laws, given the contribution avoided land-clearing is expected to make to future emissions reductions.</p>
<p>Climate policy should also be harmonised across tiers of government. Currently, there is a mess of divergent, sometimes contradictory policies. In the electricity sector, for example, the federal and state governments have repeatedly failed to implement any national emissions policy.</p>
<p>The vacuum has been filled by <a href="https://www.climateworksaustralia.org/resource/state-and-territory-climate-action-leading-policies-and-programs-in-australia/">various renewable energy targets</a>, <a href="https://www.climatechange.vic.gov.au/__data/assets/pdf_file/0025/522790/Energy-Sector-Pledge.pdf">pledges</a>, <a href="https://www.energy.nsw.gov.au/government-and-regulation/electricity-infrastructure-roadmap">electricity infrastructure roadmaps</a>, <a href="https://www.afr.com/companies/energy/yallourn-deal-further-distorts-power-market-20210315-p57atw">deals with coal-fired power stations</a>, <a href="https://www.environment.act.gov.au/energy/cleaner-energy/how-do-the-acts-renewable-energy-reverse-auctions-work">contracts with wind and solar generators</a>, and even the federal government deciding to build its own <a href="https://www.theguardian.com/australia-news/2021/jun/10/morrison-governments-600m-gas-power-plant-at-kurri-kurri-not-needed-and-wont-cover-costs-analysts-say">gas-fired generator</a>.</p>
<p>Federal and state energy ministers used to meet and discuss reforms through the COAG Energy Council. But during the COVID-19 pandemic, the council was replaced by the clumsily-titled <a href="https://energyministers.gov.au/">Energy National Cabinet Reform Committee</a>. </p>
<p>The committee has curtailed opportunities for future coordination because of <a href="https://theconversation.com/the-government-is-determined-to-keep-national-cabinets-work-a-secret-this-should-worry-us-all-167540">confidentiality requirements</a> and a <a href="https://www.pm.gov.au/sites/default/files/media/nat-cab-and-cffr-priorities-2021.pdf">limited remit</a>.</p>
<p>State and federal governments should re-establish the co-operative co-ordination structures formerly dealt with through the energy council, and create similar structures for climate policy and programs.</p>
<p>Climate change and the global transition to net zero will batter government revenues and create greater calls for government spending. All governments need to start planning how to replace the revenue they current derive from fossil fuels.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australias-stumbling-last-minute-dash-for-climate-respectability-doesnt-negate-a-decade-of-abject-failure-169891">Australia's stumbling, last-minute dash for climate respectability doesn't negate a decade of abject failure</a>
</strong>
</em>
</p>
<hr>
<h2>Better information is key</h2>
<p>Up to this point, Australia has asked itself: what progress are we making in decarbonising the economy? What emissions target should we therefore set? And what is the emissions budget to meet this target?</p>
<p>Now that we’re agreed on net zero, the order of these questions need to be reversed. Our carbon budget should be set with respect to Australia’s <a href="https://theconversation.com/australias-stumbling-last-minute-dash-for-climate-respectability-doesnt-negate-a-decade-of-abject-failure-169891">fair share of contributing to the global net-zero goal</a>. </p>
<p>Our near-term target should be set with respect to staying within this budget. And then policies should be set to achieve this target, and adjusted if they are failing.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/428656/original/file-20211026-13-1qf62wj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/428656/original/file-20211026-13-1qf62wj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/428656/original/file-20211026-13-1qf62wj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/428656/original/file-20211026-13-1qf62wj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/428656/original/file-20211026-13-1qf62wj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/428656/original/file-20211026-13-1qf62wj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/428656/original/file-20211026-13-1qf62wj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/428656/original/file-20211026-13-1qf62wj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">To reach net zero will take policies that span energy, industry, transport, agriculture, land use, even trade.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>Setting a carbon budget also allows businesses to reach their own conclusions about how fast they might be required to reduce or offset emissions in the future. Once we have a carbon budget, the annual emissions projections become critical information about the future direction of the economy. They need to be developed, released, and treated with the same seriousness and commitment to rigour and independence as other economic data.</p>
<p>An emissions budget will determine the direction of economic policy for decades, so it requires bipartisan support. Evaluating policy effectiveness can be subject to politicisation, because there is always an incentive for governments to find fault with their predecessor’s policies, and seek praise for their own.</p>
<p>Luckily, as we note in our latest <a href="https://grattan.edu.au/report/towards-net-zero-a-practical-plan-for-australias-governments/">Grattan Institute report</a>, Australia already has an institution tailor-made to provide independent, rigorous advice on issues like carbon budgets, emissions projections, and policy reviews. The Climate Change Authority, reinvigorated, could do all this, and could also advise governments on interim targets to keep Australia on the pathway to net zero.</p>
<h2>Adopting the target is only the first step</h2>
<p>Investing in new technology is one part of the puzzle, but these technologies won’t deliver emissions reductions until the 2030s or 2040s – and many of them may turn out to be dead-ends or failures. </p>
<p>There’s plenty governments could do now, through market-based policy approaches and technologies that already exist, to push emissions down. </p>
<p>Three of our suggestions are <a href="https://grattan.edu.au/report/towards-net-zero-practical-policies-to-reduce-transport-emissions/">vehicle fuel emissions ceilings</a>, a <a href="https://grattan.edu.au/report/towards-net-zero-practical-policies-to-reduce-industrial-emissions/">safeguard mechanism</a> with real teeth, and a robust <a href="https://grattan.edu.au/report/towards-net-zero-practical-policies-to-offset-carbon-emissions/">high-integrity offset market</a> for the residual emissions that can’t be avoided.</p>
<p>It’s time to start.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-morrison-government-is-set-to-finally-announce-a-2050-net-zero-commitment-heres-a-to-do-list-for-each-sector-170099">The Morrison government is set to finally announce a 2050 net-zero commitment. Here's a 'to do' list for each sector</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/170633/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Grattan Institute began with contributions to its endowment of $15 million from each of the Federal and Victorian Governments, $4 million from BHP Billiton, and $1 million from NAB. In order to safeguard its independence, Grattan Institute’s board controls this endowment. The funds are invested and contribute to funding Grattan Institute's activities. Grattan Institute also receives funding from corporates, foundations, and individuals to support its general activities as disclosed on its website.
</span></em></p><p class="fine-print"><em><span>Alison Reeve was previously general manager of project delivery at the Australian Renewable Energy Agency. She led development of Australia’s National Hydrogen Strategy in 2019, as well as Commonwealth policy for offshore wind, energy innovation, energy efficiency, and structural adjustment.
</span></em></p>Reach net zero requires policies spanning energy, industry, transport, agriculture, land use, even trade. Climate change is a whole-of-government issue. It’s every minister’s problem.James Ha, Associate, Grattan InstituteAlison Reeve, Deputy Program Director, Energy and Climate Change, Grattan InstituteLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1017222018-08-22T22:38:56Z2018-08-22T22:38:56ZPolicies on petroleum and pipelines move us closer to a ‘Hothouse Canada’<figure><img src="https://images.theconversation.com/files/232967/original/file-20180821-149493-1abz1hf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Record-shattering heatwaves and exceptional wildfires have occurred throughout the northern hemisphere this summer. </span> <span class="attribution"><span class="source">U.S. Department of Agriculture</span></span></figcaption></figure><p>It is another hot, hot summer in the Northern Hemisphere. </p>
<p>Sweden is having trouble <a href="https://www.theguardian.com/world/2018/jul/30/the-swedish-town-on-the-frontline-of-the-arctic-wildfires">fighting wildfires north of the Arctic Circle</a>. <a href="https://www.bbc.com/news/world-europe-45030082">Greece has seen its worst wildfires in years</a>, and <a href="https://www.theguardian.com/news/2018/jul/02/weatherwatch-wildfires-uk-peatland-carbon-moors-moorland">even Britain has been scorched</a>. </p>
<p>In Canada, British Columbia has, once again, <a href="https://www.cbc.ca/news/canada/british-columbia/b-c-declares-state-of-emergency-as-hundreds-of-wildfires-burn-across-province-1.4785983">declared a state of emergency</a>, and <a href="https://calgaryherald.com/news/local-news/air-quality-deemed-high-risk-in-calgary-as-wildfires-burn">Calgary has air quality problems</a> because of the smoke. As researchers who watch these things know, all of this is <a href="https://thenarwhal.ca/how-climate-change-is-making-b-c-s-wildfire-season-hotter-longer-dryer/">being made worse by climate change</a>.</p>
<p>The remarkably hot summer and surge of wildfires coincides with the publication of a <a href="http://www.pnas.org/content/115/33/8252">recent essay about “Hothouse Earth” by Will Steffen, Johan Rockström</a> and their colleagues. The essay bluntly asks whether the Earth is heading towards a state it last experienced many million years ago when global temperatures were much higher and the world didn’t have polar icecaps. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/hothouse-earth-our-planet-has-been-here-before-heres-what-it-looked-like-101413">Hothouse Earth: our planet has been here before – here's what it looked like</a>
</strong>
</em>
</p>
<hr>
<p>Much of the media coverage of the paper says that we are, in fact, heading towards a hothouse Earth. But <a href="https://theconversation.com/hothouse-earth-heres-what-the-science-actually-does-and-doesnt-say-101341">the research points to a much more important conclusion</a>: if we take the risks seriously there is room for a more benign future. </p>
<p>Having worked on matters of security, political economy and environment for the past three decades, it’s clear to me that human actions — and how we use <a href="https://www.e-ir.info/2018/03/01/firepower-and-environmental-security-in-the-anthropocene/">combustion as a tool in particular</a> — are shaping the future of the planet. </p>
<h2>‘The Human Planet’</h2>
<p><em>The Human Planet</em>, a new book by scientists Simon Lewis and Mark Maslin, provides <a href="https://www.penguin.co.uk/books/298037/the-human-planet/">the background for the hothouse Earth research</a>. Their title says it all. Earth system science has documented the case that human actions — or at least those of the rich and powerful among us — are profoundly changing how the world works. </p>
<p>There are enough of us now, using all sorts of technologies and living in ways that use huge amounts of resources, to dramatically alter how the Earth works. We are part of the world, not a separate species who just happens to be on Earth. Our actions are now shaping the planet’s future. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/hothouse-earth-heres-what-the-science-actually-does-and-doesnt-say-101341">Hothouse Earth: here's what the science actually does – and doesn't – say</a>
</strong>
</em>
</p>
<hr>
<p>It may become the hothouse Earth that Steffen, Rockström and their colleagues warn is a dangerous possibility. Or, it may not, if sensible policies such as reducing greenhouse gas emissions and protecting and enhancing ecosystems that remove carbon dioxide from the atmosphere prevail, and economies move rapidly beyond the use of fossil fuels. </p>
<p>But if we are to avert a hothouse Earth, policies, like the sciences, need to connect things that are often considered separately. </p>
<h2>Energy policy</h2>
<p>Through much of the twentieth century Western governments have thought of energy security in terms of guaranteeing fossil fuel supplies at reasonable prices. Environmental matters were unrelated, or at best an after-thought, a matter of local pollution, <a href="https://global.oup.com/academic/product/the-energy-security-paradox-9780198820444?cc=gb&lang=en&#">not an Earth-changing matter</a>. </p>
<p>That mode of thought persists and as Earth system science has demonstrated, dangerously wrong. </p>
<p>In <em>The Human Planet</em>, Lewis and Maslin quote Prime Minister Justin Trudeau in his remarks at a <a href="https://www.cbc.ca/news/world/trudeau-no-country-would-find-173-billion-barrels-of-oil-in-the-ground-and-leave-them-there-1.4019321">Houston petroleum conference in 2017</a>: </p>
<blockquote>
<p>“No country would find 173 billion barrels of oil in the ground and just leave them there.”</p>
</blockquote>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/232970/original/file-20180821-149481-15b4ppt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/232970/original/file-20180821-149481-15b4ppt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/232970/original/file-20180821-149481-15b4ppt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/232970/original/file-20180821-149481-15b4ppt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/232970/original/file-20180821-149481-15b4ppt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/232970/original/file-20180821-149481-15b4ppt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/232970/original/file-20180821-149481-15b4ppt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Protesters opposed to the Kinder Morgan Trans Mountain pipeline extension demonstrate outside Justice Minister Jody Wilson-Raybould’s constituency office, in Vancouver, on June 4, 2018.</span>
<span class="attribution"><span class="source">(THE CANADIAN PRESS/Darryl Dyck)</span></span>
</figcaption>
</figure>
<p>Earth system science has shown precisely the opposite: most of those reserves must stay in the ground if we are to avoid a hothouse Earth. </p>
<p>If large supplies of petroleum continue to be made easily available, carbon taxes, cap and trade schemes and innovations with electric cars, batteries and storage systems, are very unlikely to be enough to tackle climate change. Turning off the tap and <a href="https://www.vox.com/energy-and-environment/2018/4/3/17187606/fossil-fuel-supply">keeping expensive, difficult-to-extract fossil fuels in the ground is an essential, “supply side” complement to the “demand side” of taxes and fees</a>.</p>
<p>Adding to the infrastructure that supplies the world’s markets with more petroleum, as the twinned Kinder Morgan pipeline would do, makes constraining fossil fuel use more difficult down the line. And using taxpayer’s dollars to do all this, if in fact the <a href="https://www.theglobeandmail.com/politics/article-study-predicts-trans-mountain-pipeline-buy-will-add-to-federal-deficit/">purchase of Kinder Morgan’s Trans Mountain pipeline goes ahead</a> in coming months, adds insult to injury. The political pressures to use the pipeline and hence get a return on the investment would be intense and distract attention from building a post-fossil fuel economy. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/canadas-paris-pipeline-paradox-97636">Canada's Paris-pipeline paradox</a>
</strong>
</em>
</p>
<hr>
<h2>Investing in the future</h2>
<p>The future configuration of the Earth’s climate is dependent on such investment decisions because they shape what is made in coming decades: solar panels or pipelines, carbon-neutral buildings or gas-guzzling automobiles. </p>
<p>This recognition is key to what needs to be done, and to the larger conversation we need to be having about how to live well together without burning large quantities of stuff to do so. We need to stop burning fossil fuels so that we can reduce the likelihood of burning even more forests, bogs and grasslands. </p>
<p>Joining up the dots is now ever more necessary. If we don’t start investing wisely in the new economy rather than propping up the old one, then the likelihood of a hothouse Earth looms large.</p><img src="https://counter.theconversation.com/content/101722/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Simon Dalby receives funding from the Social Sciences and Humanities Research Council of Canada.
I am a Senior Fellow of the Centre for International Governance Innovation.</span></em></p>The Earth is on the edge of being pushed over a planetary threshold that could lead to a “Hothouse Earth.” But if we take the risks seriously there is room for a more benign future.Simon Dalby, CIGI Chair in the Political Economy of Climate Change, Wilfrid Laurier UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/914422018-02-09T17:03:31Z2018-02-09T17:03:31ZThe EU wants to fight climate change – so why is it spending billions on a gas pipeline?<figure><img src="https://images.theconversation.com/files/205470/original/file-20180208-180813-ifievy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://commons.wikimedia.org/wiki/File:TAP_in_Albania.jpg">Albinfo/Wikipedia</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>Over the past few years there has been <a href="https://www.enelgreenpower.com/media/news/d/2017/12/renewables-exponential-growth">exponential growth</a> in clean energy investment – while fossil fuel assets are increasingly considered to be <a href="https://www.fsb-tcfd.org/wp-content/uploads/2017/06/FINAL-TCFD-Annex-062817.pdf">risky</a>. Yet, on February 6, the European Investment Bank, the EU’s long-term lending institution, voted to provide a <a href="http://www.eib.org/infocentre/press/releases/all/2018/2018-030-eib-backs-eur-6-5-billion-energy-sme-transport-and-urban-investment">€1.5 billion loan</a> to the controversial Trans Adriatic Pipeline (TAP).</p>
<p>The TAP is the Western part of a larger Southern Gas Corridor proposal that would ultimately connect a large gas field in the Caspian Sea to Italy, crossing through Azerbaijan, Turkey, Greece and Albania. And while gas might be cleaner than coal, it’s still a fossil fuel. </p>
<p>So how does the EU’s support for this major project fit in with its supposed goal of addressing climate change?</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/205365/original/file-20180207-74487-1cg5u8d.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/205365/original/file-20180207-74487-1cg5u8d.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/205365/original/file-20180207-74487-1cg5u8d.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/205365/original/file-20180207-74487-1cg5u8d.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/205365/original/file-20180207-74487-1cg5u8d.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/205365/original/file-20180207-74487-1cg5u8d.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/205365/original/file-20180207-74487-1cg5u8d.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/205365/original/file-20180207-74487-1cg5u8d.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The proposed Trans Adriatic Pipeline will run nearly 900km from Greece to Italy.</span>
<span class="attribution"><a class="source" href="https://commons.wikimedia.org/wiki/File:Trans_Adriatic_Pipeline.png">Genti77 / wiki</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
</figcaption>
</figure>
<h2>Influencing investors</h2>
<p>A key problem is the message this sends to the private sector, where renewable energy is increasingly seen as a good investment. Technologies once perceived as too risky and too expensive are now delivering worthwhile returns thanks to reduced costs and breakthroughs in energy storage. The price of electricity generated by solar, wind or hydro is now comparable with the national grid. Over the past decade, investor meetings have shifted from discussing whether the transition to a low carbon economy will start before 2050, to whether it will be completed in the same period. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"949194987337650176"}"></div></p>
<p>But there is still not enough money being spent on renewables. While clean energy investment in 2017 <a href="https://about.bnef.com/blog/runaway-53gw-solar-boom-in-china-pushed-global-clean-energy-investment-ahead-in-2017/">topped US$300 billion for the fourth year in a row</a>, this is far short of what is needed to unlock the technology revolution necessary to tackle climate change. There is clearly a gap between what is required and what is being delivered. </p>
<p>The private sector will continue to invest significant capital into energy projects over the next few decades, so one issue facing policy makers is how to influence investors away from fossil fuels and <a href="https://www.sciencedirect.com/science/article/pii/S0301421511005064">towards renewable projects</a>. To really scale up investment into renewable infrastructure, <a href="http://www.unepfi.org/fileadmin/documents/Investment-GradeClimateChangePolicy.pdf">long-term and stable policy is required</a> – which investors <a href="https://www.sciencedirect.com/science/article/pii/S0959652615006277">see as clearly lacking</a>. </p>
<p>By funding the Trans Adriatic Pipeline, the EU’s investment bank is hardly signalling to the private sector that governments are committed to a green energy transition. </p>
<h2>Risky business</h2>
<p>If Europe really was to follow through and successfully switch to green energy – and such a transition is partially underway – then the pipeline project may even represent a risk to public finances.</p>
<p>Studies on climate change point to the need for a greater sense of urgency and ambition and, to stay within its “carbon budget” under current agreed emissions targets, the EU needs to be <a href="http://www.foeeurope.org/sites/default/files/extractive_industries/2017/can_the_climate_afford_europes_gas_addiction_report_november2017.pdf">fossil fuel free by 2030</a>. </p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/HSKcvoBKYxc?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>So any large oil and gas infrastructure projects with investment returns beyond 2030 are saddled with risk. In just a decade or two, super-cheap solar and wind power could mean that gas pipelines such as TAP would no longer make financial sense and would become worthless “<a href="https://www.carbontracker.org/terms/stranded-assets/">stranded assets</a>”. Yet TAP backers are touting economic benefits for countries such as <a href="http://www.oxfordeconomics.com/Media/Default/economic-impact/economic-impact-home/Economic-Impact-trans-Adriatic-Pipeline.pdf">Albania</a> extending to 2068 – well beyond the date when Europe must entirely ditch fossil fuels.</p>
<p>The EU’s official stance is to hail natural gas as a cleaner “bridge fuel” between coal and renewables. But <a href="http://science.sciencemag.org/content/343/6172/733.summary">high leakage rates</a> and the <a href="http://www.climatechange2013.org/images/uploads/WGIAR5_WGI-12Doc2b_FinalDraft_All.pdf">potent warming impact</a> of methane (the primary constituent of natural gas) means that the Southern Gas Corridor’s climate footprint may be <a href="https://bankwatch.org/publication/smoke-and-mirrors-why-the-climate-promises-of-the-southern-gas-corridor-don-t-add-up">as large, or larger, than equivalent coal</a>. Abundant natural gas is also highly likely to <a href="http://iopscience.iop.org/article/10.1088/1748-9326/9/9/094008/meta">delay the deployment of renewable technologies</a>. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"952216497123835906"}"></div></p>
<p>For the first decade of this century Europe prided itself on leading the political debate on tackling climate change. Now, it appears to be losing its boldness. To drive through a new technology revolution, the public sector needs to lead from the front and take bold decisions about its energy strategy.</p>
<p>A gas pipeline is not a technology of the future. If California can release <a href="https://www.youtube.com/watch?v=HSKcvoBKYxc">YouTube videos</a> describing the importance of considering stranded assets during this energy transition, and New York City can announce plans to <a href="https://twitter.com/NYCMayor/status/952216497123835906">divest from fossil fuels</a>, then maybe it is time for the EU to turn off the TAP.</p><img src="https://counter.theconversation.com/content/91442/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Aled Jones does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The European Investment Bank’s funding of the Trans Adriatic Pipeline will harm the climate and makes little financial sense.Aled Jones, Professor & Director, Global Sustainability Institute, Anglia Ruskin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/791782017-06-09T06:39:54Z2017-06-09T06:39:54ZEnergy solutions but weak on climate – experts react to the Finkel Review<figure><img src="https://images.theconversation.com/files/173089/original/file-20170609-20873-11m1wug.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The Finkel Review is scientifically modest but politically deft. </span> <span class="attribution"><span class="source">Lukas Coch/AAP </span></span></figcaption></figure><p>The keenly anticipated <a href="https://www.environment.gov.au/energy/national-electricity-market-review">Finkel Review</a>, commissioned in the wake of last year’s <a href="https://theconversation.com/what-caused-south-australias-state-wide-blackout-66268">South Australian blackout</a>, has made a <a href="https://theconversation.com/the-finkel-review-at-a-glance-79177">range of recommendations</a> aimed at delivering a reliable, secure and sustainable National Electricity Market.</p>
<p>Among the proposals is a new Clean Energy Target to boost investment in low-carbon electricity generation, as well as moves to require high-emitting power stations to give three years’ notice before shutting down.</p>
<p>Below, our experts react to the measures.</p>
<hr>
<p><strong>“Security and reliability are first”</strong></p>
<p><em>Hugh Saddler, Honorary Associate Professor, Australian National University</em></p>
<p>With so much focus on the design of a mechanism to support a shift towards lower-emissions generation, it is easy to forget that the <a href="http://coagenergycouncil.gov.au/sites/prod.energycouncil/files/publications/images/Independent%20Review%20ToR-%207%20October%202016.PNG">primary purpose</a> of the Review, commissioned following the “system black” event in South Australia on September 28, 2016, was “to develop a national reform blueprint to maintain energy security and reliability”. It is thus appropriate that security and reliability are the first topics to be addressed in the main body of the report.</p>
<p>System security is defined as the ability of the system to tolerate disturbances. Maintaining security requires the system to be able to prevent very high rates of change of frequency. At present the system has no explicit mechanism for doing this, but relies implicitly on the inertia provided, effectively as a free service, by existing large thermal generators. </p>
<p>The report recommends a series of regulatory energy security obligations to provide this service by various additional means, falling on the transmission network service providers in each of the five NEM regions (states), and also on all new generators connecting to the system.</p>
<p>System reliability is defined as the ability of the system to meet consumer demand at all times. In the old system, this is achieved by “dispatchable” generators, meaning coal and gas generators that can vary their output as required to meet demand. </p>
<p>In the new system, with large amounts of variable wind and solar generation, other supply sources are needed to meet demand at times of low wind speed and/or lack of sun – that is, to act as complements to wind and solar. Existing hydro and open-cycle gas turbine generators are ideally suited to this task, but with the growth in wind and solar generation, this capacity will very soon be insufficient for the task across the NEM (and is already insufficient in SA).</p>
<p>The Report recommends what it calls a Generator Reliability Obligation, which would be triggered whenever the proportion of dispatchable generation (which could include batteries and other forms of storage) in a region is falling towards a predetermined minimum acceptable level. The obligation would fall on all new renewable generators wishing to connect thereafter and, in the words of the Report “would not need to be located on site, and could utilise economies of scale” through multiple renewable generation projects “pairing” with “one new large-scale battery of gas fired generation project for example”.</p>
<p>If implemented, this recommendation would seem certain to greatly complicate, slow down and add to the administrative overhead cost of building new renewable generation. It would involve putting together a consortium of multiple parties with potentially differing objectives and who would otherwise be competing with one another in the wholesale electricity market. </p>
<p>A far better approach would be to recognise that dispatchable generation provides a distinct and more valuable product than non-dispatchable generation. There should be a separate market mechanism, possibly based on a contracting approach, to provide this service. If well designed, this would automatically ensure that economies of scale, as may be realised by pumped hydro storage, for example, would be captured. This approach would be far more economically efficient, and thus less costly to electricity consumers, than the messy processes required under the Report’s obligation approach. </p>
<hr>
<p><strong>“Energy efficiency is effectively handballed to governments”</strong></p>
<p><em>Alan Pears, Senior Industry Fellow, RMIT University</em></p>
<p>The Review’s approach to the demand side is very focused. Demand response, the capacity to reduce demand at times of extreme pressure on the supply system, is addressed thoroughly. The past under-utilisation of this approach is acknowledged, and the actions of the Australian Energy Market Operator (AEMO) intended to capture some of its potential in time for next summer are outlined. </p>
<p>However, the deep cultural problems within the Australian Energy Markets Commission regarding demand response are not tackled. Instead, the AEMC is asked (yet again) to develop facilitation mechanisms in the wholesale market by mid-2018.</p>
<p>Energy efficiency is effectively handballed to governments. After making some positive comments about its valuable roles, recommendation 6.10 states that governments “should accelerate the roll out of broader energy efficiency measures to complement the reforms recommended in this Review”.</p>
<p>This is a disappointing outcome, given the enormous untapped potential of energy markets to drive effective energy efficiency improvement. But it clearly shows governments that they have to drive energy-efficiency initiatives unless they instruct energy market participants to act. </p>
<hr>
<p><strong>“It follows the wrong path on greenhouse emissions”</strong></p>
<p><em>David Karoly, Professor of Atmospheric Science, University of Melbourne and Member, Climate Change Authority</em></p>
<p>The Finkel Review says many sensible things about ways to improve the security and reliability of Australia’s electricity sector. However, it follows completely the wrong path in what it says about lower greenhouse emissions from the electricity sector and Australia’s commitments under the Paris Agreement. This is disappointing, as Alan Finkel is Australia’s Chief Scientist and a member of the Climate Change Authority.</p>
<p>All economy-wide modelling shows that the electricity sector must do a larger share of future emissions reductions than other sectors, because there are easier and cheaper solutions for reducing emissions in that sector. However, this review’s vision is for “emissions reduced by 28% below 2005 levels by 2030” – exactly the same as Australia’s target under the Paris Agreement. It should be much more.</p>
<p>Australia’s commitments under the Paris Agreement are “to undertake ambitious efforts” to limit global warming “to well below 2°C above pre-industrial levels”. The <a href="http://climatechangeauthority.gov.au/reviews/special-review/final-report-australias-future-emissions-reduction-targets">Targets Report</a> from the Climate Change Authority in 2015 showed that this means Australia and the electricity sector must aim for zero emissions before 2050, not in the second half of the century, as suggested in the Finkel Review.</p><img src="https://counter.theconversation.com/content/79178/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alan Pears has worked for government, business, industry associations public interest groups and at universities on energy efficiency, climate response and sustainability issues since the late 1970s. He is now an honorary Senior Industry Fellow at RMIT University and a consultant, as well as an adviser to a range of industry associations and public interest groups. His investments in managed funds include firms that benefit from growth in clean energy. He has shares in Hepburn Wind.</span></em></p><p class="fine-print"><em><span>David Karoly receives funding from the Australian Research Council Centre of Excellence for Climate System Science and an ARC Linkage grant. He is a member of the Climate Change Authority and the Wentworth Group of Concerned Scientists.</span></em></p><p class="fine-print"><em><span>Hugh Saddler does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Chief Scientist Alan Finkel has attempted to address the energy ‘trilemma’: electricity that’s cheap, reliable and low-emissions. Has he succeeded? Our expert panel weighs in.Hugh Saddler, Honorary Associate Professor, Centre for Climate Economics and Policy, Australian National UniversityAlan Pears, Senior Industry Fellow, RMIT UniversityDavid Karoly, Professor of Atmospheric Science, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/730472017-02-16T02:01:41Z2017-02-16T02:01:41ZGlobal clean energy scorecard puts Australia 15th in the world<figure><img src="https://images.theconversation.com/files/157051/original/image-20170215-27416-1bca8j0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The World Bank has highlighted steps to improve sustainable energy investment.</span> </figcaption></figure><p>Australia ranks equal 15th overall in a new World Bank <a href="http://rise.worldbank.org/">scorecard on sustainable energy</a>. We are tied with five other countries in the tail-end group of wealthy OECD countries – behind Canada and the United States and just one place ahead of China.</p>
<p>Called the Regulatory Indicators for Sustainable Energy (RISE), the initiative provides benchmarks to evaluate clean energy progress, and insights and policy guidance for Australia and other countries. </p>
<p>RISE rates country performance in three areas - renewable energy, energy efficiency, and access to modern energy (excluding advanced countries), using 27 indicators and 80 sub-indicators. These include things like legal frameworks, building codes, and government incentives and policies. The results of the individual indicators are turned into an overall score. </p>
<p>The majority of wealthy countries score well in the scorecard. But when you drill down into the individual areas, the story becomes more complex. The report notes that “about half the countries with more appropriate policy environments for sustainable energy are emerging economies,” for example.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/157048/original/image-20170215-27402-1pngfli.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/157048/original/image-20170215-27402-1pngfli.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=488&fit=crop&dpr=1 600w, https://images.theconversation.com/files/157048/original/image-20170215-27402-1pngfli.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=488&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/157048/original/image-20170215-27402-1pngfli.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=488&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/157048/original/image-20170215-27402-1pngfli.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=613&fit=crop&dpr=1 754w, https://images.theconversation.com/files/157048/original/image-20170215-27402-1pngfli.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=613&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/157048/original/image-20170215-27402-1pngfli.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=613&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The RISE ranking.</span>
<span class="attribution"><span class="source">RISE report</span></span>
</figcaption>
</figure>
<p>The report relies on data up to 2015. So it does not account for recent developments such as the <a href="https://theconversation.com/beyond-paris-what-was-really-achieved-at-the-cop21-climate-summit-and-what-next-52320">Paris climate conference</a>, the Australian <a href="https://theconversation.com/australias-energy-productivity-plan-promises-more-bang-for-our-buck-but-lacks-commitment-53734">National Energy Productivity Plan</a>, the <a href="http://www.statedevelopment.sa.gov.au/upload/energy/efficiency/NEEBP-final-report-November-2014.pdf?t=1478138353575">widespread failure</a> to enforce building energy regulations, and <a href="http://www.eec.org.au/uploads/submissions/EEC%202014-6-20%20-%20%20Inquiry%20into%20the%20repeal%20of%20the%20EEO.pdf">the end</a> of Australia’s major industrial Energy Efficiency Opportunities program under the Abbott government. </p>
<p>Furthermore, Australian electricity demand growth has <a href="https://theconversation.com/australias-carbon-emissions-and-electricity-demand-are-growing-heres-why-57649">recently re-emerged</a> after five years of decline.</p>
<p>But the World Bank plans to publish updated indicators every two years, so over time the indicators should become a valuable means of tracking and influencing the evolution of global clean energy policy.</p>
<h2>Australia</h2>
<p>Australia’s ranking masks some good, bad and ugly subtleties. For example, Australia joins Chile and Argentina as the only OECD high-income countries without some form of carbon pricing mechanism. Even the United States, whose EPA uses a “<a href="https://www.epa.gov/climatechange/social-cost-carbon">social cost of carbon</a>” in regulatory action, and has pricing schemes <a href="https://www.arb.ca.gov/cc/capandtrade/capandtrade.htm">in some states</a>, meets the RISE criteria.</p>
<p>Australia also ranks lower than the United States for renewable energy policy, at 24th. This is due to scoring poorly in incentives and regulatory support, carbon pricing, and mechanisms supporting network connection and appropriate pricing. But we are saved somewhat by having a legal framework for renewables, and strong management of counter-party risk. It’s not clear how recent political uncertainty, and the resulting <a href="https://www.cleanenergycouncil.org.au/media-centre/media-releases/january-2015/150113-bloomberg.html">temporary collapse</a> of investment in large renewable energy projects, may affect the score.</p>
<p>I <a href="https://theconversation.com/when-will-australians-finally-stop-wasting-our-energy-21574">have argued in the past</a> that Australia is missing out on billions of dollars in savings through its lack of ambition on energy efficiency. Yet we rate equal 13th on this criterion, compared with 24th on renewable energy. It seems that many other countries are forgoing even more money than us. </p>
<p>In energy efficiency, we score highly for incentives from electricity rate structures, building energy codes and financing mechanisms for energy efficiency. Our public sector policies and appliance minimum energy standards also score well. Our weakest areas are lack of carbon pricing and monitoring, and information for electricity consumers. National energy efficiency planning, incentives for large consumers and energy labelling all do a bit better. Of course, these ratings are relative to a low global energy efficiency benchmark.</p>
<h2>The rest of the world</h2>
<p>Much of the report focuses on developing countries. There is a wide spread of activity here, with some countries almost without policies, and others like Vietnam and Kazakhstan doing well, ranking equal 23rd. China ranks just behind Australia’s cluster at 21st. </p>
<p>RISE shows that policies driving access to modern energy seem to be achieving results. The report suggests that 1.1 billion people do not have access to electricity, down from an estimated 1.4 billion <a href="http://unesdoc.unesco.org/images/0021/002154/215492e.pdf">a few years ago</a>. A significant contributor to this seems to be the <a href="https://theconversation.com/renewables-are-getting-cheaper-all-the-time-heres-why-64799">declining cost</a> of solar panels and other renewable energy sources, and greater emphasis on micro-grids in rural areas. </p>
<p>The report highlights the importance of strategies that integrate renewables and efficiency. But it doesn’t mention an obvious example. The viability of rural renewable energy solutions is being greatly assisted by the declining cost and large efficiency improvement in technologies such as LED lighting, mobile phones and tablet computers. The overall outcome is much improved access to services, social and economic development with much smaller and cheaper renewable energy and storage systems. </p>
<h2>The takeaway</h2>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/157047/original/image-20170215-27430-fe4h29.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/157047/original/image-20170215-27430-fe4h29.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=452&fit=crop&dpr=1 600w, https://images.theconversation.com/files/157047/original/image-20170215-27430-fe4h29.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=452&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/157047/original/image-20170215-27430-fe4h29.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=452&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/157047/original/image-20170215-27430-fe4h29.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=568&fit=crop&dpr=1 754w, https://images.theconversation.com/files/157047/original/image-20170215-27430-fe4h29.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=568&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/157047/original/image-20170215-27430-fe4h29.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=568&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Screen Shot at am.</span>
<span class="attribution"><span class="source">RISE report</span></span>
</figcaption>
</figure>
<p>RISE finds that clean energy policy is progressing across most countries. However, energy efficiency policy is well behind renewable energy. “This is another missed opportunity”, say the report’s authors, “given that energy efficiency measures are among the most cost-effective means of reducing a country’s carbon footprint.” They also note that energy efficiency policy tends to be fairly superficial.</p>
<p>Australia’s ranking on renewable energy policy is mediocre, while our better energy efficiency ranking is relative to global under-performance. The <a href="http://www.environment.gov.au/energy/national-electricity-market-review">Finkel Review</a> and <a href="http://www.environment.gov.au/climate-change/review-climate-change-policies">Climate Policy Review</a> offer opportunities to integrate renewables and energy efficiency into energy market frameworks. The under-resourced National Energy Productivity Plan could be cranked up to deliver billions of dollars more in energy savings, while reducing pressure on electricity supply infrastructure and making it easier to achieve ambitious energy targets. And RISE seems to suggest we need a price on carbon. </p>
<p>The question is, in a world where action on clean energy is accelerating in response to climate change and as a driver of economic and social development, will Australia move up or slip down the rankings in the next report?</p><img src="https://counter.theconversation.com/content/73047/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alan Pears has worked for government, business, industry associations public interest groups and at universities on energy efficiency, climate response and sustainability issues since the late 1970s. He is now an honorary Senior Industry Fellow at RMIT University and a consultant, as well as an adviser to a range of industry associations and public interest groups. His investments in managed funds include firms that benefit from growth in clean energy.</span></em></p>Australia is near the back of the pack of rich nations when it comes to policies for clean energy. But there are things we can do about it.Alan Pears, Senior Industry Fellow, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.