economy & energy - crisis solution | biocity studio
TRANSCRIPT
CRISIS SOLUTION
Economy
Structure
1. Background Statistics
2. Crisis Scenario
3. Crisis Solutions
4. Justifications
5. Global Perspective
Background Statistics
Federal and State Governments are committed to reducing greenhouse gas emissions.
But, funding tells a very different story: $9,000,000,000 in
subsidies to fossil fuel.FossilFuels
Renewable Energies
Fede
ral a
nd S
tate
Su
bsid
ies
Source: KC 2008, using ACF 2008Source: GreenPeace 2008a
Background Statistics (cont.)
$9.2 Billion passed in subsidies to energy 79% to Oil 14% to Coal 4% to Natural Gas 3% to Renewable
Energy
Artificial lower prices
Source: Greenpeace 2008bSource: KC 2008, using Greenpeace 2008b
Background Statistics (cont.)
Federal Government investment roads ≈ 12 × rail
Other OECD Countries
Roads : Rail 1 : 1 at least
Road Rail
Fede
ral
Inve
stm
ent
Source: KC 2008, using ACF 2008Source: Hugonnard 2008
Background Statistics (final)Australia exports
70% of coal extracted. Equates to ≈10% of
total domestic exports
80% exported to Asia 44% to Japan
Australia contributes 30% to world coal exports
Source: ACA 2008a Source: KC 2009, using ACA 2008b
Crisis Scenario
We look ahead to 2020: Economic Recession following the Australian
Business Cycle Negative economic growth of between 6-
8%
Source: Cleary 2009, using RBA 2008
Crisis Scenario (cont.)
Effects of Climate Change are being felt with drought Production of primary products down 10%
China, India and Japan have pressure put on them to shift towards renewable energy sources.
Source: ABC 2007
Crisis Solution #1
Crisis Solution #1 (cont.)
The other $900m for Retraining & Education Program
o Retraining coal workers for green jobso Education and training for new workerso More funding for universities, TAFEs and
apprenticeships
http://www.evscschools.com/Uploads/Images/8aa7fb32-2d77-4dc5-91b3-46f0674afa2b.jpg
Crisis Solution #2
Crisis Solution #2 (cont.)
Help ease effects of restructuring on communities and businesses Income support for displaced workers and
businesses Relocation assistance for business and
workers Compensation for small businesses Low interest loans for business
Crisis Solution #3
2014 target: 50/50 split of funding to fossil fuel and renewable energy
Policy: redirect 10% of road funding to rail
http://www.cansultmaunsell.com/media/5204.jpg
Crisis Solution #3 (cont.)
Result: $1.44 billion for rail infrastructure 1/3 ($480million) for rail freight lines 2/3 ($950 million) for urban rail transit – Sydney will
greatly benefitBenefits: Reduction in vehicle emissions and
savings
Mitsubushi Electric Co.
Justification
Job creation figures Solar Photovoltaic Industry
Investment of $1 million/10 years = 5.65 persons of employment/year
Redirect $900 Million/year into Solar PV ≈
51 000 jobs/year
Source: Greenpeace 2008a
Justification (cont.)
Coal Industry Investment of $1 million/10 years = 3.96 persons of
employment/year
Over a 4 year political lifespan: more than 60 000 extra jobs created from investment into renewable energy.
Source: Greenpeace 2008a
Justification (cont.)
The Australian coal industry currently employs approximately 30 000 people.
This industry will eventually become obsolete when coal exports diminish.
Source: ACA 2008c
Justification (cont.)
Power produced by Hunter Valley Coal Power Stations ≈ 6000 MW
5900 MW of renewable energy = 28,000 year-long construction jobs + 3000 permanent operation/maintenance jobs.
Justification
Vales Point Power Station
Bayswater Power station Liddell Power Station
Eraring Power Station
Munmorah Power Station
Justification (cont.)
Funding is needed to educate and re-train workers to shift away from the archaic economy and into the 21st Century
Justification (cont.)
NorWest Business ParkPotential for a new renewable energy research facilities. An Australian Silicon Valley?
Justification (cont.)
Justification (cont.)
Investment Roads : Rail 12 : 1 over 5 years
Take 10% of road investment > rail investment
Justification (cont.)
United Nations estimated 25-35% reduction in carbon emissions by 2020 at no net cost.
But!
Average political lifespan = 4 years
Source: Greenpeace 2008a
Justification (cont.)
Source: CSIRO 2008
Justification (final)
Carbon Pollution Reduction Scheme. Giving away 30% of all credits for free Lost revenue ≈ $2.4 Billion (at $20/tonne)
Proposal to sell those at 50% subsidy = $1.2 Billion To assist in transition of economy.
Source: LCC 2008
Global Perspective
Australia is dangerously lagging behind.China and India both have larger renewable energy sectors than Australia.16% of Chinese energy comes from renewable
sources, 26% in India. Australia is sitting low at 8% Australia is well below the global average of
19%
Global Perspective
Xinjiang, China
Three Gorges Dam, China
Aralvaimozhy Station, IndiaGandhi Sagar Dam, India
Global Perspective
Germany has invested $14 Billion in 2007 alone, making them the world leader in renewable energy investment.
This equates to 0.5% of their GDP.
Global Perspectives
Source: EPA 2008Germany is the world leader in solar energy with $14 billion invested in 2007 alone (Blake 2008)
Global Perspectives
Australia has only invested 0.02% of GDP into the renewable energy sector. Only 1/25th the proportion of Germany The majority of energy still comes from coal and
oil
Conclusion
Australia has missed one boat Dr. Zhengrong Shi
Studied at UNSW Australia would not fund his solar research and
development Moved to China for funding Company has flourished and is dominating the
global solar energy market.Lets not miss another that comes our way
Conclusion (cont.)
China and India are both economies in transition and yet, we as a fully developed country and lagging behind them
We cannot keep relying on an obsolete foundation.
We can’t keep holding ourselves back and letting the rest of the world power ahead.
Conclusion (final)
Public Opinion Poll
Which do you think should receive more federal government subsidies?
When should the federal government increase the subsidies for reneweable energy?