global climate leadership review 2012
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The Climate Institute’s Global Climate Leadership Review 2012 positions Australian climate policy in a global context. It aims to elaborate on the implications of global climate diplomacy and domestic actions for Australia.The overarching theme of this flagship project is leadership. The Global Climate Leadership Review identifies which nations are currently leading the low carbon economy, who is leading the international negotiations and provides an annual case study of where Australia can show leadership.TRANSCRIPT
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The ClimateInstitute
Global Climate Leadership Review 2012
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The Global Climate Leadership Review is an annual report produced by The Climate Institute and is the first flagship project of 2012.
The report puts Australia in the global context:+ Who is leading the low-carbon economy? + Who is leading international cooperation?+ Where can Australia lead?
Global Review 2012Introduction
www.climateinstitute.org.au/global-review
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Key Findings
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Global investments in clean energy now compete with fossil fuels.
Note: Investment for new-build fossil fuel calculated from Energy Information Administration & International Energy Agency data, clean energy is derived from Bloomberg New Energy Finance totals.
Context
IN PARTNERSHIP WITH
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Percentage of climate change related spending in initial economic stimulus packages in individual countries.
Many countries are linking climate change and economic growth strategies.
Context
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Carbon price 2012-15, globally
Australia’s carbon price is not excessive compared to other nations.
Context
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The Climate Institute/GE Low-Carbon Competitiveness Index measures the current capacity of each country to be competitive and to generate material prosperity for its residents in a low-carbon world.
2009_ 2012_Quantitatively ranked G20 countries Updated Index and analysis of the progress countries
have made since 1995
The Index takes a unique approach:
variables are selected based on their statistical correlation with carbon productivity (CO2/GDP)
Low-Carbon Competitiveness
IN PARTNERSHIP WITH
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The Low-Carbon Competitiveness Index is made up of 19 indicators grouped into 3 categories.
LCCI methodology
02. Early Preparation These indicators reflecting the steps that countries have already taken to move towards a low carbon economy e.g. investment in sustainable energy businesses
01. Sectoral Composition These variables reflect that economies which have a more emissions intensive structure will face a greater challenge in remaining competitive in a carbon constrained world e.g. carbon-intensive electricity and transport sectors
03. Future Prosperity These indicators contribute towards prosperity today and will also be important in a carbon-constrained future, e.g. high educational expenditures and investment in physical capital
Low-Carbon Competitiveness
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+ France, Japan, the United Kingdom, South Korea and Germany are the best positioned in a low carbon global economy.
+ Australia is among the lowest ranked countries, ranked lower than Russia, Argentina, South Africa, the US and Saudi Arabia.
+ Australia ranked 16th and is the worst performing advanced economy among the G20. It is the only country whose rankings have not improved since the 2009 ranking.
Low-Carbon Competitiveness
Key Findings
www.climateinstitute.org.au/lcci
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Countries that perform well recognise the link between economic, resource security and climate change policies.
Australia is the only G20 country that has gone backwards since 1995.
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France
Transport
+ Expected to spend US$37 billion by 2020 on public transport
+ Standards to limit new car emissions to 95 gCO2/km by 2024, compared to 155 gCO2/km in Australia
+ Penalty and incentive system for the purchase of new cars based on emissions
Electricity Supply
+ Mandatory renewable energy target of 23% of final consumption by 2020
+ Technology-specific feed-in tariffs and ongoing investment in nuclear energy and smart grids.
Energy Efficiency
+ Government-mandated energy efficiency target and trading scheme
+ A minimum of 9% total energy savings over the period 2008-16
+ Reduction of energy demand in buildings by 38% by 2020, at which point all new buildings will be zero-carbon
Carbon Trading
+ Participant in EU emissions trading scheme
+ Committed to reducing emissions by a factor of 4 (a 75% reduction)
+ The OECD has found France’s environmental taxation generates revenue equivalent to around 1.8% of GDP
High-SpeedLow-Carbon
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Durban Outcomes
+ Agreement to negotiate legal agreement covering all major emitters
+ Further implementation of Cancun Agreements,
e.g. Green Climate Fund+ Agreement to increase ambition+ Agreement on new Kyoto Protocol targets
International Cooperation
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Other Factors+ Domestic actions building
international confidence+ China’s willingness to accept binding
commitments post 2020+ EU, AOSIS and LDC forming
coalition of ambition
International Cooperation
Connie HedegaardEuropean Commissioner for Climate Action
“Anyone can see that we cannot deal with the challenges of the 21st century with a growth model from the 19th and 20th century.”
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+ Clean Energy Future package can get the economy moving in the right direction with other G20 nations
+ Key Next Steps:+ National energy savings
initiative + Clean Energy Finance
Corporation+ disclosure of climate risks
Australian Leadership
With the Clean Energy Future package the carbon productivity broadly keeps pace with global trends. Without the package, Australia increasingly falls behind.
Emissions intensity of global and Australian GDP to 2050
Source: Treasury, 2011
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+ Whether Australia accepts a new and credible Kyoto target will be a major test in 2012
+ Not accepting a new Kyoto target is against Australia’s national interest:+ Undermines efforts towards new agreement that covers all major emitters+ Reduces Australian influence and undermines national policy goals (e.g.
carbon markets)
Australian Leadership
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+ Marginal benefits in linking with EU+ Create a system to:
+ incentivise developing countries to bet pledges+ Increase advanced economy ambition+ Road-test new market mechanisms
+ Strategic focus on:+ Indonesia and South Korea+ Exclude REDD
Regional Emissions Trading Coalitions
Australian Leadership
Worker at an Indonesian geothermal plant
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Developed CountriesDeveloping Countries
Australian Leadership
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+ Australia is not immune to global trends+ Australia is the only G20 country that has gone backwards on its
low-carbon competitiveness since 1995+ Australia's Clean Energy Future package represents real progress
when implemented fully+ To boost global ambition, Australia needs stronger pollution
reductions, new Kyoto commitments, and creative linkages of our market with others
“To remain competitive in a future carbon-constrained world, Australia will need to turn into a lower-carbon economy.”
Conclusions
Marius KloppersCEO, BHP Billiton
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Report partnersProject Partners
Key Partner
The Climate Institute would also like to acknowledge Vivid Economics, the British High Commission and World Resources Institute for their support.
Project Partners
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www.climateinstitute.org.au/global-review
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