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March 5, 2017 Climate Change Review Department of the Environment and Energy [email protected] Dear Climate Change Review Thank you for the opportunity to provide a submission in relation to a national review of existing climate change policies. Models of Success and Sustainability (MOSS) www.moss.org.au is a national industry body for Corporate Responsibility and Sustainability who supports business, government and community organisations through innovation, education, training, tools, networking and advice to drive sustainability and competitive business success. Our key strengths lie in new and innovative business models and technologies around the Blue and Circular Economy which are set to generate 100 million new jobs globally in 10 years. This submission briefly covers area of concern and missed opportunities that will support Australia’s future prosperity. OVERVIEW OF KEY ISSUES 1. MOSS believes it is in Australia’s national and global interest to reduce emissions, as a country vulnerable to climate change . - Transitioning to a low-emissions economy is essential, as the fossil fuel sector will no longer be a source of economic growth in the future. - Australia could direct its public fossil fuel subsidies - totalling approximately $5 billion annually - into clean technology renewable energy opportunities. 2. Meeting Australia’s commitments under the Paris Agreement, and achieving the global goal of net-zero greenhouse gas emissions in the second-half of this century, will require increased ambition and targets. - Australia’s current pledge of a 26 to 28 percent economy-wide emissions reduction compared to 2005 levels is not ambitious or Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review Submission Prepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017. 1

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Page 1: publications.industry.gov.au · Web viewA report by Climateworks found that the potential exists to nearly double the energy productivity of the Australian economy by 2030 by investing

March 5, 2017

Climate Change ReviewDepartment of the Environment and [email protected]

Dear Climate Change Review

Thank you for the opportunity to provide a submission in relation to a national review of existing climate change policies.

Models of Success and Sustainability (MOSS) www.moss.org.au is a national industry body for Corporate Responsibility and Sustainability who supports business, government and community organisations through innovation, education, training, tools, networking and advice to drive sustainability and competitive business success.

Our key strengths lie in new and innovative business models and technologies around the Blue and Circular Economy which are set to generate 100 million new jobs globally in 10 years.

This submission briefly covers area of concern and missed opportunities that will support Australia’s future prosperity.

OVERVIEW OF KEY ISSUES

1. MOSS believes it is in Australia’s national and global interest to reduce emissions, as a country vulnerable to climate change.- Transitioning to a low-emissions economy is essential, as the fossil fuel sector will no longer be

a source of economic growth in the future.- Australia could direct its public fossil fuel subsidies - totalling approximately $5 billion annually -

into clean technology renewable energy opportunities.

2. Meeting Australia’s commitments under the Paris Agreement, and achieving the global goal of net-zero greenhouse gas emissions in the second-half of this century, will require increased ambition and targets.- Australia’s current pledge of a 26 to 28 percent economy-wide emissions reduction compared

to 2005 levels is not ambitious or a fair share. Australia has both the means and responsibility to commit to deep and rapid emissions cuts.

- Australia’s level of ambition in the Nationally Determined Contribution should be increased and translated into a binding domestic legislation. This should translate into a stronger 2030 greenhouse gas emissions goal.

- A 60 percent reduction of greenhouse gas emissions by 2030 compared to 2000 levels and a long-term emissions reduction goal post-2030 of net-zero greenhouse gas emissions by 2046 is achievable, equitable and economically responsible for Australia.

- The Climate Change Authority (CCA), created by the government, recommends a national mitigation target of between 40 to 60 percent below 2000 levels by 2030.

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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3. To keep warming to under 1.5 degrees, we must not use what remains of the global carbon budget.- Existing fossil fuels reserves must remain in the ground.- Australia should halt use of public funds (including tax concessions, direct investments, and

other subsidies) that support fossil fuel projects. There should be no new development of projects.

- A plan and timeline should be developed for the closure of existing thermal coal, gas and oil mines over time. There should be a plan to close coal-fired power generation by 2030.

- Australia should cease to export coal to other countries.

4. Australia needs to transition to a clean energy future.- Australia’s transition to a clean energy future should be inclusive, equitable and ensure that

there is a just transition for workers and communities. - Energy market rules and institutions require reform to ensure that energy and storage

technologies are able to improve energy stability, and drive down power bills. - Australia should legislate strong vehicle fuel efficiency standards to help decarbonise the

transport sector.

5. Australia should invest in renewable energy research and deployment. - Continuing and expanding the role of the Australian Renewable Energy Agency (ARENA) and

Clean Energy Finance Corporation (CEFC) should be done alongside financial and business support for renewable energy research, development and deployment.

- Expanding the CEFC’s Act could allow for investments from outside of Australia to assist with reducing regional emissions.

- The Renewable Energy Target (RET) scheme should be fostered and extended past its first target in 2020.

6. The Australian Government should support climate action from states and local governments. - New South Wales, Queensland and Victoria alone represent three quarters of Australia’s

greenhouse gas emissions. A number of states and territories (including the Australian Capital Territory, New South Wales, South Australia, Tasmania and Victoria) have established net-zero targets by 2050.

- States and local governments able to set deep emissions reduction targets should be encouraged and supported to do so.

7. Australia should support the international community to take action.- Australia has a responsibility to support less wealthy nations, particularly those in the Asia-

Pacific region, to transition to renewable energy and to adapt to a rapidly changing climate. - We should contribute our fair share of international climate finance, including at least $3.2

billion annually by 2020 to the Green Climate Fund in addition to existing aid commitments. - Australia should develop and implement a comprehensive climate change strategy for

Australia’s aid program.

8. Protecting and restoring nature will assist in reducing greenhouse gas emissions. - The government should tighten and enforce regulations to end land clearing and the logging of

old-growth native forest. Native forests should not be burnt as a form of renewable energy.

BACKGROUND ON AUSTRALIS’A CLIMATE CHANGE POLICIES

In 2015 Australia signed on to the Paris Agreement, committing to taking strong action on climate change and a global goal to hold temperature increase to well below 2°C, and pursue efforts to keep it below 1.5°C above pre-industrial levels.

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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As part of the Paris Agreement countries submitted targets and plans known as Intended Nationally Determined Contributions (INDCs). Australia submitted one of the weakest INDCs of all developed nations, with a target to reduce emissions by 26-28% below 2005 levels by 2030*.

The policies to achieve these targets were even weaker, ignoring cheaper and more effective options, and opting for a “Direct Action” scheme with an “Emissions Reduction Fund” where the Government pays companies for reducing emissions.

How has that policy worked so far?Experts and reports, including those by the Government themselves, suggest that Direct Action is one of the most expensive and least effective options, not to mention there’s no way to assess whether any genuine reductions have been made.

And what about emissions? They’re rising.As emissions are stalling or dropping in other countries around the world, appallingly, emissions are up 7.5% in Australia since the carbon price was removed.

*The Government target of 26-28% emission reductions below 2005 levels by 2030 is too low to limit warming to 2°C, and is equivalent to a level of global action that would result in 3-4°C of global warming (Climate Institute, Climate Council, Climate Change Authority, Climate Action Tracker, IPCC).

OPPORTUNITIES FOR POLICY, INVESTMENT AND ECONOMIC RENEWAL

1. Australia’s Paris Target and The Climate Imperative

The many lines of evidence, and 97% of climate scientists, confirm that global warming is happening and it is because of our emissions. This is the greatest challenge of our time. The risks are great, and the damage significant (Department of Environment, World Resources Institute on the IPCC). Already climate change is influencing extreme weather events that are wreaking havoc around the country, and the world.

Heatwaves are becoming more frequent and more intense (Harvard, National Acadamies Study). Bushfires, drought and floods too (Climate Council 1, 2, 3, Australian Climate Change Science Program). The Reef, our premier tourist attraction, is terminal (The Conversation, The Guardian Special Report, ARC Centre of Excellence for Climate System Science, National Geographic). Our own health suffers at the hands of climate change and fossil fuels (Lancet Study, Climate Council). As does agriculture and the economy (Climate Council 1, 2, 3, UNDP, Assets study). Geopolitical stability rests in the balance as climate change magnifies the issues underlying global conflict (Centre for Policy Development, Defence White Paper).

The systems upon which civilisation is based are at risk. It is our duty to do everything in our power to avoid these risks and consequences. Indeed, the Paris Agreement, ratified by 130 countries including Australia, commits to:

- an overarching goal to hold global average temperature increase to well below 2 degrees and pursue efforts to keep warming below 1.5 degrees above pre-industrial levels

- aim to reach global peaking of greenhouse gas emissions as soon as possible and rapid reductions thereafter to achieve a balance between emissions and removals of greenhouse gases in the second half of this century (Paris Agreement)

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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Discussion Question: Australia has committed to considering a potential long-term emissions reduction goal for Australia beyond 2030. What factors should be considered in this process?

Policy and targets should be informed by the evidence of what is needed, and ambition for what is possible. They should consider the most effective and efficient way to achieve emission reductions, without ruling out options for ideological reasons. Policy should be created that ensures households, especially low income and vulnerable households, are not disadvantaged, and so those who have been advantaged pay their fair share. Policy should respect the rights of first nations people. Climate change policy, and all policy, should be created to include these factors, while simultaneously aiming for ambitious outcomes based on evidence – these are not opposing forces, but complementary ones. Further, as an issue that affects every aspect of the environment, economy and society, climate change should be a factor in all policy.

For climate change, the evidence, scientists and experts tell us that to avert the risks of warming policies need to reduce global emissions to zero as soon as possible, and then draw carbon out of the atmosphere (Intergovernmental Panel on Climate Change – IPCC, Stockholm Environment Institute, The Climate Institute, IPCC SYR AR5 p101).

The longer we wait, the harder it gets (Dr James Hansen, Mercator Research Institute). To preserve a safe climate long term scientists tell us we must reduce the amount of CO2 in the atmosphere to below 350 parts per million (Dr James Hansen and colleagues) from it’s current level of over 400 (NASA). To stay within the aspirational Paris guardrail of 1.5 degrees warming we can only emit 353 Gt of CO2 from now on. And that’s only a 50/50 chance. In currently operating fields and wells we have 942 Gt (Sky’s Limit Report). This is stark, but simple math. It means our target is zero. Zero new fossil fuel projects. And zero emissions. Australian climate policy should reject any new fossil fuel projects, and pass legislation for bold emission reduction targets and strong renewable energy ones (ACT Climate Change Policy, Climate Council).

Discussion Question: What process could Australia use to implement its Paris commitment to review targets every five years?

Any review process should include analysis of whether policy has actually been effective in achieving the target outcomes. For climate change targets and policy, this includes a review of how effective policy has been in reducing emissions.

Considering that global warming is a global commons problem (that no country can solve its own climate problem by itself), and considering the risks and opportunities that climate change poses – addressing climate change should be a race to the top. In reviewing its emission reduction targets Australia should compare the targets of all other countries and aim to be leading the pack. As the Australian Climate Change Authority (2014) states: “It is clearly in Australia’s interest to persuade and encourage other nations to strengthen their contributions to international action. Australia is likely to be more persuasive and encouraging if its own goals are viewed as a fair contribution by others.”

Discussion Question: What are the issues in the transition to a lower emissions economy with respect to jobs, investment, trade competitiveness, households (including low income and vulnerable households) and regional Australia?

Luckily, the solutions and technology for a lower emissions economy are available (IPCC, Beyond Zero Emissions – BZE, ClimateWorks, Science, The Blue Economy), and provide many benefits in addition to averting the risks of climate change: cleaner air, better health, less health costs, more energy security with

distributed networked grids, lower energy costs, more jobs, cleaner water, preserved ecosystems (International Renewable Energy Agency – IRENA, The Conversation, Union of Concerned Scientists).

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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The idea that the environment is at odds with the economy is a fallacy. Climate change action will benefit the economy and society. This can be illustrated for all the sectors mentioned in the discussion paper.Australia has the opportunity to be leaders and innovators. To manage and inspire the transition to a better future. Australians want this (The Climate Institute, CSIRO). For ourselves, our children, and our grandchildren.

2. Sectoral Analysis: Electricity

As the discussion paper states, the electricity sector remains Australia’s largest source of carbon emissions. This sector should therefore receive priority in Australia’s efforts to drive down emissions. The Government review of the National Electricity Market (NEM) currently underway is a positive first step, as is the Interim Report that states “current policy settings do not provide a clear pathway to the level of reduction required to meet Australia’s Paris commitments.”We have zero emission sources of energy (Australian Energy Market Operator – AEMO, Stanford – The Solutions Project, Homegrown Power Plan, Dr Andrew Blakers), and they provide many benefits.

First, renewables are now cheaper than other fossil fuel sources of electricity for reliable baseload supply (Reputex), and new supply (The Conversation). Renewables are rapidly on their way to becoming cheaper than old fossil fuel electricity (Climate Council), and that’s while fossil fuels receive a free ride, as they avoid paying for the health and environmental impacts they cause (International Monetary Fund – IMF, IPCC, ). To level the playing field even further, we should remove the free ride fossil fuels get. This means removing subsidies for fossil fuels, and charging for externalities – the fossil fuel impacts that are currently borne by taxpayers (IMF, Australian Conservation Foundation – ACF, IPCC, UNFCC, International Energy Agency -IEA, OECD, Lowy Institute, Garnaut Review, British Columbia example).

Renewables will employ more people (Climate Council). The jobs in renewable energy also pose less health risks to workers than those in fossil fuels (Union of Concerned Scientists). Australia should develop a transition plan for fossil fuel workers and communities to shift to renewables (Hillary Clinton Coal Community Plan 1, 2).

Global investment is shifting from fossil fuels to renewables: “We see a broad shift of spending toward cleaner energy, often as a result of government policies,” said IEA Executive Director Fatih Birol. “Our report clearly shows that such government measures can work, and are key to a successful energy transition. But while some progress has been achieved, investors need clarity and certainty from policy makers. Governments must not only maintain but heighten their commitment to achieve energy security and climate goals.” (IEA, Bloomberg New Energy Finance)

Australia has a comparative advantage to be trade competitive as a renewable energy superpower. As countries shift from fossil fuels to renewables a huge opportunity exists to supply renewable solutions, but this window will close as the replacement of fossil fuels with renewables nears completion (BZE). To benefit from the energy transition businesses and nations must invest during this wave of change, and Australia is well placed with plentiful access to renewable resources.

Households will benefit from the lower cost of renewables, and increased security that renewables can provide through distributed networks and microgrids. Australians will benefit from the safer jobs, and from the environmental and health benefits of cleaner air and water. These benefits will also flow to vulnerable and low income households. However policy should explicitly ensure that these households are not further disadvantaged, particularly as people experiencing disadvantage will be first and worst impacted by climate

change (ACOSS, Australian Academy of Science, World Bank) – another reason why effective climate change policy is necessary and provides many co-benefits.

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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Rural and regional areas receive a high proportion, 30-40%, of the investment in renewables, and these projects bring jobs to the area and offer farmers additional revenue streams (Climate Council). The transition to clean energy will also reduce the health burden of burning fossil fuels, which is primarily borne by rural and regional areas. Renewables can also provide more distributed and therefore reliable energy, with lower costs for rural and remote communities, who traditionally pay much higher prices than their urban counterparts. Further, climate change disproportionately affects rural and regional communities with extreme weather stress and agricultural impacts. Mitigating climate change will reduce the impacts rural communities based on agriculture face.

3. Sectoral Analysis: Households, small to medium sized enterprises (SMEs) and the Built Environment

The discussion paper outlines how households account for 12% of emissions, and SMEs 7%. These emissions could be reduced with strong energy efficient building codes with an aspirational goal of zero emission buildings (IPCC, BZE, VIC Government). Household policies would have many benefits. For example, implementing the measures such as those in Beyond Zero Emissions building plan would result in tens of thousands of jobs from retrofit projects alone; household savings of $40 billion over the next 30 years; reducing the residential energy sector’s annual energy use by 53%, and; reducing energy use in the non-residential sector by 44% (BZE).

The National Energy Productivity Plan sets a goal of a 40% improvement in energy productivity by 2030 (NEPP), but this is far lower than what research suggests is possible. A report by Climateworks found that the potential exists to nearly double the energy productivity of the Australian economy by 2030 by investing in the modernisation of our energy system and taking advantage of recent technological developments (ClimateWorks). The Australian Alliance for Energy Productivity is also working on a roadmap that will set the course for a doubling of energy productivity by 2030, and is working with all levels of government on energy productivity plans (2xEP). An Energetics report on a doubling of energy productivity by 2030 illustrates the benefits of such a plan, including 10% emission reductions and a $59.5bn gain to GDP (Energetics).

The Equipment Energy Efficiency program is part of the National Energy Productivity Plan, and implementing the recommendations from the Greenhouse and Energy Minimum Standards (GEMS) will help strengthen it (Energy Rating, GEMS Review 1, 2).

4. Sectoral Analysis: Resources, Manufacturing, Waste

The discussion paper sets out that Resources, Manufacturing and Waste accounts for 28% of Australia’s emissions, but it is difficult to determine where this figure came from. The Department of the Environment and Energy 2016 paper, Australia’s emissions projections 2016 provides a sectoral analysis for Direct Combustion (which includes resources and manufacturing) and Waste, each accounting respectively for 95 and 12 Mt CO2-e of the total 527 Mt CO2-e emitted in 2015, or 20% of emissions. Around 20 Mt CO2-e of these emissions come from the direct combustion of fossil fuels for energy, which a shift to 100% renewable electricity would completely eliminate. A similar case exists for the 8 Mt CO2-e from coal mining. The shift to renewables already has strong co-benefits of more jobs, lower electricity costs, increased health benefits and lower health costs, and cleaner air and water.

The industry and manufacturing sector is the largest subsector, accounting for 36 Mt CO2-e emissions. Beyond Zero Emissions is currently working on an Industry Plan that will illustrate how this sector can reduce emissions, which will fill an important gap in the roadmap to a low and zero emissions economy.

Discussion Question: What are the opportunities and challenges of reducing emissions from the resource, manufacturing and waste sectors? Are there any

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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implications for policy?

The specific area of the Circular Economy has enabled the EU to set policy and investment to reduce waste stimulating industrial symbiosis - turning one industry's by-product into another industry's raw material.

The revised EU legislative proposals on waste set clear targets for reduction of waste and establish an ambitious and credible long-term path for waste management and recycling. Some of the key elements of the revised waste proposal include:

A common EU target for recycling 65% of municipal waste by 2030;

A common EU target for recycling 75% of packaging waste by 2030;

A binding landfill target to reduce landfill to maximum of 10% of all waste by 2030;

A ban on landfilling of separately collected waste;

Promotion of economic instruments to discourage landfilling;

Concrete measures to promote re-use and stimulate industrial symbiosis - turning one industry's by-product into another industry's raw material;

Economic incentives for producers to put greener products on the market and support recovery and recycling schemes (eg for packaging, batteries, electric and electronic equipment, vehicles).

Other aspects include:

Comprehensive commitments on eco-design

Development of strategic approaches on plastics and chemicals

Major initiative to fund innovative projects under the umbrella of the EU's Horizon 2020 research programme ($80b over 7 years). By investing 3% of EU GDP in R&D by 2020 could create 3.7 million jobs and increase annual GDP by €795 billion by 2025.

The EU believe as do MOSS that the Circular Economy = Jobs and reduced CO2 emissions. It is expected that new circular economy policy reduce emissions and cut carbon. Here’s a few projections.

Finland - cut carbon emissions by almost 70 % by 2030 and creation of 75,000 additional jobs.

France - Co2 emissions would go down by 2/3 and employment gains would be in the range of half a million jobs.

Netherlands - very similar picture. A significant reduction in carbon emissions and employment gains in the range of 200,000 jobs.

Spain - carbon emissions would go down by 60-70 % and employment would be boosted with an estimated 400,000 additional jobs.

Sweden - a Circular Economy would cut carbon emissions by 2/3 and contribute to at least 100,000 new jobs – representing almost 3 % of the labor force.

It is important to note that few in Australia have the skills or qualifications to support this transition and thus, investment will be required to upskill the workforce. World first curriculum is currently in development to support this if further investment can be secured.

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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Discussion Question: Are there particular concerns or opportunities with respect to jobs, investment, trade competitiveness, households and regional Australia that should be considered when reducing emissions in the industrial sector?

The principles, innovations and processes of the Blue and Circular Economy can clearly address jobs, investment, trade competitiveness and reduced emissions in regional Australia.

Although no investment has yet been made to undertake formal identification of new industries and jobs, a brief scan of the stranded assets and or sectors by MOSS identified more than 50 opportunities that could improve efficiency, create significant employment and keep money circulating locally, especially in rural and regional communities.

Three very different examples demonstrate the wealth of Blue Economy opportunities available:

1. Establishment of a bio-refinery by converting an existing or soon to be defunct refinery, which uses feedstock such as thistles grown on low value unproductive water scare land to produce valuable oils. Thistles currently make up 50% of the feedstock for a new generation bio-refinery in Sardinia. Year one generated $600m in oil sales.

Oil from thistles is blended with other sources including olive oil residue and used cooking oils, to form the basis of third-generation Mater-Bi biopolymers. After extracting oil from the seeds, the remaining material is used by local farmers as animal feed, while the biomass is used to fuel the plant itself.

2. Establishment of a silk industry to support a new era in bio-medical products that sees mulberry silk spun into the geometry of the Golden Orb Spider and used as an alternative to titanium in medical devices such as sutures, nerve repair, bone graft, cartilage repair and orthopedic devices. It can also be used to replace titanium in a range of consumer goods such as razor blades.

This innovation competes with mined titanium but saves energy, captures CO2 and generates jobs while planting trees and growing topsoil. And it does so at about 40% of the price of digging titanium out of the ground.

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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This industry can see the rejuvenation of degraded farming land and the generation of up to 15 million jobs in 10 years.

3. Establishment of one or more stone paper production facilities. Stone paper is made without trees or paper – utilizing building and or mining waste. One plant (that can be built for around half the price of an equivalent paper pulp production plant), can provide employment for approximately 1,000 people.

Stone Paper is energy efficient, acid free paper that is neither synthetic nor wood pulp fibre based. Stone Paper is a natural product manufactured from calcium carbonate, CaCO3 powder using proprietary additives as a bonding agent. 80.9% of the paper is made up of waste from the building industry. Offcuts and waste stone rock, marble and tiles as well as waste material at existing limestone quarries are ground to recover Calcium Carbonate.

Stone Paper also has a low carbon emission. It uses significantly less energy to produce than wood fiber paper. It generates no effluent in its manufacture (airborne or solid), and requires no water, acid or bleach during production. Any trimmings or waste paper from production is recycled to make new paper. It is both recyclable and photodegradable /compostable.

Northern Australia is already a highly sought after tourist destination, education hub and a key centre for research and development (especially relating to tropical medicine and knowledge). If Northern Australia focuses on innovation inspired by nature with zero waste that the Blue Economy brings, it can also be a showcase to Asia in terms of business innovation and best practice.

As outlined by the State of the Tropics Report in 2014, across a broad range of environmental, social and economic indicators, the Tropics emerges as a critical global region with a unique set of development challenges and opportunities.

It covers 40% of the world’s surface area, but hosts approximately 80% of its terrestrial biodiversity and more than 95% of its mangrove and coral reef-based biodiversity. The tropical world’s economy is growing 20% faster than the Rest of the World and many tropical nations are important contributors to world trade, politics and innovation. A focus on the Blue Economy can also contribute to this growth.

The Tropics is also home to 40% of the world’s population, and 55% of the world’s children under the age of five years old. By 2050, some 50 per cent of the world’s population and close to 60% of the world’s children are expected to reside in the Tropics.

Advances in technology are providing a platform for expanding business opportunities, enhancing prospects to reduce poverty, and improving education and health outcomes. Incomes are higher, infrastructure is more accessible and life expectancy is the highest it has ever been. While there have been rapid improvements, assessment of key indicators of wellbeing such as life expectancy and economic

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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output per capita show that the Tropics still lags behind the Rest of the World. The region is therefore at a critical juncture.

There has never been a more important time to harness the Blue Economy as a driver of jobs, innovation, education and investment in Australia. As Blue Economy specialists MOSS would be delighted to assist the Government and regional communities to transition to a low carbon, restorative environment and economy creating wealth, well-being and prosperity for all.

5. Sectoral Analysis: Transport

Transport accounts for 18% of Australian emissions and provides another large opportunity to reduce emissions. Strong targets for more efficient transit and urban planning to reduce the emissions of transport can significantly reduce emissions, and the Ministerial Forum on Vehicle Emissions can help provide those (Climate Change Authority, Centre for Climate and Energy Solutions, Sustainable Cities Institutes, Union of Concerned Scientists, BZE, IPCC).

The Ministerial Forum should also be tasked to examine three significant developments which will transform the light vehicle transport sector in the next two decades: the uptake of plug-in electric vehicles (EVs), autonomous vehicles and the trend towards new models of vehicle sharing. Incentives to facilitate rapid fuel switching, and ensuring traffic regulations do not inhibit trials or uptake of autonomous vehicles or vehicle sharing will facilitate the shift to low and zero emission transport. These disruptive shifts could significantly reduce the traffic and congestion costs Australia faces (DIRD report) by reducing the congestion and traffic on the road.

6. Sectoral Analysis: Land Use and Agriculture

Rural and regional areas receive a high proportion, 30-40%, of the investment in renewables, and these projects bring jobs to the area and offer farmers additional revenue streams (Climate Council). The transition to clean energy will also reduce the health burden of burning fossil fuels, which is primarily borne by rural and regional areas. Renewables can also provide more distributed and therefore reliable energy, with lower costs for rural and remote communities, who traditionally pay much higher prices than their urban counterparts. Further, climate change disproportionately affects rural and regional communities with extreme weather stress and agricultural impacts. Mitigating climate change will reduce the impacts rural communities based on agriculture face.

The Emissions Reduction Fund has been good for farmers, but not at reducing emissions. However, it is a good example of how policy can support rural and regional areas. Those principles should be considered while developing stronger policy in the agricultural and land use sectors that reduce emissions. As the Climate Change Authority Special Review of Australia’s climate goals and policies states, Australia will need a toolkit of both strengthened and new policies to meet the Paris targets.

We recommend that Australia develops strong land use policy that protects and uses the opportunity soil and agriculture offers us for drawing more carbon out of the atmosphere, reduces agricultural emissions, and increases our ability to draw carbon out of the atmosphere through reforestation and afforestation (IPCC, Union of Concerned Scientists, BZE, Climate Change Authority).

We recommend the government invest in trials of new clean technology such as Watreco’s Industrial Vortex Generator that increases crop yields and reduces emissions. This technology should be trialed in Australia as it has been in Europe and will soon be in the USA as an affordable, water and energy saving technology for adoption in Australia.

We also recommend a fund be established to investigate new innovation such as the Establishment of a silk industry to support a new era in bio-medical products.

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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7. Research, Development, Innovation and Technology

Research, development and technology have played an important factor in reducing emissions. It is thanks to clean tech and renewable energy technologies development that we have zero emission sources of energy and can reduce our emissions while maintaining our lifestyles.

Further, as most of the 2 degree scenarios in the IPCC reports require untested technology, research and technology will become even more important. I would also suggest we need to allow for and to support trials in Australia of technologies successfully deployed in other parts of the world. Especially those endorsed by “The Blue Economy” who’s 100 innovations inspired by nature with zero waste are set to generate 100 million new jobs in 10 years.

Key to these areas is consistent, sufficient funding. Cuts to CSIRO and ARENA run counter to the discussion paper’s claim that “Innovation is central to meeting the ambition of the Paris Agreement.”Funding for these institutions should be reinstated.

Discussion Question: Are there particular concerns or opportunities with respect to jobs, investment, trade competitiveness, households and regional Australia that should be considered in relation to research, development, innovation and technology?

Yes. Especially as it relates to both the Blue and Circular Economy. As presented to the Club of Rome, The Blue Economy enables SUSTAINABLE PRODUCTIVITY and GROWTH for virtually every part of the economy and its 100+ zero-waste innovations inspired by nature are set to generate 100 million new jobs in 10 years.

To date it has seen investment in excess of EUR 4B in projects and an estimated 3 million new jobs that are as diverse as they are profitable, disruptive and game changing from growing mushrooms on coffee waste to making paper without trees or water using mining and building waste. 

The Blue Economy cascades value and generates zero waste. It transforms business by using the resources available in cascading systems, where the waste of one product becomes the input to create a new cash flow. Physics, ecosystem emulation and systems thinking sit at the heart of the Blue Economy, which prioritises regional development and aims at creating jobs, building up social capital, increasing revenues and regenerating ecosystems.

According to Alan AtKisson (author of Believing Cassandra and The Sustainability Transformation) the new principles, strategies and practices in sustainability innovation have the potential to be “the biggest opportunity since the invention of money.”

The Blue Economy (which includes the Circular Economy) incorporates all the elements of the current wave of global innovation. It uses radical recovery of resources, upcycling of waste (as opposed to burning or dumping) and renewable sources of energy along with green chemistry and green nanotechnology to restore ecosystems, to build the economy and generate prosperity for all.

Understanding and applying these innovations will enable Australia to become a global leader in innovation, game changing technologies, advanced business models and education. …

Please note – Australia has an opportunity to work with specialists in the Blue Economy investing in education as a key lever for change.

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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Page 12: publications.industry.gov.au · Web viewA report by Climateworks found that the potential exists to nearly double the energy productivity of the Australian economy by 2030 by investing

8. International Units

Considering that global warming is a global commons problem (that no country can solve its own climate problem by itself), and considering the risks and opportunities that climate change poses – addressing climate change should be a race to the top. In reviewing its emission reduction targets Australia should compare the targets of all other countries and aim to be leading the pack. As the Australian Climate Change Authority (2014) states: “It is clearly in Australia’s interest to persuade and encourage other nations to strengthen their contributions to international action. Australia is likely to be more persuasive and encouraging if its own goals are viewed as a fair contribution by others.”

Australia should do everything it our power to do our fair share in reducing emissions before using International Units to make up for it. This is also important for issues of equity. Some countries have been responsible for far more carbon emissions than others, and have enjoyed a higher level of material comfort for it. It is morally corrupt to deny developing nations the same opportunities, and the Green Climate Fund is available to transfer. Australia’s commitment of $200 million to the Green Climate Fund from 2015-2018 is a positive step. Australia should strengthen this leadership and contribute its fair share, which research suggests is 2.4% of the global commitment.

International Units should be a last resort, so that Australia can experience the benefits to jobs, investment, trade, households and regional communities that will come with action to reduce emissions.

We thank you for this opportunity and look forward to further engagement with the Department of Environment and Energy as we transition Australia to a competitive low carbon, prosperous economy.

Sincerely

Anne-Maree McInerneySustainability Advisor and Blue Economy InnovatorFounder and CEO - Models of Success and Sustainability

Models of Success and Sustainability (MOSS) www.moss.org.au Climate Change Review SubmissionPrepared by Anne-Maree McInerney Sustainability Advisor and Blue Economy Innovator and Educator May 5, 2017.

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