Category Archives: Fossil Fuel Reduction

PLEA Network

26 July, The Economist, The global addition to energy subsidies: Energy prices have been falling for a year. Over the last month that trend has accelerated. On July 24th, the price of a barrel of oil in America reached a low of $48. In spite of this, governments are still splurging on subsidies to prop up production. Fossil fuels are reaping support of $550 billion annually, according the International Energy Agency (IEA), an organisation that represents oil- and gas-consuming countries, more than four times those given for renewable energy. The International Monetary Fund’s estimates are substantially higher. It said in May that countries will spend $5.3 trillion subsiding oil, gas and coal in 2015, versus $2 trillion in 2011. That is equivalent to 6.5% of global GDP, and is more than what governments across the world spend on healthcare. At a time of low energy prices, high government debt and rising concern over emissions there is scant justification for such spending. So why is the world addicted to energy subsidies? Read More here

PLEA Network

23 July 2015, The Conversation, Native forests can help hit emissions targets – if we leave them alone: The debate over native forest logging has been sparked once again, partly by the government’s successful push for wood burning to be included in the revamped Renewable Energy Target. However, the disagreement over the best way to manage Australia’s 9.4 million hectares of public native forest is thrown into sharp relief by analysis showing that ending native forest logging, and completing the the industry’s shift into plantations instead, would get Australia much of the way to its greenhouse gas emissions reductions target. Analysis done using the Australian government’s public native forest model suggests that stopping all harvesting in the public native forest estate would generate in the order of 38 million tonnes of potential credits (that is, the equivalent of 38 million tonnes of carbon dioxide emissions avoided) each year in the short to medium term.

While this is the technical capacity, the Kyoto Protocol’s rules cap credits from forest management at 3.5% of base-year emissions, or around 15 million tonnes of CO2 equivalent per year. So if Australia ratifies the second commitment period of the Protocol, which runs from 2013 to 2020, the cap would limit forest management credits to 120 million tonnes of CO2 equivalent over the commitment period. The Australian government’s latest emissions projections estimate that, in order to meet its 5% emissions-reduction target in 2020, Australia has to reduce its emissions by 236 million tonnes of CO2 equivalent over the second commitment period. This means stopping harvesting in public native forests could provide 51% of the abatement task to 2020. Read More here

 

PLEA Network

22 July 2015, The Guardian, Victorian farmers and green groups firm on CSG fracking ban as inquiry fires up. As parliamentary inquiry into ramifications of drilling gets under way, farmers fear state’s moratorium on coal seam gas may be lifted. Farmers and environmental groups have lined up against the oil and gas industry to oppose fracking of unconventional gas in Victoria, as a parliamentary inquiry into its potential benefits gets under way. A parliamentary committee began hearings in Melbourne on Wednesday morning into the economic, social and environmental ramifications of allowing Victoria to be opened up for gas drilling. Victoria has banned unconventional gas exploration, which includes coal seam gas and tight gas, since 2012. Since then, the expansion of coal seam gas in New South Wales and Queensland has sparked fierce protests from green groups and some local residents. In January, Victoria’s Labor government extended the ban until the committee handed down its findings. A review conducted by the former Coalition government recommended that regulations around fracking for gas be relaxed. Advocates for gas drilling claim Victoria would benefit financially and households would enjoy lower gas prices if supply were increased. Read More here

PLEA Network

21 July 2015, The Conversation, One year on from the carbon price experiment, the rebound in emissions is clear: Just over a year ago, Australia concluded a unique public policy experiment. For the preceding two years and two weeks, it had put a price on a range of greenhouse gas emitting activities, most significantly power generation. Now, 12 months since the price was removed, is a good time to assess the results of the experiment. The immediate effect of the carbon price was to increase the costs faced by most electricity generators, by an amount that varied between individual power stations depending on that station’s emissions intensity (the emissions per unit of electricity). These costs were then passed on in higher prices to consumers.

Simple economics suggests that two effects should have followed. First, less emissions-intensive generators should have been able to increase their market share, resulting in an overall reduction in the average emissions intensity of electricity. Second, higher prices should have led consumers to reduce their consumption, cutting the total demand for electricity. When the price was removed, both of these effects should have been reversed. Let’s look at what happened in the National Electricity Market (NEM), which is the wholesale electricity market in every state and territory except Western Australia and the Northern Territory.

My analysis, using detailed NEM operational data from the Australian Energy Market Operator (AEMO) finds that emissions intensity, which was increasing until shortly before June 2012, fell continuously (see graph below) for most of the two years to June 2014. Since then, it has increased consistently. All these changes were caused by changes in the market shares the different types of generation, just as expected. Read More here