Discussion paper: Clean Energy Future

Discussion paper: Clean Energy Future – opportunities and challenges for the WAGA Region Written by: The Executive Officer, WAGA October 2011

Discussion paper: Clean Energy Future – opportunities and challenges for the WAGA Region Written by: The Executive Officer, WAGA October 2011

For further information, please contact Celeste Young, Executive Officer Western Alliance for Greenhouse Action (WAGA) [email protected]

Important note: This discussion paper is intended to provide information in relation to the Federal Government’s Securing a Clean Energy Future plan for Councils across the WAGA region to enable strategic thinking. It outlines details of the Federal Government’s Clean Energy Future plan and the implications for Councils, residents and the business community. It is not intended to be a reference document, as much of the data it contains is from the 2006 Census and will not accurately reflect some regional statistics. Data has also been sourced from information provided by the Federal Government, other parties and stakeholders and should be considered as an indicator only. Aspects of this plan could be subject to change and further analysis will need to be undertaken prior to any actions being undertaken.

© 2011. WAGA. All rights reserved. Report editing, design and production by Ascending Horse, Melbourne. www.ascendinghorse.com

Contents Executive summary Recommendations Securing a Clean Energy Future: a summary A price on carbon: the international and economic context Specific areas relating to Local Government Impacts for Councils in the WAGA Region Building operation costs Landfill operation Building materials Fleet costs Opportunities and challenges for WAGA region Councils Funding directly related to WAGA Councils’ operations The operational challenge for WAGA Councils Projects that have already been undertaken by WAGA Current regional projects Current Council policy Future policy opportunities WAGA region: the social context What the introduction of a price on carbon means for WAGA residents Tax reform Pensioners Students Job seekers Low-income households Challenges and opportunities Emissions in the WAGA region: an overview Industrial operations Freight Implications of a price on carbon for Business and Industry in the WAGA region How the Clean Energy Future plan will support business and industry Industries eligible for the Clean Energy Future plan’s programs Support for agriculture and land management Regulation of price rices Industries by sector Agriculture and land management Manufacturing Steel and fabricated metals Transport and logistics Small to medium businesses Challenges and opportunities Potential regional projects Conclusion References

Discussion paper: clean energy future – opportunities and challenges for the WAGA region

4 5 6 8 9 9 9 9 9 10 11 11 11 11 12 12 12 15 17 17 17 17 17 17 18 20 20 20 21 21 22 22 22 23 23 23 23 23 23 24 25 26 27

Executive summary The Federal Government’s Securing a Clean Energy Future (the Clean Energy Future plan) is an ambitious plan for economic reform that aims to provide a platform for the establishment of market mechanisms necessary to assist the nation’s transition to a low-carbon economy. It is important for WAGA Councils to view the Clean Energy Future plan holistically as it has environmental, social and economic ramifications in municipal and regional contexts. It is equally important to identify what the current issues are and how the maximum benefit can be obtained at all levels of local government. The plan provides economic incentives intended to build innovative and energy-efficient industries and businesses that could secure their place in rapidly emerging new markets – regionally, nationally and globally. The Western region has a much lower job provision than the rest of metropolitan Melbourne, and there is the potential to use the plan strategically to reposition local industry and stimulate new jobs growth through a low-carbon economy framework.

areas of skills required, integration into current systems, governance and resource availability. Building Councils’ individual capacity will be closely linked to their success in capitalising on the opportunities in this plan within the designated timeframe. Councils will also need to clearly define their roles in relation to this plan and create a new vision for the Western region. The Clean Energy Future plan represents a unique opportunity for the WAGA Councils to collaborate on building a new economic framework and vision for the region using the financial incentives offered. By repositioning industry and businesses and building resilient and knowledgeable communities, WAGA can establish a secure foundation – ensuring the future prosperity and sustainability of the region and its communities.

With the sharp increase of residential growth in areas such as Wyndham and Melton, gentrification in areas such as Maribyrnong and the decline of jobs in the manufacturing sector, adequate local job provision is pivotal to the future prosperity of the WAGA region. The Western region has a complex and diverse population, so it will be important to ensure that the vulnerable aspects of our communities have the appropriate infrastructure and support for the future they will need as a result of this plan. Communication and education to all aspects of the WAGA communities will be an important factor for the successful implementation of any future plans. There are a number of operational funding opportunities for local government in relation to improving energy efficiency such as street lighting, building improvements and clean energy technologies. There are further opportunities for the endorsement of regional or partnership projects that will assist communities, businesses and industry to benefit from the plan. All Councils will need to consider how they will be able to deliver effectively on projects and how to manage the risks associated with the programs. They will also need to consider how their own operations and services will be impacted by the changes proposed in the plan. This offers both challenges and opportunities – particularly in the

It is important for WAGA Councils to view the Clean Energy Future plan holistically as it has environmental, social and economical ramifications in municipal and regional contexts.


Recommendations WAGA Councils: n Clearly define their role in relation to the Clean Energy Future plan n Define the vision of the region in context of the Clean Energy Future plan n Define what economic, strategic and risk frameworks they will need regionally in relation to the Clean Energy Future plan n Undertake assessment of capacity, skills and resources in relation to the delivery of potential projects and reporting required n Define what projects will provide the most value at a regional level n Work to actively build collaborative relationships with other government bodies, non-government bodies, industry, education and training organisations, research institutes and community groups to enable projects n Continue to build knowledge networks to support the future delivery of projects and build capacity and knowledge within councils across the region n Undertake the development of a regional Clean Energy Future Communication Plan for the region.


Securing a Clean Energy Future: a summary The Federal Government recently announced the Securing a Clean Energy Future plan (the Clean Energy Future plan) to cut pollution and drive investment in clean energy technology – a “comprehensive plan”1 for tackling climate change and securing a clean energy future. It outlines the existing policies already underway to address climate change and cut carbon pollution and introduces several critical new initiatives. A package of 19 Bills – 18 Clean Energy Bills and the Steel Transformation Plan Bill – the Clean Energy Future plan was passed by the House of Representatives on Tuesday, 13 September 2011 and is expected to pass through the Senate by mid-November 2011. The primary objective of the plan is to disengage Australia’s future economic growth from future growth of the nation’s carbon emissions. As well as expanding the Low Carbon Communities program to help “local councils and communities to improve energy efficiency in council and community-use buildings buildings and facilities”2 , the plan also features $10 billion of new investment for clean energy through the Government’s new Clean Energy Finance Corporation.3 The funding criteria and relevant details of how these funds are to be administrated is yet to be finalised. The Clean Energy Future plan has four key elements: n A price on carbon n Renewable energy n Energy efficiency, and n Action on the land.

The price on carbon will directly affect approximately 500 companies and landfills across Australia who are the biggest polluters. There will also be a flow-down effect on both to households and other industries and businesses. The cost to industry not directly affected is variable and dependent upon industry type. The Western region of Melbourne is home to a number of emission-exposed industries – in particular its manufacturing and logistics sector. It is also home to some of Melbourne’s most socially and economically vulnerable communities. What will the revenue be used for? The revenue created by the price on carbon will be used to compensate vulnerable industries and residents and to create funding streams to assist the transitioning of individuals, governments and businesses to a low carbon economy while also protecting the environment. (See Table 1 overleaf). The funding streams focus on: n Energy efficiency – built environment, process improvement and behavioural n Protection against future climate impacts n Farming n Natural resource management n Reduction of energy costs for low- to middle-income households n Carbon sequestration, and n Biodiversity.

Future emission-reduction targets The Clean Energy Future plan includes “a new long-term target to cut pollution by 80 per cent below 2000 levels by 2050” and an intention to “cut pollution by at least 5 percent compared with 2000 levels by 2020, which will require cutting net expected pollution by at least 23 percent in 2020.“4 The cost The proposed price on carbon will be fixed for the first three years at $23.00 per tonne with a 2.5 percent rise per annum. The price will become flexible from 1 July 2015.

The primary objective of the plan is to disengage Australia’s future economic growth from future growth of the nation’s carbon emissions.


Table 1 Key components of the Clean Energy Future plan Household assistance Income tax cuts, increased family payments and pension risesc

$14.9 billion over the forward estimatesa

Support for jobs Jobs and Competitiveness Program


Clean Technology Program

$1.2 billion over seven years from 2011–12

Coal Sector Jobs Package

$1.3 billion over six years from 2011–12

b

Support for energy markets Energy Security Fund

$5.5 billion over six years from 2011–12

Clean energy Clean Energy Finance Corporationd

$10.0 billion over five years from 2013–14

Australian Renewable Energy Agency

$3.2 billion over nine years from 2011–12

e

Energy efficiency Low Carbon Communitiesf

$330 million over six years from 2010–11

Small business support

$240 million over the forward estimatesa

Land sector Biodiversity Fund and other land-based measures a. b. c. d. e. f.


The forward estimates are the period from 2011–12 to 2014–15. Government-only measure. Also includes residential aged care assistance and the Essential Medical Equipment Payment. The Clean Energy Finance Corporation will make investments by purchasing financial assets. The headline investments of $2 billion per year do not directly impact on the Government’s underlying cash balance. Includes existing funding as well as funds held in the Australian Centre for Renewable Energy special account. Includes existing funding of $80 million over four years from 2010–11.

Legislative powers The National Greenhouse and Energy Reporting Act 2007 (the NGER Act) introduced a national framework for the reporting and dissemination of information about greenhouse gas emissions, greenhouse gas projects, and corporations’ energy use and production. Councils are not currently required to report under the NGER Act. NGER will provide the carbon accounting mechanism for the Clean Energy Future plan, under which Councils will become liable to report under the NGER Act.

The Climate Change Authority will review pollution caps, the future trajectory of Australia’s pollution levels and the performance of the carbon price and will track Australia’s progress towards meeting its targets for reducing carbon pollution. n The Productivity Commission will review industry assistance under the Jobs and Competitiveness Program and the Coal Sector Jobs Package. It will also review the impact of the carbon price on industry and continue reporting on actions by other countries to reduce their emissions. n

Governance The tiers of governance are as follows: n The Government and the Parliament will be responsible for major policy decisions that require the balancing of environmental, economic and social factors and have far-reaching implications. n The Clean Energy Regulator will administer key elements of the carbon pricing mechanism as well as the Carbon Farming Initiative.


A price on carbon: the international and economic context The first price on carbon was introduced in 1990 by Finland, and since then a number of other countries including Sweden, New Zealand, United Kingdom, India and Canada have implemented similar carbon pricing policies.

At the recent ‘The Closing Window’ Conference in Melbourne, one of China’s key policy advisors indicated that one of the main objectives was to ensure China’s energy security for the future through the development and expansion of renewable and alternative technologies.

Due to the varied nature of the trading systems and the economic diversity of the countries involved, information about the economic impacts on countries engaged in carbon pricing would be of limited use from which to draw conclusions. It is, however, important to consider the links between the Australian economy and current global economic trends and, in particular, the impact on the Australian economy from strategic and economic policy in China.

China has also announced it will introduce emissions trading progressively, commencing in a number of key cities and provinces including Beijing, Shanghai and Guangdong (covering well over 100 million people). As the Australian economy is strongly aligned with the Chinese economy, it is important to recognise the opportunities and challenges that this presents to Australia if it is to remain a strong competitor within the Asia Pacific region.8

Carbon pricing is already well-established internationally and was estimated to have had an annual turnover of 90 billion euros in 2010.5 According to Sam Fankhauser, a leading economist in Europe, the carbon market is now “every bit as established and sophisticated as trading in traditional economies like gas, oil, wheat and gold. Trading in this market started in 2005 and has grown at an average rate of 60 percent per annum since then”. There has also been considerable growth internationally in the Clean Development Mechanisms (such as carbon offset programs) which has created a global market worth 13–19 billion euros.6 The renewable energy market is one of the most dynamic industries in the current global economic scenario, with an expected compound annual growth rate (CAGR) of 7.5 percent from 2010 to 2015. This growth (an estimated investment of $150 billion in 2009) is boosted by increasing investment by governments, venture capitalists and corporates. According to the new market research report Global Renewable Energy Market Outlook (2008– 2015) the global renewable energy market is expected to be worth $614.92 billion by 2015 at a CAGR of 7.5% from 2010–2015.7 China has the largest market share and is the strongest competitor in the sector. China’s Five Year Plans for National Economic and Social Development outline the strategic vision for the country’s economic, social and environmental development – with the country’s 12th Five Year Plan (2011–15) endorsed by the National People’s Congress in March this year. These plans established significant new mitigation targets and identified initiatives to help meet the targets, including regulation, new technologies, capital investment and market mechanisms.

In relation to the WAGA region (one of the largest manufacturing hubs in Australia) this provides an opportunity to consider the changing focus of global markets and, in particular, China’s drive to dominate the renewable energy market sector. The region will need to determine what market areas it can develop and build upon in order to capitalise on current international trends. The WAGA region is currently undergoing considerable change with a decline in manufacturing and growth in areas such as health care, social assistance, professional scientific and technical services, education, training and transport.9 It also has the poorest job ratio in the Melbourne Metropolitan area. The Clean Energy Future plan offers a number of opportunities to develop these growth areas, as well as support the transition needed in areas such as manufacturing and high-emissions industries to ensure their future long-term viability.

The renewable energy market is one of the most dynamic industries in the current global economic scenario


Specific areas relating to Local Government Impacts for Councils in the WAGA Region WAGA Councils were asked to provide current data relating to utility bills so a regional figure could be calculated in relation to utility costs. Only three councils were able to provide current data so it was not possible to ascertain what the regional cost might be to WAGA Councils. This highlights the fact that data management will be a critical issue for WAGA Councils to address if they are to deliver projects and fulfil the reporting requirements in relation to the Clean Energy Future plan. Building operation costs The Clean Energy Future plan will affect the cost of utilities – electricity, gas and water – differently. Electricity is expected to rise by approximately 10 percent.10 Costs may increase in future years due to other influences such as regulated infrastructure costs and demand requirements. Gas is expected to rise approximately by 9 percent.11 Costs may increase in future years due to other influences such as regulated infrastructure costs and demand requirements. Water costs will rise – but to what extent is not yet clear. Water currently costs $1.49 per kilolitre (1,000 litres) but is expected to rise steadily over the coming years to cover regulated infrastructure costs, as well as costs associated with the running of the desalination plant. The cost of water is regulated by the Essential Service Commission, with the next review due in 2013. Landfill operation Emissions created by landfill owned by councils will be required to pay $23.00 a tonne of CO2-e emitted after 1 July 2012. The carbon price liability will only apply to waste deposited after 1 July 2012, even though the total emissions reported will be greater. It should be noted that landfills which have emission levels of between 10,000 and 25,000 tonnes and above will be liable entities (i.e. required to pay the $23/tonne carbon price). should they be within a prescribed distance of a larger landfill. The government has decided to set the initial prescribed distance at 0 kms for the first three years of the plan. It is possible that this prescribed distance will be increased after this three year period and smaller landfills will be included. Councils and other landfill owners/operators will be able to discharge up to 100% of their liability under the Carbon Pricing Mechanism using credits issued under the Carbon Farming Initiative during the fixed price period. This applies to entities where over 50% of their emissions liability comes from landfills.

Not all WAGA Councils will be directly affected, but all are likely to incur secondary costs associated with waste management. Councils directly affected are Wyndham and Geelong – with initial calculations by Wyndham Council identifying considerable associated costs. There is, however, an opportunity to look at alternative energy options for generating power from the methane produced by landfill. Data management and monitoring in this area is a critical factor as these Councils will be required to report under NGERS, and there are associated regulations that have direct consequences for the Council CEO of each reporting Council. This will provide additional challenges for these Councils as they will need to build capacity in the areas of: n additional resources n skills n systems integration n knowledge n access to new technologies, and n the development of new business models. The Metropolitan Waste Management Group are currently developing a carbon calculator to help assess landfill operator claims for cost increases as a result of the scheme. There will be the opportunity for Councils to work with this organisation to clarify issues relating to waste and the Clean Energy Future plan. Building materials Costs of building materials are expected to rise due to the energy intensive nature of manufacturing these products. These rises will likely filter down to industry (developers and builders) and consumers (homeowners, Council). The Municipal Association of Victoria (MAV) are currently undertaking a comprehensive study of costs to their member Councils, and this report will be available in November 2011.


Table 2 Fuel Tax Credit reductions – off-road use vehicles Fuel

Fuel tax credit reduction through to 2012–15: cents/litrea 2012–13 2013–14

Petrol Diesel and other liquid fuels LPG LNG and CNG a.

5.52 6.21 3.68 6.67

2014–15

5.796 6.521 3.864 7.004

6.096 6.858 4.064 7.366

Municipal Association of Victoria, Members’ Briefing Note, August 2011

Fleet costs Transport fuel is not currently subject to the price on carbon. The Government intends to apply a carbon price to heavy on-road vehicles that exceed 4.5 tonnes from 1 July 2014, but this measure was not agreed to by all members of the Multi-Party Climate Change Committee and may be subject to change. The proposed measure currently takes the form of a deduction in the Fuel Tax Credit (FTC). Although fuel expenditure is not expected to change for most WAGA Councils, they may be subject to other pressures including, but not limited to: n supply and demand relationship(s) n political unrest in oil rich countries, and n financial conditions in countries which consume large amounts of oil. There will also be a reduction in FTCs for some off-road vehicles which may apply to some Councils (see Table 2).


10

Opportunities and challenges for WAGA region Councils Funding directly related to WAGA Councils’ operations

Projects that have already been undertaken by WAGA

n

$200 million will be provided over six years for street lighting, energy efficiency, upgrades to Council buildings and cogeneration. This has increased from $80 million under the Australian Low Carbon Communities Program. n $100 million will be available to consortiums of local and state governments to assist low-income households to reduce energy costs and future impacts from the carbon price. This will also be funded through the Low Carbon Communities Program. n $44 million will be provided over five years for natural resource management regions to plan for climate change impacts. n A household and local government advice line and website will be funded until 2014–2015.

WAGA has already completed a number of projects that are relevant to the Clean Energy Future plan that have the potential to be built upon.

The operational challenge for WAGA Councils

These are: n Sustainable Suburbs in the West A residential retrofit program called Sustainable Suburbs in the West delivered via the private sector under WAGA requirements. It provides savings to residents through bulk purchase arrangements of water and energy technologies. n

n

How Councils will deliver the projects and fulfil reporting requirements is not outlined in the Clean Energy Future plan. This is an area that will need further analysis to establish what skills and systems will be needed and how this is to be resourced by individual Councils if they are to effectively engage with the opportunities and challenges that the Clean Energy Future plan presents.

n

Some areas that Councils will need to consider are: n Defining the role that local government will play in assisting and informing their communities about the Clean Energy Future plan n Delivery of services that will be impacted by climate change and the price on carbon n Integration across all Council areas of carbon knowledge and practice n The resources, skills and capacity of individual Councils n Integration of existing Council systems and processes to enable the effective delivery of council programs in relation to the Clean Energy Future plan n Management of associated risks at both a program delivery level and also a reporting requirement level n How to build collaborative capacity within Council organisations and externally to deliver projects, and n What frameworks, strategy and policy will be needed in relation to the Clean Energy Future plan.

n

n

n

n

The Big Roof Project Development of guidelines, a solar calculator and an issues paper for medium-sized businesses with large roof space to install solar panels. Regional Climate Change Risk Assessment An initial assessment of climate change risks across the region. Communities – Community Capacity Building Model: Bulk-Buy Networks A community capacity building model for regional bulk buying networks. The project will assist communities to develop their own bulk purchasing programs for greenhouse efficient technology. Public lighting Joint advocacy and education campaign to improve financing options for energy-efficient retrofits of lights managed by distributors Give Our Streets the Green Light. Develop guidelines to ensure future lighting installations are efficient. Residential Housing – Home Comfort Scheme A residential retrofit program called the Home Comfort Scheme to specifically target low income households. It is a WAGA-endorsed project run by Brotherhood of St Laurence. Energy Coach Program A program to reduce emissions from Council buildings. Solar Suburbs Program bulk purchasing solar panels for residents (tied to Federal Government rebates).


11

Current regional projects Current regional projects being undertaken by WAGA Councils are: n Sustainable Suburbs in the West This original program is being reviewed and revised and will be relaunched at the end of 2011. Councils involved in this project are Maribyrnong, Brimbank and Moonee Valley. Lead Council: Maribyrnong n

Regional Climate Change Adaptation Project This project is currently undergoing scoping and will build upon the initial Regional Climate Change Risk Assessment that has been completed. Councils currently engaged with this project are Brimbank, Moonee Valley, Hobsons Bay, Melton and Maribyrnong. Lead Council: Maribyrnong

Current Council policy Currently, the primary focus for Local Government policy lies predominantly with the mitigation of greenhouse gas emissions within Council operations – with most Councils having set emission reduction targets (see Table 3, overleaf). All Councils, with the exception of Moorabool, have emission-reduction policies, with Wyndham, Moonee Valley, Melton and Maribyrnong all having endorsed policies. Community emissions are considered a priority by all Councils (with the exception of Wyndham), but policy in this area is not as developed as it is for Council operations, with only four Councils having set emissions-reduction targets for their communities. Adaptation is seen as a priority area but policy in this area is still being developed. Geelong is the only Council with a fully-endorsed policy at this time. With the exception of Geelong, Brimbank and Maribyrnong, peak oil is seen as priority by the majority of Councils. At this time, Maribyrnong are the only Council with a fully-endorsed peak oil policy. It is worth noting that although Moorabool have no specific policies relating to the areas outlined above, they do have aspects of energy reduction, improved energy efficiency and adaptation embedded in other policies such as Asset Management, Emergency Management and Capital Works. Future policy opportunities The Clean Energy Future plan provides opportunity for the development of projects that align with the current policy direction of lowering emissions and the assessment of what economic and community development policies will need to be developed. Significant opportunity also exists for the development of regional projects to support further actions in the area of improving energy efficiency, adaptation and clean energy technology.

Councils will also need to consider how they will assist facilitation of communication of what the carbon tax means to both internal and external stakeholders. This presents an opportunity to develop a regional communication plan in relation to the Clean Energy Future plan. In relation to climate change impacts, the WAGA region has a number of highly-vulnerable environmental, social and economic areas within the Melbourne region. The areas which will impact Councils’ operations, assets and the services they provide directly include: n Urban heat island effect n Inundation both on the coast and inland areas n The high level of emissions from industry and the need to develop low-carbon local industries n Complex socioeconomic demographics which include areas of highly vulnerable and disadvantaged communities n Water security n Extreme weather events n Impacts on community health n increased insurance costs in relation to climate events, and n ageing infrastructure and assets. While the WAGA Councils have undertaken work in this area through initial work on a Regional Climate Change Risk Assessment, there is opportunity to capitalise further through working with the National Climate Change Adaptation Research Facility and the Victorian Centre for Climate Change Adaptation Research to assist with relevant policy development for the region. This work will assist the development of programs that will be needed to ensure that the WAGA region is building assets, infrastructure and landscapes that are resilient to future climate change. This will help decrease energy use in the future through better buildings and also ensure that we minimise the need to rebuild or repair assets after extreme weather events and increase our emissions by doing so. It will also help ensure the resilience of sequestration projects. There are also opportunities for both regional and, in some cases, inner urban Councils to develop regional projects related to land care through the Carbon Farming Initiative and Biodiversity fund (details outlined on page 19). These funds could also provide an opportunity for WAGA Councils to consider the development of a regional program to identify how municipalities such as Melton, Geelong, Moorabool and Wyndham can be used to offset the inner city municipalities’ emissions.


12

Table 3 Synergies in policy, strategy and priorities for WAGA Councils and the Clean Energy Future Plan

Greenhouse Mitigation Council Operations

Greenhouse Mitigation Community

Zero net by 2020 target

Zero net by 2030 target

Adaptation Assessment/strategy

Peak oil

Moorabool Hobsons Bay Wyndham

40% reduction on 2001 levels by 2015

Geelong

30% on 2006 levels by 2015

Brimbank Moonee Valley Melton

-15% of 2003 by 2010 (policy to be updated)

-10 % of 2001 emissions by 2010

Zero net emissions by 2020

Zero net emissions by 2020

88 risks assessed

10 % reduction by 2015

Maribyrnong Carbon neutral by 2015 Carbon neutral by 2020

Reduce by 3% p/a Council dependence five fossil fuels

Not seen as a priority Seen as a priority but not commenced Commenced but policy not endorsed or policy is outdated Policy endorsed up to date and achieving or exceeding goals


13

people The WAGA region has one of the most diverse cultural regions in Melbourne including over 90 different nationalities. It is also home to some of the most disadvantaged socioeconomic groups in the Melbourne region. This provides both opportunities and challenges for all Councils in the region.


14

WAGA region: the social context The WAGA region has one of the most diverse cultural regions in Melbourne including over 90 different nationalities. It is also home to some of the most disadvantaged socioeconomic groups in the Melbourne region. This provides both opportunities and challenges for all Councils in the region. According to the Leadwest report Western Agenda – A Strategic Plan for Melbourne’s Western Region 2008–2011 which covers six of the member Councils in the WAGA region (Moonee Valley, Maribyrnong, Brimbank, Melton, Hobsons Bay and Wyndham), the unemployment rate is within these areas is 5.5%, higher than the Victorian level of 4.3% and the metropolitan rate of 4.6%. Brimbank and Maribyrnong record considerably higher levels of unemployment than the rest of the region (11.1% and 8.3% respectively). Geelong has an unemployment rate of 5.9%12 and Moorabool’s unemployment rate is 5%13.

resources. The Maribyrnong Profile suggests it is the third most disadvantaged in the Metropolitan area (out of 31) (MCC 2008).14 (See Table 4.) Using the same index, Geelong ranks 49 in Victoria and 58 for advantage and disadvantage15, while Moorabool ranks 72 in Victoria in relation to disadvantage and 101 in relation to advantage and disadvantage16. The Vulnerability Assessment for Mortgage, Petrol and Inflation Risks and Expenditure (VAMPIRE) index identifies moderate vulnerability for Essendon, high vulnerability for areas such Sunshine and Werribee and very high vulnerability for Deer Park and Hoppers Crossing17 (Figure 1, overleaf). It is possible that these areas will face additional financial challenges to those outlined in the Clean Energy Future Plan due to the impacts of secondary costs related to the carbon tax and the focus of compensation on low income residents.

On the Socio-Economic Indexes for Areas (SEIFA) index of disadvantage, Maribyrnong is considered one of the most disadvantaged local government areas in Victoria. It is rated in the lowest decile in the index for relative socioeconomic disadvantage (ranking seventh in the State) and the second lowest in the index for economic Table 4 SIEFA data for the Western Melbourne, Metropolitan Region and Melbourne Relative socioeconomic Relative socioeconomic Disadvantage Advantage and disadvantage Score

Rank in Victoria Decile Score

Rank in Victoria Decile

Brimbank

930

3

1

935

21

5

Hobsons Bay

998

44

6

998

57

9

Maribyrnong

949

7

1

981

49

8

Melton

1010

51

7

988

52

8

Moonee Valley

1016

55

7

1029

63

9

Wyndham

1022

58

8

1005

58

9

Economic Resources

Score

Education and Occupation

Rank in Victoria Decile Score

Rank in Victoria Decile

Brimbank

970

26

5

921

4

1

Hobsons Bay

992

44

7

993

55

7

Maribyrnong

934

2

2

1022

63

8

Melton

1029

66

9

947

18

3

Moonee Valley

1000

48

7

1041

65

9

Wyndham

1025

62

9

965

36

5

Source: Updating Melbourne’s West: Final Report


15

Figure 1 The VAMPIRE index Source: Unsettling Suburbia: The New Landscape of Oil and Mortgage Vulnerability in Australian Cities Discussion paper: clean energy future – opportunities and challenges for the WAGA region

16

What the introduction of a price on carbon means for WAGA residents The introduction of a price on carbon is expected to increase the cost of living by 0.7% in 2012–13. On average, households can expect to see a cost increase of $9.90 per week, to be balanced by assistance (through tax reform) of $10.10 per week for Australians with low- and middle-incomes. Those with high incomes over $80,000 single-waged will receive only minimal assistance.

Students

Tax reform

Job seekers

The average household can expect living costs to rise $9.90 per week while receiving average assistance of $10.10 per week. These assistance payments will be made through reform to the tax system as follows: n Taxpayers with an annual income of $25,000 will receive a tax cut of $503 per annum. n Taxpayers with ‘mid range’ annual incomes of between $30,000 and $65,000 will receive a tax cut of $303 per annum. n Taxpayers with an annual income of between $80,000 and $150,000 will receive a tax cut of $3 per annum. n Taxpayers with an annual income of $150,000 and above will receive no assistance from the proposed tax reforms.

Job seekers will be assisted with an increase in payments equivalent to a 1.7% increase in the maximum rate of the Newstart allowance, up to $218 for singles and $195 for each member of a couple. This will be paid as a tax-free, lump sum advance paid late in May–June 2012 and then absorbed into regular payments.

From 1 July 2012, the tax free threshold will increase to $18,200, up from the current $6,000. When combined with the low income tax offset, taxpayers will not pay any net tax until they earn $20,542.

Student allowances such as Youth Allowance and Austudy will be increased by an amount equivalent to 1.7% of the maximum rate. This is an annual increase of up to $177 for a single student, increasing further should the student have dependent children. This will be paid as a tax-free, lump sum advance in May–June 2012 and then absorbed into regular payments.

Low-income households Low income households may not receive enough assistance through tax cuts or additional Government payments to offset the expected cost impact under the Clean Energy Future plan. These families will be able to apply for an annual tax exempt Low Income Supplement of $300. The following income limits apply to eligibility: n $30,000 for singles without a dependent child n $45,000 for couples without a dependent child n $60,000 for singles with a dependent child, and n $60,000 for couples with a dependent.

Pensioners Pensioners will receive an amount of assistance equivalent to a 1.7% increase in the maximum rate of the pension. This equates to an increase of $338 for singles, and $255 for each eligible member of a couple per year. This increase will be included as part of a pensioner’s regular payment cycle from 20 March 2013. There are currently 16,390 residents in Hume over the age of 65, constituting 9.6% of the total population – some of whom may be eligible for this payment. Pensioners will receive a one off lump sum payment of up to $250 for a single and $190 for each eligible member of a couple in May–June 2012 to help meet additional costs for the nine months from 1 July 2012 to 20 March 2013, when increases to their payment cycles will begin.

The introduction of a price on carbon is expected to increase the cost of living by 0.7% in 2012–13. On average, households can expect to see a cost increase of $9.90 per week, to be balanced by assistance (through tax reform)


17

Challenges and opportunities The Clean Energy Future plan’s social implications need to be analysed within the context of economic and social pressures facing WAGA residents while also considering how aspects of the Clean Energy Future plan will interact with these pre-existing pressures. This provides a number of challenges and opportunities for Councils throughout the WAGA region, with one of the primary challenges being the communication of what the impacts of the price on carbon will mean to their communities. While the Clean Energy Future plan outlines communication support for Councils in the form of a website and a phone service, the region’s cultural diversity and residents recording a 15% lower than metropolitan average of internet use and 10% less computer use18, it is highly likely that WAGA Councils will need to develop a specific communication plans for residents. Both Brimbank and Maribyrnong Councils have programs such as Talking our Language and a Sustainability Leaders Program, and potential exists for these Councils to mentor a regional approach to communication for the culturally and linguistically diverse (CALD) sector. There is also an opportunity to capitalise on the proposed Low Carbon Communities Program which has allocated $100 million to fund projects to help low income households reduce energy costs. There is a further $30 million allocated to low income households which will include energy and financial sustainability assessments and advice, financial education and money management and access to the No Interest Loan Scheme to assist with the purchase of more energy efficient appliances. However Councils will need to consider how they will address the issue of ineligible low income residents who live in rental properties and the kinds of support or advocacy that may need to be undertaken on their behalf. Councils will also need to consider how best to capitalise on the Clean Energy Future plan’s initiatives to ensure the long-term future viability of vulnerable communities in the WAGA region. The current financial impact modelling is only for the period when the carbon price is fixed and – although there is conjecture that the price of carbon will decrease after this period – the impact on households after this point is uncertain. While low-income households use less energy than the average household, proportionally their energy expenditure is almost double that of the average household.19

The Brotherhood of St Laurence has reviewed the Clean Energy Future plan and have stated that they feel the compensation offered to low-income households is adequate but stated that they felt Newstart residents may be vulnerable under the proposed scheme. The compensation offered will be reviewed on an annual basis.20 The Brotherhood of St Laurence have also stated that the greatest opportunity for low-income residents is improving energy efficiency within their homes and addressing the financial barriers needed to achieve this.21 St Vincent de Paul’s analysis of the plan raised concerns about effectiveness of the compensation for low-income households – articulating that much of the package is aimed at asset rich home-owners and that people who rent will not have the same ability to access the support package relating to the purchase of energy efficiency appliances.22 Excellent opportunities exist for WAGA Councils to partner with organisations such as the Brotherhood of St Laurence and St Vincent De Paul’s to deliver community programs in areas of low-income residents within their municipalities. There is also potential for the Sustainable Suburbs in the West project to examine how this opportunity might be incorporated into its program.

Councils will also need to consider how best to capitalise on the Clean Energy Future plan’s initiatives to ensure the long-term future viability of vulnerable communities in the WAGA region.


18

business industry and

It is worth considering that even without the introduction of the carbon tax, energy efficiency will be a critical factor for business and industry within the WAGA region if they are to remain viable. Energy costs are predicted to increase considerably in the future due to infrastructure and customer service costs.


19

Emissions in the WAGA region: an overview Industrial operations

Agriculture 1% Waste 1%

Metal Product Manufacturing is the largest source of Industry greenhouse emissions in the WAGA region.

Freight 12%

Residential buildings 17%

Non-residential buildings 8%

Metal Product Manufacturing includes activities such as: n Iron and Steel Casting n Steel Pipe and Tube Metal Product Manufacturing n Aluminium Rolling, Drawing and Extruding n Structural Steel Fabricating n Metal Container Manufacturing, and n Sheet Metal Product Manufacturing.

Residential travel 13%

Industrial operations 48%

The second largest contributor to Industry emissions is Petroleum, Coal and Chemical Manufacturing with emissions amounting to approximately one million tonnes of CO2-e. Included in this industry sub-category are: n Petroleum Refining n Fertiliser Manufacturing n Industrial Gas Manufacturing n Rubber Tyre Manufacturing n Paint Manufacturing, and n Plastic Product Manufacturing.23

Figure 2 Overview of the source of Industry greenhouse emissions in the WAGA region Source: Werribee Plains – Energy Research Study: Towards Zero Net Emissions

Table 6 LGA freight emissions (thousand tonnes CO2-e), 2006 Freight Maribyrnong Melton Hobsons Bay Moorabool Brimbank Geelong – Part C Wyndham Moonee Valley

Freight Freight emissions currently account for 12% of the WAGA region’s overall emissions (see Table 6).

% of TOTAL Emissions

231.7 75.7 391.9 71.4 413.3 37.3 460.3 166.4

12.5 7.3 17.1 13.2 10.0 29.2 13.4 10.7

Source: Werribee Plains – Energy Research Study: Towards Zero Net Emissions

5,000,000

Tonnes C02-e

4,000,000 3,000,000 2,000,000 1,000,000 0

Maribyrnong

Food, beverages and tobacco

Textile, clothing, footwear and leather

Hobsons Bay

Wood, paper and printing

Brimbank

Petroleum, coal and chemical

Wyndham

Non-metallic mineral products

Melton

Metal products

Moorabool

Machinery and equipment Geelong Part C

Other manufacturing

Moonee Valley

Figure 3 Detailed industry emissions (tonnes CO2-e) Source: Werribee Plains – Energy Research Study: Towards Zero Net Emissions


20

Implications of a price on carbon for Business and Industry in the WAGA region Please note: WAGA Region-specific data in this section is from 2006 and should only be considered indicatively. The region has undergone change since then – in particular the decline and growth in certain industry areas. LeadWest are currently undertaking a study of the growth of industry and jobs in the Western region of Melbourne which will be completed around July 2012. Predominant sectors within the WAGA business community include the automotive, aviation, manufacturing and transport and storage sectors. Businesses will experience the same rising costs (mainly increased energy prices) that residents will experience under the Clean Energy Future plan, but are not subject to the tax reform being offered to households. Some sectors (such as small business and the steel sector) will be provided with assistance funding. The WAGA Region is home to a number of high emission industries and some of them will be part of the Top 500 who will be directly affected by the price on carbon. Currently there is no list available of the companies who will comprise the Top 500. For companies such as Quenos, LinFox , AGL, Mobil, BOC, Toyota, Ford Motors, Alcoa and Stockland who are either based, or have large interests, in the WAGA region and may be included in the top 500, this is likely to have implications – not only for the individual companies and their consumers, but the region as a whole. Nufarm, for example, has estimated that even with compensation they will incur $50,000 worth of additional costs24 – with these costs expected to be passed onto the consumer. For large fuel users, it has been proposed that a change will be made through opt-in arrangements: “Most eligible companies would already be paying the carbon price but there are about 20 more companies for which it would make commercial sense. Opting in will give these firms benefits under the carbon scheme, including access to credits under the carbon farming initiative.”25 It is worth considering that even without the introduction of a price on carbon, energy efficiency will be a critical factor for business and industry within the WAGA region if they are to remain viable. Energy costs are predicted to increase considerably in the future due to infrastructure and customer service costs.

How the Clean Energy Future plan will support business and industry The Federal Government has committed to supporting jobs and competitiveness as Australia moves to a clean energy future through the following measures: n A Jobs and Competitiveness Program will provide $9.2 billion over the period to 2014–15 to assist the most emissions-intensive activities in the economies, which are exposed to international competition. This will support local jobs, encourage industry to invest in cleaner technologies and avoid ‘carbon leakage’ offshore. n A $1.2 billion Clean Technology Program will help directly improve energy efficiency in manufacturing industries and support research and development in low-pollution technologies. $200 million of the will be targeted at food processing, metal forging and foundry industries. n The instant asset write-off threshold will be increased to $6,500 to increase the capacity of small businesses to invest in new assets, including those that improve energy efficiency, n Tax Breaks for Buildings Program is a $1 billion will provide tax breaks for eligible businesses investing in improving the energy efficiency of their existing buildings.

Businesses will experience the same rising costs … that residents will experience under the Clean Energy Future plan, but are not subject to the tax reform households are being offered.


21

Industries eligible for the Clean Energy Future plan’s programs Jobs and Competitiveness Program n Primary metal and metal products n Non-metallic mineral products n Pulp, paper and converted paper products n Petroleum and coal products, and n Basic chemical and chemical products. Clean Energy Technology Program n Wood products n Food products n Printing n Polymer products and rubber n Beverage and tobacco products n Transport equipment n Furniture and other n Textile, leather, clothing and footwear n Fabricated metal products, and n Machinery and equipment.

Regulation of price rises The Australian Competition and Consumer Commission (ACCC) has responsibility for ensuring that businesses do not use the introduction of the Clean Energy Future plan as an excuse to increase prices or margins beyond an amount that is legitimately attributable to the plan. This will be similar to the role given to the ACCC at the introduction of the goods and services tax (GST) more than 10 years ago, when the ACCC was given specific powers to prevent price exploitation.

Support for agriculture and land management The Carbon Farming Futures program This program will deliver $429 million over six years to help Farmers and other landholders benefit from financial opportunities under the Carbon Farming Initiative. This will provide support for research into storing carbon and reducing emissions within the agricultural sector. The ongoing Biodiversity Fund This program has been allocated $946 million over the first six years of the program and will support projects that establish, restore, protect or manage biodiverse carbon stores. Funding will be provided for establishing mixed species plantings in targeted areas, such as areas of high conservation value including wildlife corridors, riparian zones and wetlands. The Fund will also support action to prevent the spread of invasive species across connected landscapes and the management of existing biodiverse carbon stores. This includes land already under conservation covenants, subject to land clearing.

The Australian Competition and Consumer Commission (ACCC) has responsibility for ensuring that businesses do not use the introduction of the Clean Energy Future plan as an excuse to increase prices or margins beyond an amount that is legitimately attributable to the plan


22

Industries by sector Agriculture and land management The agriculture sector will not be required to report emissions under the Clean Energy Future plan – nor will be subject to extra cost for the fuel they use in their personal vehicles and/or farm equipment. The Government programs provided will create economic incentives for farmers and landowners to transition to low-carbon practices. Manufacturing The level of financial impact will depend upon the nature of their business and consumption of energy. Very large manufacturing businesses reporting under the NGERs Act will be financially liable for their entire emissions inventory (i.e. to pay $23/tonne of CO2-e emitted). Depending on the nature of the industry, they may be eligible for funding from either the Clean Energy Technology Program or the Jobs and Competitiveness Program. Steel and fabricated metals The level of financial impact (through increased energy costs) is expected to be high due to the energy intensive nature of their operations. Due to the steel industry facing pressures such as high exchange rates, increases in raw material costs and lower growth rates in the Australian construction industry beyond a carbon price, the Federal Government has allocated $300 million over the first four years of the Clean Energy Future plan to provide transitional support for innovation, investment and production. Transport and logistics The inclusion of transport fuels was not agreed upon by the Multi-Party Committee on Climate Change and all facets of the impact on transport fuels are not yet finalised. The heavy ‘on road’ transport sector is expected to be effected by the Clean Energy Future plan from 1 July 2014. Prior to this, ‘on road’ transport will not be affected. From July 2014 it is proposed that that diesel fuel tax credits will be reduced by 6.858 cents per litre for on road fuel use of vehicles that are over 4.5 tonnes.

Aviation fuel does not receive Fuel Tax Credits (FTCs), and as a result, domestic aviation fuel excise will increase by an amount equivalent to the carbon price annually. From 1 July 2015, the excise will be increased every six months based on the average carbon price for the previous six months. International aviation fuel is not subject to the carbon price. The current excise rate for aviation fuel is 3.556 cents/litre. This would increase to 10.16 cents/litre by 2014/15. A number of large fuel users, especially Qantas and Virgin, have said to the Government they would prefer to be directly under the scheme rather than, as initially planned, pay the equivalent carbon price through the fuel taxes. Marine and rail transport effectively pay no excise on the fuel they use, as their excise is offset under the FTC scheme. The Carbon Pricing Mechanism will effectively impose a carbon price on those activities through reduced FTC entitlements in the same way it applies to off-road business use vehicles (see Table 2 on page 8). Small to medium businesses Small to medium businesses are expected to experience some indirect cost impacts such as higher electricity prices. The level of financial impact will depend upon the nature of their business and consumption of energy, as well as the flow-on of secondary costs. Small to medium businesses will receive $280 million in funding over the next four years. The Government will provide an extra $5 million to provide advisory and non-financial assistance to small to medium businesses in clean technology industries through agencies such as Enterprise Connect, industry capability networks and supplier advocates. This will enhance the clean technology focus of industry supply chains, which will help local businesses secure contracts for major projects.

It is currently not clear exactly what the impact upon this industry will be and the Australian Logistics Council has called for a Productivity Commission review to investigate the economic effect that carbon pricing will have on all aspects of the freight supply chain. This includes a forecast and real increased transport costs (that cannot be absorbed by transport operators), and the manner in which the cost of consumer goods are impacted.


23

Challenges and opportunities The Clean Energy Future plan offers a unique opportunity to reposition our region economically to support future jobs growth by assisting development of new clean technology, low-carbon industries and businesses. This is an important part of ensuring the future economic stability of the region. There is potential for the Councils that are home to the highest emitting and vulnerable industries and businesses (in particular the metal products sector), to work with non-government organisations such as peak bodies, industry organisations, education and research institutes to leverage funding to support greater energy efficiency and assist the transformation of industries and businesses within the WAGA region to a low carbon economy. Geelong already has a Low Carbon Plan and their program Future Proofing Geelong focuses on the growth of Green jobs. There is also the potential for Geelong to take on the role of mentoring a regional low-carbon plan.

is currently piloting a Sustainable Procurement Process and there is the potential for them mentor the other Councils’ region. Both the Biodiversity Fund and Carbon Farming Future programs provide some interesting possibilities for regional programs. The $201 million allocated for research to help reduce emissions could be capitalised on through partnerships with research institutes and other agencies – particularly for Geelong, Wyndham, Moorabool and Melton who have agricultural sectors. There may also be the possibility of developing a regional project that examines the possibility of developing carbon offset programs in the municipalities with an agricultural sector to offset inner urban municipalities’ emissions. The Biodiversity Fund is currently not legislated and could be subject to change as a result.

An example of how renewable energy programs can drive job creation is Melbourne City Council ‘s 1,200 Building Retrofitting Program which aims to drive $2 billion of private sector reinvestment and create 8,000 ‘green collar’ jobs for engineers, environmental and sustainability consultants, builders, surveyors and many other industry professionals. To date, the program has generated 3,000 jobs for local industry and increased growth for some local manufacturers by 300 percent. The main challenge for Councils interacting with industry is to identify the role they will play, and defining how they will work with non-government sectors and research bodies to assist delivery of projects and information. It also requires WAGA Councils to develop greater collaborative capacity – internally and externally – as well as the development of new regional economic frameworks. There may also be opportunities for WAGA Councils to work collaboratively with non-government organisations to assist small to medium businesses to improve energy efficiency and to adapt to the increased financial costs that they are likely to encounter as a result of the price on carbon. There is the potential to capitalise on programs that assist the development of clean technology to not only develop new industries in the region, but also to drive sustainable procurement within the Councils regionally. Moonee Valley

The Clean Energy Future plan offers a unique opportunity to reposition our region economically to support future jobs growth by assisting development of new clean technology, low-carbon industries and businesses


24

Potential regional projects The Clean Energy Future plan offers a number of opportunities (both directly or indirectly) to develop a number of regional projects. Collaboration with a number of external and internal stakeholders will be pivotal to ensure the successful development and delivery of such projects. Potential regional projects could include: n Development of a new economic framework and vision for the WAGA Region in relation to the Clean Energy Future plan n Regional sustainable supply chain program for Councils and their suppliers n Advocacy for better resources and skills within Councils to build capacity in the areas of carbon skills, integration of systems, infrastructure and climate change risk management. n Program for emission exposed industries – in particular the metal industry sector – in partnership with other agencies and industry members n Regional Low Carbon Plan n Regional program for low income communities in partnership with other agencies n The development of a Regional Communication Plan for Clean Energy Future for residents, industry and businesses n Regional emission offset program with councils who have agriculture sectors n Biodiversity projects in corridor areas such as the Maribyrnong and Werribee Rivers n Regional cogeneration project n Regional energy efficiency programs for councils and residents n Regional Jobs for the West business development program, and n Research projects that relate to clean energy, energy efficiency and adaptation.


25

Conclusion The Clean Energy Future plan is an ambitious economic plan which offers a number of opportunities and challenges for Councils and their communities and has strong implications for the future of the WAGA region. The region is currently undergoing extensive transformation and the Clean Energy Future plan offers an opportunity for the financial support needed to reposition industries and businesses to ensure the future sustainability and profitability of the region. It also offers opportunities for Councils and their communities to improve energy efficiency and assist the protection of assets, infrastructure and the environment. It will also be important for Councils to clearly define what role they will perform so they maintain focus and achieve outcomes, while ensuring effective management of risk. At a municipal level, Councils will also need to adopt a whole-of-Council approach to the Clean Energy Future plan as all areas of its operations will be affected by this plan – either directly or indirectly. Capitalising on the opportunities offered is dependent upon each Council’s ability to form collaborative relationships (both internally and externally) and allocation of appropriate resources. It is also critical that Councils carefully consider what systems, skills and resources they will need to introduce in relation to reporting requirements and delivery of programs.


26

References 1

Securing a Clean Energy Future – The Australian Government’s Climate Change Plan, pvii

2

Ibid. p83

3

Ibid. pvi

4

Ibid. pxi

5

Bloomberg New Energy Finance and Point Carbon as reported in Carbon Finance 8(1), February 2011

6

Fankhauser, S. (2011). Carbon trading: A good idea is going through a bad patch. European Financial Review, 2011

7

http://www.marketsandmarkets.com/Market-Reports/globalrenewable-energy-advanced-technologies-and-global-marketresearch-90.html (accessed 20 October 2011)

8

http://www.cleanenergyfuture.gov.au/chinas-action-on-climatechange/ (accessed 20 October 2011)

9

Rasmussen, B., et al. Updating Melbourne’s West: Final Report, Centre for Strategic Economic Studies, Victoria University, April 2010, p5

10 http://treasury.gov.au/carbonpricemodelling/content/report/ 09chapter5.asp (accessed 20 October 2011) 11 http://treasury.gov.au/carbonpricemodelling/content/report/ 09chapter5.asp (accessed 20 October 2011) 12 Australian Bureau of Statistics, 2009 13 Ibid. 14 Rasmussen, B., et al. (2010). Updating Melbourne’s West: Final Report, Centre for Strategic Economic Studies, Victoria University, p40 15 http://www.vcgr.vic.gov.au/CA2570C30016EEF3/pages/map_ geelong?Open (accessed 20 October 2011) 16 http://www.vcgr.vic.gov.au/CA2570C30016EEF3/pages/map_ moorabool (accessed 20 October 2011) 17 Dodson, J and Sipe, N. (2008). Unsettling suburbia: the New Landscape of Oil and Mortgage Vulnerability in Australian Cities. Griffith University. p24 18 LeadWest’s Western Agenda – A Strategic Plan for Melbourne’s Western Region 2008–2011, p5 19 The Carbon Tax: Briefing Note. Gavin Duffy, 14 July 2011 20 Brotherhood of St Laurence communication, August 2011 21 Interview with Damian Sullivan, Manager, Equity in response to climate change 22 Interview with Gavin Duffy, Manager, Policy and Research St Vincent de Paul’s Society, Victoria 23 Kinesis Pty Ltd and SGS Economics and Planning Pty Ltds’ Werribee Plains – Energy Research Study: Towards Zero Net Emissions. p27 24 Interview with Jason Costin, Lead Environmental Officer, Nufarm 25 http://www.theage.com.au/national/lastminute-finetuningas-carbon-price-vote-nears-20111009-1lfxz.html (accessed 20 October 2011)


27