SHAPING THE ENERGY FUTURE
Lifting emissions targets and ambitions for renewables The year 2021 promises to be a watershed, delivering genuine and concerted action to curb greenhouse gas emissions. Overseas, verbal commitments on emissions reductions are now turning into actions driven by policies. At the same time the world is closing in on Australia with its lack lustre emissions controls and climate action.
IMAGINE BEING AN INVITED OBSERVER at an international gathering where leading nations the UK, Canada, France, Germany, Italy, Japan and the US are detailing their commitments to net zero carbon emissions set amid tight timeframes. This June Australia, which is condemned for its lack of formal commitment to net zero emissions and absence of renewable energy targets while nurturing coal and gas through billion dollar subsidies, will be very much on the sidelines nibbling cucumber sandwiches and eating humble pie at the Group of Seven (G7) meeting. Rubbery numbers and spurious claims are not cutting the mustard. Australia, which now sits in a cabal alongside Brazil, Russia and Saudi Arabia, yet to set or commit to net-zero carbon targets, is being called out for its disingenuous approach to climate action. And the heat is being turned up. Moves are afoot with the US, UK and EU, followed by Canada and possibly China on top of their pathways to zero carbon emissions introducing border carbon taxes on imports from countries lacking climate targets.
Carbon taxes
UN’s António Guterres has issued a stern warning for nations dragging the chain on emissions reductions
The EU’s Carbon Border Adjustment Mechanism (CBAM) which recently took a step forward obliges exporters to pay levies on carbon used in making as well as transporting products, and Australian companies will have to develop systems to measure carbon-intensity of operations. The move has been pre-empted by the Smart Energy Council which has established the Zero Carbon Certification scheme for heavy industrial processes including hydrogen, ammonia and steel (as detailed on page 18) aimed at helping Australia to secure its position in the nascent highly lucrative green hydrogen market.
“It is within our power to build a future of renewable energy and green infrastructure that protects people and planet and ensures prosperity for all.”
8 AUTUMN 2021
SEC’s John Grimes says until such a time as we adopt greener manufacturing processes we will be penalised for our carbon emissions intensive exports of steel and aluminium. “Before long our major exports will be destined for nations with carbon import taxes and net-zero policies and it does not take much to realise we will suffer economic fallout if we don’t get up to speed with emissions abatement and controls,” he warned. The green hydrogen industry alone is slated to add $11 billion each year to Australian GDP to 2050. It’s time we capitalised on our rich green resources and reaped greater economic benefits by electrifying heavy industry and agriculture by progressing innovative projects and products, he says. “And our emissions-heavy transport sector needs a complete overhaul, we need strong policies to support the uptake of electric vehicles in the passenger and heavy goods vehicle markets.”
A green industrial revolution SEC recently hosted The UK-Australia Journey to Net Zero Emissions webinar in collaboration with the British High Commission in Canberra to highlight technologies and reforms that will be central to building strong, zero emissions economies. During the webinar large scale developer Energy Estate demonstrated how zero carbon hydrogen will become the feedstock that decarbonises the explosives, fertiliser, plastics and other industries. Low-cost renewable energy will also reduce emissions from the aforementioned steel, aluminium and zinc production, placing Australia on a firmer footing with trading partners clamping down on carbon-laden product exports/imports. Opportunities abound in other industrial processes, including the untapped potential in waste materials. John Falzon of Adelaide landfill management company LMS has taken the lead in curbing carbon emission at landfill through biogas capture that he says offers a proven and cost-effective means to generate renewable energy. “Significant opportunities exist too for biomethane, other renewable gases (including green hydrogen) and renewable fuels that can be derived from landfill biogas to help achieve decarbonisation of the gas network and transport sector. “Well managed landfills are key to further reducing carbon emissions from residual wastes, but we need our regulators to pursue energy and waste policies that will maximise gas capture. The key challenge for a bright future lies in having the right policy settings,” he says.
