carbon management – a practical approach for business jack holden, head of carbon management, ecos...
TRANSCRIPT
![Page 1: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/1.jpg)
Carbon Management – A Practical Approach for Business
Jack Holden, Head Of Carbon Management, Ecos Corporation
Casey-Cardinia Business Breakfast
Pakenham 12th June 2008
![Page 2: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/2.jpg)
Outline
• Global warming and carbon emissions overview
• Carbon trading and how it affects business
• Short term energy & carbon trends
• Actions for business
• The carbon neutral trap!
![Page 3: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/3.jpg)
Digging out of a Carbon Neutral Trap
![Page 4: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/4.jpg)
Climate ChangeWhat are we observing so far?
2007Hottest year ever in Victoria
Driest ever for Murray Darling rivers
2005Strongest hurricane ever recorded (Wilma)
Highest daily rainfall event in Indiaever recorded
The most Hurricanes ever
Hurricane Wilma, courtesy of United States National Oceanic and Atmospheric Administration
![Page 5: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/5.jpg)
Mumbai Deluge 26/7/2005
• 1000mm rain in one day
![Page 6: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/6.jpg)
Global mean temperature
Global averagesea level
Northern hemispheresnow cover
IPCC Forth Assessment Report WGI
Direct Observations of Recent Climate Change
1850 - 2005
![Page 7: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/7.jpg)
![Page 8: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/8.jpg)
Hotter days
![Page 9: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/9.jpg)
Less rainfall
![Page 10: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/10.jpg)
Carbon Cycle
![Page 11: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/11.jpg)
Carbon Cycle
![Page 12: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/12.jpg)
Carbon Cycle
![Page 13: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/13.jpg)
The history of CO2 and temperature change shows great variations. A dynamic system.
![Page 14: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/14.jpg)
We’ve built this civilisation in an unusually stable, temperate period. It wasn’t always thus.
Sea level 125 m lower
Sea level: Fairbanks, R.G., 1989, A 17,000-year glacio-eustatic sea level record; influence of glacial melting rates on the Younger Dryas event and deep-ocean circulation: Nature, v. 342, no. 6250, p. 637-642.
![Page 15: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/15.jpg)
Sea level: Fairbanks, R.G., 1989, A 17,000-year glacio-eustatic sea level record; influence of glacial melting rates on the Younger Dryas event and deep-ocean circulation: Nature, v. 342, no. 6250, p. 637-642.
Sea level 4 – 6 m higher
We’ve built this civilisation in an unusually stable, temperate period. It wasn’t always thus.
![Page 16: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/16.jpg)
Conclusion: The earth’s climate is a naturally unstable system. We’ve thrown a large CO2 bomb into it. It has now gone off.
?
![Page 17: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/17.jpg)
-50
0
50
100
150
200
250
300
350Australia’s Carbon Emissions
Million tonnes/year
Adapted from Department of Climate Change, 2008
![Page 18: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/18.jpg)
Greenhouse emissions per person -2003
~26t CO2-e/person
~4 t CO2-e/person
![Page 19: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/19.jpg)
Business Case For Managing Carbon
Commercial Drivers
Regulatory Drivers
![Page 20: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/20.jpg)
MEGA COMPANIES ARE ACTING
![Page 21: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/21.jpg)
Commercial Drivers.
• Investors, employees and customers
• GM to sell Hummer brand, Mitsubishi closes in Adelaide
• SUV sales down 60% in US since 2002
• ANZ had a divorce from Gunns (costs $1M/day)
• Tesco & Walmart environmental disclosure requirements
• Health & beauty industry destocking harsh chemicals
![Page 22: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/22.jpg)
Consumer AwarenessReduce your carbon emissions - Walk to the pub
![Page 23: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/23.jpg)
![Page 24: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/24.jpg)
Regulatory DriversNational Greenhouse Energy Reporting Act
(NGERS)
• Mandatory reporting of carbon emissions
• Begins 1st July 2008.
• Only 700 to 900 companies, 300 first time
reporters
• Corporate penalty is $220K, CEO’s penalty is
$44K
• “operational control”?
![Page 25: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/25.jpg)
• The fuel you burn (petrol, gas, diesel) creates scope 1 emissions
• The electricity you buy creates Scope 2 emissions
![Page 26: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/26.jpg)
• The carbon emissions embedded in the goods and services you buy are Scope 3 emissions
![Page 27: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/27.jpg)
Emissions Trading (1)
• Make bad things more expensive than good things
• Carbon markets are created by governments – they
are not real
• Government mandates a cap (tonnes of CO2/year)
• “Liable parties” are polluters (defined by size and
emissions source)
![Page 28: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/28.jpg)
Emissions Trading (2)
• All direct emissions from facilities above 25K tonnes/year in the following sectors
– Power stations yes – Manufacturing yes– Mining yes– Construction & property yes– Transport probably– Waste not sure– Agriculture & forestry too hard for now
![Page 29: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/29.jpg)
How does emissions trading work?
1. Polluters buy permits (or credits) from the government to cover emissions
2. May be some free permits3. Polluters then surrender permits to governments to
cover emissions & 4. Can sell any surplus to other polluters who are short
5. Some activities like forestry may create extra permits
6. Reducing emissions saves $$ but no credits created
![Page 30: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/30.jpg)
What it means for business
• If you are not a “liable party” (one of the top 500 -1000 emitters) then you won’t need permits
• Increase costs of:energy use - reduce or switch to cleaner fuelscarbon intensive goods and services
![Page 31: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/31.jpg)
Where will it hit hardest?• Large impact from carbon price
– Coal, aluminium, steel, cement
• Moderate impact from carbon price– Oil, Gas, transport, paper
• No carbon price – Solar Water Heating (much cheaper soon)– Wind & Solar electricity (needs to get cheaper)– Geothermal (big potential – but not yet)– Nuclear, hydro (other impacts)– Timber– Recycled products
![Page 32: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/32.jpg)
Carbon Price in Energy Costs
• Caps may start in 2010 on biggest polluters
• $20/tonne of carbon
5c per litre of fuel and
20% increase in Victorian electricity retail price
• $40/tonne of carbon
+10c litre
+ 40% Victorian electricity
![Page 33: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/33.jpg)
Carbon Management for Business
1. Reduce energy use Improves profitability everyday
2. Cleaner fuels Increases costs. Depends on energy intensity of your business
3. Carbon Offsets Increases costs. Only if clients want it.
![Page 34: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/34.jpg)
Carbon Accounting for Business• Use existing data systems for collecting energy data
(finance or inventory)
• Convert (kwh, Mj, litres) from the invoice data to carbon units (www.greenhouse.gov.au)
• Build into existing reporting and performance management process
• Build an emissions reporting system that suits you before your clients build one that doesn’t
![Page 35: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/35.jpg)
Energy Efficiency Pays
• Compact fluro globes ~$6 each
• Each saves $15 each year
• Household saving in first year = $135
• Then saves $225/year for 5 years
Reduces about 1.4 tonnes CO2
15 lights in an average house
![Page 36: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/36.jpg)
Also business opportunities in cutting carbon
![Page 37: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/37.jpg)
Easy Being Green cut over 4 million tonnes in 18 months
![Page 38: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/38.jpg)
But you have to understand the risks
![Page 39: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/39.jpg)
But you have to understand the risks
![Page 40: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/40.jpg)
2006/2007: Weekly Installation Sales (no. of globes)
0
20,000
40,000
60,000
80,000
100,000
8-Oct
22-Oct
5-Nov
19-Nov
3-Dec
17-Dec
31-Dec
14-Jan
28-Jan
11-Feb
25-Feb
11-Mar
25-Mar
8-Apr
22-Apr
6-May
20-May
3-Jun
17-Jun
1-Jul
15-Jul
29-Jul
12-Aug
26-Aug
9-Sep
23-Sep
7-Oct
21-Oct
4-Nov
18-Nov
2-Dec
16-Dec
30-Dec
Week Ending
Glo
bes
per
wee
k
Easy Being Green Weekly Globe Installations
Annex 3
![Page 41: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/41.jpg)
140 redundancies as carbon price dropped 50%
![Page 42: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/42.jpg)
The Carbon Neutral TrapKnow what you are digging into
![Page 43: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/43.jpg)
Take Home Messages• Saving energy will make even more money now
• Action matters – not targets• Carbon accounting will matter soon but it isn’t hard. • Businesses can be very influential as consumers/
clients and advocates
• Develop your sustainability strategy before someone else does.
![Page 44: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/44.jpg)
Innovation Pays
![Page 45: Carbon Management – A Practical Approach for Business Jack Holden, Head Of Carbon Management, Ecos Corporation Casey-Cardinia Business Breakfast Pakenham](https://reader038.vdocuments.us/reader038/viewer/2022110304/55182ffa55034691678b4e4f/html5/thumbnails/45.jpg)
Most of the time