It seems that the Australian government is in full debate over the Emissions Trading Scheme with widely reported coverage all over the press and media.
Here's one of the many stories published in The Australian, this one titled Clever Tactic, Poor Policy. It explains that there were three manifest messages to come out of a busy day of politicking. First, Rudd is proving a master of climate change politics. Second, the government has discovered a magic accounting trick. Third, the compromise package entrenches the interpretation of the CPRS as brilliant short-term politics and dubious long-term policy.
The Sydney Morning Herald is also focusing on the effect the climate change policy is having on the Australian Opposition. Here is the story titled Turnbull deserves praise for his climate change stand.
It seems it comes down to whether the Liberal Party believes there is a case for global warming or not. Australia has the highest per capita carbon emissions among developed nations, not something to be proud of and while the debate looks as though it is going to continue to rage, that mantle is going to stand for quite some time yet.
Showing posts with label carbon emissions. Show all posts
Showing posts with label carbon emissions. Show all posts
Wednesday, November 25, 2009
Monday, December 1, 2008
The Onus On Companies To Reduce Carbon Footprint
A recent survey in Australia has shown that consumers are prepared to pay a little extra for products that are made by companies who are actively minimizing their carbon footprint. This survey covered 1,000 people and the result showed that 85% of respondents had already made changes to their lifestyle in an effort to reduce their carbon footprint. When you consider that 5 years ago just about no-one even knew about carbon emissions or the need to reduce them, this is a very encouraging figure.
The report that this survey was performed for was in L.E.K. Consulting’s Carbon Footprint Report, Carbon and the Consumer: Are Consumers Ready to Pay?
What all of this means for companies is that there will be more of an onus on them to not only become more conscious of their carbon footprint and the emissions produced during their business operations but they will have to demonstrate what they are doing to reduce them. It will also be important that when they make an announcement about the carbon savings they will be making, that they actually follow through and deliver on their promises.
The report has gone on to say that those companies who have done some analysis on their carbon footprint have often been surprised to find that there are many simple opportunities for carbon reduction either in their immediate production or along the supply chain. Finding these simple savings often drives business leaders to seek further changes and so the progression goes.
It will be up to consumers to follow through on their assertions in the survey to favour those businesses that have made the effort to reduce their carbon emissions.
The report that this survey was performed for was in L.E.K. Consulting’s Carbon Footprint Report, Carbon and the Consumer: Are Consumers Ready to Pay?
What all of this means for companies is that there will be more of an onus on them to not only become more conscious of their carbon footprint and the emissions produced during their business operations but they will have to demonstrate what they are doing to reduce them. It will also be important that when they make an announcement about the carbon savings they will be making, that they actually follow through and deliver on their promises.
The report has gone on to say that those companies who have done some analysis on their carbon footprint have often been surprised to find that there are many simple opportunities for carbon reduction either in their immediate production or along the supply chain. Finding these simple savings often drives business leaders to seek further changes and so the progression goes.
It will be up to consumers to follow through on their assertions in the survey to favour those businesses that have made the effort to reduce their carbon emissions.
Saturday, September 20, 2008
If Truckers Can Reduce Their Carbon Footprint Then Surely...
That's right, the American Trucking Associations Inc. have been developing a plan to reduce the industry's carbon footprint for quite some time now. According to a story at VirginiaBusiness.com the truckers association wanted to be proactive rather than reactive. It comes in a six-step plan that will reduce the diesel and gasoline that is consumed by 86 billion gallons over 10 years. Not an insignificant figure, to be sure.
So the 6 step plan, in short.
So the 6 step plan, in short.
- Reduce the national speed limit to 65 miles per hour.
- Reduce idling.
- Improve fuel efficiency.
- Reduce congestion.
- Improving productivity.
- Create national fuel-economy standards.
This is an inspiring initiative that shows tremendous responsibility and not only will it save the planet in terms of carbon emissions, but it will also reduce the cost of haulage too.
To read abou the reasoning behind each of these strategies can be found by reading the Trucking association looks to reduce carbon footprint story on VirginiaBusiness.com.
Alternatively, you can go straight to the source of the strategy itself and visit the American Trucking Association website where the six strategies are laid out for you with a nice detailed explanation for each idea.
Monday, February 25, 2008
Virgin Atlantic Biofuel Flight
A Carbon Footprint Step Forward, Or Not?
I think one notable point can be made from the story that has been picked up be every news agency around the globe today – Virgin Atlantic and Sir Richard Branson make great headlines.
The story is, of course, that a Virgin Atlantic Boeing 747 has made a test flight from London to Amsterdam powered by biofuel. At least, that’s the headline. The reality is that the plane contained a 20% biofuel mix in one of its four main fuel tanks. The biofuel was made from a mixture of coconut and babassu oil.
Sir Richard Branson, in his statement to the media (yeah, surprise, surprise, Branson talking to the media, wonders never cease) said, “The demonstration flight will give us crucial knowledge that we can use to dramatically reduce our carbon footprint.”
Colour me unimpressed because herein lies the problem. The whole biofuel continues to rage over whether biofuel actually makes any difference at all in terms of lowering carbon emission and reducing the carbon footprint of a company.
Virgin, in using coconut and babassu oil have taken the issue of using potential food source and food crops out of the equation, but studies still suggest that clearing land for these crops can generate more carbon emissions than the savings made out the other end.
Biofuels still have a long way to go before the claim that using some in a test flight will lead us towards cleaner flying has wings. Great marketing for Virgin though and considering the guy making the pretty speeches after the demonstration and the frenzy of news coverage…well, I’d just say mission accomplished.
As for the carbon footprint, I think it might be sticking around at Virgin for a little while longer.
I think one notable point can be made from the story that has been picked up be every news agency around the globe today – Virgin Atlantic and Sir Richard Branson make great headlines.
The story is, of course, that a Virgin Atlantic Boeing 747 has made a test flight from London to Amsterdam powered by biofuel. At least, that’s the headline. The reality is that the plane contained a 20% biofuel mix in one of its four main fuel tanks. The biofuel was made from a mixture of coconut and babassu oil.
Sir Richard Branson, in his statement to the media (yeah, surprise, surprise, Branson talking to the media, wonders never cease) said, “The demonstration flight will give us crucial knowledge that we can use to dramatically reduce our carbon footprint.”
Colour me unimpressed because herein lies the problem. The whole biofuel continues to rage over whether biofuel actually makes any difference at all in terms of lowering carbon emission and reducing the carbon footprint of a company.
Virgin, in using coconut and babassu oil have taken the issue of using potential food source and food crops out of the equation, but studies still suggest that clearing land for these crops can generate more carbon emissions than the savings made out the other end.
Biofuels still have a long way to go before the claim that using some in a test flight will lead us towards cleaner flying has wings. Great marketing for Virgin though and considering the guy making the pretty speeches after the demonstration and the frenzy of news coverage…well, I’d just say mission accomplished.
As for the carbon footprint, I think it might be sticking around at Virgin for a little while longer.
Thursday, February 21, 2008
Emissions Trading
We hear about one of the suggested solutions to manage carbon footprint growth to have come out of the Kyoto Protocol is the establishment of emissions trading schemes. Below is a brief overview of what emissions trading is and how it works to lower the production of greenhouse gases. I’ve tried to present this in layman’s terms where possible.
What Is Emissions Trading?
Emissions trading is a way in which government or regulatory bodies can control the level of carbon emissions produced, usually within a single country, although the EU trading scheme has been in place for a few years now. It's done by issuing emissions permits to companies that give them the right to produce a certain level of carbon emissions. To get emissions permits companies must earn credits and one of the ways they can get these credits is to buy them off companies who don't produce as much greenhouse gas as their limit dictates.
Emissions trading seeks to put a cap on the carbon emissions produced by rewarding those companies who have reduced their carbon emissions while creating an incentive for those who haven't.
Over time the carbon emissions cap is reduced which will ensure that all companies will continue to seek ways in which they can reduce the level of greenhouse gases they produce. The theory is that those who can easily reduce carbon emissions will do so at little cost allowing the focus to turn towards the larger polluters who, hopefully, will have begun to reduce their carbon emissions levels too.
Success of Emissions Trading
The success of an emissions trading scheme depends on having a tradable commodity with willing buyers and sellers. To get the buyers you need to make participation mandatory in certain sections of the economy. The ultimate success or failure of an emissions trading scheme will depend on the strength of the regulatory structure overseeing it.
Type of Emissions Trading Schemes
There are two major types of emissions trading schemes: cap and trade (e.g. the European Union’s emissions trading scheme) and baseline and credit (e.g. the NSW Greenhouse Gas Abatement Scheme).
Baseline and Credit schemes give credit to reductions relative to a projected future ‘baseline’ growth in emissions that in practice can become identical with business-as-usual. With this approach, there is no guarantee that emissions will ever be reduced in absolute terms. In the NSW scheme over 95% of abatement certificates issued in 2003 went to installation built prior to the commencement of the scheme. Coal-fire power stations have been the beneficiaries of payments due to minor efficiency improvements made that most likely would have been made even if the scheme weren’t in place. The fact that the major contributors to the problem are the ones receiving funds highlights a basic flaw in the system, particularly when you consider that any workable greenhouse gases solution would not involve the presence of coal-fired power stations.
Cap And Trade schemes put solid limits on total emissions in future years. Depending on how well designed, operated and regulated the scheme is, only enough permits are issued to reach that limit. Initially some of the European countries involved in the European Union Emissions Trading Scheme issued more permits than were needed to cover their emissions. This is an oversight that should be corrected when phase two has been properly implemented and the provision to lower the cap will see allowable emissions levels come down regularly. As countries begin to gain control of their carbon emissions and the trading part of this scheme really takes hold we should see significant drops in emissions numbers.
A further aspect to note about the introduction of an emissions trading scheme is the allocation of emissions permits through grandfathering clauses. What this means is that existing industries, often the big producers of greenhouse gases, are allowed to carry on as before the scheme was introduced to avoid large economic losses and possible major disruption of supply to consumers. A controlled revaluation of grandfathered permits need to be regulated over a period of years.
There are actually many ways in which an emissions trading system can be designed and implemented with important choices made between schemes that:
What Is Emissions Trading?
Emissions trading is a way in which government or regulatory bodies can control the level of carbon emissions produced, usually within a single country, although the EU trading scheme has been in place for a few years now. It's done by issuing emissions permits to companies that give them the right to produce a certain level of carbon emissions. To get emissions permits companies must earn credits and one of the ways they can get these credits is to buy them off companies who don't produce as much greenhouse gas as their limit dictates.
Emissions trading seeks to put a cap on the carbon emissions produced by rewarding those companies who have reduced their carbon emissions while creating an incentive for those who haven't.
Over time the carbon emissions cap is reduced which will ensure that all companies will continue to seek ways in which they can reduce the level of greenhouse gases they produce. The theory is that those who can easily reduce carbon emissions will do so at little cost allowing the focus to turn towards the larger polluters who, hopefully, will have begun to reduce their carbon emissions levels too.
Success of Emissions Trading
The success of an emissions trading scheme depends on having a tradable commodity with willing buyers and sellers. To get the buyers you need to make participation mandatory in certain sections of the economy. The ultimate success or failure of an emissions trading scheme will depend on the strength of the regulatory structure overseeing it.
Type of Emissions Trading Schemes
There are two major types of emissions trading schemes: cap and trade (e.g. the European Union’s emissions trading scheme) and baseline and credit (e.g. the NSW Greenhouse Gas Abatement Scheme).
Baseline and Credit schemes give credit to reductions relative to a projected future ‘baseline’ growth in emissions that in practice can become identical with business-as-usual. With this approach, there is no guarantee that emissions will ever be reduced in absolute terms. In the NSW scheme over 95% of abatement certificates issued in 2003 went to installation built prior to the commencement of the scheme. Coal-fire power stations have been the beneficiaries of payments due to minor efficiency improvements made that most likely would have been made even if the scheme weren’t in place. The fact that the major contributors to the problem are the ones receiving funds highlights a basic flaw in the system, particularly when you consider that any workable greenhouse gases solution would not involve the presence of coal-fired power stations.
Cap And Trade schemes put solid limits on total emissions in future years. Depending on how well designed, operated and regulated the scheme is, only enough permits are issued to reach that limit. Initially some of the European countries involved in the European Union Emissions Trading Scheme issued more permits than were needed to cover their emissions. This is an oversight that should be corrected when phase two has been properly implemented and the provision to lower the cap will see allowable emissions levels come down regularly. As countries begin to gain control of their carbon emissions and the trading part of this scheme really takes hold we should see significant drops in emissions numbers.
A further aspect to note about the introduction of an emissions trading scheme is the allocation of emissions permits through grandfathering clauses. What this means is that existing industries, often the big producers of greenhouse gases, are allowed to carry on as before the scheme was introduced to avoid large economic losses and possible major disruption of supply to consumers. A controlled revaluation of grandfathered permits need to be regulated over a period of years.
There are actually many ways in which an emissions trading system can be designed and implemented with important choices made between schemes that:
- Either reduce emissions that can be physically measured, or include ‘reductions’ that are uncertain.
- Either allocate emission permits free of charge to industries in proportion to their current positions, or auction permits with everyone entitled to bid.
- Either define the liable parties to only those industries who directly produce the emissions, or define the consumers who indirectly produce emissions through their purchase of goods and services.
- Either focus on carbon emissions alone, or include other greenhouse gases with emissions measured in carbon dioxide equivalents.
Wednesday, February 20, 2008
Why Is Knowing Your Carbon Footprint Important?
Many of us cruise through our daily lives completely oblivious to such things as a carbon footprint and the impact we are having to the growing problem of greenhouse gases and the whole global warming crisis. This isn’t surprising, it’s just a fact of life that there are many distractions that take place and we take for granted the imprint we are leaving on the world, just by living.
Our multiple digital clocks run in our houses 24 hours a day – we’ve got one on the microwave, one on the conventional oven, one on the CD player, one on the stereo and one in each of our three bedrooms, all of them drawing passive energy and we don’t even give it a thought. It’s just one of the assumed “rights” of living in a modern affluent society, we may not use it but we don’t mind paying for it regardless. Some people might be a little bit shocked if they were to find out exactly how much carbon emissions they are producing per year, not to mention an indication of how much it’s costing them and how simple it might be to save a few bucks and the environment at the same time.
You Can’t Change What You Don’t Know
I like that sentence, it neatly sums up a whole range of human instincts and precisely describes one of the roadblocks in front of those trying to educate people on the importance of reducing our carbon footprint. It’s only when someone is shown the consequence for the actions of their daily lives that they can begin to grasp the idea that there is a need for change.
It’s not until you’re told that running your car produces around 2 ½ tonnes of carbon dioxide per year that you begin to realise that this could be a problem. It also allows you to then set a goal to lower your number for the next year. Suddenly you have a goal – a quantifiable goal – that you can set for yourself and aim for with real purpose. Without the calculation of your carbon footprint you would be resigned to stating that you produce some (or a lot of) carbon dioxide. Trying to produce less in the future would be next to impossible to gauge.
The fact that there is also a corresponding cost benefit i.e. you save money! to reducing your carbon footprint size should have people flocking to the cause. The word will continue to leak out while, hopefully, carbon dioxide doesn’t.
Our multiple digital clocks run in our houses 24 hours a day – we’ve got one on the microwave, one on the conventional oven, one on the CD player, one on the stereo and one in each of our three bedrooms, all of them drawing passive energy and we don’t even give it a thought. It’s just one of the assumed “rights” of living in a modern affluent society, we may not use it but we don’t mind paying for it regardless. Some people might be a little bit shocked if they were to find out exactly how much carbon emissions they are producing per year, not to mention an indication of how much it’s costing them and how simple it might be to save a few bucks and the environment at the same time.
You Can’t Change What You Don’t Know
I like that sentence, it neatly sums up a whole range of human instincts and precisely describes one of the roadblocks in front of those trying to educate people on the importance of reducing our carbon footprint. It’s only when someone is shown the consequence for the actions of their daily lives that they can begin to grasp the idea that there is a need for change.
It’s not until you’re told that running your car produces around 2 ½ tonnes of carbon dioxide per year that you begin to realise that this could be a problem. It also allows you to then set a goal to lower your number for the next year. Suddenly you have a goal – a quantifiable goal – that you can set for yourself and aim for with real purpose. Without the calculation of your carbon footprint you would be resigned to stating that you produce some (or a lot of) carbon dioxide. Trying to produce less in the future would be next to impossible to gauge.
The fact that there is also a corresponding cost benefit i.e. you save money! to reducing your carbon footprint size should have people flocking to the cause. The word will continue to leak out while, hopefully, carbon dioxide doesn’t.
Monday, February 11, 2008
InterfaceFLOR Australia : A Carbon Neutral Example
I’ve talked about ways we, as individuals, might reduce carbon emissions and the impact we might make with carbon offsets and reducing our personal carbon footprint. It’s a much more daunting task for a big company to make a significant reduction in its carbon emissions, but for InterfaceFLOR Australia, the progress in the goal of achieving a carbon neutral position is almost within reach.
InterfaceFLOR Australia is a modular carpet manufacturer and is the Australian subsidiary of United States company Interface. The company has managed to eliminate all carbon emissions completely from the production of its carpet tiles. Carbon offsets are being used by the company for unavoidable carbon emissions that are not able to be eliminated by operational or technical changes.
It’s all part of an ambitious program embarked upon by the parent company called “Mission Zero” which seeks to eliminate all harmful effects to the environment caused by its commercial activities by 2020. This will include the elimination of greenhouse gas emissions, waste, a reduction in the consumption of non-renewable energy and eliminating the use of toxic substances.
Chief executive Rob Coombs has pointed out that the company has demonstrated that it is possible to practice environmental sustainability and still run a business profitably. Popular belief is that the two concepts are mutually exclusive. But over the last 5 years InterfaceFLOR Australia reduced carbon emissions by 25% and has averaged profit growth of 25% for the last 3 of those years.
InterfaceFLOR has benefited from its reduced energy usage, water consumption and waste:
- By streamlining its operations.
- By improving innovation and product design by forcing people to think creatively outside the box.
- By attracting new customers, drawn by the environment friendly philosophy and products.
- By attracting new production partners.
- By attracting and retaining quality employees.
The measurement of InterfaceFLOR's impact on the environment does not stop at the factory door, it also covers the complete lifecycle of its products from raw materials to supply chain store activity right through to it’s removal and disposal.
The Spread of Carbon Emission Consciousness
What this amounts to is encouraging suppliers and distributors to reduce their carbon emissions and paying to purchase the carbon offsets associated with any remaining emissions. All tenders for new contracts with InterfaceFLOR has sustainability as a key component of the evaluation process, a great way to spread the concept that it is beneficial on more than just the environmental level to reduce carbon emissions.
For example, when Border Express bid for the InterfaceFLOR freight contract, the sustainability clause acted as a catalyst for the company to review its own ecological footprint. The company engaged an environmental consultant to conduct an audit on the effect it was having on the environment and will implement changes to make it a more sustainable business. Changes to fuel and engine efficiency, the age of the fleet and driver training will be key areas where changes can be made.
Since 1994, InterfaceFLOR Australia has:
- Saved more than $25 million through waste elimination activities.
- Reduced waste cost per unit of production by more than 90%.
- Reduced manufacturing emissions in water to zero.
- Reduced greenhouse gas emissions by 12%.
- Reduced total energy consumption in Australia by 36% per unit of production.
- Installed skylights in facilities to save on lighting energy consumption.
- Been the first carpet manufacturer to use fibres made from polylactic acid, a commercially viable plastic made from corn starch.
- Introduced a Cool Fuel™ Program which aims to "zero out" the carbon dioxide caused by the company's car travel with carbon offset packages for employees - more than 3,500 metric tons of carbon dioxide have been offset since its inception in 2002.
- Diverted nearly 30 million kilograms of carpet from landfills globally through recycling.
- Introduced Cool Carpet™ the first "climate neutral" carpet option. "Climate neutral" means that the greenhouse gases emitted during the carpet's lifecycle are balanced by InterfaceFLOR's investments in carbon emissions offsets.
If a global company such as Interface can make this kind of commitment to reducing carbon emissions and greenhouse gases, perhaps a few more businesses can take up the challenge. It's an inspirational story and one that could be repeated throughout the business community.
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