FNQROC Greenhouse Gas Inventory and Mitigation Action Plan: …€¦ · FNQROC Greenhouse Gas...

FNQROC Greenhouse Gas Inventory and Mitigation Plan Managing Risk in a Carbon Economy

FNQROC Greenhouse Gas Inventory and Mitigation Action Plan: Managing Risk in a Carbon Economy This plan will give an overview of the regional greenhouse gas inventory (2007/2008) and the regional mitigation plan and carbon reduction target.

2011

Darlene Irvine, Executive Officer FNQROC

June 2011


Acknowledgements This report has been made possible through the support of:

Prepared by FNQROC with the assistance of Sustainable Focus Pty Ltd.

Document Control

Document ID: LIVE-#3213639-v1-FNQROC_Regional_Greenhouse_Gas_Mitigation_and_Action_Plan_-_FINAL_DRAFT

Rev No Date Revision Details Author Approver

1 August 2009 Draft report for FNQROC acceptance completed by Sustainable Focus

Sustainable Focus FNQROC accepted March 2010

2 January 2011 Draft document for FNQROC Darlene Irvine FNQROC Sustainability Group reviewed March 2011

3 April 2011 Draft document incorporating feedback from FNQROC Sustainability Group

Daniela Gambotto

FNQROC and all persons acting on behalf preparing this report accept no liability for the accuracy or inferences from the material contained in this publication, or for any action as a result of any person’s or group’s interpretations, deductions or conclusions relying on this material. The FNQROC accepts no liability for any loss, damage or injury (including consequential loss, damage or injury) from use of the information.


FNQROC’s Vision Regional prosperity through interactive and collaborative planning and advocacy.

FNQROC’s Mission Our Mission is to foster cooperation and resource sharing between Councils and effectively advocate on agreed regional positions and priorities.

FNQROC’s Core Values a) Autonomy to act within the constraints of our systems of Government,

b) Integrity in the performance of their functions,

c) Responsiveness to the needs of the local community,

d) Accountability to stakeholders – electors, ratepayers, other spheres of Government,

e) Equity; and

f) Respect the individual rights of individual Councils to have their own opinions.


Table of Contents Executive Summary................................................................................................................................................................1

PART A – INTRODUCTION AND LEGAL FRAMEWORK.............................................................................3 1. Introduction ........................................................................................................................................................................3

1.1 FNQROC Region ...............................................................................................................................................3

2. Policy and legislation ...................................................................................................................................................4 PART B – GREENHOUSE GAS INVENTORY......................................................................................................5

3. GHG Emissions Inventory ........................................................................................................................................5

3.1 Methodology..........................................................................................................................................................5 3.2 Energy Emissions and Direct Waste Emissions .............................................................................6

3.3 Benchmark year..................................................................................................................................................6 3.4 Raw Data.................................................................................................................................................................6

4. Results..................................................................................................................................................................................7

PART C – FORECASTS AND FINANCIAL ANALYSIS ................................................................................11 5. Forecast ............................................................................................................................................................................11

5.1. Population Predictions .................................................................................................................................11

5.2. Emission Forecasts .......................................................................................................................................11 5.3. Direct Waste Emissions Forecast.........................................................................................................13

5.4. Financial Forecasts........................................................................................................................................13 PART D – A REGIONAL GREENHOUSE GAS GOAL AND MITIGATION ACTION PLAN...16

6. Greenhouse emissions reduction goal ..........................................................................................................16

6.1 Reduction, offsets or both? .......................................................................................................................16 7. Implementing the Regional GHG Mitigation Action Plan ....................................................................17

7.1 Funding .................................................................................................................................................................17

8. Sector Summaries ......................................................................................................................................................17 8.1 Buildings ...............................................................................................................................................................17

8.2 Vehicle Fleet ......................................................................................................................................................18 8.3 Street lighting.....................................................................................................................................................18

8.4 Water and Sewage electricity ..................................................................................................................19

8.5 Landfills .................................................................................................................................................................20 9. Greenhouse Mitigation Action Plan table .....................................................................................................21


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Executive Summary In a world facing environmental, social and economic challenges, Council’s must prepare themselves to manage the risks associated with a complex future scenario. Of particular concern to councils are the potential impacts resulting from climate change, the effects of which are not limited to the environment alone.

Far North Queensland has been identified as one of six key ‘hot spots’ in Australia where the impacts of climate change are likely to be significant. Potentially large losses to the built environment of the region from flooding, sea-level rise and storm surges associated with tropical cyclones1 are expected as a result

The emergence of a carbon based economy as a national response to climate change, will ultimately result in increased day-to-day costs for council operations. By implementing measures to abate greenhouse gas emissions, Councils in the region have the opportunity to reduce the risks associated with increased energy and fuel costs, and damage to the natural environment which ultimately affect the local economy.

In mid 2009, through the collaboration of Cairns Regional Council, Tablelands Regional Council, Cassowary Coast Regional Council, Cook Shire Council and Hinchinbrook Shire Council, and support of FNQROC2, GBRMPA3, WTMA4 and Terrain NRM, Sustainable Focus undertook a Greenhouse Inventory for FNQROC Councils. This action plan is a summary of that more detailed report.

In response to that inventory, estimated carbon emissions and greenhouse mitigation actions have been identified for each sector that provides a path to achieving very significant reductions. These are tabled in Part D of this report.

This plan calls for a significant financial investment for the abatement of energy and waste emissions which is estimated to deliver a greenhouse reduction of 57%, or over 76,500 tonnes. The investment is expected to be repaid in less than five years representing an excellent financial investment regardless of the significant environmental and social benefits. It is also a practical way of managing the risk of escalating energy costs.

To put the cost of this investment into perspective, the recently published report “Valuing the effects of great Barrier reef Bleaching”5, estimates that the cost to the Cairns region of coral bleaching due to climate change is $16.3 billion. This is just one of the predicted environmental costs to the region from climate change. Thus it is in the interest of the Council to show strong leadership in mitigating greenhouse emissions and this investment can be seen as a small price to pay. This plan seeks to balance environmental, social and financial goals and will provide the Council with very positive public exposure.

The required regional investment and savings over time have been estimated, and are summarised in Table 1. (The full breakdown is available in the Sustainable Focus’ original report).

1 GHG Mitigation Plan – Cairns Regional Council 2 Far North Queensland Regional Organisation of Councils 3 Great Barrier Reef Marine Park Authority 4 Wet Tropics Management Authority 5 Valuing the effects of Great Barrier Reef Bleaching, Oxford Economics, August 2009.


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Table 1 - Estimated regional Greenhouse emissions considerations per sector 2007-08

Sector 2007-08 GHG (tonnes)

GHG after implement mitigation measures (tonnes)

% reduction

2007-08 energy cost

Energy cost savings (July ’09 prices)

Investment Payback (July ’09 Prices)

Buildings 17,200 12,500 27% $2,509,000 $775,000 $3,980,000 5.1 Vehicle Fleet 10,500 8,000 24% $5,339,000 $1,052,000 $260 000 0.2 Streetlights 10,300 7,600 26% $2,820,000 $782,000 $5,500,000 7.0 Water and Sewerage

24,100 17,000 29% $2,920,000 $1,025,000 $4,580,000 4.5

Landfill Sites 140,100 39,100 72% None None $1,500,000 N/A Sewerage Treatment Plants

21,400 16,400 23% None None Not Given N/A

Total 223,600 100,600 55% $13,588,000 $3,634,000 $15,820,000 4.4


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PART A – INTRODUCTION AND LEGAL FRAMEWORK

1. Introduction The Far North Queensland Regional Organisation of Councils (FNQROC) initiated this project to align all Councils with a consistent approach to mitigating greenhouse gas emissions. A regional approach aids Councils through the sharing of expertise, addressing cross-boundary issues and offering a collective voice in relation to funding applications. The process has highlighted opportunities for effective regional initiatives which support the efforts of individual Councils.

FNQROC and Sustainable Focus held workshops with staff from the five regional council’s staff in mid 2009, during which individual Council inventories were presented and carbon abatement actions proposed. Workshops with Cassowary Coast Regional Council, Cook Regional Council and Hinchinbrook Regional Council staff were held in November 2010 to further investigate and develop realistic and implementable actions for each respective Council.

Consultants, Sustainable Focus, were engaged to assist in this process by preparing a regional greenhouse gas (GHG) inventory and GHG action plan. The FNQROC Board accepted the report, “Regional Greenhouse Inventory and Greenhouse Mitigation Action Plan (August 2009),” in May 2010 and resolved to review the action plan so that it belonged to FNQROC.

This regional inventory is for the 2007-08 financial year and will provide the baseline data for the collective region. Council staff collated their individual energy consumption and cost data, as well as details of their respective landfill sites and sewerage treatment plants. The NGER methodology was then applied to calculate the greenhouse emissions.

The current policy landscape is changing rapidly with likely impacts on Council’s emissions, costs and actions. The NGER Act was introduced in late 2007 and some form of carbon pricing (be it a Carbon Tax, Carbon Pollution Reduction Scheme (CPRS), or cap and trade framework) is anticipated in the next 2 years. The introduction of a carbon economy will require consideration of impacts on input costs to Council service operations such as fuel, electricity, and other products and services with carbon emissions.6

1.1 FNQROC Region For the purposes of this strategy, the FNQROC region covers more than 179,856 square kilometres and is the gateway to the World Heritage listed Wet Tropics Rainforest and the Great Barrier Reef. The hinterland Councils are also surrounded by the Dry Tropical forests.

The region has a population of approximately 258,000 (which is expected to grow to 331,700 by 2031), most of whom live on the coastal area.

The climate of the region is typically tropical and monsoonal. The Tropical Cyclone season is generally considered to be between the months of December and April. A combination of elevated terrain (aligned north-south) and prevailing easterly trade winds gives rise to the highest rainfall in Australia. The annual rainfall along the wet tropical coast is commonly 2,000 – 8,000 mm. Typically, in excess of 60 percent of mean annual rainfall occurs in the months December to March. Air temperatures range from a mean maximum of 32oC (summer) to a mean minimum of 13oC (winter).7

6 GHG Mitigation Plan – Cairns Regional Council 7 ARUP Consultancy – A Study of the climate of the FNQ Water Strategy Area and consideration of the impacts of climate change


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2. Policy and legislation The Australian policy landscape on greenhouse gas mitigation is changing rapidly. The pre Carbon Pollution Reduction Scheme (CPRS) and NGERS scenario focussed on voluntary participation from a range of Federal, State and Local Government levels. The White Paper was released in December 2008 proposing sectors for inclusion in the CPRS and detailing the discussion around a cap and trade emission trading scheme.

The shift in focus is now to mandatory reporting and public disclosure via the introduction of some type of carbon economy.

The implications for Councils in the not too distant future could include:

• The mandatory need for Council to report on and be involved in a carbon pricing system through landfill emissions

• The need to reduce consumption of goods and services (such as fuel and electricity) that are likely to be affected by a carbon price.

At this time Councils are not considered to be a constitutional corporation and is therefore not required to report under the NGER Act 2007.

It is however important for Councils to note while the current regulatory pressure is low, there are two major risks:

• Sensitivity to possible increases in electricity prices

• Sensitivity to possible changes in environmental policy, including possible inclusion in the NGER Act or introduction of a carbon pricing scheme.

The full extent and application of carbon pricing across different sectors has not yet been finalised. However, an anticipated response to the introduction of a carbon pricing framework is critical. Investing in GHG emission reduction, will mitigate Council’s exposure to increased energy costs as a result of a pending price on carbon.


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PART B – GREENHOUSE GAS INVENTORY

3. GHG Emissions Inventory This is the first GHG emissions inventory for the current Councils. Council’s current corporate emissions derive from the following five sectors:

• Buildings and facilities

• Street lighting

• Water & sewage

• Vehicle fleet

• Waste

3.1 Methodology In June 2009 the ICLEI CCP program was closed in Australia. This meant that ICLEI’s online greenhouse gas calculation software, the Greenhouse Gas Application (GGA), was taken off-line. Therefore it was necessary for Sustainable Focus to make the greenhouse gas calculations. The National Greenhouse and Energy Reporting (NGER) methodology was used to calculate the greenhouse emissions as discussed below.

Recent years have seen significant maturing of the accounting and technical standards that underpin greenhouse gas inventories The NGER Act 2007 and its subordinate regulations and determinations are complemented by an international standard (ISO 14064) and its accompanying Australian equivalent (AS ISO 14064 – 2006 parts 1 to 3), all of which draw heavily on the WRI/WBCSD Greenhouse Gas Protocol.

Councils and FNQROC decided this inventory should incorporate all activities under Council’s operational control, as prescribed by NGER. This includes landfill sites and waste water treatment plants. This inventory boundary extends beyond that typically considered for a CCP corporate inventory, which only includes emissions from buildings, vehicle fleet, streetlights, water & sewerage pumping and corporate waste.

From the perspective of NGER definitions, the Councils do not have operational control of streetlights; however street lighting drives a significant proportion of Council’s energy costs. Street lighting was included in this inventory for consistency with Council’s energy use reporting and the CCP corporate inventory methodology.

Regarding operational boundaries, for the purpose of this inventory, the following operational boundaries and emissions scopes have been identified:

• Scope 1 emissions – those that occur within the Council’s operational boundary. These are attributed to fuels burnt by Council and also direct greenhouse emissions from landfill sites and sewerage treatment plants. The NGER Act requires mandatory reporting of these emissions.

• Scope 2 emissions are attributed to those from electricity generated elsewhere but consumed within the boundary. The NGER Act requires mandatory reporting of these emissions.

• Scope 3 emissions are attributed to the full fuel cycle of energy consumed within the boundary and emissions attributed to the solid waste generated by the organisation. The NGER Act identifies voluntary reporting of these emissions.


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Figure 1, below, describes the concept of operational boundaries and emissions scopes’.8 Figure 1 Operational Boundaries and Emissions Reporting Scopes

From World Resources Institute / World Business Council for Sustainable Development Corporate Accounting and Reporting Standards (Corporate Standard), 2004 p26 available from www.ghgprotocol.org/standards/corporate-standard

3.2 Energy Emissions and Direct Waste Emissions In the inventory a distinction was made between the sources of emissions. Emissions attributable to energy consumption within the Council are referred to as ‘energy emissions’. While emissions from landfill sites and sewerage treatment plants are referred to as ‘direct waste emissions’. There are several reasons for this distinction. Firstly, the inventory process provided reliable information about the energy consumed by the Council and from this, reliable emissions calculations can be made. However, calculating the emissions from landfill sites and sewerage treatment plants is more difficult. An accurate emissions calculation would require a detailed study of the sites. This was beyond the scope of this project. Therefore rough estimates were made based on limited information about the sites and using default calculation parameters provided in the NGER methodology. As these emissions estimates are not as reliable they will be considered separately. Secondly, the energy emissions have a direct energy cost associated with them and so the financial analysis focuses on these emissions.

3.3 Benchmark year The year chosen to benchmark the region’s energy and GHG emissions was financial year 2007/08.

3.4 Raw Data The raw data for this inventory was collected by Council staff. The electricity data for buildings, street lighting, water and sewage was supplied by Ergon Energy. The costs provided will be different to the amount billed to Councils as it does not include any ambulance levies or clean energy contributions. The raw data was entered into excel

8 Sustainable Focus (August 2009)

http://www.ghgprotocol.org/standards/corporate-standard


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spreadsheets and provided to Sustainable Focus for converting to GHG emissions. (Note: Air travel data and taxi travel were excluded from the inventory due to the difficulty of collecting this data.)

4. Results The total GHG emission from the five FNQROC Councils for the 2007-08 financial year was 223,500 tonnes CO2 equivalent (tCO2-e). This includes energy emissions and direct waste emissions. The emissions profile by sector is shown in the Figure 2 below. (Note: This figure does not include corporate waste which is estimated at 450 tonnes CO2 equivalent).

Figure 2 Emissions profile by sector for the 2007-08 inventory.

The profile of emissions attributed to energy consumption by sector is shown in Figure 3.

Figure 3 Energy emissions profile by sector for the 2007-08 inventory.


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The profile of energy expenditure by sector is shown in Figure 4.

Figure 4 Energy expenditure by sector for the 2007-08 inventory.

The FNQROC Council’s energy emissions and energy costs per sector is also shown in Table 2 below. This table shows that energy costs are significant and the vehicle fleet accounts for the greatest portion of cost.

Table 2 Emissions and energy cost for the 2007-08 inventory

Emissions by Sector Greenhouse (tonnes)

Greenhouse (%)

Energy Cost ($)

Energy Cost (%)

Buildings 17,200 8% $2,509,000 18%

Vehicle Fleet 10,500 5% $5,339,000 39%

Streetlights 10,300 5% $2,820,000 21%

Water/Sewerage Electricity 24,100 11% $2,920,000 21%

Landfill 140,000 63% N/A N/A

Sewerage Treatment Plants 21,400 10% N/A N/A

Total 223,500 100% $13,588,000 100%


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The profile of emissions attributed to energy consumption by Council is shown in Figure 5.

Figure 5 Energy emissions profile by Council for the 2007-08 inventory.

The profile of energy expenditure by Council is shown in Figure 6.

Figure 6 Energy expenditure by Council for the 2007-08 inventory

The FNQROC Council’s energy emissions and energy costs per Council is also shown in Table 3 below.

Table 3 Energy emissions and energy cost for the 2007-08 inventory.

Council Greenhouse (tonnes)

Greenhouse (%)

Energy Cost ($)

Energy Cost (%)

Population

Cairns Regional Council 36,880 59% $7,003,000 52% 155,842 Cassowary Coast Regional Council 8,070 13% $1,904,000 14% 29,634

Cook Shire Council 2,400 4% $609,000 4% 3,691 Hinchinbrook Shire Council

3,790 6% $996,000 7% 12,247

Tablelands Regional Council 10,950 18% $3,076,000 23% 44,743

Total 62,090 100% $13,588,000 100% 246,157


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From this table it can be seen that Cairns accounts for the greatest portion of emissions and cost. This is expected as Cairns has by far the largest population as shown in Table 3. Figure 7 gives a comparison of the Council’s energy cost per capita. From this it is clear that Cook Shire spends the most on energy per person. This is expected as Cook Shire has the smallest but most widely distributed population.

Figure 7 Energy cost per capita, by sector, for each Council.


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PART C – FORECASTS AND FINANCIAL ANALYSIS

5. Forecast 5.1. Population Predictions The predicted increase in population between 2008 and 2020 was determined based upon population figures and projections produced by the Planning Information and Forecasting Unit (PIFU) of the Department of Infrastructure and Planning. Population figures were not given specifically for year 2008 and 2020 and so figures were determined using interpolation of the PIFU figures for 2006 and 2021. These are given in Table 5.1.

Table 4: Current and predicted populations for the FNQROC area.

2008 Population 2020 Population Predictions % Increase in population

Cairns Regional Council 155,842 192,969 24% Cassowary Coast Regional Council 29,634 30,777 4%

Cook Shire Council 3,691 3,943 7%

Hinchinbrook Shire Council 12,247 12,490 2%

Tablelands Regional Council 44,743 50,688 13%

Total 246,157 290,867 18%

5.2. Emission Forecasts The ICLEI CCP Inventory Manual presents four methods to forecast emissions. One of these is forecasting using population changes, where it is assumed emissions will change proportionally to the change in population served by the Council. This is the most basic of the four methods of forecasting and is only recommended for use where none of the other methods are possible. The other methods require either consideration of the Council’s long-term infrastructure planning; or an understanding of growth trends within the Council.

This method is likely to significantly overestimate future emissions, as while energy use will grow in response to population growth there are economies of scale for Council infrastructure and services. For example more densely populated regions have lower per capita emissions. The Far North Queensland Regional Plan 2009-2031 sets limits to the urban footprint for cities and towns in the region. This will lead to contained growth and greater population density. Therefore the infrastructure required to service the population will not need to expand proportionally to the population. Therefore an approach has been proposed to improve the emissions forecast. Table 5 gives ‘growth discount-factors’ (GDF) which can be applied for each sector. Using these discount-factors the emissions will not change proportionally with population growth but show an expected discount due to the improved efficiency of providing services to a denser population.

Growth discount factors are provided for a ‘business as usual’ scenario and also a ‘sustainability planning’ scenario. The ‘sustainability planning’ scenario assumes the policy changes discussed in this action plan are implemented so future infrastructure is purchased and built to meet energy efficiency requirements. This is applied in conjunction with the mitigation actions savings to give the ‘mitigation implemented’ forecast.


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Table 5 Growth discount factors (GDF) used in forecasting emissions.

Sector Business as Usual Sustainability Planning

Buildings 50% 20%

Water and Sewerage 65% 33%

Streetlights 75% 38%

Vehicle Fleet 50% 30%

The emissions forecast after the implementation of the proposed mitigation measures, and using the sustainability planning discount factors, is also given in Figure 5.1 and Table 5.3 for each sector.

Figure 8 Current and forecast greenhouse emissions from energy by sector.

Table 6 Current and forecast regional greenhouse emissions from energy by sector.

Sector 2007-08 Emissions

2020 Emissions - Business as Usual (Population Method)

2020 Emissions – Business as Usual (GDF Method)

2020 Emissions – Mitigation Implemented (GDF Method)

Buildings 17,200 20,200 18,700 13,100

Vehicle Fleet 10,500 12,200 11,300 8,600

Streetlights 10,300 12,100 11,700 8,300

Water and Sewerage

24,100 28,300 27,000 18,400

Total 62,100 72,800 68,700 48,400


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5.3. Direct Waste Emissions Forecast The forecast emissions from waste differ significantly to the emissions from energy. The most significant emissions are from the Portsmith landfill, which is now closed. Thus the emissions from this site are declining as the organic matter degrades. Therefore the regional emissions for this sector will decrease by 2020 even for the business-as-usual scenario. The forecast emissions from the sewerage treatment plants was estimated using the same method as applied to the energy emissions and the ‘growth discount factors’ for ‘Water and Sewerage’ given in Table 5.2 were applied. The current and forecast emissions for the direct waste emissions are given in Figure 5.2 and Table 5.4.

Figure 9 Current and forecast greenhouse emissions from waste.

Table 7 Current and forecast regional greenhouse emissions from waste by sector.

Sector 2007-08 Emissions

2020 Emissions - Business as Usual (Population Method)

2020 Emissions – Business as Usual (GDF Method)

2020 Emissions – Mitigation Implemented (GDF Method)

Landfill Sites 140,100 93,600 93,600 25,900

Sewerage Treatment Plants 21,400 25,300 23,900 17,300

Total 161,500 118,900 117,500 43,200

5.4. Financial Forecasts Energy Price Increases

Energy prices are expected to rise considerably between the baseline year 2007-08 and the forecast year 2020. From 1 July 2009, all notified tariffs set by the Queensland Competition Authority (QCA) increased by 15.67%. Within the next 10 years the Federal Government will introduce a policy to place a price on carbon emissions. A conservative estimate for the price of carbon by 2020 is $25 per tonne, but this may be as high as $40 per tonne. A carbon price of $25 per tonne would increase electricity prices by 2.5 cents per kWh. In addition to


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these costs there is likely to be a continual increase in electricity prices, above inflation, driven by a number of factors. These include; the increasing costs of fossil fuels; the higher initial costs for generating energy from renewable sources, as Renewable Energy Targets (RET) mandate the supply of more clean energy; and the costs of network expansions as electricity demand increases. In addition to this, in recent years severe storms have caused major damage to transmission lines adding significant extra cost to electricity supply. Based on these considerations a reasonable estimate of the increase in electricity tariff between 2007-08 and 2020 is 65%, above inflation.

Vehicle fuel prices are difficult to predict and the recent global financial crisis saw a significant fall in oil prices. Despite this, the latest projections for World Oil Prices predict a steady rise in prices between now and 20209. ‘Peak Oil’ has been predicted to occur within the next few years and increasing world population and activity will drive up oil prices. The introduction of a CPRS type scheme, with a carbon price of $25/tonne, would increase diesel prices by around 7 cents. On 1 July 2009 the State Government withdrew its fuel subsidy increasing fuel prices by 8.3 cents. All of these factors suggest a significant increase in vehicle fuel cost between the 2007-08 base year and 2020. For this analysis a conservative estimate will be used of a 40% increase above inflation.

Energy cost forecast The emissions forecasts and the energy price increase predictions given above have been applied to the inventory energy cost data. Figure 5.3 and Table 5.5 give a comparison of the 2007-08 energy cost to the predicted costs in 2020 for different scenarios.

Figure 10 Current and forecast energy costs by sector.

9 www.eia.doe/gov/oiaf/ieo/highlights.html

http://www.eia.doe/gov/oiaf/ieo/highlights.html


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Figure 11 Current and forecast energy costs by Council. Forecasts are calculated using ‘growth discount factors’.

Table 8 Current and forecast energy cost by sector.

Sector 2007-08 Energy Cost

2020 Energy Cost - Business as Usual (Population Method)

2020 Energy Cost – Business as Usual (GDF Method)

2020 Energy Cost – Mitigation Implemented (GDF Method)

Buildings $2,508,600 $4,883,000 $4,517,000 $3,016,000

Vehicle Fleet $5,339,100 $8,534,000 $8,005,000 $6,321,000

Streetlights $2,820,000 $5,526,000 $5,313,000 $3,696,000

Water and Sewerage $2,920,400

$5,654,000 $5,367,000 $3,404,000

Total $13,588,100 $24,597,000 $23,202,000 $16,437,000

Figures presented in Table 8 show that implementing the mitigation actions is likely to provide a significant cost saving now and into the future. The estimated total annual energy cost savings in 2020 is $6.8 million. Managing the risk of the expected cost increase under a business-as-usual scenario is a strategic issue for Councils.

Direct Waste Emissions Cost Currently, none of the Council facilities will have liabilities under the proposed CPRS legislation.


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PART D – A REGIONAL GREENHOUSE GAS GOAL AND MITIGATION ACTION PLAN

6. Greenhouse emissions reduction goal Whilst Cairns Regional Council has gone so far as to set a goal of carbon neutrality, not all Councils in the region are at a stage of achieving that. However, for the purpose of ensuring a joint effort on reducing regional greenhouse emissions, it is considered critical to set a regional reduction target. Setting a regional greenhouse emissions reduction goal does not bind any individual council to meet that target. Each council can make its own contribution towards the goal without bearing the full responsibility of achieving the target. Councils that are at different stages in assessing their greenhouse emissions and setting actions can also determine their own specific goal.

Therefore the following regional reduction goal has been set for the purpose of this policy:

“Regional greenhouse gas emissions produced by local governments will be collectively reduced by 50% on 2007/08 levels by 2020.”

6.1 Reduction, offsets or both?10 The introduction of a hierarchical approach towards emissions reduction is recommended: Avoid How can Council avoid generating emissions?

Reduce How can Council change its activities to reduce emissions?

Switch How can Council switch to less intensive energy sources?

Sequester What options are available to sequester emissions?

Offset What options are available to offset residual emissions?

Achieving carbon neutrality requires reducing the overall net CO2e emissions of operations to zero tonnes, while satisfying operational requirements.

Carbon neutrality can be achieved through a combination of adjustments in how energy is purchased and utilised, transport choices, waste disposal or carbon offsets. Examples could include avoidance of energy use through behaviour change, shifting to energy efficient lighting and appliances, purchasing green power and green gas for energy requirements, using public transport, using alternative transport fuels, recycling, composting organic waste, flaring/capturing greenhouse gases from Portsmith landfill and finally, buying carbon offsets to neutralise the remaining CO2 emissions.

For the purpose of new initiatives or policies this could mean no net increase in emissions from the proposed initiative or policy.

In today’s carbon intensive world, reducing our carbon emissions to zero, without the ability to purchase offsets, is virtually impossible. Purchasing offsets is a practical solution to achieving zero net emissions after avoidance, energy efficiency and renewable resources have been fully explored and exploited.

Carbon offsets are an investment in a project or activity that “have prevented or removed an equivalent amount of carbon dioxide elsewhere.”11 “The idea being the removal of greenhouse gases counter-balances emissions from other sources.”12 They are divided into

10 GHG Mitigation Plan – Cairns Regional Council 11 (Ribon 2007) 12 (Downie 2007)


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four main groups: renewable energy, energy efficiency, methane emissions avoidance and bio sequestration (forestry/ plantations).

7. Implementing the Regional GHG Mitigation Action Plan The regional GHG Mitigation Action Plan is owned by all FNQ Councils. It is the responsibility of the identified organisation to take action on each initiative, however, FNQROC will act as the overarching coordination agency. FNQROC will also monitor the initiatives and technical committees will report back annually on regionally identified actions.

Individual Council action plans belong to those Councils and their relevant departments. It will be each Council’s responsibility to initiate and find specific and prioritised opportunities within their area of operation to deliver those plans accordingly.

7.1 Funding A Revolving Energy Reserve (RER) is a mechanism to ensure savings on energy efficiency or associated actions are re-invested into further carbon reduction measures. Without funding there will be limited reductions in greenhouse emissions. The investment required can and should be spread over a number of years.

Funding options from federal and state agencies should also be sought to further implement strategies to reduce greenhouse gas emissions within the region.

8. Sector Summaries 8.1 Buildings Buildings (new and existing) are maintained sustainably providing ongoing energy and water savings. The Councils in the region are reducing energy consumption in lighting by installing lighting timers and sensor lights in appropriate locations. Cairns Regional Council is undergoing trial energy efficient retrofits at the Gordonvale Community Hall.

At the time of this report being prepared, there were 549 sites managed by LG across the region. Of these, the top 80% of emissions are attributed to 63 sites. The other 20% is attributed to 486 smaller sites. The consumption, emissions and cost for each Council are given in Table 9 below. Table 9: Energy use, emissions and energy cost for the buildings sector.

Council Electricity (kWh)

Natural Gas (GJ)

Greenhouse (tonnes)

Energy Cost $ (exc GST)

Electricity cost/kWh

Gas cost/GJ

Cairns Regional Council

10,134,1000 3,500 10,8000 $1,550,800 $0.15 0.96

Cassowary Coast Regional Council

2,233,90 N/A 2,30 $362,400 $0.16 N/A

Cook Shire Council

640,800 N/A 670 $100,500 $0.16 N/A

Hinchinbrook Shire Council

794,000 N/A 830 $131,000 $0.16 N/A

Tablelands Regional Council

2,454,000 N/A 2,600 $363,900 $0.15 N/A

Total 16,256,800 3,500 17,200 $2,508,600 $0.15 0.96


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Individual Council plans detail specific actions that will contribute to overall cost and GHG reductions in Council’s buildings and facilities.

FNQROC is to establish a contract to design and project manage the implementation of energy efficiency upgrades at large and small sites. The 83 large sites should be targeted for comprehensive energy efficiency upgrades and should be monitored to demonstrate the savings achieved. The 466 small sites are more suited to a single technology roll-out targeted at standby energy consumption.

8.2 Vehicle Fleet Councils in the region are undergoing plant review processes to rationalise their fleet and remove underutilised vehicles. Vehicles are chosen on a fit for purpose basis by determining vehicle life-time fuel costs, purchase and resale value and life-cycle maintenance costs.

Cairns Regional Council has purchased smart cars for its fleet. FNQROC Councils use car pooling where appropriate and have installed bike racks to reduce the need for vehicle travel.

Tablelands Regional Council has installed video conferencing technologies to reduce its transport costs and emissions.

Refer to individual Council plans to detail specific actions which will contribute to overall cost and GHG reductions in regional Council’s vehicle fleets.

The litres of fuel consumed, the greenhouse emissions, fuel cost and cost per litre for each Council are given in Table 10.

Table 10: Fuel use, emissions and energy cost for the vehicle fleet.

Council Litres of Fuel Greenhouse (tonnes) Fuel Cost $ (exc GST)

Fuel cost /Litre

Cairns Regional Council 1,395,500 3,880 $1,837,800 $1.32

Cassowary Coast Regional Council 646,800 1,800 $868,800 $1.34

Cook Shire Council 232,600 660 $317,600 $1.37

Hinchinbrook Shire Council 133,600 350 $388,100 $2.90 (error)

Tablelands Regional Council 1,348,000 3,850 $1,926,800 $1.43

Total 3,756,500 10,500 $5,339,100 $1.42

FNQROC is well placed to facilitate a fleet review across the region. The fleet review would assess a range of vehicles considered fit-for-purpose and determine their life time fuel costs, leasing/purchase cost, life-cycle maintenance costs and other on road costs. Using this information the most appropriate, fuel efficient and economic vehicles can be selected.

The scope of this regional fleet review could be expanded to include fleet rationalisation and alternative fuels.

8.3 Street lighting It is estimated in the streetlight sector an overall annual energy and emissions reduction of 25% is achievable across the region. Table 4.6 gives the estimated energy, emissions and cost reductions for each Council. This could provide a regional annual electricity reduction of around 2,642,000 kWh, greenhouse reduction of 2,700 tonnes and cost savings of around


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$782,000. This would require initial capital investment by Ergon Energy, which would no doubt be passed on to the Council. The cost to Council of this investment is hard to determine due to the complexities of the tariff arrangement with Ergon Energy, but overall there would be large savings and a moderate return on investment.

Table 11 Estimated energy savings, greenhouse reduction, cost savings, investment and ROI for the mitigation actions identified.

Council Electricity Savings (kWh)

Greenhouse Reduction (tonnes)

Savings Investment ROI (years)

Cairns Regional Council

1,761,500 1,800 $512,000 $3,326,000 6.5

Cassowary Coast Regional Council

366,200 380 $104,000 $832,000 8.0

Cook Shire Council

18,300 20 $8,000 $80,000 10.0

Hinchinbrook Shire Council

166,100 170 $45,000 $360,000 8.0

Tablelands Regional Council

330,000 340 $113,000 $904,000 8.0

Total 2,642,000 2,700 $782,000 $5,500,000 7.0

FNQROC through annual and ongoing revision of the Regional Development Manual will investigate the application of new energy and cost saving lighting technologies (luminaries) for Councils in the region. However, under current tariff arrangements, councils have limited street lighting options as luminaries are decided upon by Ergon Energy. FNQROC will work with Ergon Energy to progress a resolution to problems associated with recognised current conflicts of interest, between individual Council’s contractual tariff arrangements and Australian Standards energy efficiency requirements. Any resolution must maintain appropriate community safety lighting levels.

8.4 Water and Sewage electricity Across the region the water and sewerage sector includes 602 sites. Of these the top 80% of emissions are attributed to 65 sites, while the lowest 20% is attributed to 537 smaller sites.

FNQROC Councils across the region conserve water by implementing household water restrictions and reusing water to irrigate parks and gardens and clean treatment plants.

Regional pump station efficiency has been improved by the installation of variable speed drives or soft starters across all Councils. All regional Councils are undergoing audit and repair of water and sewerage network infrastructure which has resulted in reduced infiltration.

Refer to individual Council plans to detail specific actions that will contribute to overall cost and GHG reductions in regional Council’s water and sewerage operations.


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8.5 Landfills All FNQROC Councils have organic waste diversion programs, reducing organic waste to landfill by providing green waste services to residents. Members of the community are able to purchase mulch at affordable prices to conserve water and improve soil quality on their properties. Hinchinbrook, Tablelands and Cook Councils also work with local businesses diverting organic waste for reuse in the agriculture industry.

Councils in the region encourage all visitors and residents to recycle with innovative advertising campaigns. Cook Shire Council produces “Don't be a wallaby....roocycle", pens made from recycled materials. Cairns Regional Council encourages residents to recycle for a "Wheelie Green Future" with television advertising campaigns.

Refer to individual Council plans to detail specific actions that will contribute to overall cost and GHG reductions in regional Council’s landfill operations.


9. Greenhouse Mitigation Action Plan table

Action Objective Roles/responsibility Timeframes

Council Buildings and Energy

1) Investigate regional funding opportunities to audit and/or retro-fit the top energy usage buildings in each Council in the region

Reduce carbon emissions and energy costs by retro

fitting buildings and facilities with energy efficient

technologies

FNQROC Sustainability Group to investigate funding opportunities

Sustainability Group members to support council facilities managers through retrofit issues

Ongoing

Ongoing

2) Develop a model to benchmark building and facilities energy consumption and GHG emissions based on floor space and occupants

Provide an energy/ carbon accounting model that can

be applied easily to regional Councils building and facilities to accurately

account for energy and carbon consumption.

FNQROC - Research existing models

1-2 years

3) Review electricity (energy consumption) tariffs in all individual Councils buildings and facilities

Identify revenue savings to be made by switching tariffs.

FNQROC Sustainability Group

Completed

4) Investigate and develop a regional model to invest savings made from tariff changes in projects and programs that further reduce energy cost and GHG emissions

Ensure energy consumption tariff savings are reinvested

in further energy efficient projects and programs

providing ongoing energy and GHG emission savings.

FNQROC Sustainability Committee

Ongoing

5) Support local renewable energy initiatives Reduce reliance on energy

sources that burn fossil fuels.

Reduce long term costs and GHG emissions.

FNQROC Sustainability Group

FNQROC Planning Group

FNQROC through TNQ Regional Economic Plan

Ongoing

Fleet and transportation

6) Undertake a fleet review across the region that consider lifetime fuel costs, leasing/purchase cost, life-cycle maintenance costs and other on-road costs.

Identify a consistent approach to vehicle

selection that will assist with minimisation of fleet costs

for council’s.

FNQROC Procurement (Fleet Sub-committee)

NB – yet to be convened

3 years

7) Advocate for public and non-motorised transport options to reduce car usage

Provide improved transport options for residents and

visitors to the region.

Reduce car usage costs and associated GHG emissions.

Provide a cleaner greener image that complements the

regions eco-tourism industry.

FNQROC through various technical committees

Ongoing


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Street Lighting

8) Review FNQROC Development Manual

FNQROC Regional Development Manual Working Group

Annually

9) Work with Ergon Energy in progressing a resolution to problems associated with conflicts of interest between current Australian Standards and individual Councils current contractual tariff arrangements


Completed

10) Work with Ergon Energy in investigating and progressing trails of any new energy & cost efficient lighting technologies (luminaries)


<1 year

11) Investigate Australia wide energy efficient lighting trials and their application with relation to Australian Standards

12) Investigate the application of new energy & cost saving lighting technologies (luminaires) for Councils in the region

Ensure Australian Standards are being met providing best

practice solutions to Councils in the region to

reduce energy and costs in street lighting whilst

maintaining appropriate community safety lighting

levels.

Progression of a timely resolution to conflicts of interest between Ergon Energy and FNQROC Council’s current tariff

arrangements.

Encourage a proactive approach in testing and

trialling new technologies for the region ensuring energy

and GHG savings for Councils may be made as

soon as possible.

FNQROC Sustainability Coordinator

Completed

Waste Minimisation

13) Support LAWMAC and Councils to develop holistic waste management and minimisation initiatives


LAWMAC

1-3 years

14) Investigate options for management and reuse of sewerage sludge

Minimise waste streams to landfill and where possible

reuse and recover as a resource.

FNQROC Procurement (Water and Waste Sub-committee)

1-2 years

15) Support Councils to investigate feasibility and costs at large landfill sites to mitigate landfill gases through active treatment

To reduce GHG emissions from landfill


Ongoing

16) Work with industry to develop stewardship programs to reduce commercial waste to landfill

Educate and encourage industry and consumers to take responsibility for the

end of life of products.

Strengthen relationships with industry to reduce waste to landfill thereby

reducing cost and

Individual Councils with support of FNQROC Sustainability Committee

Ongoing


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associated GHG emissions.

Carbon Neutrality

17) Target 50% reduction in carbon emissions for FNQROC Councils operations by:

a. Reducing GHG emission through a variety of measures listed in Councils individual plans; and,

b. Investigate potential for offsetting remaining GHG emissions

Reduce waste and energy consumption, costs and

associated GHG emissions.

Reduce risks associated with impacts of climate

change.

The regions Councils to become carbon neutral

offsetting GHG emissions to improve atmospheric carbon balance and reduce climate

change impacts on the natural environment, social

and economic environments.

Individual Local Governments with support from FNQROC Sustainability Committee and Natural Asset Management Advisory Committee (NAMAC)

1-9 years

Pending recognition of revegetation as a source of carbon credits

18) Collate energy and carbon data from Councils

Benchmark and review the success of mitigation and abatement actions and

progress towards regional targets.

Individual Councils and FNQROC Sustainability Coordinator

Biannually

19) Formalise a regional revegetation account to calculate and measure carbon offsetting including an assessment of species carbon values (indoor and outdoor species types)

Provide data for offsetting carbon within the region.

Protect natural assets by value-adding

FNQROC NAMAC

Terrain NRM/Degrees Celsius

Pending recognition of revegetation as a source of carbon credits

20) Develop new offset planting policy that incorporate biodiversity as a key principle.

Further investigate ways to capture and offset carbon

that encourage biodiversity.

RPIG Timing dependant on development of regional offsets policy

Procurement and funding

21) Investigate and identify funding opportunities to develop a regional road map similar to that of Illawarra Sustainability Action Plan which includes:

• State Government Agencies,

• Federal Government Agencies,

• Non-Government Organisations, and

• Research Organisations such as CSIRO and JCU

FNQROC Sustainability Group with possible support from Sustainable TNQ

Ongoing

22) Develop a collaborative sustainability policy

Provide a guide to Councils in the region to maximise

opportunities and minimise risks associated with climate

change adaption

Identify regional funding opportunities for Councils to

reduce overall carbon emissions, associated risks

and costs.

Facilitate collaboration opportunities between

regional Councils, government and non

government organisations and research organisations

to reduce the impacts of climate change FNQROC Sustainability

Coordinator <1 year


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23) Develop a regional sustainable purchasing policy and sustainability checklist

Facilitate the development of a sustainable procurement

policy.

FNQROC Regional Procurement Committee

2 years

24) Continued support for Tropical Innovations, those innovations that reduce GHG emissions and energy cost

Actively encourage local energy efficient innovation.

Reduce energy consumption and GHG emissions.

FNQROC through its role in support of the Tropical Innovations Awards

Ongoing


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Reference Documents

AS ISO 14064.1 – 2006 Australian Standard© Greenhouse gases Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals

Department of Climate Change National Greenhouse and Energy Reporting Guidelines 2008

Department of Climate Change NGER (Measurement) Technical Guidelines 2008

Department of Climate Change National Greenhouse Accounts (NGA) Factors, November 2008 [www.climatechange.gov.au/workbook/index.html]

http://www.climatechange.gov.au/workbook/index.html

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