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Showing posts with label Australian Carbon tax. Show all posts
Showing posts with label Australian Carbon tax. Show all posts

Friday, June 6, 2014

The science and politics of carbon and climate change


President Obama seized his ‘moment of truth’ when he announced his decision to cut carbon emission by 30% by 2030 in USA. His decision may not be popular in USA and in many parts of the world but it is the right decision. He was able to address to some extent ‘ the ínconvenient truth’ that has been nagging him during his second term in office. He introduced his decision through EPA (Environmental protection authority) effectively bypassing congress. In fact the whole purpose of creating EPA was to address the environmental issues but it failed in many ways and rest of the world followed such failures time and again. This has resulted in an accumulated carbon both in the atmosphere and in the sea in an unprecedented scale causing disease and environmental degradation world-wide. Air pollution is costing the world's most advanced economies plus India and China $3.5 trillion per year in lives lost and ill health, with a significant amount of the burden stemming from vehicle tailpipes, according to a report by the Organisation for Economic Co-operation and Development (OECD). In the 34 OECD member states, the monetary impact of death and illness due to outdoor air pollution was $1.7 trillion in 2010. Research suggests that motorized on-road transport accounts for about 50 percent of that cost. In China, the total cost of outdoor air pollution was an estimated $1.4 trillion in 2010. In India, the OECD calculated the toll at $500 billion. The costs were calculated based on survey data of how much people are willing to pay in order to avoid premature death due to ailments caused by air pollution. The methodology assigns a cost to the risks of emissions that decision makers can use in weighing public policy decisions. In addition to the health cost the environmental degradation due to carbon pollution includes global warming resulting in mass extinction of species, causing mega bush fires that are wiping out forests including rain forests, creating new bugs that are resistant to antibiotics, increasing sea level that erodes coastal cities and submerge remote islands in pacific displacing millions of people as refugees, acidifies oceans with massive extinction of species including fish stock. Such degradation is nothing but suicidal. When a food or drug is introduced in the market it is subject to scrutiny by FDA (Food and drugs authority), but when it comes to environmental clearance to set up a coal-fired power plant or to set up a seawater desalination plant it is relatively easier to get such clearance from EPA. When power plants emitted gaseous emissions initially EPA was able to limit the emissions of oxides of nitrogen, sulphur, phosphorous, soot and particulate matter , other organics including mercury and arsenics except carbon dioxide. Carbon dioxide has been accepted as part of the air we breathe in; otherwise no power plant could have been approved because bulk of the emissions are only carbon dioxide. Had EPA acted timely in sixties or even in seventies to curb CO2 emissions an alternative energy would have emerged by this time. Industries and economics were high in the political agenda and the environment was overlooked. Many drugs were introduced during this period to cure diseases that were actually caused by environmental pollution such as carbon dioxide. Both power industries and drug industries grew side by side without realizing the fact that environment is degraded slowly which causes chronic diseases. Australia is the largest consumers of power in terms of per capita consumption in the world and yet the new Government in Australia is pushing a bill in the parliament to repel Carbon tax introduced by previous Government. They are also planning to raise revenue up to $ 26 billion for medical research over a period of time. On one hand politicians want to freely allow unabated carbon emissions into the atmosphere and on the other hand they want to introduce new drugs that can cure diseases actually caused by such pollutions. It is an anomalous situation created by politics of climate change. Unfortunately carbon pollution has turned into an energy related issue and attracted political attention world-wide. The high cost of cleaning carbon pollution has turned many politicians into skeptics of science on carbon pollution and climate change. “More than 170 nations have agreed on the need to limit fossil fuel emissions to avoid dangerous human-made climate change, as formalized in the 1992 Framework Convention on Climate Change .However, the stark reality is that global emissions have accelerated (Fig. 1) and new efforts are underway to massively expand fossil fuel extraction by drilling to increasing ocean depths and into the Arctic, squeezing oil from tar sands and tar shale, hydro-fracking to expand extraction of natural gas, developing exploitation of methane hydrates, and mining of coal via mountaintop removal and mechanized long wall mining. The growth rate of fossil fuel emissions increased from 1.5%/year during 1980–2000 to 3%/year in 2000–2012, mainly because of increased coal use.” (Ref : 1) The coal usage continues to grow especially in Asia due to expanding population and industrial growth and demand for low cost energy. USA is expected to achieve energy independence by 2015 which means more fossil fuels are in the pipeline. India and China are planning more coal fired power plants in the coming decade. Australia is planning for massive expansion of coal and LNG and Coal seam methane gas for exports. Fracturing and hydrocracking of shale deposits are adding to the fuel. Countries are more concerned with economic growth than the consequences of climate change. Despite recent warning from NASA that the depleting arctic glaciers have reached a ‘point of no return’ and the predicted sea level rise up to 10 feet is irreversible, there is a little reaction from countries across the globe. There is a clear evidence that shows GHG emission will continue to increase in the future in spite of growing renewable energy projects because renewable solar panels, wind turbines and batteries will require additional power from fossil fuels. It is critically important to reduce carbon emission with great urgency by substituting fossil energy with renewable energy. For example, concentrated solar power (CSP) can be used instead of large scale PV solar to reduce carbon footprint. Solar energy is the origin of all other energy sources on the planet earth and solar energy will be the solution for a clean energy of the future. But how fast solar energy can be deployed commercially in a short span of time is a big issue. The increasing growth of fossil fuel production dwarfs the growth of renewable energy exposing the planet to catastrophic climate change. The GHG emission can be contained only by an aggressive reduction of CO2 emission into the atmosphere as well as by drastic reduction of fossil fuel production. This is possible only by using renewable Hydrogen. The cost of renewable hydrogen is high but this is the price one has to pay to clean up the carbon pollution before the climate is changed irreversibly. The obvious method to reduce carbon emissions is to tax carbon in such a way that it will no longer be economically viable to emit carbon to generate power or to transport. Paying carbon tax will be cheaper than paying for diseases and environmental degradation and natural disasters. Clean environment is the key for the survival of our planet and life on earth and one cannot put a price on such a life. Ref 1: Citation: Hansen J, Kharecha P, Sato M, Masson-Delmotte V, Ackerman F,et al (2013) Assessing ‘‘Dangerous Climate Change’’: Required Reduction of Carbon Emissions to Protect Young People, Future Generations and Nature. PLoS ONE 8(12): e81648. doi:10.1371/journal.pone.0081648

Tuesday, July 2, 2013

Australian Carbon tax shows the world a way to a cleaner future

Taxing Carbon pollution is already paying the dividends according to the National Energy Market of Australia. Such a tax will encourage fossil fuel fired power plants to rethink the way they generate power and emit the Carbon into the atmosphere. For example, black and brown coal power plants can switch over to gasification technology from their existing combustion technology which can reduce their Carbon emissions. Coal fired power plants can switch over to gas fired power plants and reduce their emissions by almost 50%. By employing CHP (combined heat and power) the gas fired power plants can reduce their Carbon emission as much as 75%. Taxing Carbon will encourage efficiency and reduce pollution. Australian Carbon tax is a good example which has clearly shown the way to reduce Carbon pollution and to encourage renewable energy. The following is an excerpt from Climate Institute of Australia: “Emissions from electricity are falling: Annual carbon emissions from the National Electricity Market fell by over 12 million tonnes (CO2-e) between June 2012 and May 2013. They fell by only around 1.5 million tonnes over the previous twelve-month period. Carbon pollution per megawatt-hour has also fallen: from 0.86 to 0.81 tonnes per unit of output, or a little over 5 per cent. According to the National Energy Market (NEM) data released in June this year, Australia’s electricity supply is becoming cleaner: electricity from renewable sources has risen by nearly 23 per cent and natural gas power by more than 5 per cent since the previous twelve months to May 2012. At the same time, the use of brown coal has fallen by about 12 per cent and black coal by more than 4 per cent. Generation by Australia’s seven biggest coal-fired power stations has fallen by over 13 per cent. Structural changes driven by the high Australian dollar, rising electricity prices, introduction of energy efficiency measures, increased home installations of solar photovoltaic (PV), and the Renewable Energy Target are key drivers of this change. However, early indications are that the carbon price is playing a supporting role by make renewable energy even more competitive compared to fossil-fuel generation. As the price becomes more embedded in longer-term investment decisions the role of the carbon price will increase. Electricity price-rises—perception and reality: For businesses and consumers alike, electricity prices have been rising sharply for several years—more than 40 per cent in the last few years. On average, more than half of this rise is the result of network upgrades, including the replacement of aging infrastructure. Despite the recent increases, however, when adjusted for inflation, electricity prices are about the same as they were a generation ago. Yet, according to the Australian Industry Group, there is still a false perception amongst many in business that the carbon price is the biggest contributor to rising prices. The biggest of [the] …pressures [on prices] is the rising cost of electricity networks, the poles and wires that deliver power. The high profile of the carbon tax appears to have led to some over-estimation by businesses of the specific impact of the carbon tax on energy prices… For residential retail customers, the carbon price accounted for around 9 per cent of power bills in 2012–13, or between about $2 and $4 extra per week, depending upon the state or territory. It should be noted that the carbon price is unlikely to materially increase bills any further in the next few years, although prices will continue to rise for reasons that have nothing to do with the price on pollution. An upshot of recent price rises—and scare-campaigning by some in politics and industry—may be the spread of a more energy-efficient ethos: in 2012, approximately 90 per cent of Australians did something to minimize their power bills, according to the Australian Bureau of Statistics. Such changes in consumer and business behavior are likely to help cushion the impact of any future price-rises. The cost of living has not skyrocketed: Before 1 July, 2013, the Australian Treasury predicted that the carbon laws would add 0.7 per cent to the Consumer Price Index, while CSIRO and global consulting firm AECOM conservatively predicted inflation at 0.6 per cent, given 100 per cent cost pass-through. This was part of a study for The Climate Institute, Choice, and the Australian Council of Social Service (ACOSS). The impact of the carbon price on particular prices is barely discernible. Indeed, the ABS has said it is unable to discern any impact against normal variability in consumer prices. One estimate, by Westpac Economics, suggests the reality is that the carbon price has added just 0.4 per cent to the Consumer Price Index. For the vast majority of Australian households, the increase their cost of living has been very small and this will be covered by the assistance Package associated with the scheme. According to independent analysis, for a low-income family of four, for instance, assistance is, on average, around $31 per week; for a single pensioner, it’s a little over $19 and for a middle-income family of four, it’s about $13. Federal assistance was projected to leave the large majority of households better off. Looking forward The hyperbole that characterized the twelve months to 1 July 2013 has largely given way to reality. The carbon laws have not undermined Australia’s economic performance nor have they raised the cost of living substantially. What is more, the package of carbon laws is contributing to emissions from electricity falling, the energy mix shifting in favor of renewable and cleaner fuels, and energy use is becoming more efficient. Low-carbon investment is flowing—the carbon price at work using money raised by the price on pollution, over six years, $946 million is committed to maintain stocks of carbon in bush land, and to enhance the resilience of natural systems to climate change. In the first round of the Biodiversity Fund, around $270 million has been allocated to more than 300 landscape rehabilitation and restoration projects around the country. Hundreds of firms are investing in energy efficiency, cleaner manufacturing, and innovative renewable energy projects, such as geothermal and solar-thermal. Many have received grants drawn from monies raised by the carbon price. Federal clean technology funding programs total $1,200 million over the next few years. Already, companies with household names like Arnott’s, Bundaberg Sugar, Bega Cheese, CSR, and Coca-Cola, together with many others, have received public grants leveraging considerably more private investment. Meanwhile, the Carbon Farming Initiative is seeing the big end of town investing new money in regional and rural communities. Between them, BP Australia, CS Energy, CSR, and Energy Australia have purchased more than 322,000 Australian carbon Credit Units, representing more than $7 million in low-carbon projects, such as sustainable forestry, cleaner livestock production, better landfill operations, and savannah management. Overall, Australian Carbon Units and ACCUs purchased by fossil-fuel power stations were worth $39 million in June 2013.” President Obama has recently outlined his policy on climate change and Carbon pollution reduction measures.US and the rest of the world can learn lessons from Australian experience on how low Carbon economy can be achieved without compromising an economic and industrial growth. In fact low Carbon economy can create millions of jobs and a sustainable future. The same polluting Carbon can become a source of cheap Hydrogen by innovative gasification technology. Innovation is the key to achieve a sustainable energy mix between renewable and fossil fuels.