Economy & Energy - Crisis Solution | Biocity Studio


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Background Statistics - Federal and State Governments are committed to reducing greenhouse.
But funding tells a very different story...

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Economy & Energy - Crisis Solution | Biocity Studio

  1. 1. CRISIS SOLUTION Economy
  2. 2. Structure <ul><li>1. Background Statistics </li></ul><ul><li>2. Crisis Scenario </li></ul><ul><li>3. Crisis Solutions </li></ul><ul><li>4. Justifications </li></ul><ul><li>5. Global Perspective </li></ul>
  3. 3. Background Statistics <ul><li>Federal and State Governments are committed to reducing greenhouse gas emissions. </li></ul><ul><li>But , funding tells a very different story: </li></ul><ul><ul><li>$9,000,000,000 in subsidies to fossil fuel. </li></ul></ul>Fossil Fuels Renewable Energies Federal and State Subsidies Source: KC 2008, using ACF 2008 Source: GreenPeace 2008a
  4. 4. Background Statistics (cont.) <ul><li>$9.2 Billion passed in subsidies to energy </li></ul><ul><ul><li>79% to Oil </li></ul></ul><ul><ul><li>14% to Coal </li></ul></ul><ul><ul><li>4% to Natural Gas </li></ul></ul><ul><ul><li>3% to Renewable Energy </li></ul></ul><ul><li>Artificial lower prices </li></ul>Source: Greenpeace 2008b Source: KC 2008, using Greenpeace 2008b
  5. 5. Background Statistics (cont.) <ul><li>Federal Government investment </li></ul><ul><li>roads ≈ 12 × rail </li></ul><ul><li>Other OECD Countries </li></ul><ul><li>Roads : Rail </li></ul><ul><li> 1 : 1 at least </li></ul>Road Rail Federal Investment Source: KC 2008, using ACF 2008 Source: Hugonnard 2008
  6. 6. Background Statistics (final) <ul><li>Australia exports 70% of coal extracted. </li></ul><ul><ul><li>Equates to ≈10% of total domestic exports </li></ul></ul><ul><ul><li>80% exported to Asia </li></ul></ul><ul><ul><ul><li>44% to Japan </li></ul></ul></ul><ul><li>Australia contributes 30% to world coal exports </li></ul>Source: ACA 2008a Source: KC 2009, using ACA 2008b
  7. 7. Crisis Scenario <ul><li>We look ahead to 2020 : </li></ul><ul><ul><li>Economic Recession following the Australian Business Cycle </li></ul></ul><ul><ul><li>Negative economic growth of between 6-8% </li></ul></ul>Source: Cleary 2009, using RBA 2008
  8. 8. Crisis Scenario (cont.) <ul><ul><li>Effects of Climate Change are being felt with drought </li></ul></ul><ul><ul><ul><li>Production of primary products down 10% </li></ul></ul></ul><ul><ul><li>China, India and Japan have pressure put on them to shift towards renewable energy sources . </li></ul></ul>Source: ABC 2007
  9. 9. Crisis Solution #1
  10. 10. Crisis Solution #1 (cont.) <ul><li>The other $900m for Retraining & Education Program </li></ul><ul><ul><ul><ul><li>Retraining coal workers for green jobs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Education and training for new workers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>More funding for universities, TAFEs and apprenticeships </li></ul></ul></ul></ul>
  11. 11. Crisis Solution #2
  12. 12. Crisis Solution #2 (cont.) <ul><ul><ul><ul><ul><li>Help ease effects of restructuring on communities and businesses </li></ul></ul></ul></ul></ul><ul><ul><li>Income support for displaced workers and businesses </li></ul></ul><ul><ul><li>Relocation assistance for business and workers </li></ul></ul><ul><ul><li>Compensation for small businesses </li></ul></ul><ul><ul><li>Low interest loans for business </li></ul></ul>
  13. 13. Crisis Solution #3 <ul><li>2014 target: 50/50 split of funding to fossil fuel and renewable energy </li></ul><ul><li>Policy: redirect 10% of road funding to rail </li></ul>
  14. 14. Crisis Solution #3 (cont.) <ul><li>Result: $1.44 billion for rail infrastructure </li></ul><ul><ul><ul><ul><li>1/3 ($480million) for rail freight lines </li></ul></ul></ul></ul><ul><ul><ul><ul><li>2/3 ($950 million) for urban rail transit – Sydney will greatly benefit </li></ul></ul></ul></ul><ul><li>Benefits: Reduction in vehicle emissions and savings </li></ul>Mitsubushi Electric Co.
  15. 15. Justification <ul><li>Job creation figures </li></ul><ul><ul><li>Solar Photovoltaic Industry </li></ul></ul><ul><ul><ul><li>Investment of $1 million/10 years = 5.65 persons of employment/year </li></ul></ul></ul><ul><ul><ul><li>Redirect $900 Million/year into Solar PV ≈ 51 000 jobs/year </li></ul></ul></ul>Source: Greenpeace 2008a
  16. 16. Justification (cont.) <ul><ul><li>Coal Industry </li></ul></ul><ul><ul><ul><li>Investment of $1 million/10 years = 3.96 persons of employment/year </li></ul></ul></ul><ul><li>Over a 4 year political lifespan : more than 60 000 extra jobs created from investment into renewable energy. </li></ul>Source: Greenpeace 2008a
  17. 17. Justification (cont.) <ul><li>The Australian coal industry currently employs approximately 30 000 people . </li></ul><ul><li>This industry will eventually become obsolete when coal exports diminish. </li></ul>Source: ACA 2008c
  18. 18. Justification (cont.) <ul><li>Power produced by Hunter Valley Coal Power Stations ≈ 6000 MW </li></ul><ul><li>5900 MW of renewable energy = 28,000 year-long construction jobs + 3000 permanent operation/maintenance jobs. </li></ul>
  19. 19. Justification Vales Point Power Station Bayswater Power station Liddell Power Station Eraring Power Station Munmorah Power Station
  20. 20. Justification (cont.) <ul><li>Funding is needed to educate and re-train workers to shift away from the archaic economy and into the 21 st Century </li></ul>
  21. 21. Justification (cont.) <ul><li>NorWest Business Park </li></ul><ul><li>Potential for a new renewable energy research facilities. </li></ul><ul><ul><li>An Australian Silicon Valley ? </li></ul></ul>
  22. 22. Justification (cont.)
  23. 23. Justification (cont.) <ul><li>Investment Roads : Rail </li></ul><ul><li> 12 : 1 over 5 years </li></ul><ul><li>Take 10% of road investment > rail investment </li></ul>
  24. 24. Justification (cont.) <ul><li>United Nations estimated 25-35% reduction in carbon emissions by 2020 at no net cost . </li></ul><ul><li>But! </li></ul><ul><li>Average political lifespan = 4 years </li></ul>Source: Greenpeace 2008a
  25. 25. Justification (cont.) Source: CSIRO 2008
  26. 26. Justification (final) <ul><li>Carbon Pollution Reduction Scheme. </li></ul><ul><ul><li>Giving away 30% of all credits for free </li></ul></ul><ul><ul><li>Lost revenue ≈ $2.4 Billion (at $20/tonne) </li></ul></ul><ul><li>Proposal to sell those at 50% subsidy = $1.2 Billion </li></ul><ul><ul><li>To assist in transition of economy. </li></ul></ul>Source: LCC 2008
  27. 27. Global Perspective <ul><li>Australia is dangerously lagging behind. </li></ul><ul><li>China and India both have larger renewable energy sectors than Australia. </li></ul><ul><ul><li>16% of Chinese energy comes from renewable sources, 26% in India . </li></ul></ul><ul><ul><li>Australia is sitting low at 8% </li></ul></ul><ul><ul><li>Australia is well below the global average of 19% </li></ul></ul>
  28. 28. Global Perspective Xinjiang, China Three Gorges Dam, China Aralvaimozhy Station, India Gandhi Sagar Dam, India
  29. 29. Global Perspective <ul><li>Germany has invested $14 Billion in 2007 alone, making them the world leader in renewable energy investment. </li></ul><ul><li>This equates to 0.5% of their GDP . </li></ul>
  30. 30. Global Perspectives Source: EPA 2008 Germany is the world leader in solar energy with $14 billion invested in 2007 alone (Blake 2008)
  31. 31. Global Perspectives <ul><li>Australia has only invested 0.02% of GDP into the renewable energy sector. </li></ul><ul><ul><li>Only 1/25 th the proportion of Germany </li></ul></ul><ul><ul><li>The majority of energy still comes from coal and oil </li></ul></ul>
  32. 32. Conclusion <ul><li>Australia has missed one boat </li></ul><ul><ul><li>Dr. Zhengrong Shi </li></ul></ul><ul><ul><ul><li>Studied at UNSW </li></ul></ul></ul><ul><ul><ul><li>Australia would not fund his solar research and development </li></ul></ul></ul><ul><ul><ul><li>Moved to China for funding </li></ul></ul></ul><ul><ul><ul><li>Company has flourished and is dominating the global solar energy market. </li></ul></ul></ul><ul><li>Lets not miss another that comes our way </li></ul>
  33. 33. Conclusion (cont.) <ul><li>China and India are both economies in transition and yet, we as a fully developed country and lagging behind them </li></ul><ul><li>We cannot keep relying on an obsolete foundation . </li></ul><ul><li>We can’t keep holding ourselves back and letting the rest of the world power ahead . </li></ul>
  34. 34. Conclusion (final) Public Opinion Poll Which do you think should receive more federal government subsidies? When should the federal government increase the subsidies for reneweable energy?