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Joshua Maroske

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Joshua Maroske

  1. 1. Emissions Trading Scheme ( ETS ) - Opportunity to Aquaculture Ridley Aquafeed 2009 Australian Prawn Farmers’ Association & Australian Barramundi Farmers’ Association Aquaculture into the Future July 29-30 2009, Jupiters Casino, Townsville, Queensland Joshua Maroske Fisheries Economist Department of Employment, Economic Development and Innovation
  2. 2. Federal Government’s Proposed ETS <ul><li>Known as the Carbon Pollution Reduction Scheme (CPRS) </li></ul><ul><li> aims to drive reduction in emissions of greenhouse gases </li></ul><ul><li>To be introduced 1 st July 2011 (full trading by 2012-13) </li></ul><ul><li>Reduction of greenhouse gases of 5% below 2000 levels by 2020 (40% reduction by the year 2050) </li></ul><ul><li>Decision on whether to include primary industries in the scheme (eg – agriculture, fisheries, aquaculture ) to be made in 2013 </li></ul>
  3. 3. Land and Water Australia Report - Summary <ul><li>Aquaculture unlikely to ever be included as direct participant in ETS (not a significant emitter of greenhouses gases) </li></ul><ul><li> commercial fishing and aquaculture make up < 0.2% of national greenhouse gas emissions, with 348 emissions per unit or revenue (t CO 2 – e /$m revenue) </li></ul><ul><li>A variety of information needs required by industry (to help to inform decisions about priority areas of future research) : </li></ul><ul><ul><li>the specific rules of the CPRS </li></ul></ul><ul><ul><li>the rules for the recognition of offsets </li></ul></ul><ul><ul><li>the potential revenue available from plantation offsets </li></ul></ul><ul><ul><li>likely scale of the cost impacts that will arise for energy and energy-related farm inputs </li></ul></ul>
  4. 4. Information Needs & Research Opportunities <ul><li>PRIORITY: H = High M = Medium L = Low N/A = Not Applicable </li></ul><ul><li>TIMEFRAME: ST = Short Term (0-5 years) LT = Long Term (5-15 years) </li></ul>
  5. 5. Example of Price Impacts - Electricity <ul><li>WHOLESALE </li></ul><ul><li>Prices range from $30-$40 per Megawatt hour </li></ul><ul><li>Add full cost of greenhouse emission ($30-$40 per tonne) </li></ul><ul><li>WHOLE ELECTRICITY PRICE WOULD BE APPROXIMATELY DOUBLED </li></ul><ul><li>RETAIL </li></ul><ul><li>Composed of 50% electricity costs and 50% ‘poles and line’ costs </li></ul><ul><li>Doubling whole electricity prices could lead to a 50% INCREASE IN RETAIL ELECTRICTY PRICE AT THE FARMGATE OR HOUSEHOLD </li></ul><ul><li>One Megawatt hour of electricity = 1 tonne CO 2 -e of greenhouse gases </li></ul><ul><li>Real costs likely to be even greater than this ( electricity generators face high capital investment costs for conversion) </li></ul>
  6. 6. Importance of Aquaculture in the face of climate change <ul><li>Climate change brings new opportunities to the industry: </li></ul><ul><ul><li>Selective breeding </li></ul></ul><ul><ul><li>Regulating the environment </li></ul></ul><ul><ul><li>New species opportunities </li></ul></ul><ul><li>In Australia: </li></ul><ul><li>- Wild-catch seafood production and value declining ↓ </li></ul><ul><li>- Aquaculture seafood production and value increasing ↑ </li></ul><ul><li>Aquaculture production in Queensland increased by 5% in 2007-08 to $75.5mil, a 27% of total value ( Source: Australian Fisheries Statistics, ABARE) </li></ul><ul><li>Trends suggest further growth and greater seafood market share for aquaculture industry in future </li></ul>
  7. 7. Opportunities arising from the ETS <ul><li>The use of certification systems as part of product-marketing efforts </li></ul><ul><li>Offsets </li></ul><ul><li>- actions to help reduce atmospheric greenhouse gas concentration </li></ul><ul><li>- participants in the CPRS would pay non-participants to undertake emission offset activities </li></ul><ul><li>- potential opportunity for aquaculture businesses, particularly if landholdings are available for plantation development </li></ul><ul><li>( Offset opportunity not likely to be available in initial years of scheme; requires further research, eg – Life Cycle Assessment analysis ) </li></ul>
  8. 8. Knowledge Gaps and Research Opportunities <ul><li>Projection of likely input cost implications arising from imposition of the ETS on direction emission generators </li></ul><ul><li>Projection of both international and domestic changes likely to arise as the ETS is implemented </li></ul><ul><li>Other Areas: </li></ul><ul><li>- potential for biodiesel production from waste aquaculture products; </li></ul><ul><li>- potential for biodiesel production from algae; </li></ul><ul><li>- the potential for specific activities in marine areas to be recognised as </li></ul><ul><li>carbon offsets or carbon sinks </li></ul><ul><li>This knowledge can help policy development, to ensure the aquaculture industry remains competitive and continues to grow </li></ul>
  9. 9. Other aspects to consider <ul><li>Many aquaculture ventures in public waterways, acute impacts likely to be highly visible  could lead to more concerted efforts </li></ul><ul><li>Department of Climate Change Report </li></ul><ul><li>Aquaculture an important source of employment, especially in coastal towns  declining importance of wild-catch fisheries </li></ul><ul><li>The interaction of social and economic factors in relation to climate impacts and setting public policy needs to be properly played out </li></ul><ul><li>Australian aquaculture industry well positioned in face of government’s impending ETS </li></ul>
  10. 10. Summary <ul><li>Implementation of an ETS would have a variety of economic, social, environmental impacts on aquaculture industry </li></ul><ul><li>Impacts currently difficult to quantity  more research and understanding is required to help shape future direction of industry </li></ul><ul><li>Short and long-term  likely consequences include price increase in factors such as energy (electricity), feed sources (grains) and fuel; potential opportunity in the form of carbon offsetting </li></ul><ul><li>For further information, please see </li></ul><ul><li>http://www.climatechange.gov.au/ </li></ul>

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