More Related Content Similar to Prospering & Profiting in the Low Carbon Economy (20) Prospering & Profiting in the Low Carbon Economy1. Prospering & profiting in the low-carbon economy Examining the key issues facing business in a rapidly changing economic environment © Carbon Training International 2009 NSW Department of State & Regional Development Parramatta 15 th May 2009 This material was used by Carbon Training International Pty Limited to assist an oral presentation and is not a complete record of the discussion or information presented The material provided in this presentation represents information only & does not constitute advise nor that action of any particular nature should be taken without first obtaining expert opinion 2. About CTI Who We Are: CTI is a professional carbon management training organisation led by some of the best climate change specialists & instructors in Australia Why We Exist: for the development & delivery of workplace training solutions that are focused on creating a carbon conscious, carbon skilled and carbon responsive workforce Our focus: is on the delivery of workplace capacity building solutions for the low carbon economy Our Services: Facilitated Workshops, VET accredited CertIII & CertIV qualifications in carbon management, coaching for carbon management success & strategic support services © Carbon Training International 2009 6. Carbon Policy & Legislation Developments © Carbon Training International 2009 Institutional Compliance Frameworks for a Low Carbon Economy 9. The Business Risks & Opportunities linked to Climate Change © Carbon Training International 2009 (climate change as the new metaphor for environmental, economic & social reform) 12. The Growing Importance of Scope 3 Emissions © Carbon Training International 2009 Embedded Emissions in the Supply Chain 15. B2B Compliance Policies Organisations like Westpac have now adopted policies that require their suppliers to comply with their own stringent sustainability policy & risk management processes Westpac’s Sustainable Supply Chain Compliance Tool for all vendors 19. Business Benefits - Examples of projects being pursued by business to reduce energy & carbon emissions Kellogg (Aust) Pty Ltd Project: Utility Management System Purpose: To improve the energy efficiency of cereal production through the monitoring of energy use & performance of factory equipment Energy Savings: 1,564 MWh p.a. GHG Savings: 2,712t CO2-e Sara Lee Bakery Pty Ltd Project: Optimization of Refrigeration Systems Purpose: To optimize the refrigeration system at its major manufacturing facility to improve the energy efficiency of one the most energy-intensive processes of food manufacturing which accounts for 50% of total electricity used Energy Savings: 1,090 MWh p.a. GHG Savings: 1,164t CO2-e Qantas Airways Ltd Project: Fluorescent Tube Light Replacement Purpose: To replace more than 7000 fluorescent light fixtures with 6625 energy efficient light fittings in 3 buildings Energy Savings: 1,434 MWh p.a. GHG Savings: 1,532t CO2-e Vinidex Pty Ltd Project: Extrusion Chiller Upgrade Purpose: To replace the energy intensive chillers in the cooling system in each production line with chillers that are 30% more energy efficient Energy Savings: 309 MWh p.a.* GHG Savings: 341t CO2-e * Calculated using the supplied GHG figure & multiplying by coefficient of 0.906 Source: DECC Climate Change Fund © Carbon Training International 2009 20. The cost savings from these energy reduction projects speak for themselves Kellogg (Aust) Pty Ltd Energy Savings: 1,564 MWh p.a Using an average cost of $169 per MWh the annual energy cost savings equate to: $264,316 a year Sara Lee Bakery Pty Ltd Energy Savings: 1,090 MWh p.a. Using an average cost of $169 per MWh the annual energy cost savings equate to: $184,210 a year Qantas Airways Ltd Energy Savings: 1,434 MWh p.a Using an average cost of $169 per MWh the annual energy cost savings equate to: $242,346 a year Vinidex Pty Ltd Energy Savings: 309 MWh p.a.* Using an average cost of $169 per MWh the annual energy cost savings equate to: $52,221 a year * Calculated using the GHG figure & multiplying by coefficient of 0.906 The energy cost savings could be up to 20% higher under the ETS As stand alone projects most of them have a payback period of between 3-4 years with an annual IRR of around 30% © Carbon Training International 2009 21. A look at a low carbon business © Carbon Training International 2009 25. The importance of carbon management skill sets in the business © Carbon Training International 2009 28. Government Financial Support Programs AusIndustry – Climate Ready Program A competitive grants program providing grants from $50,000 up to $5m on a matching funding basis to support research and development, proof-of-concept and early-stage commercialisation activities to develop solutions to climate change challenges AusIndustry – Re-tooling for Climate Change A grant program to help small and medium sized Australian manufacturers reduce their environmental footprint, through projects that improve the energy and/or water efficiency of their production processes. The program provides grants of between $10,000 and $500,000, up to a maximum of half of the cost of each project AusIndustry – Green Building Fund A grant program to reduce the impact of Australia's built environment on green house gas emissions, by reducing the energy consumed in the operation of existing commercial office buildings NSW DECC Climate Change Fund – NSW Green Business Program A program that provides $30 million over five years for projects that will save water and energy in business operations in NSW. Climate Change Action Fund An assistance program that will be introduced as part of the Carbon Pollution Reduction Scheme legislation Federal Govt’s Small Business & General Tax break A short term assistance package that provides business with a 30-50% tax reduction on capital equipment purchased before 30th June 2009 © Carbon Training International 2009 Both state & Federal governments have established a number of industry support programs to assist business with the financial costs of adapting to the low carbon economy 29. About the Presenter Robert Nicholls – B.Ec; B.Bus(Hons); MBA Rob is Carbon Training International’s Director of Innovation & Organisational Adaptation. Within this role Rob is charged with working with industry, business, local government & community groups to help them identify & understand the risks & opportunities associated with the low carbon economy, the strategies for responding and the capacity building needs of the organisation to do so. Rob is involved with delivering CTI’s facilitated workshop programs on developing and implementing an organisational carbon management response plan. As well as being a market economist, he is an experienced business strategist & operational improvement specialist with diverse industry experience gained from working both in Australia & overseas over the past 13 years. Rob has an extensive working knowledge of the evolving climate change & carbon management business system gained from projects associated with sustainability planning, risk mitigation, eco-focused investments and carbon markets. He has a solid understanding of the international and national climate change frameworks, protocols, mechanisms, policies, legislation & governance systems related to mitigating & abating GHG emissions and the related implications for business continuity. Rob can be contacted via [email_address] © Carbon Training International 2009