SlideShare a Scribd company logo
1 of 25
Download to read offline
Emissions Trading ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],David Hone Group Climate Change Adviser Shell International B.V.
A new  direction is needed The way we produce and use energy today is not sustainable
Pathways to 2050 for Australia 0 50 100 150 200 250 300 350 400 $0 $20,000 $40,000 $60,000 $80,000 GDP per capita, US$ 2000 (ppp) Energy per capita, GJ A significant shift required in both “energy per GDP” and “CO 2  per unit of energy used” 1971 Improving energy efficiency 2025 2050 1990 2004 CO 2 per energy  unit used, t / TJ Slope = Energy per GDP
Australia 2004 Solar (5 GW) Wind (5 GW) Coal / CCS (5 GW) Hydro (5 GW) Biomass (5 GW) Coal (5 GW) Gas (5 GW) Direct use (0.2 EJ) Vehicle (2 million) High efficiency vehicle Alternative fuel vehicle ~ 2GW capacity 20 million people 3.25 EJ Final Energy GDP $US 30 K per capita* 350 MT energy CO 2 * USD 2000 (ppp)
Australia 2025 Solar (5 GW) Wind (5 GW) Coal / CCS (5 GW) Hydro (5 GW) Biomass (5 GW) Coal (5 GW) Gas (5 GW) Direct use (0.2 EJ) Vehicle (2 million) High efficiency vehicle Alternative fuel vehicle ~ 2GW capacity 25 million people 3.45 EJ Final Energy GDP $US 45 K per capita* 300 MT energy CO 2
Australia 2050 Solar (5 GW) Wind (5 GW) Coal / CCS (5 GW) Hydro (5 GW) Biomass (5 GW) Coal (5 GW) Gas (5 GW) Direct use (0.2 EJ) Vehicle (2 million) High efficiency vehicle Alternative fuel vehicle ~ 2GW capacity 28 million people 3.27 EJ Final Energy GDP $US 74 K per capita* 168 MT energy CO 2
Pathways to 2050 for the USA (illustrative) 0 50 100 150 200 250 300 350 400 $0 $20,000 $40,000 $60,000 $80,000 $100,000 GDP per capita, US$ 2000 (ppp) Energy per capita, GJ A significant shift required in both “energy per GDP” and “CO 2  per unit of energy used” 2025 2050 1971 CO 2 per energy  unit used, t / TJ 1990 2004 Slope = Energy per GDP Improving energy efficiency
USA 2004 Solar (50 GW) Wind (50 GW) Coal / CCS (50 GW) Hydro (50 GW) Biomass (50 GW) Nuclear (50 GW) Coal (50 GW) Gas (50 GW) Direct use (5 EJ) Vehicle (20 million) High efficiency vehicle Alternative fuel vehicle 294 million people 66.5 EJ Final Energy GDP $US 36 K per capita* 5.8 billion tonnes energy CO 2 * USD 2000 (ppp)
USA 2025 (illustrative) Solar (50 GW) Wind (50 GW) Coal / CCS (50 GW) Hydro (50 GW) Biomass (50 GW) Nuclear (50 GW) Coal (50 GW) Gas (50 GW) Direct use (5 EJ) Vehicle (20 million) High efficiency vehicle Alternative fuel vehicle 335 million people 65.5 EJ Final Energy GDP $US 57 K per capita* 4.9 billion tonnes energy CO 2 * USD 2000 (ppp)
USA 2050 (illustrative) Solar (50 GW) Wind (50 GW) Coal / CCS (50 GW) Hydro (50 GW) Biomass (50 GW) Nuclear (50 GW) Coal (50 GW) Gas (50 GW) Direct use (5 EJ) Vehicle (20 million) High efficiency vehicle Alternative fuel vehicle 400 million people 60.1 EJ Final Energy GDP $US 88 K per capita* 2.4 billion tonnes energy CO 2 * USD 2000 (ppp)
Key Sectors in the “energy and CO 2  economy” Oil   Biomass  Gas  Coal  Nuclear  Renewables Primary Energy Liquids Direct combustion Industry and Manufacturing Mobility Final Energy Agriculture and Land Use Energy Energy Energy Buildings Power Generation
A structured policy approach is needed A simple, high profile and credible target for the renewables’ share of power generation, supported by a range of incentives to encourage investment. Measures to incentivise new fuels based on their “well-to-wheels” CO 2  reduction potential, implementation of vehicle efficiency standards and vehicle/road-use programs targeted at drivers   A series of robust energy standards for buildings, appliances etc. with incentives for retrofit of existing infrastructure.  "Cap and trade" emissions trading systems  for power generators, most industrial facilities and large fleet transport such as aviation.
Emissions Trading or “Cap-and-trade” Initial emissions 100 Mt p.a.  Year 5 at 95 Year 15 at 80 Year 10 at 88 Offsets Allowance trading between facilities $ CO 2 Government issues 88 million allowances into the economy CCS Project Efficiency Project
Key principles of an Emissions Trading System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The point of regulation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The CO 2  price and allocation Points of regulation Resource Power Generation Factories Heavy industry Light industry Consumer Electricity Time CO 2  price impact ,[object Object],[object Object],[object Object],[object Object]
Global competition issues $ US product price €  EU  product price (+  € C) EU installation – carbon constrained ME Installation – no carbon constraint The facility without a CO 2  constraint has a competitive advantage into both domestic and export markets, leading to either or both CO 2  leakage and profit leakage.
The CO 2  price and allocation Points of regulation Resource Power Generation Factories Heavy industry Light industry Consumer Electricity Time CO 2  price impact Free allocation early on as little / no price pass through Progressive shift to auctioning as the CO 2  price impacts the economy Full auctioning as the CO 2  price impacts the entire value chain Auction funds recycled to consumers through the tax system
A profit neutral approach CO 2  allowances a $ = b $ a $ % $ CO 2  + Product b $   % auctioning Some pass-through $ Recycled, e.g. through the tax system
How to allocate - Approaches ,[object Object],[object Object],[object Object],[object Object]
Abatement technologies ,[object Object],[object Object]
Artificial limits within the trading system ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
External Projects (or offsets) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Going global ! 2000  2005  2010  2015  2020  2025 Pre-Kyoto  Kyoto   Post 2012 Linkage framework Linkages develop between all systems and more systems appear Danish-ETS UK-ETS Australian ETS US National “cap-and-trade” Norwegian ETS EU-ETS CDM CDM evolves to includes sectors Expanding EU-ETS Japan technology standards New technology mechanisms evolve (e.g. for CCS) China adopts CCS standard New Zealand ETS
 

More Related Content

What's hot

A.T. Kearney Energy Transition Institute - 10 Facts, An Introduction to Energ...
A.T. Kearney Energy Transition Institute - 10 Facts, An Introduction to Energ...A.T. Kearney Energy Transition Institute - 10 Facts, An Introduction to Energ...
A.T. Kearney Energy Transition Institute - 10 Facts, An Introduction to Energ...Kearney
 
CIWM Geotech Award Presentation October 09
CIWM Geotech Award Presentation October 09CIWM Geotech Award Presentation October 09
CIWM Geotech Award Presentation October 09kofiapea
 
Energy efficiency indicators in morocco aderee
Energy efficiency indicators in morocco adereeEnergy efficiency indicators in morocco aderee
Energy efficiency indicators in morocco adereeRCREEE
 
Ab climate change outline_v2
Ab climate change outline_v2Ab climate change outline_v2
Ab climate change outline_v2velgot
 
Preparing for a post carbon future
Preparing for a post carbon futurePreparing for a post carbon future
Preparing for a post carbon futurepmalo23
 
Energy in Ireland Report Launch 2021
Energy in Ireland Report Launch 2021Energy in Ireland Report Launch 2021
Energy in Ireland Report Launch 2021SustainableEnergyAut
 
Executive summary for Last Chance Saloon for CSP (Concentrated Solar Power)
Executive summary for Last Chance Saloon for CSP (Concentrated Solar Power)Executive summary for Last Chance Saloon for CSP (Concentrated Solar Power)
Executive summary for Last Chance Saloon for CSP (Concentrated Solar Power)Simon Thompson
 
Presentation on eu ets & aviation for iffaad
Presentation on eu ets & aviation for iffaadPresentation on eu ets & aviation for iffaad
Presentation on eu ets & aviation for iffaadJauwadSyed
 
Business and Sustainable Development - The Green Race is On
Business and Sustainable Development - The Green Race is OnBusiness and Sustainable Development - The Green Race is On
Business and Sustainable Development - The Green Race is OnMichael Soron
 
A Generalized Equilibrium Approach to Balance the Residual Abatements Resulti...
A Generalized Equilibrium Approach to Balance the Residual Abatements Resulti...A Generalized Equilibrium Approach to Balance the Residual Abatements Resulti...
A Generalized Equilibrium Approach to Balance the Residual Abatements Resulti...IEA-ETSAP
 
OME: Maghrenov kickoff Barcelona - Day 1
OME: Maghrenov kickoff Barcelona  - Day 1OME: Maghrenov kickoff Barcelona  - Day 1
OME: Maghrenov kickoff Barcelona - Day 1Maghrenov
 
Germany, leading the charge on renewables
Germany, leading the charge on renewablesGermany, leading the charge on renewables
Germany, leading the charge on renewablesLeonardo ENERGY
 
Frank tudor am_cham_presentation.compressed
Frank tudor am_cham_presentation.compressedFrank tudor am_cham_presentation.compressed
Frank tudor am_cham_presentation.compressedFrank Tudor
 
The Race to Net Zero Mining
The Race to Net Zero MiningThe Race to Net Zero Mining
The Race to Net Zero MiningAmber Bieg
 
Final solar generation vi full report lr (1)
Final solar generation vi full report lr (1)Final solar generation vi full report lr (1)
Final solar generation vi full report lr (1)Naman Kumar
 

What's hot (20)

Energy Debate
Energy DebateEnergy Debate
Energy Debate
 
A.T. Kearney Energy Transition Institute - 10 Facts, An Introduction to Energ...
A.T. Kearney Energy Transition Institute - 10 Facts, An Introduction to Energ...A.T. Kearney Energy Transition Institute - 10 Facts, An Introduction to Energ...
A.T. Kearney Energy Transition Institute - 10 Facts, An Introduction to Energ...
 
CIWM Geotech Award Presentation October 09
CIWM Geotech Award Presentation October 09CIWM Geotech Award Presentation October 09
CIWM Geotech Award Presentation October 09
 
Energy efficiency indicators in morocco aderee
Energy efficiency indicators in morocco adereeEnergy efficiency indicators in morocco aderee
Energy efficiency indicators in morocco aderee
 
Ab climate change outline_v2
Ab climate change outline_v2Ab climate change outline_v2
Ab climate change outline_v2
 
Preparing for a post carbon future
Preparing for a post carbon futurePreparing for a post carbon future
Preparing for a post carbon future
 
Energy in Ireland Report Launch 2021
Energy in Ireland Report Launch 2021Energy in Ireland Report Launch 2021
Energy in Ireland Report Launch 2021
 
Executive summary for Last Chance Saloon for CSP (Concentrated Solar Power)
Executive summary for Last Chance Saloon for CSP (Concentrated Solar Power)Executive summary for Last Chance Saloon for CSP (Concentrated Solar Power)
Executive summary for Last Chance Saloon for CSP (Concentrated Solar Power)
 
Solar for-students
Solar for-studentsSolar for-students
Solar for-students
 
Presentation on eu ets & aviation for iffaad
Presentation on eu ets & aviation for iffaadPresentation on eu ets & aviation for iffaad
Presentation on eu ets & aviation for iffaad
 
Business and Sustainable Development - The Green Race is On
Business and Sustainable Development - The Green Race is OnBusiness and Sustainable Development - The Green Race is On
Business and Sustainable Development - The Green Race is On
 
Jos Delbeke - EU Climate Change Policy
Jos Delbeke - EU Climate Change PolicyJos Delbeke - EU Climate Change Policy
Jos Delbeke - EU Climate Change Policy
 
A Generalized Equilibrium Approach to Balance the Residual Abatements Resulti...
A Generalized Equilibrium Approach to Balance the Residual Abatements Resulti...A Generalized Equilibrium Approach to Balance the Residual Abatements Resulti...
A Generalized Equilibrium Approach to Balance the Residual Abatements Resulti...
 
Lessons from Challenge Bibendum - Patrick Oliva
Lessons from Challenge Bibendum - Patrick OlivaLessons from Challenge Bibendum - Patrick Oliva
Lessons from Challenge Bibendum - Patrick Oliva
 
Lessons from Challenge Bibendum - Patrick Oliva
Lessons from Challenge Bibendum - Patrick OlivaLessons from Challenge Bibendum - Patrick Oliva
Lessons from Challenge Bibendum - Patrick Oliva
 
OME: Maghrenov kickoff Barcelona - Day 1
OME: Maghrenov kickoff Barcelona  - Day 1OME: Maghrenov kickoff Barcelona  - Day 1
OME: Maghrenov kickoff Barcelona - Day 1
 
Germany, leading the charge on renewables
Germany, leading the charge on renewablesGermany, leading the charge on renewables
Germany, leading the charge on renewables
 
Frank tudor am_cham_presentation.compressed
Frank tudor am_cham_presentation.compressedFrank tudor am_cham_presentation.compressed
Frank tudor am_cham_presentation.compressed
 
The Race to Net Zero Mining
The Race to Net Zero MiningThe Race to Net Zero Mining
The Race to Net Zero Mining
 
Final solar generation vi full report lr (1)
Final solar generation vi full report lr (1)Final solar generation vi full report lr (1)
Final solar generation vi full report lr (1)
 

Viewers also liked

Platts Emissions Trading Conference - October 2011
Platts Emissions Trading Conference - October 2011Platts Emissions Trading Conference - October 2011
Platts Emissions Trading Conference - October 2011David Hone
 
David Hone at Sustentavel 2011
David Hone at Sustentavel 2011David Hone at Sustentavel 2011
David Hone at Sustentavel 2011David Hone
 
A review climate change and carbon capture
A review climate change and carbon captureA review climate change and carbon capture
A review climate change and carbon captureProdeep Mookerjee
 
New (Carbon) Market Mechanism
New (Carbon) Market MechanismNew (Carbon) Market Mechanism
New (Carbon) Market MechanismACX
 
Introduction climate change and emissions trading
Introduction climate change and emissions tradingIntroduction climate change and emissions trading
Introduction climate change and emissions tradingHenk Harmsen
 
Offsetting Principles and The CDM, JI Basics
Offsetting Principles and The CDM, JI BasicsOffsetting Principles and The CDM, JI Basics
Offsetting Principles and The CDM, JI BasicsACX
 
Emission Trading
Emission TradingEmission Trading
Emission TradingNaveen6
 
Capitalism, carbon and climate change
Capitalism, carbon and climate changeCapitalism, carbon and climate change
Capitalism, carbon and climate changeSTEPS Centre
 
Europe carbon-emissions-trading
Europe carbon-emissions-tradingEurope carbon-emissions-trading
Europe carbon-emissions-tradingKevin A
 
Climate change and carbon trading
Climate change and carbon tradingClimate change and carbon trading
Climate change and carbon tradingJayappa Singanodi
 
IB Biology 4.3-4.4 Slides: Carbon Cycle & Climate Change
IB Biology 4.3-4.4 Slides: Carbon Cycle & Climate ChangeIB Biology 4.3-4.4 Slides: Carbon Cycle & Climate Change
IB Biology 4.3-4.4 Slides: Carbon Cycle & Climate ChangeJacob Cedarbaum
 
Climate Change and Global Warming
Climate Change and Global WarmingClimate Change and Global Warming
Climate Change and Global WarmingIoana Stancut
 

Viewers also liked (14)

Platts Emissions Trading Conference - October 2011
Platts Emissions Trading Conference - October 2011Platts Emissions Trading Conference - October 2011
Platts Emissions Trading Conference - October 2011
 
David Hone at Sustentavel 2011
David Hone at Sustentavel 2011David Hone at Sustentavel 2011
David Hone at Sustentavel 2011
 
A review climate change and carbon capture
A review climate change and carbon captureA review climate change and carbon capture
A review climate change and carbon capture
 
New (Carbon) Market Mechanism
New (Carbon) Market MechanismNew (Carbon) Market Mechanism
New (Carbon) Market Mechanism
 
Introduction climate change and emissions trading
Introduction climate change and emissions tradingIntroduction climate change and emissions trading
Introduction climate change and emissions trading
 
Offsetting Principles and The CDM, JI Basics
Offsetting Principles and The CDM, JI BasicsOffsetting Principles and The CDM, JI Basics
Offsetting Principles and The CDM, JI Basics
 
Emission Trading
Emission TradingEmission Trading
Emission Trading
 
Capitalism, carbon and climate change
Capitalism, carbon and climate changeCapitalism, carbon and climate change
Capitalism, carbon and climate change
 
Europe carbon-emissions-trading
Europe carbon-emissions-tradingEurope carbon-emissions-trading
Europe carbon-emissions-trading
 
Climate change and carbon trading
Climate change and carbon tradingClimate change and carbon trading
Climate change and carbon trading
 
Carbon Trading
Carbon TradingCarbon Trading
Carbon Trading
 
IB Biology 4.3-4.4 Slides: Carbon Cycle & Climate Change
IB Biology 4.3-4.4 Slides: Carbon Cycle & Climate ChangeIB Biology 4.3-4.4 Slides: Carbon Cycle & Climate Change
IB Biology 4.3-4.4 Slides: Carbon Cycle & Climate Change
 
Carbon Trading
Carbon TradingCarbon Trading
Carbon Trading
 
Climate Change and Global Warming
Climate Change and Global WarmingClimate Change and Global Warming
Climate Change and Global Warming
 

Similar to Climate Change - Emissions Trading and Policy Frameworks

Emissions Trading Media Briefing February 2009
Emissions Trading Media Briefing February 2009Emissions Trading Media Briefing February 2009
Emissions Trading Media Briefing February 2009David Hone
 
Policies And Technologies
Policies And TechnologiesPolicies And Technologies
Policies And TechnologiesDavid Hone
 
Emissions Trading - More Detail
Emissions Trading - More DetailEmissions Trading - More Detail
Emissions Trading - More DetailDavid Hone
 
Presentacion de carbon en el mundo
Presentacion de carbon en el mundoPresentacion de carbon en el mundo
Presentacion de carbon en el mundoSANDRAVENADA
 
COP15, The Deal Sabotage At Copenhagen CE 82
COP15, The  Deal  Sabotage At  Copenhagen  CE 82COP15, The  Deal  Sabotage At  Copenhagen  CE 82
COP15, The Deal Sabotage At Copenhagen CE 82Sandip Sen
 
Carbon Capture and Utilization Outlook
Carbon Capture and Utilization OutlookCarbon Capture and Utilization Outlook
Carbon Capture and Utilization OutlookRobertGresser
 
Nobuo Tanaka, IEA: Cost-Effective Carbon Reduction
Nobuo Tanaka, IEA: Cost-Effective Carbon ReductionNobuo Tanaka, IEA: Cost-Effective Carbon Reduction
Nobuo Tanaka, IEA: Cost-Effective Carbon ReductionAlliance To Save Energy
 
Mantra Venture Group
Mantra Venture GroupMantra Venture Group
Mantra Venture Groupacyn
 
SBC Carbon Price 2011 07 28
SBC Carbon Price 2011 07 28SBC Carbon Price 2011 07 28
SBC Carbon Price 2011 07 28Barbara Albert
 
ENGR40 – Clean Energy Technology Course Overview
ENGR40 – Clean Energy Technology Course OverviewENGR40 – Clean Energy Technology Course Overview
ENGR40 – Clean Energy Technology Course OverviewRobert Cormia
 
Energy And Climate Change
Energy And Climate ChangeEnergy And Climate Change
Energy And Climate ChangeDavid Hone
 
Climate change mitigation in Latin America: requirements for the energy secto...
Climate change mitigation in Latin America: requirements for the energy secto...Climate change mitigation in Latin America: requirements for the energy secto...
Climate change mitigation in Latin America: requirements for the energy secto...IEA-ETSAP
 
UEDA 2008 Singerman Presentation To Ueda (14)
UEDA 2008 Singerman Presentation To Ueda (14)UEDA 2008 Singerman Presentation To Ueda (14)
UEDA 2008 Singerman Presentation To Ueda (14)Ed Morrison
 
2020-2024 strategic plan: Towards Net Zero
2020-2024 strategic plan: Towards Net Zero2020-2024 strategic plan: Towards Net Zero
2020-2024 strategic plan: Towards Net ZeroSnam
 
Snam 2030 vision and 2021-2025 plan
Snam 2030 vision and 2021-2025 planSnam 2030 vision and 2021-2025 plan
Snam 2030 vision and 2021-2025 planSnam
 
Bjorn Stigson's Presentation to the V100 Business Forum
Bjorn Stigson's Presentation to the V100 Business ForumBjorn Stigson's Presentation to the V100 Business Forum
Bjorn Stigson's Presentation to the V100 Business ForumVenture Publishing
 
Bjorn Stigson's V100 Presentation
Bjorn Stigson's V100 PresentationBjorn Stigson's V100 Presentation
Bjorn Stigson's V100 PresentationVenture Publishing
 
Informing the debate around the role of hydrogen in net zero pathways for dif...
Informing the debate around the role of hydrogen in net zero pathways for dif...Informing the debate around the role of hydrogen in net zero pathways for dif...
Informing the debate around the role of hydrogen in net zero pathways for dif...IEA-ETSAP
 

Similar to Climate Change - Emissions Trading and Policy Frameworks (20)

Emissions Trading Media Briefing February 2009
Emissions Trading Media Briefing February 2009Emissions Trading Media Briefing February 2009
Emissions Trading Media Briefing February 2009
 
Policies And Technologies
Policies And TechnologiesPolicies And Technologies
Policies And Technologies
 
Emissions Trading - More Detail
Emissions Trading - More DetailEmissions Trading - More Detail
Emissions Trading - More Detail
 
Presentacion de carbon en el mundo
Presentacion de carbon en el mundoPresentacion de carbon en el mundo
Presentacion de carbon en el mundo
 
2010_Defiglio.pptx
2010_Defiglio.pptx2010_Defiglio.pptx
2010_Defiglio.pptx
 
COP15, The Deal Sabotage At Copenhagen CE 82
COP15, The  Deal  Sabotage At  Copenhagen  CE 82COP15, The  Deal  Sabotage At  Copenhagen  CE 82
COP15, The Deal Sabotage At Copenhagen CE 82
 
Carbon Capture and Utilization Outlook
Carbon Capture and Utilization OutlookCarbon Capture and Utilization Outlook
Carbon Capture and Utilization Outlook
 
WB alternative energy
WB alternative energyWB alternative energy
WB alternative energy
 
Nobuo Tanaka, IEA: Cost-Effective Carbon Reduction
Nobuo Tanaka, IEA: Cost-Effective Carbon ReductionNobuo Tanaka, IEA: Cost-Effective Carbon Reduction
Nobuo Tanaka, IEA: Cost-Effective Carbon Reduction
 
Mantra Venture Group
Mantra Venture GroupMantra Venture Group
Mantra Venture Group
 
SBC Carbon Price 2011 07 28
SBC Carbon Price 2011 07 28SBC Carbon Price 2011 07 28
SBC Carbon Price 2011 07 28
 
ENGR40 – Clean Energy Technology Course Overview
ENGR40 – Clean Energy Technology Course OverviewENGR40 – Clean Energy Technology Course Overview
ENGR40 – Clean Energy Technology Course Overview
 
Energy And Climate Change
Energy And Climate ChangeEnergy And Climate Change
Energy And Climate Change
 
Climate change mitigation in Latin America: requirements for the energy secto...
Climate change mitigation in Latin America: requirements for the energy secto...Climate change mitigation in Latin America: requirements for the energy secto...
Climate change mitigation in Latin America: requirements for the energy secto...
 
UEDA 2008 Singerman Presentation To Ueda (14)
UEDA 2008 Singerman Presentation To Ueda (14)UEDA 2008 Singerman Presentation To Ueda (14)
UEDA 2008 Singerman Presentation To Ueda (14)
 
2020-2024 strategic plan: Towards Net Zero
2020-2024 strategic plan: Towards Net Zero2020-2024 strategic plan: Towards Net Zero
2020-2024 strategic plan: Towards Net Zero
 
Snam 2030 vision and 2021-2025 plan
Snam 2030 vision and 2021-2025 planSnam 2030 vision and 2021-2025 plan
Snam 2030 vision and 2021-2025 plan
 
Bjorn Stigson's Presentation to the V100 Business Forum
Bjorn Stigson's Presentation to the V100 Business ForumBjorn Stigson's Presentation to the V100 Business Forum
Bjorn Stigson's Presentation to the V100 Business Forum
 
Bjorn Stigson's V100 Presentation
Bjorn Stigson's V100 PresentationBjorn Stigson's V100 Presentation
Bjorn Stigson's V100 Presentation
 
Informing the debate around the role of hydrogen in net zero pathways for dif...
Informing the debate around the role of hydrogen in net zero pathways for dif...Informing the debate around the role of hydrogen in net zero pathways for dif...
Informing the debate around the role of hydrogen in net zero pathways for dif...
 

Recently uploaded

MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotesMuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotesManik S Magar
 
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptx
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptxPasskey Providers and Enabling Portability: FIDO Paris Seminar.pptx
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptxLoriGlavin3
 
Zeshan Sattar- Assessing the skill requirements and industry expectations for...
Zeshan Sattar- Assessing the skill requirements and industry expectations for...Zeshan Sattar- Assessing the skill requirements and industry expectations for...
Zeshan Sattar- Assessing the skill requirements and industry expectations for...itnewsafrica
 
Use of FIDO in the Payments and Identity Landscape: FIDO Paris Seminar.pptx
Use of FIDO in the Payments and Identity Landscape: FIDO Paris Seminar.pptxUse of FIDO in the Payments and Identity Landscape: FIDO Paris Seminar.pptx
Use of FIDO in the Payments and Identity Landscape: FIDO Paris Seminar.pptxLoriGlavin3
 
Microsoft 365 Copilot: How to boost your productivity with AI – Part one: Ado...
Microsoft 365 Copilot: How to boost your productivity with AI – Part one: Ado...Microsoft 365 Copilot: How to boost your productivity with AI – Part one: Ado...
Microsoft 365 Copilot: How to boost your productivity with AI – Part one: Ado...Nikki Chapple
 
Generative Artificial Intelligence: How generative AI works.pdf
Generative Artificial Intelligence: How generative AI works.pdfGenerative Artificial Intelligence: How generative AI works.pdf
Generative Artificial Intelligence: How generative AI works.pdfIngrid Airi González
 
Digital Identity is Under Attack: FIDO Paris Seminar.pptx
Digital Identity is Under Attack: FIDO Paris Seminar.pptxDigital Identity is Under Attack: FIDO Paris Seminar.pptx
Digital Identity is Under Attack: FIDO Paris Seminar.pptxLoriGlavin3
 
Landscape Catalogue 2024 Australia-1.pdf
Landscape Catalogue 2024 Australia-1.pdfLandscape Catalogue 2024 Australia-1.pdf
Landscape Catalogue 2024 Australia-1.pdfAarwolf Industries LLC
 
Tampa BSides - The No BS SOC (slides from April 6, 2024 talk)
Tampa BSides - The No BS SOC (slides from April 6, 2024 talk)Tampa BSides - The No BS SOC (slides from April 6, 2024 talk)
Tampa BSides - The No BS SOC (slides from April 6, 2024 talk)Mark Simos
 
So einfach geht modernes Roaming fuer Notes und Nomad.pdf
So einfach geht modernes Roaming fuer Notes und Nomad.pdfSo einfach geht modernes Roaming fuer Notes und Nomad.pdf
So einfach geht modernes Roaming fuer Notes und Nomad.pdfpanagenda
 
Modern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
Modern Roaming for Notes and Nomad – Cheaper Faster Better StrongerModern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
Modern Roaming for Notes and Nomad – Cheaper Faster Better Strongerpanagenda
 
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...Wes McKinney
 
QCon London: Mastering long-running processes in modern architectures
QCon London: Mastering long-running processes in modern architecturesQCon London: Mastering long-running processes in modern architectures
QCon London: Mastering long-running processes in modern architecturesBernd Ruecker
 
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Alkin Tezuysal
 
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptxThe Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptxLoriGlavin3
 
Decarbonising Buildings: Making a net-zero built environment a reality
Decarbonising Buildings: Making a net-zero built environment a realityDecarbonising Buildings: Making a net-zero built environment a reality
Decarbonising Buildings: Making a net-zero built environment a realityIES VE
 
Generative AI - Gitex v1Generative AI - Gitex v1.pptx
Generative AI - Gitex v1Generative AI - Gitex v1.pptxGenerative AI - Gitex v1Generative AI - Gitex v1.pptx
Generative AI - Gitex v1Generative AI - Gitex v1.pptxfnnc6jmgwh
 
Data governance with Unity Catalog Presentation
Data governance with Unity Catalog PresentationData governance with Unity Catalog Presentation
Data governance with Unity Catalog PresentationKnoldus Inc.
 
A Journey Into the Emotions of Software Developers
A Journey Into the Emotions of Software DevelopersA Journey Into the Emotions of Software Developers
A Journey Into the Emotions of Software DevelopersNicole Novielli
 
Arizona Broadband Policy Past, Present, and Future Presentation 3/25/24
Arizona Broadband Policy Past, Present, and Future Presentation 3/25/24Arizona Broadband Policy Past, Present, and Future Presentation 3/25/24
Arizona Broadband Policy Past, Present, and Future Presentation 3/25/24Mark Goldstein
 

Recently uploaded (20)

MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotesMuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
 
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptx
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptxPasskey Providers and Enabling Portability: FIDO Paris Seminar.pptx
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptx
 
Zeshan Sattar- Assessing the skill requirements and industry expectations for...
Zeshan Sattar- Assessing the skill requirements and industry expectations for...Zeshan Sattar- Assessing the skill requirements and industry expectations for...
Zeshan Sattar- Assessing the skill requirements and industry expectations for...
 
Use of FIDO in the Payments and Identity Landscape: FIDO Paris Seminar.pptx
Use of FIDO in the Payments and Identity Landscape: FIDO Paris Seminar.pptxUse of FIDO in the Payments and Identity Landscape: FIDO Paris Seminar.pptx
Use of FIDO in the Payments and Identity Landscape: FIDO Paris Seminar.pptx
 
Microsoft 365 Copilot: How to boost your productivity with AI – Part one: Ado...
Microsoft 365 Copilot: How to boost your productivity with AI – Part one: Ado...Microsoft 365 Copilot: How to boost your productivity with AI – Part one: Ado...
Microsoft 365 Copilot: How to boost your productivity with AI – Part one: Ado...
 
Generative Artificial Intelligence: How generative AI works.pdf
Generative Artificial Intelligence: How generative AI works.pdfGenerative Artificial Intelligence: How generative AI works.pdf
Generative Artificial Intelligence: How generative AI works.pdf
 
Digital Identity is Under Attack: FIDO Paris Seminar.pptx
Digital Identity is Under Attack: FIDO Paris Seminar.pptxDigital Identity is Under Attack: FIDO Paris Seminar.pptx
Digital Identity is Under Attack: FIDO Paris Seminar.pptx
 
Landscape Catalogue 2024 Australia-1.pdf
Landscape Catalogue 2024 Australia-1.pdfLandscape Catalogue 2024 Australia-1.pdf
Landscape Catalogue 2024 Australia-1.pdf
 
Tampa BSides - The No BS SOC (slides from April 6, 2024 talk)
Tampa BSides - The No BS SOC (slides from April 6, 2024 talk)Tampa BSides - The No BS SOC (slides from April 6, 2024 talk)
Tampa BSides - The No BS SOC (slides from April 6, 2024 talk)
 
So einfach geht modernes Roaming fuer Notes und Nomad.pdf
So einfach geht modernes Roaming fuer Notes und Nomad.pdfSo einfach geht modernes Roaming fuer Notes und Nomad.pdf
So einfach geht modernes Roaming fuer Notes und Nomad.pdf
 
Modern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
Modern Roaming for Notes and Nomad – Cheaper Faster Better StrongerModern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
Modern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
 
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
 
QCon London: Mastering long-running processes in modern architectures
QCon London: Mastering long-running processes in modern architecturesQCon London: Mastering long-running processes in modern architectures
QCon London: Mastering long-running processes in modern architectures
 
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
 
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptxThe Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
 
Decarbonising Buildings: Making a net-zero built environment a reality
Decarbonising Buildings: Making a net-zero built environment a realityDecarbonising Buildings: Making a net-zero built environment a reality
Decarbonising Buildings: Making a net-zero built environment a reality
 
Generative AI - Gitex v1Generative AI - Gitex v1.pptx
Generative AI - Gitex v1Generative AI - Gitex v1.pptxGenerative AI - Gitex v1Generative AI - Gitex v1.pptx
Generative AI - Gitex v1Generative AI - Gitex v1.pptx
 
Data governance with Unity Catalog Presentation
Data governance with Unity Catalog PresentationData governance with Unity Catalog Presentation
Data governance with Unity Catalog Presentation
 
A Journey Into the Emotions of Software Developers
A Journey Into the Emotions of Software DevelopersA Journey Into the Emotions of Software Developers
A Journey Into the Emotions of Software Developers
 
Arizona Broadband Policy Past, Present, and Future Presentation 3/25/24
Arizona Broadband Policy Past, Present, and Future Presentation 3/25/24Arizona Broadband Policy Past, Present, and Future Presentation 3/25/24
Arizona Broadband Policy Past, Present, and Future Presentation 3/25/24
 

Climate Change - Emissions Trading and Policy Frameworks

  • 1.
  • 2. A new direction is needed The way we produce and use energy today is not sustainable
  • 3. Pathways to 2050 for Australia 0 50 100 150 200 250 300 350 400 $0 $20,000 $40,000 $60,000 $80,000 GDP per capita, US$ 2000 (ppp) Energy per capita, GJ A significant shift required in both “energy per GDP” and “CO 2 per unit of energy used” 1971 Improving energy efficiency 2025 2050 1990 2004 CO 2 per energy unit used, t / TJ Slope = Energy per GDP
  • 4. Australia 2004 Solar (5 GW) Wind (5 GW) Coal / CCS (5 GW) Hydro (5 GW) Biomass (5 GW) Coal (5 GW) Gas (5 GW) Direct use (0.2 EJ) Vehicle (2 million) High efficiency vehicle Alternative fuel vehicle ~ 2GW capacity 20 million people 3.25 EJ Final Energy GDP $US 30 K per capita* 350 MT energy CO 2 * USD 2000 (ppp)
  • 5. Australia 2025 Solar (5 GW) Wind (5 GW) Coal / CCS (5 GW) Hydro (5 GW) Biomass (5 GW) Coal (5 GW) Gas (5 GW) Direct use (0.2 EJ) Vehicle (2 million) High efficiency vehicle Alternative fuel vehicle ~ 2GW capacity 25 million people 3.45 EJ Final Energy GDP $US 45 K per capita* 300 MT energy CO 2
  • 6. Australia 2050 Solar (5 GW) Wind (5 GW) Coal / CCS (5 GW) Hydro (5 GW) Biomass (5 GW) Coal (5 GW) Gas (5 GW) Direct use (0.2 EJ) Vehicle (2 million) High efficiency vehicle Alternative fuel vehicle ~ 2GW capacity 28 million people 3.27 EJ Final Energy GDP $US 74 K per capita* 168 MT energy CO 2
  • 7. Pathways to 2050 for the USA (illustrative) 0 50 100 150 200 250 300 350 400 $0 $20,000 $40,000 $60,000 $80,000 $100,000 GDP per capita, US$ 2000 (ppp) Energy per capita, GJ A significant shift required in both “energy per GDP” and “CO 2 per unit of energy used” 2025 2050 1971 CO 2 per energy unit used, t / TJ 1990 2004 Slope = Energy per GDP Improving energy efficiency
  • 8. USA 2004 Solar (50 GW) Wind (50 GW) Coal / CCS (50 GW) Hydro (50 GW) Biomass (50 GW) Nuclear (50 GW) Coal (50 GW) Gas (50 GW) Direct use (5 EJ) Vehicle (20 million) High efficiency vehicle Alternative fuel vehicle 294 million people 66.5 EJ Final Energy GDP $US 36 K per capita* 5.8 billion tonnes energy CO 2 * USD 2000 (ppp)
  • 9. USA 2025 (illustrative) Solar (50 GW) Wind (50 GW) Coal / CCS (50 GW) Hydro (50 GW) Biomass (50 GW) Nuclear (50 GW) Coal (50 GW) Gas (50 GW) Direct use (5 EJ) Vehicle (20 million) High efficiency vehicle Alternative fuel vehicle 335 million people 65.5 EJ Final Energy GDP $US 57 K per capita* 4.9 billion tonnes energy CO 2 * USD 2000 (ppp)
  • 10. USA 2050 (illustrative) Solar (50 GW) Wind (50 GW) Coal / CCS (50 GW) Hydro (50 GW) Biomass (50 GW) Nuclear (50 GW) Coal (50 GW) Gas (50 GW) Direct use (5 EJ) Vehicle (20 million) High efficiency vehicle Alternative fuel vehicle 400 million people 60.1 EJ Final Energy GDP $US 88 K per capita* 2.4 billion tonnes energy CO 2 * USD 2000 (ppp)
  • 11. Key Sectors in the “energy and CO 2 economy” Oil Biomass Gas Coal Nuclear Renewables Primary Energy Liquids Direct combustion Industry and Manufacturing Mobility Final Energy Agriculture and Land Use Energy Energy Energy Buildings Power Generation
  • 12. A structured policy approach is needed A simple, high profile and credible target for the renewables’ share of power generation, supported by a range of incentives to encourage investment. Measures to incentivise new fuels based on their “well-to-wheels” CO 2 reduction potential, implementation of vehicle efficiency standards and vehicle/road-use programs targeted at drivers A series of robust energy standards for buildings, appliances etc. with incentives for retrofit of existing infrastructure. "Cap and trade" emissions trading systems for power generators, most industrial facilities and large fleet transport such as aviation.
  • 13. Emissions Trading or “Cap-and-trade” Initial emissions 100 Mt p.a. Year 5 at 95 Year 15 at 80 Year 10 at 88 Offsets Allowance trading between facilities $ CO 2 Government issues 88 million allowances into the economy CCS Project Efficiency Project
  • 14.
  • 15.
  • 16.
  • 17. Global competition issues $ US product price € EU product price (+ € C) EU installation – carbon constrained ME Installation – no carbon constraint The facility without a CO 2 constraint has a competitive advantage into both domestic and export markets, leading to either or both CO 2 leakage and profit leakage.
  • 18. The CO 2 price and allocation Points of regulation Resource Power Generation Factories Heavy industry Light industry Consumer Electricity Time CO 2 price impact Free allocation early on as little / no price pass through Progressive shift to auctioning as the CO 2 price impacts the economy Full auctioning as the CO 2 price impacts the entire value chain Auction funds recycled to consumers through the tax system
  • 19. A profit neutral approach CO 2 allowances a $ = b $ a $ % $ CO 2 + Product b $ % auctioning Some pass-through $ Recycled, e.g. through the tax system
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. Going global ! 2000 2005 2010 2015 2020 2025 Pre-Kyoto Kyoto Post 2012 Linkage framework Linkages develop between all systems and more systems appear Danish-ETS UK-ETS Australian ETS US National “cap-and-trade” Norwegian ETS EU-ETS CDM CDM evolves to includes sectors Expanding EU-ETS Japan technology standards New technology mechanisms evolve (e.g. for CCS) China adopts CCS standard New Zealand ETS
  • 25.