1. Driving innovation in
sustainability reporting
.
Chair: Eszter Vitorino Füleky, Network Relations Manager,
Global Reporting Initiative
.
Stephen Driscoll, Director Sustainability & Policy;
Development Director rouse Hill, Landcom
Geoff Miller, General Manager, Standard Business Reporting Division,
Commonwealth Treasury
Anna Skarbek, executive Director Climate Works

2. Opportunities to reduce emissions in Australia
& why it’s important to record the early movers
Presentation to GRI conference, Melbourne
27 March 2012
Anna Skarbek
Executive Director, ClimateWorks Australia
www.climateworksaustralia.org

3. Australia’s Government has committed to reduce emissions by
between 5% and 25% below 2000 levels by 2020
– yet emissions will rise by 24% under Business-As-Usual
Australian emissions of greenhouse gases
Mt CO2e
700
690 Business-as-usual
650
159 MtCO2e needed to
-5% +24%
600 reach the 5% target
558 2000 levels
550
Minimum national
531 emissions reduction target
500
272 MtCO2e needed to
reach the 25% target -25%
450
Minimum recommended
418 emissions reduction by the
scientist community
0
1990 2000 2010 2020
2
SOURCE: Department of Climate Change (DCC), Australia's emissions projections 2010, December 2010

4. ClimateWorks’ Low Carbon Growth Plan identifies potential to
meet the 25% target … provided policies can stimulate this
2020 Australia GHG emissions reduction investor cost curve Percent of total opportunity Power Buildings
Cost to investors of GHG reduction, MtCO2e Industry Forestry
Average cost, A$/tCO2e Transport Agriculture
emissions reduction
A$/tCO2e
Economically attractive Moderate cost Higher cost
250 22% 61 Mt -$110 48% 131 Mt $12 29% 80 Mt $109
200
energy cleaner
land power
efficiency
150
100
50
0
0 50 100 150 200 250
-50 Emissions reduction potential
MtCO2e per year
-100
-150
5% 25%
reduction reduction
target target
-400
3
SOURCE: ClimateWorks Australia, Low Carbon Growth Plan for Australia

5. The carbon price package will make it more profitable to do
the lower cost activities …
2020 Australia GHG emissions reduction investor cost curve (from 2012 on) Non-price barrier burden
Cost to investors of emissions reduction with carbon price Low to very low
A$/tCO2e
Medium
High to very high
250
200
150
100
50
0
-50 0 50 100 150 200 250
Emissions reduction potential
-100 MtCO2e per year
-150
-200
-250
-300
-350
-400
SOURCE: ClimateWorks Australia, Low Carbon Growth Plan for Australia; Australian Government, Securing a Clean Energy Future; 4
ClimateWorks Australia analysis

6. … and these already offer opportunities to save money for
operators of plants, infrastructure, buildings and vehicles
Profitable energy efficiency opportunities
2020 GHG emissions reduction investor cost curve in 2011
Other
Cost to investors
A$/tCO2e
200 $5 billion net annual savings1
are available to Australian
150 businesses and households
though improved energy efficiency
100
50
0
0 80 160 240
-50
Abatement potential
Reduced T&D losses MtCO2e
-100
Operational improvements to existing
coal plant thermal efficiency
-150 Residential new builds
Evidence of benefits:
Mining energy efficiency
-200 Other industry energy efficiency The Energy Efficiency Opportunity program (the EEO program)
Operational improvements to existing mandates energy efficiency assessments and reporting by the 199 largest
-250 gas plant thermal efficiency energy using businesses in Australia. The mid-cycle review was conducted
Commercial retrofit lighting at the end of financial year 2008/09 after 3.5 years of operation. It found that:
Residential lighting  The energy savings with a payback of 4 years or less identified amount to
Commercial elevators and appliances a 7% reduction on business-as-usual energy use
Commercial retrofit HVAC
Commercial retrofit energy waste reduction
 This corresponds to 93.1 PJ, or 2.4% of total Australian energy use in
2009
Residential appliances and electronics
Petrol car and light commercial efficiency improvement  It represents $1 billion in net annual financial savings for those
Diesel car and light commercial efficiency improvement companies
1 Value of savings in 2020 from actions conducted in next 9 years, before the carbon price 5
SOURCE: ClimateWorks analysis; DRET, Energy Efficiency Opportunities Program: Mid-Cycle Review, Dec. 2010

7. Yet no national reporting system will capture these early
success stories … creating risk of further future policy instability
Elements Reporting Impact
A carbon price  Only top ~500 emitters require carbon
permits
 No trading in first three years
Energy  Data will be collected from grant recipients
efficiency  No reporting required from companies
investing in energy efficiency unless in EEO
Land  Activity will earn Carbon Farming Initiative credits
(carbon farming)  Only 5% can be used in emissions trading
scheme in first three years
Cleaner power  Default carbon price ($23/t) is not likely to
trigger new power supply investments
 Maintenance and energy efficiency will
improve carbon performance; no need to
report this other than part of total NGERS or if
receiving compensation payments
6
SOURCE: Australian Government, Securing a Clean Energy Future; ClimateWorks Australia analysis

8. ClimateWorks seeks to work with you to measure the hidden
part of the story: the Activity and Drivers, not just Tonnes
Why track activity & drivers?
 Identify the early
action of companies.
When the Australian Outcomes Emissions
Energy use
carbon price begins, this
will help assess its cost
and effectiveness in the Activity Projects
undertaken
early years. There is currently a gap in
measuring action by Projects
businesses and individuals approvals
 Guide future in a comprehensive and Feasibility
studies
policy action by comparable way
identifying lagging areas
Economic
which require attention. context
Drivers Government
 Guide investment policies
decisions by providing Barriers (eg. access
to finance, skills)
industry-specific
information for efficient
capital allocation before
lagged aggregate data is
available. 7

9. This will help show us all what’s working and what’s not
Power Transport Forestry
Industry Buildings Agriculture
2020 Australia GHG emissions reduction investor cost curve (from 2012 on)
Emissions reduction cost to an investor
A$/tCO2e
250
200
150
energy cleaner
land power
100 efficiency
50
0
0 50 100 150 200 250
-50 Emissions reduction potential
MtCO2e per year
-100
-150
-200 5% 25%
reduction reduction
target target
-400
8
SOURCE: ClimateWorks Australia, Low Carbon Growth Plan for Australia; Australian Government, Securing a Clean Energy Future; ClimateWorks analysis

10. THANK YOU
www.climateworksaustralia.org