The Global Climate Leadership Review is an annual report that evaluates countries' leadership on climate change issues. It finds that Australia ranks poorly compared to other developed countries in terms of its capacity for a low-carbon economy. While Australia's Clean Energy Future package is a step forward, the report recommends that Australia commit to stronger emissions reductions under a new Kyoto agreement and pursue trading partnerships with other countries to boost global climate ambition.

1. The
Climate graphic cover slide
Insert
Institute sort of contact details
• List some
Global Climate Leadership Review 2012
1 1

2. Global Review 2012
Introduction
The Global Climate Leadership Review is an annual report produced by
The Climate Institute and is the first flagship project of 2012.
The report puts Australia in the global context:
+ Who is leading the low-carbon economy?
+ Who is leading international cooperation?
+ Where can Australia lead?
www.climateinstitute.org.au/global-review
2

3. Key Findings
3

4. Context
Global investments in clean energy now compete with fossil fuels.
Note:
Investment for new-build
fossil fuel calculated
from Energy Information
Administration &
International Energy
Agency data, clean
energy is derived from
Bloomberg New Energy
Finance totals.
IN PARTNERSHIP WITH
4

5. Context
Many countries are linking climate change and economic growth strategies.
Percentage of climate change related spending in initial economic stimulus packages in individual countries.
5

6. Carbon price 2012-15, globally
Context
Australia’s carbon price is not excessive compared to other nations.
6

7. Low-Carbon Competitiveness
The Climate Institute/GE Low-Carbon Competitiveness Index measures
the current capacity of each country to be competitive and to generate
material prosperity for its residents in a low-carbon world.
2009_ 2012_
Quantitatively ranked G20 countries Updated Index and analysis of the progress countries
have made since 1995
The Index takes a unique approach: IN PARTNERSHIP WITH
variables are selected based on their statistical
correlation with carbon productivity (CO2/GDP)
7

8. LCCI methodology
Low-Carbon Competitiveness
The Low-Carbon Competitiveness Index is made up of 19 indicators grouped into 3 categories.
01. Sectoral Composition 02. Early Preparation 03. Future Prosperity
These variables reflect that These indicators These indicators contribute
economies which have a more reflecting the steps that towards prosperity today and
emissions intensive structure countries have already will also be important in a
will face a greater challenge in taken to move towards a carbon-constrained
remaining competitive in a low carbon economy e.g. future, e.g. high educational
carbon constrained world e.g. investment in sustainable expenditures and investment
carbon-intensive electricity and energy businesses in physical capital
transport sectors
8

9. Low-Carbon Competitiveness
Key Findings
+ France, Japan, the United Kingdom, South Korea and Germany are the best
positioned in a low carbon global economy.
+ Australia is among the lowest ranked countries, ranked lower than
Russia, Argentina, South Africa, the US and Saudi Arabia.
+ Australia ranked 16th and is the worst performing advanced economy among
the G20. It is the only country whose rankings have not improved since the
2009 ranking.
www.climateinstitute.org.au/lcci
9

10. Countries that perform well recognise the link between
economic, resource security and climate change policies.
Australia is the only G20 country that has gone backwards since 1995.
 10

11. High-Speed
Low-Carbon France
Transport Electricity Supply Energy Efficiency Carbon Trading
+ Expected to spend + Mandatory renewable + Government-mandated + Participant in EU
US$37 billion by 2020 energy target of 23% energy efficiency target emissions trading
on public transport of final consumption and trading scheme scheme
+ Standards to limit new by 2020 + A minimum of 9% total + Committed to reducing
car emissions to 95 + Technology-specific energy savings over emissions by a factor
gCO2/km by feed-in tariffs and the period 2008-16 of 4 (a 75% reduction)
2024, compared to 155 ongoing investment + Reduction of energy + The OECD has found
gCO2/km in Australia in nuclear energy and demand in buildings by France’s environmental
+ Penalty and incentive smart grids. 38% by 2020, at which taxation generates
system for the point all new buildings revenue equivalent to
purchase of new cars will be zero-carbon around 1.8% of GDP
based on emissions
 11

12. International Cooperation
Durban Outcomes
+ Agreement to negotiate legal agreement
covering all major emitters
+ Further implementation of Cancun Agreements,
e.g. Green Climate Fund
+ Agreement to increase ambition
+ Agreement on new Kyoto Protocol targets
 12

13. International Cooperation
Other Factors
+ Domestic actions building
international confidence
+ China’s willingness to accept binding
commitments post 2020
+ EU, AOSIS and LDC forming
coalition of ambition
“Anyone can see that we cannot deal with the challenges of the
21st century with a growth model from the 19th and 20th century.”
Connie Hedegaard
European Commissioner
for Climate Action
 13

14. Australian Leadership
+ Clean Energy Future package With the Clean Energy Future package the carbon productivity
broadly keeps pace with global trends. Without the
can get the economy moving package, Australia increasingly falls behind.
in the right direction with other Emissions intensity of global and Australian GDP to 2050
G20 nations
+ Key Next Steps:
+ National energy savings
initiative
+ Clean Energy Finance
Corporation
+ disclosure of climate risks
Source: Treasury, 2011
 14

15. Australian Leadership
+ Whether Australia accepts a new and credible Kyoto target will be a
major test in 2012
+ Not accepting a new Kyoto target is against Australia’s national interest:
+ Undermines efforts towards new agreement that covers all major emitters
+ Reduces Australian influence and undermines national policy goals (e.g.
carbon markets)
 15

16. Australian Leadership
Regional Emissions Trading Coalitions
+ Marginal benefits in linking with EU
+ Create a system to:
+ incentivise developing countries to bet pledges
+ Increase advanced economy ambition
+ Road-test new market mechanisms
+ Strategic focus on:
+ Indonesia and South Korea
+ Exclude REDD
Worker at an Indonesian geothermal plant
 16

17. Australian Leadership
Developing Countries Developed Countries
 17

18. Conclusions
“To remain competitive in a future carbon-constrained world, Australia
will need to turn into a lower-carbon economy.”
Marius Kloppers
CEO, BHP Billiton
+ Australia is not immune to global trends
+ Australia is the only G20 country that has gone backwards on its
low-carbon competitiveness since 1995
+ Australia's Clean Energy Future package represents real progress
when implemented fully
+ To boost global ambition, Australia needs stronger pollution
reductions, new Kyoto commitments, and creative linkages of our
market with others
 18

19. Report partners
Project Partners
Key Partner Project Partners
The Climate Institute would also like to acknowledge Vivid Economics, the British High
Commission and World Resources Institute for their support.
 19

20. More Information
www.climateinstitute.org.au/global-review
 20