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UCD Micheal Smurfit Business School
Sustainability Club Seminar



   Ireland becoming a
        low carbon
  competitive economy
          Laura Burke
        Director General
              EPA

         17th October 2012
Contents


  Need for a low carbon economy
  Ireland Greenhouse Gas Emissions
  Models for a low carbon economy
  Plans and challenges for Ireland
  Behavioural Change
Need for a low carbon economy


  Climate Change
      Primary environmental and societal challenge
      High dependence on fossil fuels
      Agriculture, land use and land use changes
  Global Actions
      UNFCCC and Kyoto, adopted 2C goal under a shared vision
      2009/10
      Emissions to peak before 2020 and reduced by 50% by 2050
  EU Action
      Leader on global actions
      Advocate for the 2C goal, since 1997
      20%-30% reduction by 2020, 80% reduction 2050*
   *Based on IPCC 4th Assessment Report, 2007
Irish Greenhouse Gas Trends 1990-2011



           80,000                                                                                -4%
                                                                                                                     -15%
           70,000                    +27%
           60,000
kt CO2eq




           50,000

           40,000

           30,000

           20,000

           10,000

               0
                    1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

                            Energy      Residential     Industry & Commercial      Agriculture     Transport      Waste
Sectoral Emission Trends 1990-2011

                 25

                 20
 Mtonnes CO2eq




                 15

                 10

                 5

                                                                                        Waste
                 0                                                                      1.8%
                                                                            Transport           Energy
                                                                              19.7%             20.8%

                      Energy        Residential   Industry & Commercial
                      Agriculture   Transport     Waste
                                                                                                    Residential
                                                                                                      11.5%


                                                                          Agriculture            Industry &
                                                                            32.1%               Commercial
                                                                                                   14.0%

                                                                                         2011
Projected Emissions: 2011- 2020

                  50

                  45

                  40

                  35
 CO2eq, Mtonnes




                  30

                  25

                  20

                  15

                  10

                  5

                  0
                           2013        2014        2015        2016       2017            2018       2019          2020

                       Agriculture   Transport   Residential   Energy   Industrial & Commercial   Waste     Annual Limits
A Profile of EU greenhouse gas
emissions – 80% below 1990 levels
A Profile of what Ireland’s greenhouse gas
emissions might look like to 2050

  140%                                            140%


  120%                                            120%

                                                         Energy
  100%                                            100%
                                                         Residential
   80%                                            80%
                                                         Industry &
                                                         Commercial
   60%                                            60%    Transport

   40%                                            40%    Agriculture

                                                         Waste
   20%                                            20%


   0%                                              0%
     1990   2000   2010   2020   2030   2040   2050
Sweden


  Climate Bill 2008/9
  An emissions- neutral country by 2050
  Swedish Environmental Protection Agency drawing up
  scenarios and policy instrument proposals
  Minister for the Environment appointing a reference group
  with representatives of environmental organisations, the
  business sector and the research community, among
  others
  an active dialogue and collaboration - regional and
  municipal level, the business sector and the research
  community.
Norway


  Adoption of a carbon tax in 1991.
  70% of GHG emissions covered by economic instruments

  Carbon Neutral by 2030
     30% reduction by 2020
  One of three largest buyers of carbon credits in world
  Purchase of carbon credits to supplement domestic efforts
  Aim to be a catalyst for market development
EPA – Low Carbon Economy


  National Framework
  Needs actions that have a long term perspective
  Focus should be on domestic action
  All sectors must contribute
  Cost effective mitigation solutions available
     SEAI and Teagasc MACC curves
  Need to understand drivers of action and inaction
     Transport and Agriculture
Legal Basis

  National Climate Strategy 2000 and 2007
  2011- Development of national climate policy
     Independent Study by NESC
         Policy options 2020- June 2012
         Transition to a low carbon future by 2050- Dec 2012
     Public consultation
     Consideration by Oireachtas Committee and stakeholders
  Climate Change Legislation likely
     Head of Bill likely in late 2012 or early in 2013
     Bill by the end of 2013
     Implementation will be critical
Irish Challenges and Opportunities


  Unique Greenhouse Gas Profile within the EU
  Transport and Agriculture
     50% of total emissions 2011
     71% of non EU- ETS emissions
  Agriculture
     Unique profile in the EU
     Are there opportunities? Land use, bio-energy, others
     Not-unique globally: New Zealand and most developing countries
How to realise these
  opportunities?
A marginal abatement cost curve for Irish agriculture – Teagasc Submission to National Climate Policy Consultation




                        How to realise these
                          opportunities?
Irish Challenges and Opportunities


  Energy
     21% emissions 2011
  Highly Electrified Economy
     Large scale use of renewable energy (wind, wave, tidal, solar and
     biofuels)
     Decarbonise other sectors
Behavioural change



                     Requires:
                       Information
                       Leadership (by doing!)
                       Regulation
                       Incentivisation
                            Taxation
                            Investment (e.g.
                            subsidies,
                            infrastructure)
Putting a price on carbon – emissions
  trading

                    25
                                       -9%
                                                       -16%
                    20
                                                                +1%
                                                                             -9%
   Mtonnes, CO2eq




                    15




                    10




                    5




                    0
                         2005   2006     2007   2008     2009         2010     2011


30% drop in emissions from the Emissions Trading Sector between 2005 and 2011
Putting a price on carbon - carbon tax


  The carbon tax was first applied in 2010 to mainly, the
  non-traded sectors, transport and heat in buildings

  In transport – emissions have fallen by 22% since peak in
  2007

  Recession and other policy influences at play but carbon
  tax has also played a role?

  Carbon tax has yet to be applied to coal and peat, the
  most carbon intensive of all fossil fuels
Incentives- CO2 emissions of new cars
           180

                         167.7   167.2   166.7   167.9
           170   166.1                                   166.1
                                                                         164.0
                                                                 161.7
                                                                                 158.2
           160


           150
                                                                                           144.0
CO2 g/km




           140
                                                    Change in VRT and Motor Tax                     132.8
                                                    for new cars                                             128.0
           130                                                                                                       125.8


           120


           110


           100
                 2000    2001    2002    2003    2004    2005    2006    2007    2008      2009     2010     2011    2012
                                                                                         Source : SEAI (2012).
Resource Efficiency


  Global population 9 billion by 2050
     3 billion more middle class consumers
     Increases in demand for resources
  OECD
     Resource Use at existing level a barrier to future economic growth
  Resource Efficiency
Resources Efficiency programme for hotels, catering companies &
 restaurants
Resources use mapping (waste, water, & energy)
Certification & Award scheme, 270 members
  o 140 of which are hotels
  o Representing >16% of Irish Hotels
In 2011:
  o 6,400t waste reduction (equivalent to >6,000 households)
  o 352 million litres water saved
  o 39M kWh energy saved
In 2011 €5.6M saved by members (recurring saving too!)
Partnership Resource Efficiency programme with Health Services
Executive
Resources use mapping (waste, water, & energy)
Concentration on Food Waste
30 healthcare facilities participating
 - 50% of national Acute beds in Ireland (~8,000 beds)
 - ~800 Community care beds
1,700t food wastage identified, costing €3.7M/annum (for purchase, prepare
& dispose)
~800t non-risk waste in Risk Waste Bins, costing ~€700,000 per annum
2,000 t recyclable waste in Residuals bins, costing €220,000 per annum
Conclusions


  Now is the time to set both the right level of ambition and the
  right pace of transition to a low-carbon economy

  Choice is not between growth and non-growth – it is between
  high-carbon growth and low-carbon growth

  Deployment requires clear, consistent and effective policies and
  incentives

  Changes in lifestyle and behaviour barriers need to be
  addressed - potential for wide ranging, long-term impact

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Laura Burke, Director General of the EPA presentation to Smurfit Business School Sustainability Club on 17th October 2012

  • 1. UCD Micheal Smurfit Business School Sustainability Club Seminar Ireland becoming a low carbon competitive economy Laura Burke Director General EPA 17th October 2012
  • 2. Contents Need for a low carbon economy Ireland Greenhouse Gas Emissions Models for a low carbon economy Plans and challenges for Ireland Behavioural Change
  • 3. Need for a low carbon economy Climate Change Primary environmental and societal challenge High dependence on fossil fuels Agriculture, land use and land use changes Global Actions UNFCCC and Kyoto, adopted 2C goal under a shared vision 2009/10 Emissions to peak before 2020 and reduced by 50% by 2050 EU Action Leader on global actions Advocate for the 2C goal, since 1997 20%-30% reduction by 2020, 80% reduction 2050* *Based on IPCC 4th Assessment Report, 2007
  • 4. Irish Greenhouse Gas Trends 1990-2011 80,000 -4% -15% 70,000 +27% 60,000 kt CO2eq 50,000 40,000 30,000 20,000 10,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Energy Residential Industry & Commercial Agriculture Transport Waste
  • 5. Sectoral Emission Trends 1990-2011 25 20 Mtonnes CO2eq 15 10 5 Waste 0 1.8% Transport Energy 19.7% 20.8% Energy Residential Industry & Commercial Agriculture Transport Waste Residential 11.5% Agriculture Industry & 32.1% Commercial 14.0% 2011
  • 6. Projected Emissions: 2011- 2020 50 45 40 35 CO2eq, Mtonnes 30 25 20 15 10 5 0 2013 2014 2015 2016 2017 2018 2019 2020 Agriculture Transport Residential Energy Industrial & Commercial Waste Annual Limits
  • 7. A Profile of EU greenhouse gas emissions – 80% below 1990 levels
  • 8. A Profile of what Ireland’s greenhouse gas emissions might look like to 2050 140% 140% 120% 120% Energy 100% 100% Residential 80% 80% Industry & Commercial 60% 60% Transport 40% 40% Agriculture Waste 20% 20% 0% 0% 1990 2000 2010 2020 2030 2040 2050
  • 9. Sweden Climate Bill 2008/9 An emissions- neutral country by 2050 Swedish Environmental Protection Agency drawing up scenarios and policy instrument proposals Minister for the Environment appointing a reference group with representatives of environmental organisations, the business sector and the research community, among others an active dialogue and collaboration - regional and municipal level, the business sector and the research community.
  • 10. Norway Adoption of a carbon tax in 1991. 70% of GHG emissions covered by economic instruments Carbon Neutral by 2030 30% reduction by 2020 One of three largest buyers of carbon credits in world Purchase of carbon credits to supplement domestic efforts Aim to be a catalyst for market development
  • 11. EPA – Low Carbon Economy National Framework Needs actions that have a long term perspective Focus should be on domestic action All sectors must contribute Cost effective mitigation solutions available SEAI and Teagasc MACC curves Need to understand drivers of action and inaction Transport and Agriculture
  • 12. Legal Basis National Climate Strategy 2000 and 2007 2011- Development of national climate policy Independent Study by NESC Policy options 2020- June 2012 Transition to a low carbon future by 2050- Dec 2012 Public consultation Consideration by Oireachtas Committee and stakeholders Climate Change Legislation likely Head of Bill likely in late 2012 or early in 2013 Bill by the end of 2013 Implementation will be critical
  • 13. Irish Challenges and Opportunities Unique Greenhouse Gas Profile within the EU Transport and Agriculture 50% of total emissions 2011 71% of non EU- ETS emissions Agriculture Unique profile in the EU Are there opportunities? Land use, bio-energy, others Not-unique globally: New Zealand and most developing countries
  • 14. How to realise these opportunities?
  • 15. A marginal abatement cost curve for Irish agriculture – Teagasc Submission to National Climate Policy Consultation How to realise these opportunities?
  • 16. Irish Challenges and Opportunities Energy 21% emissions 2011 Highly Electrified Economy Large scale use of renewable energy (wind, wave, tidal, solar and biofuels) Decarbonise other sectors
  • 17. Behavioural change Requires: Information Leadership (by doing!) Regulation Incentivisation Taxation Investment (e.g. subsidies, infrastructure)
  • 18. Putting a price on carbon – emissions trading 25 -9% -16% 20 +1% -9% Mtonnes, CO2eq 15 10 5 0 2005 2006 2007 2008 2009 2010 2011 30% drop in emissions from the Emissions Trading Sector between 2005 and 2011
  • 19. Putting a price on carbon - carbon tax The carbon tax was first applied in 2010 to mainly, the non-traded sectors, transport and heat in buildings In transport – emissions have fallen by 22% since peak in 2007 Recession and other policy influences at play but carbon tax has also played a role? Carbon tax has yet to be applied to coal and peat, the most carbon intensive of all fossil fuels
  • 20. Incentives- CO2 emissions of new cars 180 167.7 167.2 166.7 167.9 170 166.1 166.1 164.0 161.7 158.2 160 150 144.0 CO2 g/km 140 Change in VRT and Motor Tax 132.8 for new cars 128.0 130 125.8 120 110 100 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source : SEAI (2012).
  • 21. Resource Efficiency Global population 9 billion by 2050 3 billion more middle class consumers Increases in demand for resources OECD Resource Use at existing level a barrier to future economic growth Resource Efficiency
  • 22. Resources Efficiency programme for hotels, catering companies & restaurants Resources use mapping (waste, water, & energy) Certification & Award scheme, 270 members o 140 of which are hotels o Representing >16% of Irish Hotels In 2011: o 6,400t waste reduction (equivalent to >6,000 households) o 352 million litres water saved o 39M kWh energy saved In 2011 €5.6M saved by members (recurring saving too!)
  • 23. Partnership Resource Efficiency programme with Health Services Executive Resources use mapping (waste, water, & energy) Concentration on Food Waste 30 healthcare facilities participating - 50% of national Acute beds in Ireland (~8,000 beds) - ~800 Community care beds 1,700t food wastage identified, costing €3.7M/annum (for purchase, prepare & dispose) ~800t non-risk waste in Risk Waste Bins, costing ~€700,000 per annum 2,000 t recyclable waste in Residuals bins, costing €220,000 per annum
  • 24. Conclusions Now is the time to set both the right level of ambition and the right pace of transition to a low-carbon economy Choice is not between growth and non-growth – it is between high-carbon growth and low-carbon growth Deployment requires clear, consistent and effective policies and incentives Changes in lifestyle and behaviour barriers need to be addressed - potential for wide ranging, long-term impact