Item 7.1 - Attachment 1 |
Previous Council Report |
ENVIRONMENT
ITEM NUMBER 11.2
SUBJECT Community
Emission Reductions under the Proposed Carbon Pollution Reduction Scheme (CPRS)
REFERENCE F2008/00542 - D01349293
REPORT OF Environmental Management System Coordinator
PURPOSE: To support efforts to ensure that voluntary actions taken by Council
and its community to reduce personal contribution to climate change are
recognised as additional actions under the Carbon Pollution Reduction Scheme
and do not give licence to big polluters to increase their emissions. |
(a) That
Parramatta City Council write to the Prime Minister, the Minister for Climate
Change, the Leaders of the Liberal Party, National Party and Australian
Greens, Senator Steve Fielding and Senator Nick Xenaphon expressing Council’s
concern that the proposed CPRS will not recognise voluntary action to reduce
emissions by the community, councils and businesses outside the CPRS. (b) Further, that the letter call on all parties to amend the CPRS legislation
to ensure that voluntary actions that result in the abatement of greenhouse
gases are considered as additional to mandatory emissions reduction targets
and that CPRS permits are retired for every tonne of abatement from voluntary
action. |
BACKGROUND
1. The
CPRS is a “cap and trade” scheme in which a cap is set on greenhouse gas
emissions, with tradable permits issued up to the amount of this emissions cap.
The intent of the scheme is that emissions reductions can be achieved at the
lowest possible price.
2. The CPRS will not
cover all greenhouse gas emissions in Australia. Rather, only businesses deemed
to be liable entities will be required to participate. Under the existing CPRS proposal, Parramatta
City Council will not be considered a liable entity and will have no associated
reporting responsibilities.
3. The emissions reduction targets under the
CPRS legislation are:
a. 25% below 2000 levels by 2020 if there is
global agreement on greenhouse gas stabilisation, or
b. between 5-15% if global agreement falls short
of the necessary stabilisation.
4. Council’s targets for emissions reductions
are higher than those adopted by the Federal Government.
ISSUES/OPTIONS/CONSEQUENCES
5. Parramatta City Council has long
acknowledged a corporate responsibility to minimise its contribution to climate
change. The first Principle of Council’s Adopted Climate Action Plan 2006-2011
is that “we are all, individually and collectively, responsible for managing
climate change. We must recognise that we are all responsible for the total
greenhouse gas emissions in the LGA”.
6. In support of this principle, Council has
set targets for energy and emissions reductions, purchased accredited GreenPower
for all assets, purchased carbon offsets for some aspects of the business and
installed solar panels on some buildings.
7. Likewise, Council has encouraged the local
residential and business communities to reduce their contribution to climate
change, including through purchase of solar hot water systems and GreenPower,
participation in business programs to reduce energy consumption and emissions
and purchase of energy efficient products.
8. As the existing CPRS legislation stands,
the cap on emissions will act as both a “floor” and a “ceiling”. This means
that, although emissions will be lowered to a certain level, they will also be
prevented from going lower still. Thus, individual action taken by residents,
businesses and councils outside the CPRS requirements will create additional
permits for more and cheaper emissions from the big polluters.
9. For example, under the CPRS, Council’s purchase
of GreenPower will allow large businesses to create as many tonnes of emissions
as Council has saved through those purchases, in addition to the maximum
already permitted.
10. Council has a strong interest in ensuring
that its actions have a real impact and are not a waste of ratepayers’ money,
however, the existing form of the CPRS will make Council’s voluntary actions on
climate change largely pointless as they will merely allow big business to pollute
more.
11. To prevent climate change, it is necessary
that all individuals, businesses and government contribute to reducing
emissions. To ensure this occurs, action taken by Council and its community
must not enable large businesses to reduce their own efforts.
12. An alliance of environmental and consumer
advocacy groups including CHOICE, the Australian Conservation Foundation, WWF
Australia and Environment Victoria, have initiated a campaign to ensure that
voluntary action is taken into account. The group has proposed that the Federal
Government amend the CPRS legislation to ensure that voluntary actions are
counted as additional to the target emissions cap, so that the total number of
emissions permits remains constant regardless of individual action outside the
scheme. Unlike the current form of the
scheme, this change would ensure in an actual reduction in emissions.
13. The group has called upon local councils to
support the recommended change to the CPRS to ensure that the efforts of councils
and their communities to reduce emissions are recognised.
FINANCIAL IMPLICATION FOR COUNCIL
14. Should the CPRS be brought into effect as
current legislation allows, Council’s expenditure on GreenPower and other
actions to reduce greenhouse gas emissions will be paying for large businesses
to increase their pollution levels.
15. There are no financial implications for
Council if the recommendations are adopted.
Katherine Lustig
Environmental Management System Coordinator
There are no attachments for this report.
REFERENCE MATERIAL