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Why is the World Bank backing coal power in Europe's youngest country?
The World Bank is poised to support a new coal plant that would modernise Kosovo’s creaking energy infrastructure, but also lock the young nation into a future powered by a regressive fossil fuel
In the early days of December 2015, as the Paris climate talks veered off course and off schedule, the US secretary of state John Kerry left his team of negotiators and flew to Kosovo to voice his support for a proposed US-built, World Bank-sponsored coal power station.
Speaking alongside the prime minister, Isa Mustafa, Kerry told reporters at Pristina airport that the Kosovo e re (New Kosovo) plant would help the tiny, impoverished country do “its part to contribute to this global effort of nations who are committed to dealing with climate change” by replacing an extremely high-polluting cold war-era power plant. Kerry then returned to Paris and helped land a deal intended to bring the fossil fuel era to an end.
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The environment-energy superportfolio can deliver real action – here's how
When Victorian Premier Daniel Andrews reshuffled his cabinet in May, most of the headlines were about Wade Noonan’s return after suffering mental health issues, and Lisa Neville who became the state’s first female police minister.
But from an environmental perspective there was another significant change. Energy and resources, long regarded as twin portfolios, were split. Instead, the energy brief was partnered with climate change and environment under a single minister, Lily D’Ambrosio.
On Monday, Prime Minister Malcolm Turnbull followed suit, creating a new super-portfolio of environment and energy, with Josh Frydenberg as the minister.
Linking policy development and decision-making for the energy and climate change portfolios makes sense. As a result of the historic Paris Agreement struck last year, the world – including Australia – is committed to achieving net zero emissions by 2050.
This calls for a major transformation, shifting the world’s energy away from fossil fuels and towards renewable sources like solar and wind, newer technologies such as wave and geothermal energy, and innovations like battery storage and energy demand management.
In that sense, energy and climate (and therefore the environment) go hand in hand. Decisions about energy sources have direct implications for our ability to deal with climate change. Conversely, decisions taken to reduce emissions will invariably impact on the energy portfolio. The two sectors have been crying out for better integration.
Many of the technologies needed to decarbonise our electricity system are already available. But we need to move faster. Our research at ClimateWorks Australia shows we will need at least 50% renewable electricity by 2030 if we are to decarbonise the electricity sector in time to avoid the worst effects of climate change.
This means we need policies that will push harder to help large-scale clean energy technologies reach the necessary level of commercialisation and integration.
Renewables and efficiencyWithin these broad portfolios, there are particular policy areas that also need to be linked more closely with one another. In particular, renewable energy policy needs to be combined with measures to promote energy efficiency.
There is a natural synergy between renewable energy and energy efficiency, yet the two have never been systematically linked at either a national or state level. The better our energy efficiency performance, the less investment we need in new renewable energy sources to replace carbon-intensive ones. This in turn helps to lower the overall network costs and can protect households against rising power bills.
While unit prices of electricity are expected to rise as we modernise and decarbonise the energy system, household bills need not. If governments promote energy efficiency at the same time, households can reduce their energy use to offset the rising energy costs, keeping bills flat or even reducing them.
The lack of joined-up thinking between these two areas has led to missed opportunities. Some 1.5 million Australian homes have solar panels, thanks in part to the federal incentive scheme. Meanwhile, there are separate state-based incentive schemes for household energy efficiency. Why have these two never been linked? If solar panel installers could also provide household energy efficiency audits, householders could kill two birds with one stone and further reduce their demands on the electricity grid.
Household battery storage technology provides the next key opportunity to link installation incentives with renewable energy and energy efficiency. But this opportunity will again be missed if policies are not better integrated within the portfolio.
The National Energy Productivity Plan is a new policy with 34 measures aimed at improving energy efficiency. Frydenberg led this process when he chaired the COAG Energy Council last year. He has retained these responsibilities within his expanded portfolio, giving him a golden opportunity to take a truly integrated approach.
In the meantime, D’Ambrosio has taken the opportunity to review Victoria’s upcoming action plans on renewable energy and energy efficiency, to take advantage of the opportunity in her joint portfolio to ensure energy and climate policies have the close integration they need.
Whole-of-government supportOf course, integrating the energy and climate portfolios is not the whole solution. Cabinet support will still be needed to introduce integrated policies in other areas that are critical to hitting Australia’s emissions reduction targets. Examples include: putting specific regulations on emissions-intensive industries; creating market enablers for low-carbon technologies; ratcheting up green standards for buildings, vehicles and infrastructure; and ensuring planning approval systems are designed to take account of these targets.
The real work will need to happen in the federal government’s 2017 review of policies to achieve Australia’s Paris emissions target of 26-28% below 2005 levels by 2030. A recent Pricewaterhouse Coopers report found that “Australia will need to nearly double its historic rate of decarbonisation, to 4.4% annually”, if it is to meet even the lower end of this goal.
Ministers often talk about taking a “whole-of-government approach” to major issues. Yet plenty of silos still need breaking down if we are to achieve meaningful action on climate change.
The moves in both Canberra and Spring Street to bring environment, climate and energy under a single umbrella are a positive step towards better policy and real action. But, as ever, there is still plenty of hard work ahead.
Anna Skarbek is CEO of ClimateWorks which receives funding from philanthropy and project-based income from federal, state and local government and private sector organisations.
Treasury cut to carbon capture will cost UK £30bn, says watchdog
Government says carbon storage technology not cost-efficient, while critics say U-turn will double cost of tackling climate change
The government’s cancellation of a pioneering £1bn competition to capture and store carbon emissions may have pushed up the bill for meeting the UK’s climate targets by £30bn, according to a report from the UK’s official spending watchdog.
The National Audit Office (NAO) report, published on Wednesday, says the move has delayed by a decade the deployment of carbon capture and storage (CCS) technology in the UK, which takes emissions from power stations and industry and buries them so they do not contribute to global warming.
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Clifftop memories of a Devon shipwreck
Bolt Head, South Devon This Finnish windjammer loaded with thousands of tons of grain had reached Falmouth from south Australia in just 86 days
Eighty years ago the cliff-land here was thronged with curious sightseers, including my grandfather and uncle who drove from St Dominic to view the wreck of the Herzogin Cecilie with its masts towering towards the spectators. This Finnish windjammer – a four-masted barque loaded with thousands of tons of grain – had reached Falmouth from the Boston Island anchorage in south Australia in just 86 days, but on the last lap towards Ipswich it foundered on the Ham Stone off Soar Mill Cove.
Hosegoods, the Plymouth grain merchants, salvaged damp wheat, and my grandfather bought some cheaply for delivery to Cotehele Mill via the river Tamar and his barge, the Myrtle. It was mixed with extra-dry Persian barley, made into pig and poultry meal, and sold to local farmers.
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Hottest ever June marks 14th month of record-breaking temperatures
US agencies Nasa and Noaa say last month was 0.9C hotter than the 20th century average and the hottest June since records began in 1880
As the string of record-breaking global temperatures continues unabated, June 2016 marks the 14th consecutive month of record-breaking heat.
According to two US agencies – Nasa and Noaa – June 2016 was 0.9C hotter than the average for the 20th century, and the hottest June in the record which goes back to 1880. It broke the previous record, set in 2015, by 0.02C.
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Full of holes: why Australia's mining boom will leave permanent scars
With the coal boom on the wane, mining companies want to escape the cost of rehabilitating their sites. But even if governments effectively restrain them, many of the huge voids in the landscape will never be filled in
Australia is teetering on the edge of a massive hole – one left by huge mines that may soon close. As they do, the country is playing a desperate game of catch-up to make sure the mining companies pay for the cleanup. But a legacy of limited environmental requirements means that even if that succeeds, the end of the coal boom will leave Australia pockmarked with unfilled holes.
This game has been highlighted in recent years by a trend of major miners unloading projects to industry minnows amid a coal slump. As they do so, taxpayers risk being lumped with cleanup costs in the wake of their collapse.
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