economy & energy - crisis solution | biocity studio

CRISIS SOLUTION

Economy

Structure

1. Background Statistics

2. Crisis Scenario

3. Crisis Solutions

4. Justifications

5. Global Perspective

Background Statistics

Federal and State Governments are committed to reducing greenhouse gas emissions.

But, funding tells a very different story: $9,000,000,000 in

subsidies to fossil fuel.FossilFuels

Renewable Energies

Fede

ral a

nd S

tate

Su

bsid

ies

Source: KC 2008, using ACF 2008Source: GreenPeace 2008a

Background Statistics (cont.)

$9.2 Billion passed in subsidies to energy 79% to Oil 14% to Coal 4% to Natural Gas 3% to Renewable

Energy

Artificial lower prices

Source: Greenpeace 2008bSource: KC 2008, using Greenpeace 2008b

Background Statistics (cont.)

Federal Government investment roads ≈ 12 × rail

Other OECD Countries

Roads : Rail 1 : 1 at least

Road Rail

Fede

ral

Inve

stm

ent

Source: KC 2008, using ACF 2008Source: Hugonnard 2008

Background Statistics (final)Australia exports

70% of coal extracted. Equates to ≈10% of

total domestic exports

80% exported to Asia 44% to Japan

Australia contributes 30% to world coal exports

Source: ACA 2008a Source: KC 2009, using ACA 2008b

Crisis Scenario

We look ahead to 2020: Economic Recession following the Australian

Business Cycle Negative economic growth of between 6-

8%

Source: Cleary 2009, using RBA 2008

Crisis Scenario (cont.)

Effects of Climate Change are being felt with drought Production of primary products down 10%

China, India and Japan have pressure put on them to shift towards renewable energy sources.

Source: ABC 2007

Crisis Solution #1

Crisis Solution #1 (cont.)

The other $900m for Retraining & Education Program

o Retraining coal workers for green jobso Education and training for new workerso More funding for universities, TAFEs and

apprenticeships

http://www.evscschools.com/Uploads/Images/8aa7fb32-2d77-4dc5-91b3-46f0674afa2b.jpg

Crisis Solution #2

Crisis Solution #2 (cont.)

Help ease effects of restructuring on communities and businesses Income support for displaced workers and

businesses Relocation assistance for business and

workers Compensation for small businesses Low interest loans for business

Crisis Solution #3

2014 target: 50/50 split of funding to fossil fuel and renewable energy

Policy: redirect 10% of road funding to rail

http://www.cansultmaunsell.com/media/5204.jpg

Crisis Solution #3 (cont.)

Result: $1.44 billion for rail infrastructure 1/3 ($480million) for rail freight lines 2/3 ($950 million) for urban rail transit – Sydney will

greatly benefitBenefits: Reduction in vehicle emissions and

savings

Mitsubushi Electric Co.

Justification

Job creation figures Solar Photovoltaic Industry

Investment of $1 million/10 years = 5.65 persons of employment/year

Redirect $900 Million/year into Solar PV ≈

51 000 jobs/year

Source: Greenpeace 2008a

Justification (cont.)

Coal Industry Investment of $1 million/10 years = 3.96 persons of

employment/year

Over a 4 year political lifespan: more than 60 000 extra jobs created from investment into renewable energy.

Source: Greenpeace 2008a

Justification (cont.)

The Australian coal industry currently employs approximately 30 000 people.

This industry will eventually become obsolete when coal exports diminish.

Source: ACA 2008c

Justification (cont.)

Power produced by Hunter Valley Coal Power Stations ≈ 6000 MW

5900 MW of renewable energy = 28,000 year-long construction jobs + 3000 permanent operation/maintenance jobs.

Justification

Vales Point Power Station

Bayswater Power station Liddell Power Station

Eraring Power Station

Munmorah Power Station

Justification (cont.)

Funding is needed to educate and re-train workers to shift away from the archaic economy and into the 21st Century

Justification (cont.)

NorWest Business ParkPotential for a new renewable energy research facilities. An Australian Silicon Valley?

Justification (cont.)

Justification (cont.)

Investment Roads : Rail 12 : 1 over 5 years

Take 10% of road investment > rail investment

Justification (cont.)

United Nations estimated 25-35% reduction in carbon emissions by 2020 at no net cost.

But!

Average political lifespan = 4 years

Source: Greenpeace 2008a

Justification (cont.)

Source: CSIRO 2008

Justification (final)

Carbon Pollution Reduction Scheme. Giving away 30% of all credits for free Lost revenue ≈ $2.4 Billion (at $20/tonne)

Proposal to sell those at 50% subsidy = $1.2 Billion To assist in transition of economy.

Source: LCC 2008

Global Perspective

Australia is dangerously lagging behind.China and India both have larger renewable energy sectors than Australia.16% of Chinese energy comes from renewable

sources, 26% in India. Australia is sitting low at 8% Australia is well below the global average of

19%

Global Perspective

Xinjiang, China

Three Gorges Dam, China

Aralvaimozhy Station, IndiaGandhi Sagar Dam, India

Global Perspective

Germany has invested $14 Billion in 2007 alone, making them the world leader in renewable energy investment.

This equates to 0.5% of their GDP.

Global Perspectives

Source: EPA 2008Germany is the world leader in solar energy with $14 billion invested in 2007 alone (Blake 2008)

Global Perspectives

Australia has only invested 0.02% of GDP into the renewable energy sector. Only 1/25th the proportion of Germany The majority of energy still comes from coal and

oil

Conclusion

Australia has missed one boat Dr. Zhengrong Shi

Studied at UNSW Australia would not fund his solar research and

development Moved to China for funding Company has flourished and is dominating the

global solar energy market.Lets not miss another that comes our way

Conclusion (cont.)

China and India are both economies in transition and yet, we as a fully developed country and lagging behind them

We cannot keep relying on an obsolete foundation.

We can’t keep holding ourselves back and letting the rest of the world power ahead.

Conclusion (final)

Public Opinion Poll

Which do you think should receive more federal government subsidies?

When should the federal government increase the subsidies for reneweable energy?