Distr.
GENERAL
A/AC.237/NC/4
26 October 1994
Original: ENGLISH
INTERGOVERNMENTAL NEGOTIATING COMMITTEE
FOR A FRAMEWORK CONVENTION ON CLIMATE CHANGE
In accordance with decision 9/2 of the Committee, the interim
secretariat is to make available, in the official languages of the
United Nations, the executive summaries of the national
communications submitted by Annex I Parties.
GE.94-
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Introduction
1. Australia, along with over 150 other countries, signed the
United Nations Framework Convention on Climate Change (FCCC) at the
United Nations Conference on the Environment and Development in June
1992. Australia became the ninth country to ratify the Convention
when in December 1992 it lodged its instrument of ratification with
the United Nations Secretary-General.
2. This national communication sets out how Australia, as an Annex
1 Party to the convention, is meeting its international obligations.
It provides a preliminary overview of the national circumstances that
influence Australia's response capacity and also outlines what
strategies and measures have been taken to date to address the
enhanced greenhouse effect.
Australia's National Context
3. Australia is the lowest, the flattest and, apart from
Antarctica, the driest of the world's continents. With a land mass of
over 768 million hectares, it is the sixth largest country in the
world but with a population density of only two people per square
kilometre. Australia's population was 17.5 million at June 1991, an
increase of 1.4 per cent over the previous year. Net migration
accounted for 43 per cent of this increase. In the period 1985-92,
Australia had a population growth rate that was higher than all other
Annex 1 countries with the exception of Turkey.
4. Australia has a wide range of climatic zones. Rainfall
variability is characteristic of much of the continent. Extreme
climate events such as droughts, floods, tropical cyclones, severe
storms and bushfires are regular environmental factors requiring
flexibility and adaptation.
5. Land use in Australia covers a vast array of activities
including agriculture and forestry, nature conservation, mining,
human settlement and infrastructure. The present standing biomass of
forest vegetation is estimated to contain about 70 gigatonnes of
carbon dioxide. Australia's forest resources encompass some 41
million hectares of native forest and 1 million hectares of
plantations. In recognition of its unique and megadiverse fauna and
flora, Australia has one of the world's largest designated areas for
nature conservation with over 50 million hectares of terrestrial
parks and reserves and nearly 40 million hectares of marine and
estuarine protected areas.
6. While the service sector is increasingly important to the
economy (accounting for 70 per cent of GDP in the 1990s), Australia
is very reliant on the export of fossil fuels. In 1990-91 the coal
industry accounted for 14.5 per cent of total commodity exports.
Australia has no domestic nuclear power facilities and strictly
regulates the development of new uranium mines and uranium exports.
This contrasts markedly with other OECD countries where average
consumption of nuclear energy is around 23.8 per cent of energy
use.
7. In 1989-90, the energy production sector, excluding coal and
uranium production, accounted for 5 per cent of GDP, one per cent of
total employment, A$60 billion in capital investment and 8 per cent
of total Commonwealth Government revenues. While demand for energy
has been growing strongly over the last three decades, and
Australia's efficiency in energy production has increased over this
period. Total emissions are estimated at less than 1.4 per cent of
world emissions although per capita emissions are high because of the
export orientation of the economy and size of energy intensive
industries such as aluminium smelting.
8. Australia is for historical and geographical reasons reliant
upon fossil fuel-dependent road transport because of the dispersed
distribution of population centres across the continent and the low
density of settlements within major urban areas. Almost 90 per cent
of passenger kilometres and 33 per cent of freight kilometres are
accounted for by road transport. Overall, the transport sector
accounts for some 24 per cent of all emissions of carbon dioxide from
fossil fuels.
9. While Australia recognises that accurate scientific data on the
potential regional impacts of climate change are not yet available,
there are particular vulnerabilities that warrant action in line with
the precautionary principle. For example, the potential dangers of
the spread of tropical diseases and pests could adversely affect the
agricultural and pastoral industries. Coastal areas may be subject to
greater storm and flood frequency increasing the cost of
infrastructure and services.
Australia's National Greenhouse Gas Inventory
(NGGI)
10. Australia has used a methodology based on the IPCC methodology
to compile the Australian National Greenhouse Gas Inventory
(NGGI).
11. A key issue for Australia is the anthropogenic burning of
biomass. This phenomenon has been occurring for at least the last 40
000 years as part of land management practices and is still used
throughout Australia. Deliberate regular burning of biomass under
controlled conditions causes less damage to vegetation, wildlife and
human settlements than catastrophic bushfires. Because controlled
burning does not change the natural carbon cycle, carbon dioxide
emissions from that source have not been included in the
inventory.
12. Overall, while the inventory is consistent with the current
state of world knowledge in greenhouse gas assessments the level of
robustness in the figures does vary with the quality of the data
obtained. For example, while the transport sector estimates have a
high degree of accuracy (plus or minus 10 per cent), the land use and
forestry sector and the agriculture sector have a much higher degree
of uncertainty (typically a factor of two). This is because of the
implicit difficulty in obtaining accurate data and statistics on land
clearing and on the carbon content of vegetation and in soils.
Research to improve the quality of the data will
continue.
13. For 1990 the inventory shows that Australia emitted 572
million tonnes of carbon dioxide equivalent, of which the
distribution by gas was:
. Carbon dioxide 73.4%
. Methane 22.9%
. Nitrous oxide 3.1%
. Other 0.6%
14. Total carbon dioxide emissions for 1990 from all sectors
amounted to 420 million tonnes. Carbon dioxide emissions from energy
production and use (282 million tonnes) dominate. Emissions from land
use change and forestry contributed just over 30 per cent of the
total.
15. Within the energy sector, the main source of carbon dioxide
emissions is energy transformation industries producing 160 million
tonnes of carbon dioxide. Emissions from energy and transformation
industries were close to twice those of transport. Industrial
processes sector emissions are only 1 per cent of total carbon
dioxide emissions. The main source of emissions in the biosphere was
land clearing for agriculture which are estimated by the expert group
to lie between 39 million tonnes and 352 million tonnes with a best
estimate of 156 million tonnes. Managed forests are however a sink
and carbon dioxide uptake by managed forests and pasture improvement
amounted to 25 million tonnes or 16 per cent of carbon dioxide
emissions from land clearing.
16. Methane emissions for 1990 amounted to 6.2 million tonnes. In
terms of carbon dioxide equivalents, methane emissions at 131 million
tonnes accounted for about 23 per cent of total emissions of 572
million tonnes. The main sources of methane emissions were waste and
agriculture, especially livestock.
17. Nitrous oxide emissions of 17.4 million tonnes carbon dioxide
equivalent make up 3 per cent of total 1990 greenhouse gas emissions
of 572 million tonnes. Agriculture was the primary source of nitrous
oxide emissions.
18. The sources of other minor gases are discussed in the body of
the report.
National Greenhouse Response Strategy
(NGRS)
19. The primary framework for addressing climate change is the
National Greenhouse Response Strategy which along with the National
Strategy for Ecologically Sustainable Development was endorsed by
Australian Governments (Commonwealth, state and local) in 1992. It is
important to note that the NGRS is a dynamic strategy that provides
for a phased approach to the introduction of measures in order to
achieve cost-effective outcomes of lasting, long term
benefit.
20. In the first phase of measures adopted under the NGRS,
Australian governments agreed to a range of initiatives based on the
comprehensive approach of addressing all sources, sectors and sinks
of greenhouse gases. The prime objective is set by the Interim
Planning Target which aims to:
stabilise greenhouse gas emissions (not controlled by the
Montreal protocol) based on 1988 levels by the year 2000 and to
reduce these emissions by 20 per cent by the year 2005subject to
Australia not implementing response measures that would have net
adverse impacts nationally or on Australia's trade competitiveness,
in the absence of similar action by major greenhouse gas producing
countries.
21. The main initiatives aimed at addressing greenhouse gas
emissions are:
structural reform of the electricity sector (including integrated least cost planning)
energy pricing to better reflect economic, social and environmental costs
removal of impediments to free and fair trade in natural gas in Australia
promoting greater use of co-generation and renewable energy options
improved energy performance in the household, industrial, commercial and
transport sectors
provision of information for energy users.
22. The NGRS recognises that greenhouse friendly policies must
be supported by institutional and structural reform particularly in
the energy sector. This sector is primarily the responsibility of the
states under Australia's federal system of government.
National Electricity Market
Reforms
23. The Council of Australian Governments (a domestic heads of
government forum for discussing broad, strategic policy issues)
agreed to cooperate in the implementation of major structural reform
of the electricity supply industry. A National Grid Management
Council has been established to oversee the implementation of reforms
that include the introduction of competition in the generation sector
and the establishment of an independent interstate transmission
network separate from generation and distribution interests. The
scheduled implementation date for the competitive electricity market
is 1 July 1995.
24. The move to a competitive market will allow a range of
specific energy benefits to be realised. A competitive market will
provide the right price signals which will ensure that efficiency
measures, renewable energy options and demand side measures are
adopted where they are more cost-effective.
25. For greenhouse gas abatement, this means opening up the
opportunities for cleaner energy forms (for example, natural gas and
solar power) as well as giving co-generation and demand management
options the capacity to compete with traditional coal-based
electricity generation. Australia already is a world leader in solar
technology while co-generation and demand management are being
progressively implemented at enterprise level.
26. For example, a demand management action plan developed by
the State Electricity Commission of Victoria resulted in the
investment of A$33 million in energy efficiency measures for
Victorian businesses. Telecom Australia has used photovoltaic
technologies since the 1980s for telecommunications while economic
incentives have been used nationally to encourage demand for solar
hot water systems. In South Australia, methane from landfill sites is
being used to generate power to supplement the state electricity
grid.
27. Also, a major point is that the development of a national
electricity market is providing incentives for the growth states like
Queensland to draw on the excess generating capacity of states such
as New South Wales, thereby obviating the necessity for additional
electricity generation in the future. In addition, pricing policies
that better reflect the full cost of supply and that eliminate cross
subsidies should also encourage more sensible investment in energy
infrastructure.
Sectoral Initiatives
28. A national program of action on energy management
involving the
Commonwealth, states and territories is coordinated by the
relevant ministerial council. Energy audits, the use of energy
efficient building materials and appliances, guidelines for passive
solar housing and strategic designs for more energy efficient urban
development are all being actively investigated or implemented at
national, state or local government level.
29. In recognition of the importance of the residential and commercial sectors in energy use, the Prime Minister in 1992 announced energy efficiency targets for buildings owned or occupied by the Commonwealth. A 15 per cent increase in efficiency is anticipated within five years and 25 per cent within 10 years.
In the manufacturing sector the Commonwealth has encouraged
firms at the enterprise level to adopt greater energy efficiency
through programs such as Enterprise Energy Audit Program, the Cleaner
Production Program and the Better Business by Environmental
Management Program. Measures have also been included in the tax
system to enable firms to invest in new plant and equipment and
offset the costs of environmental expenditures. This provides an
incentive for investment in greater energy efficiency. In the
transport sector government initiatives with the potential to save
energy and reduce carbon dioxide emissions include rail reforms, road
transport reform, the promotion of technical innovation, controls on
vehicle emissions, a national bicycle strategy, improving the
efficiency of public transport and fleets, the use of alternative
fuels, urban planning and design and travel demand
strategies.
30. Sustainable land use management is becoming the subject of
increasing attention in Australia with greenhouse benefits stemming
from the enhancement and preservation of the carbon sinks in
vegetation and soils. The period 1990-1999 has been declared the
decade of Landcare and more than A$320 million has been committed by
the Commonwealth for land management, tree planting and remnant
vegetation protection programs. Tax concessions have also been
provided to enable rural producers to offset environmental management
costs. Measures to manage land clearing and forestry have also been
introduced as part of the broad range of measures agreed as part of
the National Strategy for Ecologically Sustainable Development and
the National Forest Policy Statement.
31. Research into the processes of climate change and its
monitoring has also been a major task for Australia's premier
research institutions. A core research program is conducted by CSIRO
in conjunction with the Bureau of Meteorology and leading
universities to investigate the fundamental aspects of climate
change. A dedicated research program has also been established to
increase understanding of the processes and sensitivities of climate
change and the implications for adaptation. International, regional
and bilateral research cooperation is also undertaken by
Australia.
32. A number of preliminary research activities on the
economic impact of response measures have also been
undertaken.
33. The importance of having all stakeholders involved in the
consideration and implementation of greenhouse gas abatement activity
is underscored by the Commonwealth Government's establishment of the
National Greenhouse Advisory Panel (with membership drawn from key
community interest groups), the establishment of non-government
organisation forums to keep agencies abreast of current developments
(in science and policy) within an open government framework. A
specific greenhouse subcommittee of the Intergovernmental Committee
for Ecologically Sustainable Development has also been established to
consider possible options to strengthen the NGRS.
34. In recognition of the global nature of climate change,
international assistance has also been provided to developing
countries both on a multilateral and bilateral basis. For example,
Australia has contributed A$30 million in the pilot phase for the
Global Environmental Facility and further funds are planned for
replenishment. Other assistance has been provided through a range of
specific program areas relating to climate change.
Projections and impacts of
measures
35. On present estimates, if no greenhouse gas measures were
taken, Australia's greenhouse gas emissions would grow from 572
million tonnes of carbon dioxide equivalent in 1990 to 654 million
tonnes in the year 2000. This would represent an increase of 82
million tonnes or 14 per cent over 1990 levels. This estimate is,
however, dependent on the present accuracy and continuing validity of
a number of assumptions, such as oil prices, population growth rates,
agricultural markets and technological change.
36. If existing measures are continued at the current rate of application, it is estimated that they would result in emission reduction of about 44 million tonnes of carbon dioxide equivalent in the year 2000. Of this, measures aimed at reducing emissions from sources are estimated to contribute 29 million tonnes and measures aimed at sink enhancement are estimated to contribute the remaining 15 million tonnes.
With current measures taken into account, Australia's
greenhouse gas emissions in the year 2000 are projected to be 606
million tonnes of carbon dioxide equivalent, which is 38 million
tonnes (7 per cent) above 1990 levels.
Future Directions for
Australia
37. The Australian Government has always envisaged that the
NGRS would be a framework for a phased response. The review of the
NGRS by the National Greenhouse Advisory Panel will provide guidance
on possible additional measures that might be introduced in the
future. Currently the Commonwealth Government, in consultation with
stakeholders, is examining the appropriate areas on which to focus
future efforts. Energy services, urban and infrastructure
development, transport, commerce and industry and sink conservation
and enhancement are six areas from which possible measures might be
drawn.
38. The Intergovernmental Committee for Ecologically
Sustainable Development which includes representation from
Commonwealth and state and territory first ministers in partnership
with the National Greenhouse Advisory Panel will have a prime role in
assessing opportunities for the development of the NGRS. The
Commonwealth Officials Working Group will also assist in facilitating
the process for considering further measures in 1994. The need for
key stakeholders to be actively involved and to contribute to the
process is recognised by the Commonwealth Government. At the same
time the scope for international cooperation on both a bilateral and
a multilateral basis is also a future area for activity.