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The environmental effects of transport in Australia are considerable. Australia subsidizes fossil fuel energy, keeping prices artificially low and raising greenhouse gas emissions due to the increased use of fossil fuels as a result of the subsidies. The Australian Energy Regulator and state agencies such as the New South Wales' Independent Pricing and Regulatory Tribunal set and regulate electricity prices, thereby lowering production and consumer cost.
According to a report by The Institute for Sustainable Futures (ISF) at University of Technology Sydney, titled: "Energy and Transport Subsidies in Australia", [1] roughly 70% of the country's greenhouse gas emissions are caused by the energy and transport industries. The uptake of renewable energy in these sectors is slow because of subsidies to fossil fuels and the high cost of acquiring the sophisticated technology required to produce cleaner fuels. Furthermore, fossil fuels are easier to transport and use, compared to renewable energy, which often requires sophisticated instruments to acquire and store. The report revealed that for the 2005–2006 financial year, transport subsidies were measured to reach up to $10.1 billion, of which 74% related to transport, 18% to electricity, and 4% to renewable and efficient energy. These subsidies help energy generation companies increase their profits, therefore encouraging the building of additional coal-fuel power plants. Investing in other, more sustainable, types of electricity generation plants would have cost less than continuing to subsidize the building of these power plants. [2] On a positive note, alternative transport fuels such as natural gas and liquefied petroleum gas are excused from fuel excise/tax.
Tax calculated for the use of a company car is calculated as such: the further the person drives the car, the higher the business use and the lower the personal use. Since tax is calculated based on personal use, drivers tend to drive longer distances to lessen the amount of tax that they have to pay. This leads to higher consumption of vehicular fossil fuels and, subsequently, higher greenhouse gas emissions.
Dr. Hal Turton, the Group Leader of the Energy Economics Group at Swiss research establishment, the Paul Scherrer Institute, discussed in his report for Canberra-based think tank The Australia Institute titled: "The Aluminium Smelting Industry: Structure, Market Power, Subsidies and Greenhouse Gas Emissions", [3] that the yearly electrical use subsidy for the use of the six aluminum smelters in Australia is at least A$210 million. According to the report, Australia's aluminium smelting industry is a party to one of the most subsidized electricity charges as compared to other similar establishments. The ISF report found that removing electrical subsidies would bring up electricity prices by 3.9%, which would lead to a fall in demand for electricity by 1.4% in the long run. Reducing transport subsidies would increase prices by 32%, which would lead to a fall in demand worth 18%. It suggests that subsidies should be removed gradually so as not to hurt drivers who have no choice but to use petrol (due to the lack of alternatives), and that taxpayer's funds be channeled to subsidize the sustainable energy industry instead.
The National Roads and Motorists' Association (NRMA) is pushing for Australian petrol consumption to be reduced by 50% by 2050. It is advocating a move towards greener transport and has called for a reduction of the A$10 billion subsidies given to the nation's fossil fuel industry. [4]
Coal power industries are subsidized under the Greenhouse Gas Abatement Program (GGAP). [5]
The Jamison Report was published by the NRMA in July 2008, and focused on alternative fuels and reducing emissions from motor vehicles. It was written by the Jamison Group, a team of four well-respected academics in the transport and energy fields, namely: CSIRO energy advisor David Lamb, University of New South Wales environmental science professor Mark Diesendorf, Macquarie University management professor John Mathews and Monash University Honorary Senior Research Fellow, Graeme Pearman.
The report was titled: "A Roadmap for Alternative Fuels in Australia: Ending our Dependence on Oil". [6]
The report suggests a 12-step 'roadmap' to address the issue of fossil fuel usage in motor vehicles.
The International Energy Agency defines an energy subsidy as: "...any government action that concerns primarily the energy sector that lowers the cost of energy production, raises the price received by energy producers or lowers the price paid by energy consumers." [7]
There are six types of financial subsidies practiced:
According to a survey conducted by Australian polling and market research company Newspoll in March 2008: [8]
A fossil fuel is a hydrocarbon-containing material such as coal, oil, and natural gas, formed naturally in the Earth's crust from the remains of dead plants and animals that is extracted and burned as a fuel. Fossil fuels may be burned to provide heat for use directly, to power engines, or to generate electricity. Some fossil fuels are refined into derivatives such as kerosene, gasoline and propane before burning. The origin of fossil fuels is the anaerobic decomposition of buried dead organisms, containing organic molecules created by photosynthesis. The conversion from these materials to high-carbon fossil fuels typically require a geological process of millions of years.
Energy policy is the manner in which a given entity has decided to address issues of energy development including energy conversion, distribution and use as well as reduction of greenhouse gas emissions in order to contribute to climate change mitigation. The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques. Energy is a core component of modern economies. A functioning economy requires not only labor and capital but also energy, for manufacturing processes, transportation, communication, agriculture, and more. Energy planning is more detailed than energy policy.
Climate change mitigation is action to limit climate change by reducing emissions of greenhouse gases or removing those gases from the atmosphere. The recent rise in global average temperature is mostly due to emissions from burning fossil fuels such as coal, oil, and natural gas. Mitigation can reduce emissions by transitioning to sustainable energy sources, conserving energy, and increasing efficiency. It is possible to remove carbon dioxide from the atmosphere by enlarging forests, restoring wetlands and using other natural and technical processes. Experts call these processes carbon sequestration. Governments and companies have pledged to reduce emissions to prevent dangerous climate change in line with international negotiations to limit warming by reducing emissions.
The energy policy of the United Kingdom refers to the United Kingdom's efforts towards reducing energy intensity, reducing energy poverty, and maintaining energy supply reliability. The United Kingdom has had success in this, though energy intensity remains high. There is an ambitious goal to reduce carbon dioxide emissions in future years, but it is unclear whether the programmes in place are sufficient to achieve this objective. Regarding energy self-sufficiency, UK policy does not address this issue, other than to concede historic energy security is currently ceasing to exist.
Cap and Share is a regulatory and economic framework for controlling the use of fossil fuels in relation to climate stabilisation. Originally developed by Feasta, the foundation believed that climate change is a global problem and that there is a need to cap and reduce greenhouse gas emissions globally, the philosophy of Cap and Share maintains that the earth’s atmosphere is a fundamental common resource. Consequently, it is argued, each individual should get an equal share of the benefits from the limited amount of fossil fuels that will have to be burned and their emissions released into the atmosphere in the period until the atmospheric concentration of greenhouse gases has been stabilised at a safe level. Given the vast discrepancies in fossil fuel use between the wealthy and poor on a global level, Cap and Share would have a highly progressive economic effect, reducing inequality and helping to support climate justice and the energy transition in the Global South.
A low-carbon economy (LCE) or decarbonised economy is an economy based on energy sources that produce low levels of greenhouse gas (GHG) emissions. GHG emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. Continued emission of greenhouse gases will cause long-lasting changes around the world, increasing the likelihood of severe, pervasive, and irreversible effects for people and ecosystems. Shifting to a low-carbon economy on a global scale could bring substantial benefits both for developed and developing countries. Many countries around the world are designing and implementing low-emission development strategies (LEDS). These strategies seek to achieve social, economic, and environmental development goals while reducing long-term greenhouse gas emissions and increasing resilience to the effects of climate change.
The energy policy of Australia is subject to the regulatory and fiscal influence of all three levels of government in Australia, although only the State and Federal levels determine policy for primary industries such as coal. Federal policies for energy in Australia continue to support the coal mining and natural gas industries through subsidies for fossil fuel use and production. Australia is the 10th most coal-dependent country in the world. Coal and natural gas, along with oil-based products, are currently the primary sources of Australian energy usage and the coal industry produces over 30% of Australia's total greenhouse gas emissions. In 2018 Australia was the 8th highest emitter of greenhouse gases per capita in the world.
Renewable energy in Australia includes wind power, hydroelectricity, solar photovoltaics, heat pumps, geothermal, wave and solar thermal energy.
Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat. Second-generation technologies are market-ready and are being deployed at the present time; they include solar heating, photovoltaics, wind power, solar thermal power stations, and modern forms of bioenergy. Third-generation technologies require continued R&D efforts in order to make large contributions on a global scale and include advanced biomass gasification, hot-dry-rock geothermal power, and ocean energy. As of 2012, renewable energy accounts for about half of new nameplate electrical capacity installed and costs are continuing to fall.
Norway is a large energy producer, and one of the world's largest exporters of oil. Most of the electricity in the country is produced by hydroelectricity. Norway is one of the leading countries in the electrification of its transport sector, with the largest fleet of electric vehicles per capita in the world.
The United States produced 5.2 billion metric tons of carbon dioxide equivalent greenhouse gas (GHG) emissions in 2020, the second largest in the world after greenhouse gas emissions by China and among the countries with the highest greenhouse gas emissions per person. In 2019 China is estimated to have emitted 27% of world GHG, followed by the United States with 11%, then India with 6.6%. In total the United States has emitted a quarter of world GHG, more than any other country. Annual emissions are over 15 tons per person and, amongst the top eight emitters, is the highest country by greenhouse gas emissions per person. However, the IEA estimates that the richest decile in the US emits over 55 tonnes of CO2 per capita each year. Because coal-fired power stations are gradually shutting down, in the 2010s emissions from electricity generation fell to second place behind transportation which is now the largest single source. In 2020, 27% of the GHG emissions of the United States were from transportation, 25% from electricity, 24% from industry, 13% from commercial and residential buildings and 11% from agriculture. In 2021, the electric power sector was the second largest source of U.S. greenhouse gas emissions, accounting for 25% of the U.S. total. These greenhouse gas emissions are contributing to climate change in the United States, as well as worldwide.
Biofuels are renewable fuels that are produced by living organisms (biomass). Biofuels can be solid, gaseous or liquid, which comes in two forms: ethanol and biodiesel and often replace fossil fuels. Many countries now use biofuels as energy sources, including Sweden. Sweden has one of the highest usages of biofuel in all of Europe, at 32%, primarily due to the widespread commitment to E85, bioheating and bioelectricity.
Fossil fuel phase-out is the gradual reduction of the use and production of fossil fuels to zero, to reduce deaths and illness from air pollution, limit climate change, and to strengthen energy independence. It is part of the ongoing renewable energy transition.
Energy subsidies are measures that keep prices for customers below market levels, or for suppliers above market levels, or reduce costs for customers and suppliers. Energy subsidies may be direct cash transfers to suppliers, customers, or related bodies, as well as indirect support mechanisms, such as tax exemptions and rebates, price controls, trade restrictions, and limits on market access.
Greenhouse gas emissions by Australia totalled 533 million tonnes CO2-equivalent based on greenhouse gas national inventory report data for 2019; representing per capita CO2e emissions of 21 tons, three times the global average. Coal was responsible for 30% of emissions. The national Greenhouse Gas Inventory estimates for the year to March 2021 were 494.2 million tonnes, which is 27.8 million tonnes, or 5.3%, lower than the previous year. It is 20.8% lower than in 2005. According to the government, the result reflects the decrease in transport emissions due to COVID-19 pandemic restrictions, reduced fugitive emissions, and reductions in emissions from electricity; however, there were increased greenhouse gas emissions from the land and agriculture sectors.
Energy in Australia is the production in Australia of energy and electricity, for consumption or export. Energy policy of Australia describes the politics of Australia as it relates to energy.
Energy consumption per person in Turkey is similar to the world average, and over 85 percent is from fossil fuels. From 1990 to 2017 annual primary energy supply tripled, but then remained constant to 2019. In 2019, Turkey's primary energy supply included around 30 percent oil, 30 percent coal, and 25 percent gas. These fossil fuels contribute to Turkey's air pollution and its above average greenhouse gas emissions. Turkey mines its own lignite but imports three-quarters of its energy, including half the coal and almost all the oil and gas it requires, and its energy policy prioritises reducing imports.
A carbon pricing scheme in Australia was introduced by the Gillard Labor minority government in 2011 as the Clean Energy Act 2011 which came into effect on 1 July 2012. Emissions from companies subject to the scheme dropped 7% upon its introduction. As a result of being in place for such a short time, and because the then Opposition leader Tony Abbott indicated he intended to repeal "the carbon tax", regulated organizations responded rather weakly, with very few investments in emissions reductions being made. The scheme was repealed on 17 July 2014, backdated to 1 July 2014. In its place the Abbott government set up the Emission Reduction Fund in December 2014. Emissions thereafter resumed their growth evident before the tax.
Approximately 40% of primary energy is from renewable energy sources in New Zealand. Approximately 80% of electricity comes from renewable energy, primarily hydropower and geothermal power.
Fossil fuel subsidies are energy subsidies on fossil fuels. They may be tax breaks on consumption, such as a lower sales tax on natural gas for residential heating; or subsidies on production, such as tax breaks on exploration for oil. Or they may be free or cheap negative externalities; such as air pollution or climate change due to burning gasoline, diesel and jet fuel. Some fossil fuel subsidies are via electricity generation, such as subsidies for coal-fired power stations.
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