Fortunately not everyone is as short sighted as some here are
Billions to flow from Kyoto move Monday, 10 December, 2007 Print Email
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NUSA DUA, BALI, Dec 9 AAP - Australian clean energy businesses are leaving the embarrassment of the past behind as they prepare to inject an additional $A20 billion into new projects over the next decade, following the Rudd government's ratification of the Kyoto Protocol. Until now, the Australian renewable energy industry has lagged the rest of the developed world, and even some developing countries like China and India, due to a lack of political will and regulatory support.
But the cloud has been lifted.
"Australia's back in the game," Clean Energy Council head Dominique La Fontaine told AAP at a UN climate change conference in Bali, which new Australian Prime Minister Kevin Rudd will attend with five senior ministers this week.
"Europe, the US and even China have all been booming and Australia's been lagging, but were going to see massive growth now as we play catch-up."
Rudd last week said he wanted Australia to take a lead role in Bali to thrash out a roadmap for a global warming pact to replace Kyoto beyond 2012.
He agreed on the need for deep cuts in greenhouse gas emissions and set a target of getting 20 per cent of Australia's energy from renewable sources by the year 2020.
This is expected to drive demand for clean technology like wind, solar and geothermal power plants that currently account for just 8 to 9 per cent of total power consumption, a paltry figure compared to the US and Europe.
Coal currently generates more than 80 per cent of Australia's electricity, and accounts for 50 per cent of household and industry greenhouse gas emissions.
La Fontaine, part of the official Australian delegation in Bali, said the renewable energy target would trigger an additional $A20 billion worth of investment in Australia, create 50,000 new jobs and the equivalent of 100 clean power stations across the country.
The move to ratify Kyoto would also see Australian companies expand overseas operations under a scheme known as the Clean Development Mechanism (CDM), through which they're now eligible to earn carbon credits to sell on the global market by investing in clean technology projects in poorer nations.
Previously, Australian companies had to set up joint ventures with overseas partners to access this income stream, which increases project revenue by up to 20 per cent, making projects commercially viable and helping to cover risks associated with investing in developing economies, business leaders said.
With the domestic industry set to boom and direct access to CDM revenue now available, major players are already making moves.
Tasmanian-based Roaring 40s said it is investing $A600 million in seven new wind farms in Australia, China and India this year alone, and plans to quadruple operations over the next five years.
Managing director Mark Kelleher said that until now, the uncertain regulatory environment in Australia had forced the company to do most business overseas, where approaching new partners could be an awkward experience.
"We stopped any further development on some significant projects in Australia and went overseas to China and India," Kelleher told AAP.
"You could feel a bit awkward or embarrassed sometimes as an Australian business promoting our capabilities there, because they'd say 'we've been doing all these things here, what's happening in Australia, why haven't you ratified Kyoto?'.
"It detracted from our overall positioning of the company. It's great now that as an Australian company we will be seen as part of the club."
Melbourne-based hydroelectric and wind farm company Pacific Hydro said it had $A2 billion ready to invest in Australian-based projects and another $A1.5 billion to $A2 billion for clean power plants in Latin America over the next five to seven years.
"Our long-term growth could see us investing $A3 billion to $A4 billion," said chief executive Andrew Richards, who will make a presentation to business delegates in Bali next week.
"It's a pretty aggressive growth profile but it's something we know can be achieved with the right policies in place, which we now seem to be getting."
Greenpeace International's renewable energy director, Sven Teske, said Australia had long had the technology, expertise and resources to be a major player on the international clean energy market.
"Australia has suffered from political inertia," he told AAP at the Bali conference, where he's is presenting a report on global investment opportunities arising from the shift to clean energy.
"All other boats have left the harbour, but Australia is at least starting to cut the lines and join the global race."
The new confidence in Australia's clean energy industry comes as leaders of the Bali summit call on developed countries to ramp up the transfer of technology to poorer nations to help them limit emissions while increasing economic growth.
They say CDM investments - which carry a tax that is passed onto developing economies to help them cope with the potentially catastrophic effects of climate change - are crucial to greater involvement by poor nations in a post-Kyoto treaty.
