One proposition on CPD is that the Board of Architects of Queensland should be taking a far more pro-active role in promoting seminars that will allow architects to gain the required points for this continuing professional development. If one accepts the idea of CPD, then it makes sense to have quality sessions properly managed and promoted, that could be truly useful to the profession, rather than throwing open the opportunity for any and every Tom, Dick or Harry to start a business running point-accruing seminars only because the Board has made this accumulation of numers a necessity for registration. By raising this concept, one has an obligation to show what might be possible by way of example. The Australian Business Magazine 'The Deal' - issue April 2012 Vol 5 / No 3 - published a section on Carbon. The four articles are published here for information, along with the suggestion that the Board might like to arrange for these folk to be speakers at seminars in the future - see CARBON 1,2,3 and 4. It would be a good start to the CPD programme.
Whether one agrees with it or not - both CPD and carbon - it appears that things to do with continuing education, carbon and energy will be here to stay. What impact will these have on architecture? It is a reasonable question that needs to be explored and debated. On carbon matters, the tri-generators spoken about in CARBON 4 are of particular interest, as is the strategy for managing energy in Sydney CBD. While the subject is intriguing, what we must always remember is that architecture is more than things environmental. We should be careful not to be attracted to the fashion of the day and neglect the richness that is architecture. Remember history - both the history of architecture and that of the big money spinning programmes that were developed to save the world: QA - quality assurance, and Y2K - the turn of the century drama. We forget these at our peril.
Carbon: making the big switch
- by:
SPECIAL REPORT: DEB RICHARDS
- From:
The Australian
- April
20, 2012 12:00AM
How much the carbon price will
hurt depends on a company's place in the energy chain, says KPMG's Nick Wood.
Picture: Adam Knott Source: The
Australian
DESPITE the many cries of alarm about the effects of the carbon tax
as its implementation date draws near, the private sector is getting down to
serious carbon business.
From July 1, the federal government's Clean Energy Future legislation
imposes a price on carbon emissions and stimulates investment in renewable energy
while encouraging energy efficiency and improved land management. It represents
a significant structural change for the economy, with the pain to be cushioned
by incentives and compensation packages.
Nick Wood, associate director of climate change and sustainability at KPMG,
has been readying CEOs and CFOs all over Australia and advising them to see it
as an opportunity. "There are issues, but it's not a disaster waiting to
happen," he says. "It's really about the speed at which business can
adapt. You want to make a smooth transition, not too fast or too slow."
In fact, the carbon "tax" is not a tax in the true sense, but a
way of "costing in" the gases that have been generated as byproducts
of our thirst for growth and high standards of living. The theory is that if
the activities that create these gases are made more expensive, then there will
be a natural inclination to switch to less costly - and therefore
"cleaner" - technologies. The big question is: Can severe adjustment
pain be avoided while we develop another way to fuel our high living standards?
The effects will vary across business sectors. "It requires different
actions, depending on where you sit in the food chain," Wood says.
The companies that produce more than 25,000 tonnes of carbon dioxide a year
are the big emitters that will be directly liable. They include power stations,
mines, heavy industry and waste disposal. Based on data submitted to the
National Greenhouse and Energy Reporting Scheme, it is expected that about 500
companies will fall into this category.
They will be paying $23 per tonne of carbon, increasing by 2.5 per cent a
year for three years. After 2015 the pricing becomes flexible and will be
determined by an emissions trading market. The revenue will help households
cover higher electricity charges, and the rest will be ploughed back into
industry assistance and investment in clean technology and energy efficiency.
It's been estimated that the top 10 companies will pay nearly $4 billion a
year, minus whatever government funds they get. Coal-fired electricity
generators, such as Macquarie Generation, will attract little compensation and
will feel the brunt. Macquarie recently said it would lose $100 million of its
projected $140 million profit this year. "For this tier the carbon price
means the company must buy and sell a lot of carbon credits," Wood says.
"How it interacts with the energy market will determine its success."
Surprisingly, there is still a role for coal in this energy future, if the
cost of the carbon can be justified financially. Electricity markets are highly
complex, but companies that have done their homework are already positioning
themselves. Explaining its plan to purchase 100 per cent of the Loy Yang
coal-fired power station and the adjacent brown coalmine in Victoria,
Australia's largest energy generator and retailer, AGL, says the carbon price
has provided certainty for investors.
The government's $9.2 billion "jobs and competitiveness" program
includes a range of assistance packages for "trade-exposed" big
polluters, such as cement works, petroleum refiners and steel and aluminum
makers. The Minister for Climate Change, Greg Combet, told parliament recently
the carbon price would effectively be reduced from $23 a tonne to $1.30 a tonne
for many of these businesses. The assistance is to be reduced progressively and
will be reviewed in 2014.
According to Wood, these industries have multiple liability issues. The
quality of their data and how they structure permit buying and selling within
the company will be key factors. "The core mechanism of the carbon tax is
straightforward. Complexity arises in how a company makes the transition."
The next sector down is at the sharp end. Medium-sized manufacturers,
infrastructure and building products companies and the food industry will be
buying materials on which the carbon price has been levied. Electricity costs
will be higher, so usage and costs will need to be factored into monthly
reporting. Also, the compliance requirements will be tricky, and the management
of product cost increases must be watertight and transparent, because the
Australian Competition & Consumer Commission will be vigilantly policing
unjustified price hikes. Woods says this sector needs to work out how it will
reduce electricity costs, and to identify any carbon "hot spots"
within the supply chain.
The retail sector will need to look for energy efficiencies to address
increased power costs. Yet that may not happen. There are doubts whether price
signals alone are enough to meet the 80 per cent reduction goal for greenhouse
gases by 2050.
Price hikes of 20 per cent a year in electricity charges due to
infrastructure and other non-carbon- related factors have not provoked a
widespread change of behaviour. In theory, efficiencies such as changing
lightbulbs, switching off appliances, adopting new, less electricity-hungry
technologies and processes should be easily achievable, with a quick cut to
emissions, lower costs and higher productivity. But there is still resistance.
A 2011 Australian Industry Group survey of its membership found that while
energy-intensive firms considered energy efficiency part of their core
business, more than two thirds of the far more prevalent small to medium-sized
enterprises had not improved efficiency in the previous five years. A number of
them were even less energy-efficient.
Caroline Bayliss, of the not-for-profit Climate Group, says the solution
lies in helping business see the need to innovate and adopt best-practice
methods. "It's not just about compliance. It's about transforming the
market, so that business brings carbon emissions down and pushes profits
up."
The Climate Group is a global organisation initiated by Tony Blair while he
was the British prime minister. Here in Australia, Bayliss works to bring governments
and corporations together to identify ways of doing good business with lower
carbon demands. Companies such as IBM, Origin Energy and General Electric are
exploring ways to co-ordinate with government to build "climate- smart
precincts" in which integrated services and information and communications
technologies reduce energy costs and emissions.
The Climate Group will be investigating the role of electric cars in
corporate fleets and is involved in other leading-edge integration projects.
"This is showing what can be done," Bayliss says. "It's about
thought leadership. The carbon price won't do this on its own. To have a new
low-carbon economy, you need to have a positive outlook and to actively seek
opportunity."