The What, When and How of Net Zero Emissions in Energy
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Good morning, everyone.
Thank you for attending this webinar.
Uh, the why What the what? When and how of non zero emission in energy.
My name is Edwin Rodgers and the corporate sales manager of Energy Action.
Taking care of many of our large corporate accounts.
I've been loving it in energy action since July 2019.
I'm here in Parramatta, which is which is the land of the direct people in the spirit of reconciliation.
Energy Action acknowledges the traditional custodians of country throughout Australia and their connections to land, sea and community.
We pay our respects to the eldest past, present and emerging and extended respect to all Aboriginal and Torres Strait Islander peoples today about energy action.
Excuse energy action is to trusted and independent energy partner for our 7000 Australian businesses.
We started in Sydney over 20 years ago and we are a national team with international partnerships for our global power customers.
We combine our years of experience with our smart technology and data led insights to make our clients energy cheaper, easier and cleaner.
To help customers in the Net zero journey, we provide a cost effective roadmap for customers to achieve their net zero target at the lowest cost.
What is natural Before that, let's review the ecology of the earth the earth breathes.
During spring, carbon emission in the atmosphere decreased due to the absorption of carbon dioxide by new growth.
During autumn, the leaves fall from trees and carbon emissions increases as dedicated.
The system was imbalanced until the industrial revolution, which introduced more carbon that can be absorbed.
The industrial revolution was the transition to new manufacturing processes in the U.
K, Continental Europe and the US that occurred during the period from around 17 60 to about 18 40.
This transition included going from hand production methods to machines, new chemical manufacturing and iron production processes, the increased use of steam, coal and water power, the development of machine tools and the rise of mechanised factory system output greatly increase as a result, was an unprecedented rise in population and in the rate of population growth.
Since then, carbon emissions have produced every day through driving cars, purchasing electricity produced from coal or gas and generating wastes.
This has led to a build up of carbon emissions now atmosphere, causing an increase in global temperature known as global warming or climate change.
Hence, we need to achieve a balance between emissions produce an emissions taken out of the atmosphere.
The journey towards achieving natural involves measuring how much carbon your businesses using and producing and reducing energy consumption as much as possible.
Nazi row refers to a state in which the greenhouse gases going into the atmosphere are balanced by the removal out of the atmosphere.
The term net zero is important because for carbon dioxide.
At least this is the state at which global warming stops the net in.
That zero is important as well, because it will be very difficult to reduce all emissions to zero on the time skill needed, as well as deep and widespread cuts in emissions.
We will likely need to scale up removals in order for net zero To be effective, it must be permanent.
Permanence means that removed a greenhouse gas does not written into the atmosphere over time, for example, through deep destruction of forests or improper carbon storage.
Now let's address the framework, which will be the basis of our Net zero journey.
It began in Paris on 12 December 2015.
Hence, it's called the Paris Agreement.
The Paris Agreement is a legally binding international treaty on climate change.
It was adopted by 100 96 parties at the 21st convention of the Conference of Parties, hence known as Cop 21 delivered to the 1992 United Nations Framework Convention on Climate Change, known as U.
N F Triple C and 11th session of meeting of parties, known as CMP, to the 1997 Kyoto Protocol.
The conference negotiated the Paris Agreement, a global agreement on the reduction of climate change, the tax of which represented a consensus of representatives of the 196 attending parties.
The agreement was due to enter into force been joined by at least 55 countries which together represented at least 55% of global greenhouse gas emissions.
A target reached on 4th November 2016 on 22nd April 2016, which is on Earth Day.
100 and 74 countries signed the agreement in New York and began adopting it in their own legal system to ratification, acceptance approval or a session.
Yeah, net zero imperatives.
The Paris Agreement goal and through I P C.
C is to limit global warming to 1.
5 degrees Celsius compared to pre industrial levels of 18 40.
The Albanese government had a more aggressive goal to reduce greenhouse gas emission by 43% below 2005 levels by 2030 which is a 15% increase on Australia's previous 2030 target.
It will reaffirmed Australia's commitment to net zero emission by 2015 Cop 27 session last month in Egypt approved the tax provisions to set up a loss and damage fund to help developing countries bear the immediate costs of climate fuel events such as storms and floods.
On mitigation, parties agreed that limiting global warming to 1.
5 degrees soldiers requires rapid, deep and sustained reductions in global greenhouse gas emissions, reducing them by 43% by 2030 relative to the 2019 level.
However, while this was promising, a report from the Independent Climate Action Tracker Group calculated that the world is heading to a 2.
4 degrees soldiers of warming by end of the century, hence a compelling reason for us to do our part in reducing emission impact to Australia.
Australia's climate has warmed up by an average of 1.
47 plus minus 0.
24 degrees soldiers since the national record began in 19 and 10 sea surface temperatures have increased by an average of one point oh five degrees soldiers since 1900.
This has led to an increase in the frequency of extreme heat.
Events were land and sea sea levels are rising around Australia, including more frequent extremes that are increasing the risk of inundation and damage to coastal infrastructure and communities.
There has been an increase in extreme fire weather and a longer fire season across large parts of the country since the 19 fifties.
Rainfall and stream flow have increased across parts of northern Australia since the 19 seventies.
Oceans around Australia are Acidifying and have warmed by more than one degree soldiers since 1900 contributing to longer and more frequent marine heatwaves snow that snow kaur.
A number of snow days have decreased in Alpine regions since the late 19 fifties.
All Australians are bearing the costs with insurance premium and threw food prices on the rise and more than $1.
5 billion of essential infrastructure needing repair in New South Wales alone.
In fact, the average cost per household of extreme weather disasters increased by 73% from the 10 year average to $1532 in 2021 to 2022 mm Why is not zero important to your business and our future? By overcoming the many challenges of being NetZero, the benefits can be game changing profitability.
Sorting your energy to renewable sources may help reduce your utility bills as a business.
This can be achieved through installing solar panels and investing in energy saving retrofits of your premises.
A lot of what needs doing is about reducing ways, including energy, materials and water.
More efficient use of resources means less cost to your business aggressions.
Enhance the profitability, becoming more competitive.
Businesses which can demonstrate an authentic commitment and progress towards natural, are more attractive to climate conscious customers and can grow sales at the expense of their competitors.
Public sector tendering competitions are increasingly setting business commitment to net zero as a minimum requirement to be considered for contracts.
Becoming Nance zero will improve business brand value, reputation and expansion building business resilience.
Climate change might appear to have greater impacts in other parts of the world, but businesses here will feel those effects extreme shot better and longer term climate patterns can disrupt your supply chain.
Becoming a net zero business can go a long way to protecting against economic, climate and regulatory shocks now and in the future, attracting investment and innovation.
Having a strong business strategy for the future with sustainability both for business viability and the environment at the centre is important for investors, natural plants are likely to become an essential element when making investment decisions to innovate.
It will satisfy the demands of stakeholders, investors and funders, people and talent.
NetZero makes it more attractive to progressive minded jobseekers, especially the youngest candidates just out of the university, and builds expertise led a doctors will have a smaller pool of talent to choose from more.
Our companies, focusing on natural transformation, are more likely to recruit and retain talent as employees feel they are part of a journey with a positive societal impact.
Lastly, our generations are relying on us to help them leave a better life.
We now explore several parts based to net zero for energy.
Firstly, here is energy actions, proven methodology of natural roadmap, which we have successfully used for many customers across Australia.
Step one is a baseline development to measure what will what will be managed.
If you can't measure, you can't measure it.
We will determine customers.
Scope 12 and three.
Emissions Scope one is a direct emission from on site activities such as gas and fuel combustion for production, company vehicle and fugitive emissions.
For example, a cap service company will have to account for its fuel in scope.
Fugitive emissions are leaks from greenhouse gases.
Refrigeration and air conditioning units.
Sculptor is in direct emission from grid supplied electricity, which is basically purchased.
Three is the indirect emissions which result from your activity such as purchase goods and services.
Waste disposal use of solid soul products.
One quick way to results Cope three is to ensure that your supply chain improves its scope one and two.
Food for thought.
Step two consists of determining the target.
Many companies use a baseline years such as 2005 and reduced to, for example, 43% by 2030 and the Net zero by 2050.
Based on the measurement and target, we will use several solutions to best develop a financially sound investment that will help customers reach their target at the least, cost.
Each investment will be a praise according to a financial criteria such as NPV, internal rate of return or return on investment, oil and payback.
Energy action will generally take between 6 to 8 weeks to complete steps one and three.
This is highly appreciated by many of our customers as the quality and speed of delivery delivery keeps the subject relevant to the key decision makers.
After presenting the report and deliberating with the key decision makers, then the strategies are implemented over the period of time and measured and validated till the goals are achieved and emissions reduced and then celebrating its success.
Pathways to net zero for energy Here are a few pathways to nan zero oppressed according to its complexity costs and, in fact, power purchase agreement.
Simply put, is an agreement between an independent power generator and a purchaser of the sale and supply of renewable energy, be it wind or solar.
For others, the challenge with this kind of corporate p p A.
Is the complexity of the contract responsibilities of the approvals, authorisation and arranging for firming with a retailer.
Solar on your rooftop and promises is the most viable solution available for customers, especially under prevailing high electricity prices.
This is an excellent strategy that not only helps with emission reduction but also costs which solar on site customers need not pay for the supply charges.
While the electricity grid, which can be quite substantial, the solar market is favourable to customers now as there are many players in the market who will bid for your opportunities, please call us as we have a successful reverse option procurement strategy that will further in growth your solar procurement costs.
Procurement of solar can be via outright purchase through capital expenses.
This means the customer place up front for the entire solar installation.
A very popular scheme that will benefit your cash flow in solar procurement is via operating expenses, also known as the behind the Metre of Power purchase agreement.
The advantage of this OPEC's methodology is that customers pay for energy generated by the installed solar over a period of time.
Another advantage is that customers need not allocate additional costs for maintenance or replacement, or even obsolescence of the solar component over the tenure of agreement.
LDCs are large skill generation certificates in a simple way.
It is a form of currency for buying and selling renewable energy.
LDCs are created as part Excuse me.
LDCs are created as part of federal government's renewable energy target.
It is a push to reduce emissions in the electricity sector and promote renewable energy generation.
LDCs are traded in blocks of 5000 certificates and can be used as a source of income when traded in the market.
Al Jesus management is an effective way to have high impact in emission reduction.
There are other certificates which have the same impact but different functions such as the energy savings certificates.
E s cease for New South Wales only Victorian energy efficiency certificates known as weeks, which is only applicable for Victoria Australian carbon credit units.
U S small skilled technologies certificates known as STC s, which are likely an upfront subsidy for renewable energy systems that are under 100 kilowatts.
Green power is a government managed programme that lets individuals and businesses support renewable energy generation.
When you buy green power from your electricity retailer, you're paying for renewable energy that meet strict criteria.
The purchase of green power is considered to be equal into the direct use of renewable energy.
This means you can claim the emissions reduction associated to this action.
You can also use purchase green power towards your renewable energy claim.
Lastly, RESA, which is energy actions favourite for last large business renewable back energy supply agreement, energy actions Reza is an ideal product for users over 10 gigawatt hour per annum to opt in all the goodness of the traditional corporate PPL minus its perils.
It provides a shorter term commitment between 2 to 7 years, which is more viable for many companies.
Customers will get the benefit of a corporate power purchase agreements such as fixed price fixed known source with the simplicity of a standard lecture city supply agreement with a guarantee on renewable energy certificates.
Source from non specific generation assets.
Customers will secure a firm energy contract from an identifiable renewable asset.
Hence, the CEO is able to take a photograph with his or her heart, head and a shovel to further enhance his or her personal image and its corporate.
How good is that? We first introduced it to a large sports complex in Victoria who wanted to achieve Net zero.
Energy action conducted a tender exercise that attracted eight bidders last year.
The timing of procurement was simply for perfect, where this premier spots icon facilities secured 100% renewable energy supply agreement, thus going green and over a number of safe nearly a quarter of a million dollars in energy bill simply due to the competitive bid conducted by energy action.
This product by energy action secures for a customer a high quality renewable energy agreement without the need of expensive cost and risks, and has burdened the traditional people.
Another example here is a progressive Council that chose Resa as a solution to achieve their interim net zero goal of using renewable energy with the Nazis.
Net zero by 2025.
What an ambition.
Energy action attracted five compliant with us from the small retail market to compete for the 100 plus small electricity accounts.
We also ran a green option for the large side procurement to purchase 100% renewable energy direct from an identifiable source.
Finally, the winner was the retailers sourcing renewable energy from the collective wind farm in colouring New South Wales.
It resulted to Byron Bay Council reaching their net zero goal with an additional 19% reduction in energy costs and 100% green power.
In conclusion, we invite customers to engage with the solutions that are readily available in the market to help you achieve your net zero goal in energy.
Firstly, the baseline and measurement is imperative.
If you can't measure it, you can't change it.
Neither can you manage it? Because the solutions are here today we urge businesses to invest in our Children's future.
Today itself, we have presented the reasons behind the Net zero tribe the impact to Australia and its importance to our future.
However, due to time constraint, we did not cover the various framework for Net zero, such as our 300 science based Targets Initiative and others forms of certifications.
Please reach out to us If you need more information on these frameworks and certifications, it is important to establish your benchmark carbon emissions and reduce it through simple actions like taking greater control over your energy usage, ensuring it is only being used when and where is needed and upgrading to more energy efficient equipment In offices and factories, Electricity can be obtained from renewable sources such as solar, wind and hydro, which can now be generated on site opportunists through the electricity grid.
Any remaining emissions can be cancelled down by purchasing carbon offsets to fund renewable projects.
For example, tree planting native for reforestation and renewable energy projects as an organisation, Energy action and its people are passionate about helping customers achieved in that zero goal in the most cost effective way.
Energy action partners with many businesses to transition them towards a net zero future.
With that concludes our presentation.
But before we conclude as a thank you to our attendees, please take advantage by scanning this exclusive cure caught on the screen for the remainder of the session for a complimentary net zero assessment.
So we ask you to get your phones out to scan this.
Meanwhile, I'm going to invite you to use the icon below here to ask a few questions.
And I'll be more than happy to answer if I can.
Yeah, these, uh oh.
But it worked.
So all these uh yeah, this year.
I think we need Oh, a Fine, maybe maybe both, baby.
Thank you, John, for that question.
Um, the question is, um how is the energy? The renewable energy? Um, priced in the market now, Generally, the rule of time is that the renewable energy cost is about the cost of your black energy plaster certificates.
However, if you go into a tender exercise that can be really narrow to make it more competitive to help customers procure renewable energy at a lower cost as close as possible to the black energy.
Your music? Um 5.
That's another question here.
Um, what is the complexity of the power? Which is the corporate p p A.
Two attendants? Europe? Um, the complexity is not about achieving net zero.
The complexity is the contract and the entering of the agreement into PPE itself.
Firstly, there is a connection issue you need to, um, there's a legally binding contract between the Renewable Energy Assets Service developer and the customer, which talks about multiple complexity in terms of, uh, how the contract is stuck structured the tenure, the escalation and what happens if the connection is not correct and so on.
Secondly, the customer will also have to engage a retailer to supply energy when the clouds are blocking the sun or the wind is down.
So which means the complexity is added by having to contracts, whereas the renewable energy supply agreement, the research which we have developed combines all of it like as if you're just by chasing your standard electricity supply agreement from one company and yet it is going to be renewable.
So that's where I mentioned that the renewable energy supply agreement has got all the goodness of the standard corporate PP a minus the perils of PP and also the costs associated to the P p A.
So, which means, in the corporate people, you don't have to have, uh, expensive legal advisers and finances to talk about and negotiate the contract with the developer of the wind farm or solar farm with the corporate.
The renewable energy supply is as good as the standard energy contract which you have available in the market.
Oh, Sebastian is asking, what is the difference between 100% green energy and 100% renewable energy? Good question.
Okay, let me attempt this.
Green energy is, um source.
Like what I mentioned earlier.
Let me just go back to the slide.
Oh, yeah, yeah.
So, in terms of, uh, renewable energy supply, renewable energy and green energy, in a way can be about the same green energy is general green energy purchase from an unknown source.
It's just a green energy which is supplied by multiple suppliers into the grip.
Whereas in renewable energy, which is also the same as green energy in terms of the complex in terms of the products which we have displayed here in this side.
It's generally a green energy supply from renewable energy asset.
So that's the difference in In essence, they're both really the same.
But what we mentioned earlier here is the green power.
Green power is a general green power supply through the grid by multiple companies that are selling green power to the grid as a renewable energy back supply agreement is really the renewable energy from a known as thank you, Sebastian for the question, I will continue to show the, uh yep, it is.
I want to get published, right? Mm.
So just to give back a little bit of time.
I'm really grateful that all of you all have attended.
There is about 100 other people who have registered For those of you who have missed out on this, please feel free to share log into our website.
You'll all be getting a link so that you can review the slights and we will be sending it by email.
The marketing team will be sending it an email.
And on behalf of energy action, we wish you the very best in your net.
Zero journey and wishing all of you in at once a Merry Christmas and a prosperous New Year have a safe holiday.
A huge job.