New Zealand Emissions Trading Scheme - considerations for the waste and transport sectors. Kay Harrison Ministry for the Environment October 2009

Transcription

1 New Zealand Emissions Trading Scheme - considerations for the waste and transport sectors Kay Harrison Ministry for the Environment October 2009

2 Outline of presentation Climate Change The Kyoto Protocol NZ s response to Kyoto: the NZ ETS Sectors and participants in the NZ ETS Transport and waste 2

3 - greenhouse gases 3

4 - emissions are increasing 4

5 Climate Change 5

6 Kyoto Protocol Kyoto Protocol creates emission reduction commitments for most industrialised countries for (Commitment Period One CP1) UN negotiations on further commitments under Kyoto Protocol & UNFCCC: pathway to Copenhagen 6

7 What does NZ s profile (2006) look like? Mt CO 2 -e Sinks Sources Waste 1.9 Mt CO 2 -e (2%) LULUCF* Mt CO 2 -e (29%) Agriculture 37.7 Mt CO 2 -e (48%) Energy 34.1 Mt CO 2 -e (44%) * Land use, land-use change and forestry Industrial Processes 4.2 Mt CO 2 -e (5%) 7

8 Research into reducing emissions 8

9 Million tonnes carbon dioxide equivalent Where NZ s emissions are heading Net projected emissions* Emissions from deforestation of pre-1990 forests Agriculture Transport 25.0 Non-transport energy 0.0 Other * Includes removals from post-1989 afforestation 9

10 NZ ETS is how NZ will reduce emissions Puts a price on emissions: e.g. 1 NZU = 1 tonne CO2 e Cap and trade: if emissions exceed allocation of free unit firm purchases units to cover emissions Incentivises behaviour change including investment decisions in the short and long term 10

11 Allocation of free NZUs One off Free allocation to pre 1990 forestry (per hectare) Free allocation of units to trade exposed industry and agriculture No allocation to sectors or firms that can pass costs of ETS on Ability to earn NZUs through removals e.g. post 1989 forests 11

12 Sectors and participants in the NZ ETS* forestry stationary energy waste agriculture liquid fossil fuels synthetic gases Forestry Stationary Energy coal, gas, electricity generation Industrial processes people who make lime, cement, glass, gold miners etc Liquid Fossil Fuels diesel, petrol Waste big landfills Synthetic gases Agriculture processors of meat and dairy (may be farmers later) *according to the amendment bill pre 1990 forest owners (mandatory); post 1989 forests (voluntary) importers of gases (in bulk or within products or appliances) 12

13 Transport and the NZ ETS Mandatory participant is importer/removal from refinery of more than 50,000 litres per year (the oil companies) Voluntary participant is purchaser of more than 10m litres of jet fuel per year Start date is 1 Jan 2011; Amendment Bill proposes to bring forward to 1 July 2010 with reduced obligation Impact on consumers: petrol and diesel about 7c/litre, amendment proposed will halve this impact until end

14 Waste and the NZ ETS: Coverage Mandatory participant: Operating a waste disposal facility where the waste contains some proportion of household waste the same subject to the waste levy at present Closed landfills are not covered Methane only Net v gross emissions only fugitive emissions matter Incineration not included unless energy recovered Wastewater treatment not included 14

15 Waste and the NZ ETS: regulations Possible methods: default and unique emissions factor Emissions = (activity x default or unique emissions factor) (gas destroyed) Default method minimises compliance costs; is mandatory unless landfill receives approval to use a unique emissions factor UEF could consider: site specific waste composition, capping, leachate control and rainfall, and maybe others. UEF replaces DEF in above formula 15

16 Waste and the NZ ETS: impacts Assume L o = 100 m 3 CH 4 /Mg Waste = 1.4tCO 2 e/t waste Assume no LFG recovered and all gas emitted on disposal Assume market price is $25/tCO 2 Disposing one tonne of waste would give rise to $35 NZ ETS obligations. 50,000 tonnes p.a. = $1,750,000 p.a. i.e. $1,750,000 = $25 * ((50,000 * 1.4) (0)) NZ ETS encourages mitigation of emissions where cost effective and the passing through of residual costs to consumers 16

17 The ETS and waste - mitigation NZ ETS will encourage further emissions mitigation from landfills through Less waste to landfill by influencing consumer decisions Less organic waste to landfill through diversion and alternative technologies Management of landfill (leachate, daily capping and material choice, planning) where this can be reflected in LFG modelling Installation of a landfill gas collection system, its efficiency and maintenance Bring forward closure of higher emitting landfills 17

18 Waste and the NZ ETS: issues to solve Inclusion/exclusion of legacy emissions? Counting emissions after landfill closure? Choice of default emission factors? Measurement of LFG recovered? Required to be metered? All to be discussed with a technical advisory group for resolution and inclusion in draft regulations from May 2010, with voluntary reporting from January

19 What s coming? Draft waste regulations development May 2010 NZ ETS moderating amendment legislation Industrial, fishing and forestry allocation plans Copenhagen negotiations, Australian and US ETS developments 19

20 Any questions? 0800 CLIMATE