All posts by Barbara Albert

Revolving Energy Funds – why you need one and using an Excel tool to model the outcome [with video]

In a previous blog post we released in 2017, I wrote about how to set up a Revolving Energy Fund or REF, also known as a ‘Green Revolving Fund’ or ‘Sustainability Revolving Fund’.

In this blog post, I will dive deeper into Revolving Energy Funds. I will talk about what they are, how to operate them, what their benefits are and how to model the financial outcome using an Excel tool we developed.

As part of the Sustainable Councils and Communities and Sustainability Advantage programs, 100% Renewables was commissioned to develop a set of resources to assist councils to pitch, design, develop, implement and manage a successful Revolving Energy Fund (REF). I had the pleasure to present the resources we developed in a webinar which was hosted by the New South Wales Government. Kelly Williamson from Campbelltown City Council also shared her experience in setting up Council’s Revolving Energy Fund.

Barbara Albert presenting at a webinar about Revolving Energy Funds
Figure 1: Barbara Albert presenting at a webinar about Revolving Energy Funds

Here is what was discussed in the webinar:

What are Revolving Energy Funds?

A Revolving Energy Fund (REF) is a self-sustaining funding mechanism, which you start with seed capital that you invest in sustainability projects, such as energy efficiency, water conservation, or solar projects for example. The fund’s unique feature is that you return savings from sustainability projects back into the REF to finance the next round of investments. In this way, you can spend funds multiple times to drive emissions reduction, resource and cost savings.

Revolving Energy Fund - funding cycle
Figure 2: Revolving Energy Fund – funding cycle

Three benefits of a Revolving Energy Fund

Here are three benefits of implementing a REF to finance your climate action plan.

Benefit 1 – Responds to climate change

Implementing a REF addresses a strategic priority for business. More and more organisations are committing to ambitious targets such as net-zero emissions, or 100% renewable energy. As the need to decarbonise increases, the need for innovative financing to enable cost-saving efficiency and renewable energy projects increases in importance.

Benefit 2 – Results in faster implementation

By re-investing and tracking energy cost savings, organisations can more quickly realise the full financial returns from investing in efficiency and renewables.

Benefit 3 – Easier to finance projects

Sustainability projects are often capital-intensive and potentially ‘not core business’, making these projects challenging to implement when compared with other investment options that improve a business. Having a dedicated REF makes it easier to finance sustainability projects.

How to operate a Revolving Energy Fund

You always need to start a REF with seed capital. How much you inject initially may depend on the number and size of opportunities in your climate action strategy, but clearly the more you put in, the more projects you can fund, and the more self-sustaining the financing cycle will be.

In addition to seed capital, you may also consider putting in top-up funds in subsequent years to make sure the fund does not run out of money, which can lead to a loss of momentum in implementing your climate action strategy. You may also look for grant funding opportunities or other incentives to help build and sustain a REF.

Whatever money is in the fund can be used to finance sustainability projects such as solar, lighting or air conditioning upgrades. These projects come with resource and associated cost savings, and in line with the design intent of a REF, part of the savings are returned to the fund to be invested in new initiatives.

The proportion of savings returned to the fund, and for how long, will affect the fund’s financial health and sustainability. You can simulate the performance of your REF in the Excel tool we’ve developed, balancing seed capital, top-up funds, grants and returned savings to ensure there are always enough funds available in the REF to implement your pipeline of projects. This is illustrated in Figure 3 below.

How to operate a Revolving Energy Fund
Figure 3: How to operate a Revolving Energy Fund

REF modelling tool

To help organisations model the financial outcome of implementing a REF, we developed an easy-to-use Excel tool. The REF tool can help you simulate the performance of the fund for your assessed sustainability projects and determine the required amount of money to achieve a cash-positive scenario.

You can use the tool to:

  • Input a list of projects with costs and savings that the REF is intended to help finance
  • Estimate the total funding needed to finance projects based on their expected year of implementation
  • Forecast how a portfolio of projects will perform
  • Help with planning and budgeting

Here are a couple of screenshots of the tool:

Set up your Revolving Energy Fund, such as the amount of seed capital and regular top-ups
Figure 4: Set up your Revolving Energy Fund, such as the amount of seed capital and regular top-ups
Input your projects, along with their costs and expected resource savings
Figure 5: Input your projects, along with their costs and expected resource savings
Analyse how your inputs affect the balance of the Revolving Energy Fund
Figure 6: Analyse how your inputs affect the balance of the Revolving Energy Fund

I have prepared a video to demonstrate how this tool works. The 10-min clip starts with an overview of Revolving Energy Funds and then dives into the use of our REF tool.

Three critical success factors

Revolving Energy Funds are a great tool to finance your climate action strategy, but you should be mindful of the following critical success factors:

  1. Get senior management commitment to emissions reduction over the long term: With senior management support and commitment to achieving long-term emissions reductions, the REF is likely to be better supported over the long term. A REF policy with commitment to support this with funds and resources to help meet ambitious climate action targets is one way to secure long term senior support.
  2. Make sure you always have enough money in the fund: a viable REF has enough cashflow in and out of the fund to implement projects that contribute to achieving your targets. Getting the balance right between initial funds, grants, top-up funds and savings returned to the fund versus savings returned to general funds is critical to success.
  3. Set up the fund with an appropriate governance structure: Like other funding, a REF should be functional, transparent and auditable. It is recommended that you develop REF documentation setting out how the fund will be managed, establish clear project eligibility and selection criteria, as well as how savings will be measured and re-invested back into the REF. You should also set up a REF management committee, and assign accountability of the fund to a manager.

If you are considering a Revolving Energy Fund and want to avoid any pitfalls in setting it up optimally, please contact us for help.

100% Renewables are experts in helping organisations develop their climate action strategies and plans, and supporting the implementation and achievement of ambitious targets. If you need help to create your Climate Change Strategy, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Victorian Government releases $31 million Business Recovery Energy Efficiency Fund (BREEF) for large energy users

The BREEF Program

The State of Victoria has released their $31 million Business Recovery Energy Efficiency Fund (BREEF) which aims to provide simultaneous grant funding to businesses for both capital works and energy demand management technologies.

The objectives of the Program are to:

  • increase energy productivity and reduce energy costs for Victoria’s large energy users
  • accelerate the uptake of innovative energy efficiency and demand management technologies in the Victorian industrial and commercial sectors and participation in demand-side opportunities
  • create jobs through the implementation of equipment, systems and process upgrades that manage energy costs, supporting new sustainable employment.

Who can apply?

In addition to meeting the Program objectives, eligible organisations must:

  • operate in Victoria
  • have an Australian Business Number (ABN)
  • have a site using over 40 megawatt-hours (MWh) of electricity or over 1 terajoule (TJ) of gas per year, demonstrated by 12 months’ worth of energy bills or meter data, or evidence from their energy provider, representing pre-COVID-19 usage.

For more details, please visit this website.

What is the deadline to apply?

You will have to act quickly. Applications for both Capital Works and Energy Demand Management grants close on these dates:

  • Phase 1: 2pm, Thursday 31 December 2020
  • Phase 2: 2pm, Sunday 31 January 2021

How can we help?

If you think your business could benefit from this Program, please send an email to patrick@100percentrenewables.com.au or call Patrick at 0408 413 597. Please include the following details:

  1. Name and address of your business
  2. Describe your main business activity
  3. Your contact details
  4. How much you spend on energy in a year
  5. Two recent bills for electricity and gas, if applicable

 

100% Renewables are experts in helping organisations develop their climate action strategies and plans, and supporting the implementation and achievement of ambitious targets. If you need help to develop your Climate Change Strategy, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

NSW as a renewables superpower and what must be done to reach net-zero emissions [with video]

Last week, I presented on ‘NSW as a Renewables Superpower and What Must Be Done To Achieve Zero Carbon Emissions’ at the 13th Energy Storage World Forum Virtual Conference.

You can watch a 15-min-video of my presentation here, which includes information about the newly released New South Wales Electricity Infrastructure Roadmap:

What is Australia’s emissions trend?

At the moment, Australia is emitting roughly 530 million tonnes of carbon emissions annually. Please see below Figure 1, which shows Australia’s historical emissions. To put this into perspective, it means that every year, each Australian resident is responsible for about 21 tonnes of emissions. This is roughly four times higher than the global average of about 5 tonnes.

Australia's historical emissions (Source: Quarterly Update of Australia's National Greenhouse Gas Inventory | National inventory total, year to June 2000 to year to March 2020)
Figure 1: Australia’s historical emissions (Source: Quarterly Update of Australia’s National Greenhouse Gas Inventory | National inventory total, year to June 2000 to year to March 2020)

What is interesting to see in this graph is that our emissions in 2020 are about on the same level as they were in 2000. Is this good enough? Let us have a look at global emissions.

Where are we now and where do we need to be?

Despite the increased focus on climate change in the last few years and the milestone Paris Agreement, global greenhouse gas emissions have not reduced, and the emissions gap between where we should be and where we are is larger than ever. The main driver of long-term warming is the total cumulative emissions of greenhouse gases over time. In the past decades, greenhouse gas emissions have been increasing.

Due to all historical and current carbon emissions, global temperatures have already risen by about 1°C from pre-industrial levels. Continuing with business as usual could result in a temperature increase of over 4°C.

If all countries achieved their Paris Agreement targets, it could limit warming to roughly 3°C. However, to limit warming to 1.5°C, current Paris pledges made by countries are not enough.

Carbon emissions need to decline at a much steeper rate in the near future and reach net-zero by mid-century to have a chance of keeping warming to below 1.5°C. Please see Figure 2 below.

Global warming projections
Figure 2: Global warming projections

Australia has committed to a 26-28% GHG emission reduction by 2030 from 2005 levels. This is not ambitious enough for a 1.5-degree pathway. Also, as a country, we have not committed to net-zero emissions by mid-century, which is where we need to be. However, all states and territories have committed to this target, which effectively means that Australia has a net-zero target.

With most of Australia’s major trading partners having now committed to a net-zero emissions target by around mid-century, and with a new US President-elect who seems likely to increase America’s climate ambitions, perhaps the Australian Government will eventually follow suit. We’ve heard in recent days that the Government may abandon plans to use Kyoto carryover credits to meet its targets, which is a good start if true.

Australia's commitments, 100% Renewables
Figure 3: Australia’s commitments, 100% Renewables

We will see what happens with our national emissions targets in time.

Let’s have a look at Australia’s emissions projection. Under 2019 projections, we will end up with 500m tonnes of carbon emissions in 2030, some 30m lower than our current levels. Under our Nationally Determined Contribution to the Paris Agreement, we need to reach a 26-28% reduction by 2030. This is not anywhere near where we need to be to keep temperature increase to safe levels.

Australia's emissions projection (Source: Australia's emissions projections 2019, Department of Industry, Science, Energy and Resources)
Figure 4: Australia’s emissions projection (Source: Australia’s emissions projections 2019, Department of Industry, Science, Energy and Resources)

However, the good news is that even without policies and targets, the renewables share of electricity will grow, because we have reached the point where renewables are cheaper than fossil fuels.

For many years, we have not done enough. Now, we need to catch up on the years in which we have procrastinated. And rapidly.

NSW as the new renewables superpower

In March this year, the NSW Government released the Net Zero Plan Stage 1 and the Electricity Strategy. NSW officially committed to a 35% reduction in emissions by 2030 and to reaching net-zero by 2050. The focus of the plan is on emissions reduction across key sectors, such as energy, transport, waste, agriculture, mining and carbon finance. The net-zero plan and the electricity strategy will create thousands of new jobs and billions of dollars in new generation and transmission investment in NSW, mostly in regional areas.

A few days ago, the NSW Electricity Infrastructure Roadmap was released, which will establish NSW as a renewable superpower through a coordinated approach to transmission, generation and storage of renewable energy in the State in the coming decades.

NSW's plan to achieve net-zero by 2050
Figure 5: NSW’s plan to achieve net-zero by 2050

Over the next 15 years, four of the five NSW coal power stations are expected to close. These four power stations account for three-quarters of NSW’s electricity supply! As you can see in Figure 6, the closed power plants will leave a gap in electricity generation.

The exciting news is that this gap will be filled by renewable energy generation. NSW will develop several Renewable Energy Zones, enabled by a Transmission Development Scheme, which will have a combination of solar, wind and pumped hydro generation. The infrastructure needed to replace power stations has long lead times, and the Central-West Orana is the first pilot REZ that is currently being developed. Central-West Orana, New England and the South West Renewable Energy Zones will contribute 12 Gigawatts of generating capacity and 3 Gigawatts of firm capacity by 2030, and even more over the long term.

Scheduled coal plant closures and Renewable Energy Zones (Source: AEMO, 2020 Integrated System Plan, July 2020)
Figure 6: Scheduled coal plant closures and Renewable Energy Zones (Source: AEMO, 2020 Integrated System Plan, July 2020)

These renewable energy zones will contribute greatly to grid decarbonisation, which means that over time, the electricity we consume will increasingly come from renewables rather than fossil fuels.

However, this transition will take time. And we can’t rely on governments doing all the work. Everyone needs to act, countries, companies and communities. So, what can you do in your organisation and as an individual to track towards zero emissions?

To answer this question, we first need to take a look at where our emissions are coming from.

Where do our emissions come from?

The biggest part of our emissions is electricity generation, which at the moment comes mostly from fossil fuel power plants. The next most significant contribution is stationary energy consumption, such as burning natural gas. The next highest contributor is transport, which is driving cars, moving goods in trucks, and flying, for example.

Emissions contribution by sector (Source: Quarterly Update of Australia's National Greenhouse Gas Inventory | Figures and Tables for the March Quarter 2020 )
Figure 7: Emissions contribution by sector (Source: Quarterly Update of Australia’s National Greenhouse Gas Inventory | Figures and Tables for the March Quarter 2020 )

Fugitive emissions are mostly methane emissions lost to the atmosphere during coal and gas mining activities and transporting gas. Industrial processes and product use emissions come from industrial activities which are not related to energy, such as cement & lime, metal and chemicals production, as well as from hydrofluorocarbons used as refrigerant gases and other synthetic gases.

Agriculture emissions come from fertiliser usage and growing animals such as sheep and cows. Bill Gates has said that if cattle were a country, they would sit behind China and the US in greenhouse gas emissions.

Waste emissions come mainly from the decomposition of waste in landfill, whereas LULUCF emissions are land-use and land-use change and forestry. In Australia, these emissions are negative, as they are a carbon sink.

What can we do to reduce our emissions to net-zero?

The emissions reduction task is a combination of a small number of significant measures that are happening to reduce the emissions of primary inputs to goods and services, and the actions that individual businesses and consumers can take to reduce their carbon footprint.

There is some heavy lifting that happens independent of consumers.

Heavy lifting that happens independent of consumers
Figure 8: Heavy lifting that happens independent of consumers

Grid decarbonisation

The most prominent example is grid decarbonisation or the ‘greening of the grid’. Coal-fired power plants are being replaced with renewable energy in all Australian states. Just this week, Victoria announced $540million in the budget to develop six renewable energy zones, and Tasmania wants to be 200% renewable by 2040.

Green hydrogen

There is also a big push for green hydrogen in nearly every State, which could potentially replace natural gas over time. The NSW Net Zero Plan is aiming for hydrogen to supply up to 10% of current natural gas demand by 2030.

Biomethane

Biomethane is gas being produced from renewable sources, rather than extracting natural gas.

Reforestation

Reforestation means planting more trees, which reduces carbon dioxide in the atmosphere.

Green steel

Green steel is made by using hydrogen, rather than coal, to strip the oxygen out of iron ore. The by-product is water rather than carbon dioxide. At this time, ThyssenKrupp plans to build a 1.2 million tonne per annum green steel plant in Germany by 2025.

Methane reduction

Cows produce a lot of methane, which can potentially be reduced by up to 80% by introducing seaweed into their feed, based on research being led by CSIRO.

Waste management

One of the ways we can deal with the waste problem is to treat the waste as a resource in waste-to-energy plants.

Sequestration of fugitive emissions

Sequestration of emissions resulting from the extraction and production of LNG is a significant challenge but one which will hopefully improve in coming years.

Most businesses and consumers will benefit from these upstream and downstream changes in terms of their carbon footprint. But rather than rely solely on these changes, some of which may take decades, business and individuals can act themselves to reduce their carbon footprint faster.

What emission sources can you influence?

Every day, you are consuming electricity, and most of you probably use natural gas as well, whether for industrial process heating, air conditioning or cooking. Everyone needs to get from point A to B. Sometimes, we use our cars, sometimes we fly. And we transport our goods using trucks, ships and trains. Everyone consumes goods and services daily, and our consumer choices influence emissions. And we all produce waste.

So how can we reduce our emissions to net-zero?

Achieving zero carbon emissions from a consumer’s perspective

  • Be more energy efficient – we can we more energy efficient, for instance by turning off equipment when it’s not needed, or by replacing old, inefficient equipment, with new, energy-efficient ones.
  • Install solar – where we can, we should install solar. It reduces our emissions immediately, and it is cost-effective. And in future, battery storage will be more cost-effective as well, which will allow us to scale up our solar ambition and take more control over our energy supply and risk.
  • Buy renewable energy – we can choose where the electricity we are buying comes from. We can consciously choose to purchase renewable energy. Bigger organisations can do that via Power Purchase Agreements; smaller consumers can elect to procure GreenPower®.
  • Sustainable transport – we can buy efficient, low- and zero-emissions vehicles and implement EV infrastructure such as charging points. Even bigger trucks can be electrified, which you can see in these pictures here. Using video conferencing also helps to reduce emissions.
  • Less waste – we can reduce our emissions from waste simply by consuming less, by recycling more and by fostering a circular economy, in which the waste of one organisation can be a resource for another business.
  • Sustainable procurement – we can make more sustainable buying decisions and purchase carbon-neutral products, or products that were made from renewable sources, that can be recycled, or composted.
  • Go carbon neutral – on our journey to net-zero, we can invest in carbon offsets to finance projects that support emissions reduction or sequestration.
  • Leadership and governance – and perhaps most importantly, we can show leadership. We can implement all the solutions I’ve talked about earlier and then share our stories with others so that they can learn from our experience. Don’t’ be a follower, be a leader or at least a fast follower.

A challenge for you

I’d like to challenge you today to rethink your carbon footprint. Both your own and the one of the organisation you work for.

Here is my challenge to you:

  1. Switch your electricity supply to 100% renewable energy if you can
  2. Walk and cycle more. It will be good for your health!
  3. Consider a more sustainable diet

 

100% Renewables are experts in helping organisations develop their climate action strategies and plans, and supporting the implementation and achievement of ambitious targets. If you need help to develop your Climate Action Strategy, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Net-zero goals – how to determine what’s in and what’s out? [with video]

Your business is considering a net-zero commitment or maybe you have just committed to net-zero emissions – so what’s next? An important part of making this commitment or of developing a net zero plan is to work out what this goal will encompass. To ensure that you are setting a credible target and to avoid reputational damage, you should be very clear in your communications what boundary your net-zero goal relates to.

A net-zero goal can relate to your operational emissions only, or it can extend to your supply chain. It could relate to your whole organisation, or only to part of it.

In this article, we will focus on whether you should include scope 3 emission sources.

You can also watch the video of my presentation on this topic here:

Should you include scope 3 emission sources?

If you are reporting under compliance-based schemes such as the NGER legislation in Australia, you will probably be aware of your scope 1 and scope 2 carbon footprint.

Please watch the video below for an explainer of scope 1, 2 and scope 3 emission sources.

However, there are many more emission sources that happen upstream and downstream in your supply chain. For many companies, more than 80% of their emissions occur outside of their own operations[1]. So, if you focus your net-zero efforts on your scope 1 and scope 2 carbon footprint only, you will neglect to address the many emission sources you have in your value chain.

Please watch the video below for an explainer of the 15 categories of scope 3 emissions.

Determining which scope 3 emission sources are relevant for you

Not all of the 15 categories of scope 3 emission sources will be relevant for you. The following is a good checklist, which we have adapted from the Greenhouse Gas Protocol:

  1. Is the emission source large relative to your scope 1 and scope 2 emissions?
  2. Does the emission source contribute to your greenhouse gas risk exposure?
  3. Do key stakeholders such as customers or investors deem the emission source critical?
  4. Could you reduce the associated emissions or at least influence emission reduction?

Steps you could take to determine what’s in and out of your scope

The following is a list of suggestions for how you could determine what’s in and out of your net-zero goal:

  1. Have a meeting with key organisational stakeholders to workshop all your emission sources
  2. Discuss whether these emission sources are relevant for your organisation as per the above checklist
  3. If the emission source is relevant, you could consider including it in your net-zero goal

How you could workshop your emission sources

To ensure that no significant scope 3 emissions sources are lost, we recommend that you go through all 15 categories. Here is how we do it at 100% Renewables:

We usually start by showing emissions sources associated with your organisation’s activities. In most cases, this consists of scope 1 and scope 2 emission sources such as the burning of fossil fuel onsite, or the consumption of electricity. Where you operate air conditioning or refrigeration equipment, fugitive emissions from hydrofluorocarbons should also be taken into account.

Scope 1 and scope 2 emissions sources
Figure 1 – Scope 1 and scope 2 emissions sources

Then, we show you upstream and downstream emissions in your value chain, such as shown below.

Figure 2 – Full value chain emissions sources

Usually, category 1 ‘Purchased goods and services’ is a large emissions source – just ask your Finance department for a General Ledger extract of your expenses and you’ll see what we mean.

It is considered best practice to include upstream fuel and energy, and you should assess whether emissions from outsourced transportation and distribution, such as couriers are relevant to you. Every organisation is generating waste, so that should be included as well. Business travel encompasses activities such as air travel and accommodation. Staff commuting is also an important emissions source, particularly if people mostly use cars to get to your place of work.

Where your products generate emissions when they are being used (say you were selling vacuum cleaners), then you should consider the relevance of this emission source as well. If you have investments in joint ventures, subsidiaries or similar that are not accounted for under scope 1 and 2, you could consider also including them in your scope 3 carbon footprint.

[1] * State of Green Business 2013, GreenBiz

If you need help with your net-zero goal, defining the scope or planning to reach net-zero, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Bridging the ambition gap [with video]

This blog post is following on from various previous articles. The first is ‘Science-based targets in a nutshell’, the second is ‘Ambitious commitments by universities’, and the third is ‘Ambitious commitments by state and local governments’ in Australia. While it is great to see so many ambitious commitments by climate change leaders, more businesses need to follow this lead and help bridge the emissions gap and act on climate change.

Despite the increased focus on climate change in the last few years and the milestone Paris Agreement, global greenhouse gas emissions have not reduced, and the emissions gap between where we should be and where we are is larger than ever.

As you can see figure 1 below, which is being updated regularly by Climate Action Tracker, without additional efforts, human-caused carbon emissions may increase to over 100 billion tonnes annually by 2100, which is double current global emissions.

2100 Warming Projections, Climate Action Tracker - Sep 2020 update
Figure 1: 2100 Warming Projections, Climate Action Tracker – Sep 2020 update

You can see a simpler version of this graphic in figure 2. The main driver of long-term warming is the total cumulative emissions of greenhouse gases over time. In the past decades, greenhouse gas emissions have been increasing.

Global warming projections, 100% Renewables
Figure 2: Global warming projections, 100% Renewables

Due to all historical and current carbon emissions, global temperatures have already risen by about 1°C from pre-industrial levels.

Continuing with business-as-usual could result in a temperature increase of over 4°C.

If all countries achieved their Paris Agreement targets, this could limit warming to roughly 3°C.

However, to limit warming to 1.5°C, current Paris pledges made by countries are not enough.

Carbon emissions need to start to decline rapidly in the near future and reach net-zero by mid-century if we are to have a chance of keeping warming to 1.5°C.

To bridge this ambition gap, not only do governments need to act, so do businesses and communities. To keep temperature increase within safe levels, you need to track along the 1.5-degree line, and to do that, you should set yourself carbon reduction goals in line with science. For every one year of failed action, the window to net-zero is reduced by two years.

It’s time to take a stand on a global stage and act on climate change. So what are three steps you can take?

  • Set a target in line with science
  • Develop a climate action plan
  • Reduce emissions in your business and your value chain

I recorded a 3-min video of a presentation on this topic I recently held for one of our clients, which you can watch here:

100% Renewables are experts in helping organisations develop their climate change strategies and action plans, and supporting the implementation and achievement of ambitious targets. If you need help to develop your Climate Change Strategy, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Ambitious climate action commitments by states, local governments and communities – Sep 2020 [with video]

Science tells us that we need to reach net-zero emissions by midcentury to limit global warming to 1.5°C and to reduce the destructive impacts of climate change on human society and nature. In Australia, more and more local governments and communities are demonstrating climate leadership by committing to ambitious carbon or renewable energy goals. This trend is also reflected at state and territory level. As of 9 July 2020, every single Australian state and territory has a formal target to reach net zero by 2050.

100% Renewables has been tracking ambitious carbon and renewable energy commitments made by all levels of Australian governments since we developed the 100% Renewable Energy Master Plan for Lismore City Council in 2014. In May 2017, we published our first blog post on the energy and carbon commitments of states, territories and local governments. We posted several updates since then – in March 2018, October 2018 and in October 2019.

Please see below a video, which shows the timeline of ambitious climate commitments of local governments from 2017 to 2020.

In this update, we present a graphic with state and territories commitments. We also show state-by-state commitments by capital cities, local governments and communities. We also cover memberships by local governments of the Cities Power Partnership, CEDAMIA, the Global Compact of Mayors, and C40.

States’ and territories’ climate change commitments

States and territories are committing to both renewable energy as well as carbon reduction targets. Most targets are in line with the Paris Agreement, which means that zero net emissions have to be reached by mid-century to avoid catastrophic climate change.

 Further information

If you are interested in learning more about what it means to set targets in line with the Paris Agreement, please read our blog post on ‘Science-based targets in a nutshell’.

STATE OR TERRITORYRENEWABLE ENERGY COMMITMENTCARBON COMMITMENT
Australia~20% from renewable energy sources by 2020 (33,000 GWh by 2020)
(Target achieved)
26-28% emissions reduction from 2005 levels by 2030
NSW20% from renewable energy in line with the RET35% reduction in greenhouse gas emissions on 2005 levels by 2030
Zero net emissions by 2050
NT50% renewable energy by 2030Zero net emissions by 2050
SA50% renewable energy production by 2025
(Target achieved in 2018)
Zero net emissions by 2050
TAS100% renewable energy by 2022
200% renewable energy by 2040 (expected to be legislated in 2020)
Commitment to establish a zero net emissions target by 2050
QLD50% renewable energy by 2030Zero net emissions by 2050
VIC25% renewable energy by 2020
40% renewable energy by 2025
50% renewable energy by 2030
Zero net emissions by 2050
WANo targetZero net emissions by 2050

 Further information

For more information on the net zero plan of NSW, please have a read of our blog post ‘NSW Net Zero Plan Stage 1: 2020–2030’.

Ambitious renewable energy and carbon commitments by states and territories as at Sept 2020
Figure 1: Ambitious renewable energy and carbon commitments by states and territories as at Sept 2020

Capital cities’ climate change commitments

Melbourne, Sydney and Brisbane have been carbon neutral for many years and soon, they will be joined by Adelaide. The ACT Government has strong carbon reduction targets in place, while Perth has only committed to a carbon reduction target of 20%. Hobart doesn’t have any official targets but has a strong history of carbon reduction initiatives.

 Further information

If you are interested in learning more about the differences of ‘carbon-neutral’ and ‘net-zero’, you can read our blog post on ’What is the meaning of carbon-neutral, net-zero and climate-neutral?‘.

For more information on how to become carbon neutral under Climate Active, please have a read of our blog post series on ‘Climate Active – Frequently Asked Questions’.

Exciting developments are that from January 2019, Melbourne and the City of Newcastle have been powered by 100% renewable energy, which was soon followed by the City of Sydney and Hawkesbury Council.

 Further information

If you are interested in how you can achieve 100% renewable energy, you can read our blog post on ‘Eight ways to achieve 100% renewable electricity’.

You can also download our whitepaper on ‘How to achieve 100% renewable energy’

CAPITAL CITYCOMMITMENT
ACT Government100% renewable electricity by 2020
40% reduction in GHG emissions from 1990 by 2020
50-60% reduction in GHG emissions from 1990 by 2025
65-75% reduction in GHG emissions from 1990 by 2030
90-95% reduction in GHG emissions from 1990 by 2040
Net zero emissions by 2045
Adelaide100% renewable from July 2020
Zero net emissions from council operations by 2020
Zero net carbon emissions by 2025 for the community
BrisbaneCarbon neutral council from 2017
Melbourne100% renewable energy from 2019
Carbon neutral from 2012
Net zero emissions for the LGA by 2040
Sydney100% renewable energy for council operations by 2021
Carbon neutral from 2008
Reduce emissions by 70% for the LGA by 2030
Net zero emissions for the LGA by 2040

Local governments – ambitious commitments

The following table showcases ambitious carbon and energy commitments by capital cities and local governments and their communities. ‘Ambitious’ means that commitments need to be in line with science. If a local government is committing to the same goal as the state or territory jurisdiction it falls under, it is not considered ambitious, as it is implied that the local government will decarbonise consistent with state or territory policies. Please note that in future updates to this list, we will only report on net-zero targets ahead of 2050.

The following tables are split into renewable energy commitments and carbon reduction commitments.

 Further information

If you are interested in learning more about the difference between renewable energy and carbon targets, you can read our blog post on whether carbon neutral and 100% renewables are the same.

If you are interested in learning more about target scopes, you should read our target series, starting at the blog post ‘What should be the scope of your target’.

STATE OR TERRITORYLOCAL GOVERNMENTSRENEWABLE ENERGY COMMITMENTCARBON COMMITMENT
ACTACT100% renewable electricity by 202065-75% reduction in GHG emissions from 1990 by 2030
Net zero emissions by 2045
NSWBathurst Regional50% of council’s electricity consumption to be from renewable sources by 2025
NSWBega Valley Shire CouncilNet zero emissions, with interim target
of 100% renewable electricity by 2030
NSWBellingen Shire Council100% renewable energy by 203045% carbon reduction by 2030 (based on 2010 emissions levels)
Zero net emissions by 2040
NSWBlacktown City CouncilNet-zero GHG emissions from electricity, fuel and gas by 2030
NSWBroken Hill Council100% renewable energy status by 2030
NSWBlue Mountains City CouncilCarbon neutral by 2025
NSWByron Bay Council100% renewable energy by 2027Net zero by 2025
NSWCentral Coast Council60% emissions reduction of Council emissions (below 2017/18 levels) by 2022 and 85% by 2028
NSWCity of Canada BayNet zero emissions by 2030
NSWCity of Newcastle100% renewable electricity from 2020
NSWCity of Ryde100% renewable energy by 2030
NSWCoffs Harbour City Council100% renewable energy by 203050% reduction in emissions (on 2010 levels) by 2025
NSWDubbo Regional Council 50% renewable energy by 2025
NSWEurobodalla Shire Council100% renewable energy by 2030
NSWFederation CouncilElectricity neutral (i.e. generating electricity
equal to, or greater than its consumption) by
June 2025
NSWHornsby Shire Council32% emissions reduction from 2018 by 2025
53% emissions reduction from 2018 by 2030
NSWInner West Council100% renewable electricity by 2025Carbon neutral by 2025
100% divestment from fossil fuel
NSWGeorges River Council100% renewable target by 2025Net zero carbon emissions by 2025 or as soon as practicable
NSWKu-ring-gai CouncilAchieve 100% renewable energy by 2030, whilst pursuing efforts to reach this target by 2025Net zero emissions by 2040, or earlier, and a 50% reduction, by 2030
100% reduction in fleet emissions by 2040
NSWKyogle Council25% electricity from on-site solar by 2025
50% renewable electricity by 2025
100% renewable electricity by 2030
NSWLismore City CouncilSelf-generate all electricity needs from renewable sources by 2023
NSWNambucca CouncilZero net carbon emissions within the 2030 to 2050 time frame
NSWNorthern Beaches CouncilAll suitable sites being powered by renewable electricity by 2030Net zero emissions by 2045
60% reduction in carbon emissions by 2040
Aspiration to achieve net zero emissions by 2030
NSWParramatta CouncilCarbon neutral by 2022
NSWPort Macquarie-Hastings Council100% renewable energy by 2027
NSWRandwick Council100% renewable by 2030 for stationary and transport energyZero emissions by 2030
NSWSutherland Shire CouncilCarbon neutral by 2030
NSWSydney100% renewable energy for council operations by 2021Carbon neutral from 2008
NSWTweed Shire Council25% less electricity related carbon emissions (as tonnes CO2-e) than 2016/17 by 2022
50% less electricity related carbon emissions (as tonnes CO2-e) than 2016/17 by 2025
Net zero emissions by 2030
NSWWaverley Council70% reduction of Council emissions (2003/04 levels) by 2030
Carbon neutral by 2050
NSWWilloughby City CouncilBy 2028 emit 50% less GHG emissions from operations compared with 2008/09
Achieve net zero emissions by 2050
NSWWollongong CouncilAspirational emissions reduction target of zero emissions by 2030
QLDBrisbane City CouncilCarbon neutral since 2017
QLDCairns Regional CouncilReduce emissions by 50% below 2007/08 levels by 2020
QLDGold Coast City CouncilCarbon neutral by 2020
QLDIpswich City CouncilCarbon neutral by 2021
QLDLogan CouncilCarbon neutral by 2022
QLDNoosa CouncilNet zero emissions by 2026
QLDSunshine Coast CouncilNet zero emissions by 2041
SAAdelaide100% renewable from July 2020Zero net emissions from council operations by 2020
TASCity of Launceston Council100% renewables by 2025100% neutrality of carbon emissions by 2025
VICBanyule City CouncilCarbon neutral operations by 2028
VICBass Coast Shire CouncilZero net emissions by 2030
VICBayside City CouncilCarbon neutral by 2020
VICBrimbank City Council50% reduction in corporate greenhouse emissions by 2023
VICCasey City CouncilCarbon neutral by 2040
VICCity of Ballarat Council100% renewables by 2025Zero emissions by 2025
VICCity of Greater Bendigo100% renewable energy by 2036
VICCity of Greater Geelong100% renewable electricity supply for all City owned and operated buildings and streetlights by 2025City-managed operations to be carbon neutral by 2025
City-owned light fleet vehicles to be powered by zero-emission sources by 2030
VICCity of Port PhillipZero net emissions by 2020
VICCity of Yarra100% renewable electricity since 2019Carbon neutral since 2012
VICDarebin City CouncilCarbon neutral by 2020 for both operations and the community
VICFrankston City CouncilZero net emissions by 2025
VICHepburn CouncilCarbon neutral by 2021
VICHobsons BayReach zero net GHG emissions from council’s activities by 2020
VICGlen EiraNet zero emissions from operations by 2025
VICGolden Plains Shire CouncilNet zero emissions by 2040
50% reduction in Council emissions by 2023
VICMacedon Ranges Shire CouncilZero net emissions by 2030-2031
VICManningham100% carbon neutral by 2020
VICMoonee Valley City CouncilZero net emissions by 2020
VICMaribyrnong City CouncilNet zero corporate CO2 emissions from 2015
VICMelbourne100% renewable energy from 2019Carbon neutral since 2012 for council operations
VICMoreland Council100% renewable energy by 2019Carbon neutral for operations since 2012
VICMornington Peninsula CouncilCarbon neutral by 2021
VICMount Alexander Shire CouncilCarbon neutral by 2025
VICStrathbogie Shire CouncilZero net emissions by 2025
VICWarrnambool City CouncilZero net emissions by 2040
VICWellington Shire CouncilNet zero emissions by 2040
VICWyndhamCarbon neutral for corporate GHG emissions by 2040
WACity of BayswaterCorporate renewable energy target of 100% by 2030Corporate GHG emissions reduction target of 100% by 2040
WACity of Fremantle100% renewable energy by 2025Carbon neutral since 2009
WAMandurahCarbon neutral by 2020

From the list above, 100% Renewables is proud to have developed many of the strategies and plans for councils that have committed to ambitious targets, and/or helped them to deliver on their target, including:

Ambitious renewable energy and carbon commitments by NSW councils and the ACT Government

Ambitious renewable energy and carbon commitments by local governments in New South Wales and the Australian Capital Territory as at Sep 2020
Figure 2: Ambitious renewable energy and carbon commitments by local governments in New South Wales and the Australian Capital Territory as at Sep 2020

Ambitious renewable energy and carbon commitments by VIC councils

Ambitious renewable energy and carbon commitments by local governments in VIC as at Sep 2020
Figure 3: Ambitious renewable energy and carbon commitments by local governments in VIC as at Sep 2020

Ambitious renewable energy and carbon commitments by QLD councils

Ambitious renewable energy and carbon commitments by local governments in Queensland as at Sep 2020
Figure 4: Ambitious renewable energy and carbon commitments by local governments in Queensland as at Sep 2020

Ambitious renewable energy and carbon commitments by SA councils

Ambitious renewable energy and carbon commitments by local governments in South Australia as at Sep 2020
Figure 5: Ambitious renewable energy and carbon commitments by local governments in South Australia as at Sep 2020

Ambitious renewable energy and carbon commitments by WA councils

Ambitious renewable energy and carbon commitments by local governments in Western Australia as at Sep 2020
Figure 6: Ambitious renewable energy and carbon commitments by local governments in Western Australia as at Sep 2020

Community climate change commitments

Until recently, most local governments focused on their own operations by developing targets and actions plans. With the increasing need to rapidly reduce carbon emissions to combat climate change, more and more councils are now looking at how they can lead and facilitate carbon mitigation in their communities.

The following table shows renewable energy and carbon commitments made by local governments on behalf of their community.

 Further information

For more information on how to set targets and develop action plans for communities, please have a read of our blog post on setting targets for community emissions.

STATE OR TERRITORYCOMMUNITYRENEWABLE ENERGY COMMITMENTCARBON COMMITMENT
NSWByron Bay CommunityNet zero by 2025
NSWCity of Canada BayNet zero emissions by 2050
NSWCity of WollongongNet zero emissions by 2050
NSWHawkesbury City CouncilCarbon neutral LGA by 2036
NSWInner West Council100% of schools have installed solar by 2036
Solar PV capacity is 20 times greater than in 2017 by 2036
Community emissions are 75% less than in 2017 in 2036
NSWKu-ring-gai CouncilNet zero GHG emissions by 2040
NSWLockhartPlan for town to be powered by renewable energy and operating on a microgrid
NSWMullumbimby100% renewable energy by 2020
NSWSydneyReduce emissions by 70% for the LGA by 2030
Net zero emissions for the LGA by 2040
NSWTweed Shire CouncilNet zero emissions by 2030
NSWTyalgum VillagePlan to be off the grid
100% renewable energy, with batteries
NSWUralla TownPlan to be first zero net energy town
NSWWaverley Council70% reduction of community emissions (2003/04 levels) by 2030
Carbon neutral by 2050
NSWWilloughby City CouncilBy 2028, our community will emit 30% less GHG emissions compared with 2010/11
SACity of AdelaideZero net carbon emissions by 2025
VICBass Coast Shire CouncilZero net emissions by 2030
VICCardinia Shire Council36% reduction in per capita community emissions by 2024
VICCity of DarebinZero net carbon emissions across Darebin by 2020
VICHealesvilleNet zero town by 2027
VICHobsons BayReach zero net GHG emissions from the community’s activities by 2030
VICGlen EiraNet zero emissions from the community by 2030
VICMelbourneNet zero emissions by 2040
VICMoonee Valley City CouncilZero net emissions by 2040
VICMoreland CouncilZero carbon emissions Moreland by 2040
VICNatimuk100% renewable energy with community solar farm
VICNewstead VillagePlan to be 100% renewable
VICWarrnambool CouncilCarbon neutral city by 2040
VICWyndhamZero net GHG emissions from electricity use in the municipality by 2040
VICYackandandah Town100% renewable energy by 2022
WACity of FremantleZero carbon for LGA by 2025
WAPerth32% reduction in citywide emissions by 2031

At this stage, only the NSW and VIC graphics have been split into council operations’ and communities’ commitments. For other states, please refer to the maps in the previous section.

Ambitious renewable energy and carbon commitments by NSW communities

Ambitious renewable energy and carbon commitments by communities in New South Wales and the Australian Capital Territory as at Sep 2020
Figure 7: Ambitious renewable energy and carbon commitments by communities in New South Wales and the Australian Capital Territory as at Sep 2020

Ambitious renewable energy and carbon commitments by VIC communities

Ambitious renewable energy and carbon commitments by communities in Victoria as at Sep 2020
Figure 8: Ambitious renewable energy and carbon commitments by communities in Victoria as at Sep 2020

From the list above, 100% Renewables is proud to have developed many of the renewable energy strategies and plans for communities including:

Local governments in Australia that have declared a climate emergency

Local governments are playing a key role in leading the climate emergency response, which is why CEDAMIA (derived from Climate Emergency Declaration and Mobilisation In Action) campaigns for a Climate Emergency Declaration at all levels of government.

CEDAMIA calls on all Australian federal, state, and territory parliaments and all local councils to:

  • Declare a climate emergency
  • Commit to providing maximum protection for all people, economies, species, ecosystems, and Civilisations, and to fully restoring a safe climate
  • Mobilise the required resources and take effective action at the necessary scale and speed
  • Transform the economy to zero emissions and make a fair contribution to drawing down the excess carbon dioxide in the air, and
  • Encourage all other governments around the world to take these same actions.

CEDAMIA works in conjunction in conjunction with CACE – Council Action in the Climate Emergency. Step 1 is to declare a climate emergency, and step 2 is to mobilise your community and move into emergency mode. According to CACE, a local government’s key role is to

  • Lobby state and national governments to adopt and fund full climate emergency response
  • Encourage other councils to implement a climate emergency response through networks and by leading by example
  • Have local emergency action through education, mitigation and resilience building
  • Educating council staff about the climate emergency and what council can do to respond

The following local governments have declared a climate emergency:

STATELOCAL GOVERNMENT
ACTAustralian Capital Territory Legislative Assembly
NSWArmidale Regional Council
NSWBallina Shire Council
NSWBega Valley Shire Council
NSWBellingen Shire Council
NSWBlacktown City Council
NSWBlue Mountains City Council
NSWBroken Hill City Council
NSWByron Shire Council
NSWCanada Bay City Council
NSWCanterbury Bankstown City Council
NSWCentral Coast Council
NSWClarence Valley Council
NSWGlen Innes Severn Shire Council
NSWHawkesbury City Council
NSWHunters Hill Council
NSWInner West Council
NSWKiama Municipal Council
NSWLane Cove Council
NSWLismore City Council
NSWMidCoast Council
NSWMosman Council
NSWNewcastle City Council
NSWNorth Sydney Council
NSWNorthern Beaches Council
NSWRandwick City Council
NSWRyde City Council
NSWSydney City Council
NSWTweed Shire Council
NSWUpper Hunter Shire Council
NSWWaverley Council
NSWWilloughby City Council
NSWWingecarribee Shire Council
NSWWollongong City Council
NSWWoollahra Municipal Council
NTDarwin City Council
QLDNoosa Shire Council
SAAdelaide City Council
SAAdelaide Hills Council
SAAlexandrina Council
SABurnside City Council
SACampbelltown City Council
SACharles Sturt City Council
SAGawler Town Council
SAHoldfast Bay City Council
SALight Regional Council
SAMitcham Council
SAMount Barker District Council
SAMurray Bridge Council
SAPort Adelaide Enfield City Council
SAPort Lincoln City Council
SASalisbury City Council
SAVictor Harbor Council
TASHobart City Council
TASKingborough Council
TASLaunceston City Council
VICBallarat City Council
VICBanyule City Council
VICBass Coast Shire Council
VICBayside City Council
VICBrimbank City Council
VICCardinia Shire Council
VICDarebin City Council
VICFrankston City Council
VICGlen Eira City Council
VICGreater Dandenong City Council
VICGreater Geelong City Council
VICGreater Shepparton City Council
VICHepburn Shire Council
VICHobsons Bay City Council
VICIndigo Shire Council
VICKingston City Council
VICManningham Council
VICMaribyrnong City Council
VICMelbourne City Council
VICMildura Rural City Council
VICMoonee Valley City Council
VICMount Alexander Shire Council
VICMoreland City Council
VICMornington Peninsula Shire Council
VICMoyne Shire Council
VICPort Phillip City Council
VICQueenscliffe Borough Council
VICStonnington City Council
VICSurf Coast Shire Council
VICWarrnambool City Council
VICYarra City Council
VICYarra Ranges Council
WAAugusta-Margaret River Shire Council
WADenmark Shire Council
WAEast Fremantle Town Council
WAFremantle City Council
WAMundaring Shire Council
WASwan City Council
WAVictoria Park Town Council
WAVincent City Council

 Further information

For more information on 5 key considerations for declaring for climate emergency plans, please read our article, which also includes a video.

Local Governments that are members of Cities Power Partnership

The Cities Power Partnership (CPP) is Australia’s largest local government climate network, made up over 127 councils from across the country, representing almost 11 million Australians. Local councils who join the partnership make five action pledges in either renewable energy, efficiency, transport or working in partnership to tackle climate change.

There are dozens of actions that councils can choose from ranging from putting solar on council assets, switching to electric vehicles, to opening up old landfills for new solar farms. The following table shows current local government members of CPP.

STATELOCAL GOVERNMENT
ACTCanberra
NSWAlbury City Council
NSWBathurst Regional Council
NSWBayside Council
NSWBega Valley Shire
NSWBellingen Shire Council
NSWBlacktown City Council
NSWBlue Mountains City Council
NSWBroken Hill City Council
NSWByron Shire Council
NSWCity of Canterbury-Bankstown
NSWCentral Coast Council
NSWClarence Valley Council
NSWCoffs Harbour
NSWCumberland Council
NSWDubbo Regional Council
NSWEurobodalla Council
NSWGeorges River Council
NSWHawkesbury City Council
NSWHornsby Shire Council
NSWInner West Council
NSWKiama Council
NSWKu-ring-gai Council
NSWLane Cove Council
NSWLake Macquarie
NSWLismore City Council
NSWMosman Council
NSWMidCoast Council
NSWMuswellbrook Shire Council
NSWNambucca Shire Council
NSWThe City of Newcastle 
NSWhttps://citiespowerpartnership.org.au
NSWNorth Sydney Council
NSWOrange City Council
NSWParkes Shire Council
NSWCity of Parramatta
NSWPenrith City Council
NSWPort Macquarie-Hastings
NSWRandwick City Council
NSWCity of Ryde
NSWShellharbour City Council
NSWShoalhaven City Council
NSWCity of Sydney
NSWTweed Shire
NSWUpper Hunter Shire Council
NSWCity of Wagga Wagga
NSWWaverley Council
NSWWilloughby Council
NSWWingecarribee Shire
NSWWollongong City Council
NSWWoollahra Municipal Council
NTAlice Springs Town Council
NTCity of Darwin
QLDBrisbane City Council 
QLDBundaberg Regional Council
QLDCairns Regional Council
QLDDouglas Shire Council
QLDIpswich City Council 
QLDLivingstone Shire Council 
QLDLogan City Council
QLDMackay Regional Council
QLDNoosa Shire Council
QLDSunshine Coast Council
SAAdelaide Hills Council 
SACity of Adelaide
SAAlexandrina Council
SACity of Charles Sturt
SAGoyder Regional Council
SAMount Barker District Council 
SACity of Onkaparinga
SACity of Port Adelaide Enfield
SACity of Victor Harbor
TASBrighton Council
TASCity of Launceston
TASHuon Valley Council
TASGlamorgan Spring Bay
TASNorthern Midlands Council
VICCity of Ballarat
VICBaw Baw Shire Council
VICBenalla Rural City Council 
VICCity of Boroondara
VICCity of Darebin
VICCity of Greater Dandenong
VICHepburn Shire Council
VICCity of Melbourne
VICMildura Rural City Council
VICCity of Monash
VICMoonee Valley City Council
VICMoreland City Council
VICMornington Peninsula Shire
VICMount Alexander Shire Council
VICCity of Mitcham
VICNillumbik Shire Council
VICCity of Port Phillip
VICBorough of Queenscliffe
VICStrathbogie Shire Council
VICStonnington City Council
VICRural City of Wangaratta
VICWarrnambool City Council
VICWollongong City Council
VICWyndham City Council
VICCity of Yarra
VICYarra Ranges Council 
WACity of Armadale
WAShire of Augusta-Margaret River
WATown of Bassendean
WACity of Bayswater
WACity of Belmont
WACity of Bunbury
WACity of Busselton
WACity of Canning
WACity of Cockburn
WAShire of Donnybrook-Balingup
WACity of Fremantle
WACity of Gosnells
WACity of Kalgoorlie-Boulder
WACity of Kwinana
WACity of Melville
WAShire of Mundaring
WAShire of Murray
WAShire of Northam 
WACity of Rockingham
WAShire of Serpentine Jarrahdale
WACity of Subiaco
WACity of Swan
WATown of Victoria Park
WACity of Vincent

Local Governments that are members of Global Covenant of Mayors

Global Covenant of Mayors or GCoM is the largest global alliance for city climate leadership. GCoM is built upon the commitment of over 10,000 cities and local governments across 6 continents and 138 countries. In total, these cities represent more than 800 million people. By 2030, Global Covenant cities and local governments could account for 2.3 billion tons CO2-e of annual emissions reduction.

In Australia, 27 councils are members of GCoM. To join the GCoM, you need to develop citywide knowledge, goals, and plans that aim at least as high as your country’s own climate protection commitment(s) or Nationally Determined Contribution (NDC) to the Paris Climate Agreement.

As a partner of the GCoM, you need to undertake the following:

STATELOCAL GOVERNMENT
ACTAustralian Capital Territory (Canberra) 
NSWByron Shire
NSWNewcastle
NSWPenrith
NSWSydney
NSWTweed Shire 
NSWWollongong 
SAAdelaide
SAMount Barker
SAWest Torrens
TASHobart 
VICDarebin City Council
VICGlen Eira 
VICHobsons Bay City Council 
VICManningham 
VICMaribyrnong 
VICMelbourne 
VICMelton
VICMoreland 
VICMornington Peninsula Shire 
VICPort Phillip 
VICWyndham City Council
VICYarra 
WAJoondalup 
WAMandurah 
WAMelville 
WAPerth

We recently helped the City of Newcastle with their submission to GCoM, so please contact us if you need help with filling in the GCoM questionnaire.

Local Governments that are members of C40

C40 is a network of the world’s megacities committed to addressing climate change. C40 supports cities to collaborate effectively, share knowledge and drive meaningful, measurable and sustainable action on climate change. In Australia, Melbourne and Sydney are members.

If you need help with your own target or plan

100% Renewables are experts in helping local governments and communities develop carbon mitigation and climate adaptation targets, strategies and plans. If you need help with developing a target and plan that takes your unique situation into consideration, please contact  Barbara or Patrick.

Please let us know if there are any commitments that are missing, or if any commitment needs a correction. You can contact us for high-resolution copies of the graphics in this article.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

What is the meaning of carbon-neutral, net-zero and climate-neutral? [with video]

There are several terms that describe ambitious climate action targets such as ‘carbon-neutral’, ‘net-zero’ and ‘climate-neutral’, and we are sometimes asked whether these terms can be used interchangeably.

Are the terms ‘carbon-neutral’, ‘net-zero’ and ‘climate-neutral’ the same or are they different?

Whether you are using ‘carbon-neutral’, ‘net-zero’, or ‘climate neutral’ in your goal, they all reflect the same intent to reduce or eliminate your organisation’s impact on the climate system.

In most cases, these terms are and can be used interchangeably, but there are differences in how they are defined and what they are taken to mean in terms of how goals are to be achieved. Let’s have a look at the definitions of the terms first.

How do you define carbon-neutral, net-zero emissions and climate-neutral?

According to the IPCC Special Report: Global Warming of 1.5°C, the definitions are as follows:

Definition of carbon neutrality

Carbon neutrality, or net-zero carbon dioxide (CO2) emissions, is achieved when your organisation’s CO2 emissions are balanced globally by CO2 removal, typically over one year.

Definition of net-zero emissions

Net-zero emissions are achieved when your organisation’s emissions of all greenhouse gases (CO2-e) are balanced by greenhouse gas removals, typically over one year.

Definition of climate neutrality

Climate neutrality is achieved when organisational activities result in no net effect on the climate system. In climate-neutral claims, regional or local bio-geophysical effects have to be accounted for as well, such as radiative forcing (e.g. from aircraft condensation trails).

In summary, a carbon-neutral target relates to carbon dioxide only, whereas a ‘net-zero’ goal includes all greenhouse gases, and a ‘climate-neutral’ goals extends to other effects such as radiative forcing as well. For an explanation of the different greenhouse gases and radiative forcing, please read the appendix.

For most companies, carbon-neutral, net-zero and climate-neutral mean the same.

If an organisation releases mainly carbon dioxide, there is not much difference between using the term carbon-neutral, net-zero or climate-neutral.

Also, for most sectors, net-zero emissions and climate neutrality are the same due to the most important climate impact being the release of greenhouse gases into the atmosphere. However, some sectors, such as aviation, should consider other climate impacts from non-CO2 radiative forcing as well.

Examples of carbon-neutral, net-zero and climate-neutral claims

You can see examples of how these targets can be turned into claims in the graphic below. The horizontal axis shows the potential scope of an organisation’s emissions, from CO2-only to climate neutral. The vertical axis shows the scope of activities that are covered, from site level through to the full value chain of an organisation.

WRI definitions net zero carbon neutral climate neutral

Figure 1: Scopes of carbon neutrality, net-zero and climate neutrality. Source: CDP and SBTi.

For examples of how organisations are phrasing their commitments, have a look at the following:

Apple, which is already carbon neutral for corporate emissions worldwide, committed to be 100% carbon neutral for its supply chain and products by 2030. They plan on ‘bringing their entire footprint to net zero 20 years sooner than IPCC targets’.

H&M, have committed to the following:

  • Climate positive by 2040 throughout H&M Group’s entire value chain.
  • Climate-neutral supply chain for our manufacturing and processing factories owned or subcontracted by our suppliers as well as our suppliers’ own suppliers (i.e. fabric mills, fibre processors, spinners or tanneries) by 2030.
  • Reduce scope 1 and 2 GHG emissions by 40% before 2030 (baseline 2017).
  • Reduce scope 3 GHG emissions from purchased raw materials, fabric production and garments by 59% per product before 2030 (baseline 2017).
  • Increase annual sourcing of renewable electricity from 95% in 2017 to 100% by 2030.

In Australia, Atlassian committed to:

  • running their operations on 100% renewable energy by 2025
  • setting science-based targets to limit warming to 1.5°C
  • achieve net-zero emissions by no later than 2050.

Reaching carbon neutrality/net-zero emissions/climate neutrality

In addition to what climate forces are included in targets, there are also different interpretations of how a particular target will be reached.

For example, most people understand a net-zero or a climate-neutral target to mean that a business puts significant emphasis on reducing or mitigating emissions in their own organisation, and will buy offsets to address residual emissions. For many, a carbon-neutral goal is seen as a strategy that mainly relies on the purchase of carbon offsets. In that sense, a carbon-neutral goal can be seen as an interim goal on the journey to net-zero emissions.

Please read the appendix for further information on offsets.

Carbon neutral under Climate Active

Climate Active is a Commonwealth Government program that allows Australian organisations to achieve certified carbon neutral status for their whole organisation, products/services, events and buildings/precincts. Climate Active is a rigorous program which ensures that your climate claim is credible. For more information on this program, please read our three-part blog series- Part 1, Part 2 and Part 3.

When going carbon neutral under Climate Active, all greenhouse gas emissions must be considered, including your organisation’s emissions, emissions in your value chain, and radiative forcing for flights. In addition, you need to develop a strategy on how to reduce emissions in your organisation, not just offset them.

When committing to be carbon neutral under Climate Active, you can safely assume that your carbon-neutral goal is synonymous with a climate-neutral or net-zero goal in terms of emissions coverage, as shown in the following graphic:

Climate Active definition of carbon neutrality

Figure 2: Climate Active carbon-neutral can be interpreted to be the same as net-zero and climate-neutral

Five factors you should consider when setting your climate target

To ensure that you are setting a credible target and to avoid reputational damage, you should be mindful of the following considerations when defining your carbon-neutral/net-zero/climate-neutral target:

  1. Define what greenhouse gases you include in your claim. Only CO2, or all relevant greenhouse gases?
  2. Define what entity is addressed in your claim. Only operational emissions, or also your supply chain? Will you make an event carbon neutral or one of your buildings or products/services?
  3. Define what emission sources form part of your claim. Will you include all carbon scopes or just a select few? Will you perform a materiality assessment across your emission sources to find out which you should include?’
  4. Define the strategy on how you intend to reach your target. Will you use carbon offsets? How much focus will you place on reducing emissions that fall under your operational control? How much focus will you put on reducing emissions in your value chain?
  5. Define the timeframe. Be mindful of setting the year you want to reach your goal at least in line with science. Consider setting yourself an interim carbon reduction target in line with science.

What comes after net-zero?

Reaching net-zero is an important achievement for any organisation, but it is only one step towards stabilising our climate. Beyond net-zero, we need to remove more greenhouse gases than we are adding to the atmosphere.

Ambitious climate change leaders are starting to turn their attention to balancing out their historical emissions, as well as their current and future emissions. They are also beginning to think about becoming ‘carbon-negative’ or ‘climate-positive’, which means that you are removing more GHG from the atmosphere than you are adding to it.

Appendix

What greenhouse gases are there?

When thinking of greenhouse gases, most people would list carbon dioxide as the main culprit. CO2 is indeed the most prevalent greenhouse gas, but according to the GHG Protocol, there are seven greenhouse gases (GHG) that organisations should report on:

  1. Carbon dioxide (CO2), which is mostly emitted by burning fossil fuels
  2. Methane (CH4), which is mostly emitted by growing ruminant animals such as sheep and cows, and from landfills
  3. Nitrous oxide (N2O), which is mostly emitted by growing crops (fertiliser usage) and livestock (manure)
  4. Hydrofluorocarbons (HFCs), which are mostly emitted by refrigeration equipment
  5. Perfluorocarbons (PFCs), which are mostly emitted by the aluminium industry
  6. Sulphur hexafluoride (SF6), mostly emitted by switchgear
  7. Nitrogen trifluoride (NF3), mostly emitted in computer manufacturing

Carbon dioxide is the most important greenhouse gas due to the vast quantities that are being emitted and due to its long life – hundreds of years – in the atmosphere. Another such ‘long-lived’ GHG is nitrous oxide, at more than 100 years.

Methane, for instance, exists in the atmosphere for a much shorter period, but has a much higher global warming potential than CO2, meaning that this gas causes more global warming per tonne than CO2.

Most fluorinated gases (PFCs, SF6, HFCs) have very high global warming potentials, so small atmospheric concentrations can have disproportionately large effects on global temperatures. They can also last in the atmosphere for thousands of years. And whereas carbon dioxide can be absorbed by growing plants, no living organism needs HFCs in any of their processes.

Most organisations are emitting carbon dioxide as their most significant greenhouse gas.

What is non-CO2 radiative forcing?

A recent study called ‘The contribution of global aviation to anthropogenic climate forcing for 2000 to 2018’ shows that global aviation warms Earth’s surface through both CO2 and net non-CO2 contributions.

Aviation contributions involve a range of atmospheric physical processes, including plume dynamics, chemical transformations, microphysics, radiation, and transport, which you can see in the image below. Interestingly, the study reveals that two-thirds of the climate impact from aviation is caused by emissions other than CO2.

Climate forcings from global aviation

Figure 3: How aviation affects the climate system

How can you reach carbon neutrality/net-zero/climate neutrality?

To reach the goal of the Paris Agreement, emissions must be reduced as close to zero as possible, as quickly as possible. By 2030, we need to have halved emissions.

Both CO2 and non-CO2 emissions can be reduced by decarbonising grid energy, building more sustainably, producing our goods and services more sustainably and transporting our goods more sustainably.

In addition, targeted non-CO2 mitigation measures can reduce nitrous oxide and methane emissions from agriculture, as well as methane emissions from the waste sector. HFCs in refrigeration equipment can also be replaced with less harmful substances.

Offsetting

Offsets are a useful way to reach a carbon-neutral target right away. One offset equals one tonne of greenhouse gas emissions that is avoided or reduced elsewhere. However, you need to make sure that you purchase highly credible carbon offsets that meet rigorous selection criteria.

Carbon offsets can be generated from projects that remove carbon from the atmosphere, such as planting trees, which need CO2 to grow.

Offsets can also be generated from activities that avoid emissions (compared to a hypothetical business-as-usual scenario), such as wind farm projects, or energy efficiency projects.

Which is more popular? Carbon neutral, net-zero or climate-neutral?

Analysing past submissions to CDP shows that most companies use the term ‘carbon-neutral’ over terms such as ‘climate-neutral’ or ‘net-zero’. However, the term ‘net-zero’ is becoming increasingly popular.

A search on Google trends over the past three years reveals that in Australia, the term ‘carbon-neutral’ is a more popular search term compared to ‘net-zero’, which in turn is more popular than the term ‘climate-neutral’.

Popularity of search terms on Google

Figure 4: Google search trends for ‘carbon-neutral’, ‘net-zero’ and ‘climate-neutral’[1]

[1] Numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular. A score of 0 means there was not enough data for this term.

100% Renewables are experts in helping organisations develop their climate action strategies and plans, and supporting the implementation and achievement of ambitious targets. If you need help to develop your Climate Action Strategy, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Act now – Funding for high energy using businesses for energy-saving opportunities

Save money on energy by accessing grant money from the Commonwealth Government

A few months ago, we started working with NSW Dept of Planning Industry and Environment (DPIE) on their energy management coaching program for business. The program was well received, and we were able to help several of our clients with this opportunity.

Another great opportunity has opened. The Commonwealth Government is assisting businesses and community organisations to improve energy efficiency practices and technologies and better manage energy consumption to reduce their power bills through the Energy Efficient Communities Program – High Energy Using Business Grants.

This grant opportunity is for high energy using businesses with an annual net energy consumption of more than 0.05 PJ per year with up to $25,000 in grant money being made available.

How can you save money on energy?

Energy is wasted by utilising old technology and controls, leaving plant and equipment on when not in use, having sub-optimal temperature or process settings, or having reactive rather than preventative maintenance procedures. Often, energy waste occurs because there is insufficient time or resources to devote to manage energy effectively and plan for improvements.

How much money is the Government making available?

The grant amount will be up to 50% of eligible project costs. The minimum grant amount is $10,000, and the maximum grant amount is $25,000. You are responsible for the remaining eligible project expenditure plus any ineligible expenditure.

Are you eligible for this program?

Your business must have an ABN and have a net energy consumption of more than 0.05 PJ per year across all activities conducted by your business, and across all fuel types.

Your project must be supported at senior management level, and you need to be able to complete the project and meet the costs of the project not covered by grant funding. If you have ceased operating as a result of bushfires or COVID-19, you need to certify that you intend to resume operating as a business in the future.

Eligible projects include:

  • Replacing existing equipment with higher efficiency equipment
  • Installing or replacing a component to help an existing system run more efficiently
  • Energy audits
  • Investment feasibility studies for energy efficiency upgrades
  • Monitoring of energy consumption and greenhouse gas emissions

How does it work, and what will you need to do?

Once you have determined whether you are eligible for this support, you will need to email us. For the businesses we can support, we will help you complete an application form and liaise with the Commonwealth Government to secure your participation in the program.

We can help you across the full breadth of eligible projects, ranging from performing an energy audit, developing a feasibility study for an energy efficiency upgrade, helping you go to market for more energy-efficient equipment, or assisting you with monitoring your energy consumption and GHG emissions.

How to apply:

If you are a medium to a large manufacturer, this opportunity is for you. Please send an email to patrick@100percentrenewables.com.au or call Patrick at 0408 413 597. Please include the following details:

  1. Name and address of your business
  2. Describe your main business activity
  3. Your contact details
  4. How much you spend on energy in a year
  5. Two recent bills for electricity and gas, if applicable

100% Renewables are experts in helping organisations develop their climate change strategies and action plans, and supporting the implementation and achievement of ambitious targets. If you need help to develop your Climate Change Strategy, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

FAQs for becoming certified under Climate Active – Part 3 [with video]

This article follows on from part 1 and part 2 of this series, in which we discussed general questions about carbon neutrality, scopes, the Climate Active Program and typical emissions sources in a Climate Active carbon footprint. In this blog post, we’ll address how to get certified carbon neutral under Climate Active and how much it costs to get certified under the Climate Active program.

How do I become certified under Climate Active?

To become certified carbon neutral under Climate Active, there are four basic steps.

  1. Determine your carbon footprint boundary
  2. Calculate your carbon footprint
  3. Get your carbon footprint verified
  4. Purchase carbon offsets and submit all documentation to the Commonwealth Government

What responsibilities do you have under Climate Active?

The following list shows your responsibilities under the Climate Active program. Please note that a registered consultant can help you with engaging a verifier, collecting all necessary data, completing your report and guiding you through the offset purchase process.

  • Sign Licence Agreement
  • Pay annual fee
  • Engage auditor/verifier
  • Complete report or provide all data to a Registered Consultant (please note that 100% Renewables is a Registered Consultant)
  • Purchase offsets
  • Sign the Public Disclosure Statement and submit the report
  • Submit web profile
  • Use the Climate Active trademark correctly

How much does it cost to become certified under Climate Active?

There are four fee components for getting certified under Climate Active

  • Engage a registered consultant to help you with the carbon inventory boundary and carbon footprint calculation
  • Engage a third-party validation provider to verify the work done by the registered consultant
  • Buy carbon offsets to achieve carbon neutrality
  • Pay Climate Active membership fees

NOTE:
Please contact us for an estimate of how much you will likely need to pay for these four fee components. We can provide you with a 1-page report.

Let’s have a look at these fees in detail.

How much do I have to pay a registered consultant?

We are a registered consultant under the Climate Active program. Our fees depend on the size and complexity of your organisation, on how much of the work you would like to do yourself, as well as on the emission sources that are included. It’s best to contact us for a quote. We will give you a fixed fee quote once we understand your circumstances a bit better.

How much do I have to pay a verifier?

Just like with registered consultant fees, verification costs also increase with the complexity and size of your organisation. It is likely that verification providers will charge a higher fee if you choose not to engage a registered consultant.

What is the difference between a registered consultant and a verifier?

A ‘registered consultant’ can be engaged to develop your carbon inventory boundary, carbon footprint and emission reduction strategy. They would liaise with you, your verifier and the Commonwealth. It is not mandatory, and you could do this step yourself, but it is highly recommended that you do engage a registered consultant as they have the skilled resources who have done the training and are experienced in this work.

A verifier is an independent third party who must be engaged to validate the carbon boundary and footprint. Your registered consultant cannot be the same person or business as the verifier so that there is no conflict of interest.

Could we do any of this work ourselves?

You can develop your own carbon footprint in accordance with the Climate Active rules if you have the in-house resources. In any case, you will need to engage a verifier. You might find that a verifier’s fees are then a little higher, as they may have to do more detailed checking than they would otherwise have to do.

How much do I have to pay for carbon offsets?

There is a wide range of costs, depending on the actual offset project, its location, accreditation standard and co-benefits, as well as the volume you are purchasing. The range can be from $1.50 to $28 per carbon offset.

It is usually helpful to run a workshop with your key stakeholders to work out your preferences and what is feasible given your emissions and budget.

How much are Climate Active membership fees?

Climate Active licence fees depend entirely on the size of your current footprint. There are four brackets which range from under 2,000 tonnes of carbon emissions to over 80,000 tonnes. You will pay between $820 to $2,627 inc GST for the lowest bracket, a fee which will be charged annually. If your footprint is greater than 80,000 tonnes, you will need to pay $18,911 inc GST annually. These fees increase by 2.5% every year.

Do I have to pay all these fees every year?

No. You will have to pay yearly Climate Active membership and carbon offset fees to continue to be a carbon-neutral company. And you do need to calculate your carbon footprint annually as well, but this would be much less than the first time, and you should make sure that all the data collection and calculation processes are documented so that you can do the work in-house, or mainly in-house.

You will only need to pay the validation provider once every three years.

Does the size of my company matter?

Yes, absolutely. Because of the rigour and multi-step process that is involved with getting certified under Climate Active, there is a certain amount of cost involved with becoming carbon neutral under Climate Active.

To give you an example, the smallest bracket under Climate Active is between 0 and 2,000 tonnes of yearly emissions for organisations. 2,000 tonnes of carbon emissions roughly equal the electricity consumption of 300 homes or the fuel consumption of 600 cars.

Say your organisation emitted 100 tonnes of carbon emissions yearly. Climate Active fees would be $820 inc GST, while registered consultant and verification costs can vary between $500 and $10,000 each, depending on who you engage. Carbon offset costs will range from $1,200 to $2,800, depending on the exact carbon credits you would like to purchase.

Do I have to calculate my carbon footprint every year?

Yes, you will have to calculate your carbon footprint every year. Your organisation might have changed, or your carbon footprint boundary, or the way you collect your data. Your business activity may also have changed, resulting in a higher or lower carbon footprint. You may have outsourced activities that were previously insourced. The carbon intensity of the grid may also have changed, resulting in potentially lower emissions.

It is essential to calculate your carbon footprint every year so you can see the effect of those changes. It will allow you to celebrate any success you’ve had with emissions reductions or getting closer to your goal. Alternatively, it will be a good opportunity to put a particular focus on emissions that might have increased over time or that you want to target with your next emission reductions projects.

We recommend using a consultant such as 100% Renewables to help with the yearly calculation, but if you have the skills set and availability inhouse, you can undertake this activity yourself.

If you are going through Climate Active certification for the first time, the whole process can seem a bit confusing. Engaging a registered consultant such as 100% Renewables will ensure a smooth and easy process. Please download our Climate Active brochure to find out more about how we can help you with your Climate Active certification.

100% Renewables’ staff are registered consultants with Climate Active. If you would like to achieve certification, or prepare for certification, please contact Barbara.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

 

FAQs for becoming certified under Climate Active – Part 2 [with video]

One of our service offers is helping our clients determine their Climate Active carbon footprint and obtain Climate Active certification from the Commonwealth Government. Over the last few months, we’ve received many calls of organisations wanting to find out more about Climate Active accreditation, which resulted in the publication of  Part 1 of this series.

In Part 2 of this series, we will discuss more details about scope 1, 2 and 3 emissions and what emission sources typically form part of a Climate Active carbon footprint. In the final blog post of this series, we will go into more details about how to get certified under Climate Active.

What are scope 1, scope 2 and scope 3 emissions?

Scope 1 emissions are emissions directly generated at your operations, such as burning natural gas or driving company cars, or refrigerant gases in your air conditioning equipment.

Scope 2 emissions are caused indirectly by consuming electricity. These emissions are generated outside your organisation (think coal-fired power station), but you are indirectly responsible for them.

Scope 3 emissions are also indirect emissions and happen upstream and downstream of your business. Examples are waste, air travel, the consumption of goods and services, contractor emissions, or leased assets.

Overview of GHG Protocol scopes and emissions across the value chain

Figure 1: Emission sources and scopes – graphic adjusted from the Corporate Value Chain Accounting and Reporting Standard

Supply chain emissions/Scope 3 categories

According to the GHG Protocol, specifically the Corporate Value Chain Accounting and Reporting Standard, there are 15 categories of supply chain/scope 3 emissions

Upstream supply chain emissions

  1. Purchased goods and services
  2. Capital goods
  3. Fuel- and energy-related activities (not included in scope 1 or scope 2)
  4. Upstream transportation and distribution
  5. Waste generated in your operations
  6. Business travel
  7. Employee commuting
  8. Upstream leased assets

Downstream supply chain emissions

  1. Downstream transportation and distribution
  2. Processing of sold products
  3. Use of sold products
  4. End-of-life treatment of sold products
  5. Downstream leased assets
  6. Franchises
  7. Investments

While this list looks a bit overwhelming, not all emission sources will be relevant. It’s important to prioritise your data collection efforts and focus on your most significant and relevant emission sources. You can ask questions such as whether you expect the emission source to be large relative to your scope 1 and scope 2 sources, or whether you have influence over the activity, or whether your stakeholders deem the emission source relevant.

The graphic below shows a graphical representation of a typical Climate Active boundary for emission sources.

Typical Climate Active boundary for emission sources

Figure 2: Typical Climate Active boundary for emission sources

What are the benefits of calculating supply chain/scope 3 emissions?

Just looking at your scope 1 and scope 2 emissions can give you a distorted picture of your environmental impact. Going through the list of upstream and downstream scope 3 emission sources is a great exercise to identify the carbon intensity of your value and supply chain. It encourages the quantification and reporting of emissions from various suppliers, which can help you drive greater emission reductions. It will also have a snowball effect by not only you focusing on reducing your direct emission sources, but also encouraging your suppliers to reduce theirs.

For many organisations scope 3 emissions can represent a much larger emission source than scope 1 and scope 2 emissions, and it is often eye-opening to calculate your carbon footprint across all three scopes. Also, the more scope 3 emission sources you include in your carbon inventory, the more credibility your statement of carbon neutrality will have.

Understanding scope 3 emissions will help you plan for potential future carbon regulations and can guide corporate procurement decisions and product design.

What emission sources are in a typical Climate Active footprint?

A Climate Active carbon footprint encompasses many emission sources across the three carbon accounting scopes. One of the first steps in getting certified under the Climate Active program is to determine your carbon footprint boundary.

You need to include all emissions that you have direct control or ownership of, such as natural gas, transport fuel usage by your vehicles, and electricity consumption in your operations. You also need to identify all emissions that are a consequence of your activities but are outside of your direct ownership or control, such as waste and contractors’ transport.

You must also include emissions from third party electricity use under your organisation’s control even if they are offsite, such as outsourced data centres, if these emissions are large relative to other emission sources.

You don’t need to include every single emission source, but you must assess all other direct and indirect emissions to determine whether they are ‘relevant’.

The relevancy test

Under Climate Active, particular emissions sources are relevant when any two of the following conditions are met:

  • The emissions are likely to be large relative to your electricity, stationary energy and fuel emissions
  • The emissions contribute to your GHG risk exposure, and including and addressing them will help you to avoid future costs related to energy and emissions
  • The emissions are deemed relevant by your key stakeholders (such as major customers, suppliers, investors or the wider community)
  • You have the potential to influence an emissions reduction
  • The emissions are from outsourced activities that were previously undertaken in-house, or from outsourced activities that are typically undertaken within the boundary for comparable organisations. Data centres and transport are typical examples of this.

If an emission source is relevant, you must include it in your carbon footprint boundary. You can exclude emissions that are not relevant, but you should disclose these in your public reporting documents.

You may find that many emission sources will be relevant, but you don’t have to collect data for all of them. For instance, if the associated emissions constitute less than 1% of the total carbon footprint, you can include the source in your boundary, but you don’t have to calculate its associated emissions.

There are many more questions to be answered, so stay tuned for Part 3 of this blog post series. If you are going through Climate Active certification for the first time, the whole process can seem a bit confusing. Engaging a registered consultant such as 100% Renewables will ensure a smooth and easy process. Please download our Climate Active brochure to find out more about how we can help you with your Climate Active certification.

100% Renewables’ staff are registered consultants with Climate Active. If you would like to achieve certification, or prepare for certification, please contact Barbara.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.