Climate change AEBN Caltex speech 270208.ppt Australian Environment Business Network Industry and Greenhouse Conference Sydney, 27 February 2008 Alternative.

Slides:

Advertisements

Similar presentations

1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.

Advertisements

Embedding Energy Management – Carbon introduction Insert site / company name and logo here Insert presenter/s names here This publication was funded by.

The Australian Sugar Industry. Sucrogen – more than sugar We think so!

1 Does Australian oil refining really matter? Des King CEO & Managing Director Caltex Australia Limited American Chamber of Commerce 8 November 2007.

March 2009 Emissions Trading in South Africa National Climate Change Summit Emily Tyler.

March 2009 Emissions Trading in South Africa National Climate Change Summit Emily Tyler.

Milling – Carbon inventory energy and supply chain impacts Site / company name and logo here Presenter/s names here This is an AgriFood Skills Australia.

British Columbia’s Carbon Tax Exploring perspectives and seeking common ground Matt Horne | Ekaterina Rhodes.

2 Ms Gwen Andrews Chief Executive Some practical approaches to implementing the Kyoto Protocol ISO Sydney - September 2001.

Federal Cap-and-Trade Policy: Overview of Design Options Ray Hammarlund, KCC Energy Programs Division Director Presentation to Kansas Energy Council Greenhouse.

© 2011 Energetics Pty Ltd and AgriFood Skills Australia. All rights reserved. Agrifood – Carbon inventory introduction Site / company name and logo here.

Energy Technologies and Environmental Protection April 3 rd, 2006, Bucharest.

The EU Emissions Trading System (ETS) Rationale and Lessons learnt Artur Runge-Metzger Head of International Climate Negotiations, European Commission.

Sustainable Energy Roundtable Series January, 2005 Pfizer Greenhouse Gas Management Program Experience.

PRME Seminar “Responsible Management of GHG Emissions” Fri 14 October 2011 Gujji Muthuswamy Department of Management Faculty of Business and Economics.

Carbon Price and the Energy Sector June 2011 Kane Thornton Director of Strategy & Operations.

Nigel Marsh, Global Head of Environment, Rolls-Royce plc

Rocky Harris Department for Environment, UK Use of environmental-economic accounting applications for UK Sustainable Consumption and Production policies.

The UK Climate Change Levy and Ecological Tax Reform Professor Stephen Smith Department of Economics University College London.

1 Carbon Tax Update Paul Stephens Director

Ad Hoc Working Group on Article 3.9 of the Kyoto Protocol Battling global climate change - the EU’s perspective (Part II) Artur Runge-Metzger European.

The Case for a VT Carbon Tax. Rationale Simplification –Replace existing energy taxes with a single tax on carbon content of fuels. Behavioral Change.

A Regulatory Framework for Energy Intensive Industries within the EU Berlin 30 November 2012 Chris Lenon – Green Tax Group BE.

Climate and Energy Policies that Threaten Manufacturing Competitiveness Paul Cicio President Industrial Energy Consumers of America October, 2008.

Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional.

Experiences and Problems with the climate change levy in the UK from a political point of view Sue Doughty MP Liberal Democrat Shadow Minister for the.

Viticulture– Carbon introduction Site / company name and logo here Presenter/s names here This is an Agrifood Skills Australia Ltd project developed in.

11. 2 Public Transportation’s Role in a Greenhouse Gas Reduction Strategy Kevin Desmond King County Metro Transit Division Seattle, WA On behalf of the.

Carbon Footprints. Nick Main, Chairman Deloitte 26 October 2007.

Emissions Trading: Dairy industry response Allan Burgess President Australian Dairy Farmers.

CITGO Petroleum Corporation Sheryll Dean ACG2021 Section 0H1 & 008

Market Mechanisms to Curb Greenhouse Gases: Challenges and Future Directions Joe Kruger February 20, 2007 Joe Kruger February 20, 2007.

The Metallurgical Industry, Steel market Forecasts for the future Sanjay Samaddar CEO & Chairman of the Board, ArcelorMittal Poland Katowice, 18 th May.

Canada’s National Greenhouse Gas Inventory Presentation to the Oslo Group February 2009 Frank Neitzert, P. Eng Chief, Energy Section Greenhouse Gas Division.

Pricing policies for reducing CO 2 emissions from transport Huib van Essen Manager Transport CE Delft.

Deregulation and Cap/Trade Gary Flomenhoft, Energy Policy Week 2.

An industry perspective on carbon emission pricing Carbon Pricing and Environmental Federalism Conference Queen’s University, October 17-18, 2008 Rick.

European Commission Next Steps Post-Kyoto: U.S. Options The EU Experience Sustainable Energy Institute Washington D.C, March 30, 2005 Robert Donkers, Environment.

Energy security Professor Jim Watson Director, Sussex Energy Group University of Sussex Research Fellow, The Tyndall Centre for Climate Change Research.

1 “Using Carbon Markets to Encourage the Uptake of Low Carbon Vehicles” Meeting the Low Carbon Challenge The Low Carbon Vehicle Partnership Third Annual.

Australia’s Independent Farm Policy Research Institute Greenhouse emissions trading and agriculture: Opportunities and threats.

Presentation “Green Investment Schemes – greenhouse gas emissions quotas trading mechanisms in Ukraine according to the Kyoto Protocol to the Convention.

State and Business Action on Climate Change Judi Greenwald Director of Innovative Solutions Pew Center on Global Climate.

American Public Power Association Pre-Rally Workshop February 28, 2006 Washington, D.C. Climate Change: Making Community-Based Decisions in a Carbon Constrained.

International Shipping and Climate Change Michael Sutton A/g Executive Director Infrastructure and Surface Transport Policy.

The Case for a Vermont Carbon Tax. Rationale Simplification –Replace existing energy taxes with a single tax on carbon content of fuels. Behavioral Change.

Limiting Global Climate Change to 2 °Celsius The way ahead for 2020 and beyond Jos Delbeke DG ENV Director Climate Change & Air Energy for a changing world.

Commission For Energy Regulation Padraig Fleming Manager, Distribution & Retail 22 nd July 2004.

Wind Denmark Energy Annual Event 2015 Financing of companies within the wind industry from a bank perspective Torben André Petersen, Head of Branch Region.

Pricing Carbon: Carbon Emission Trading Potential in South Africa Proposed Research Papers.

Cement Production and the EU ETS: How to make a win – win Bruno Vanderborght Vice President Climate Protection CoP 11 / MoP 1, Montreal, 05 December 2005.

Warwick Business School The drivers of low carbon business strategies Andrew Sentance, Warwick Business School Warwick University Climate Policy Workshop.

Climate Change October Main concepts Climate change – lasting change of some or all characteristics, describing the average weather condition Greenhouse.

June 2005 IBEC Climate Change Working Group Climate Change - A Business Perspective Presentation to the Joint Oireachtas Committee on Communications, Marine.

Dutch presidency agenda on ensuring industrial competitiveness Erik Janssen, Ministry of Economic Affairs The Netherlands.

Energy in Transition: Embracing Disruption Dr Liam Wagner Economics, Griffith Business School 5th IAEE Asian Conference, February 2016 Department of Account,

Other methods of government intervention. Tradable pollution permits  Tradable pollution permits are rights to sell and buy actual or potential pollution.

Other methods of government intervention. Tradable pollution permits  Tradable pollution permits are rights to sell and buy actual or potential pollution.

Building the foundations for Australia’s carbon price Australia’s experiences in developing national inventory (MRV) systems.

DEMAND FORCASTING. Introduction: Demand forecasting means expectation about the future course of the market demand for a product. Demand forecasting is.

Glen Whitehead October 2012 Australia’s Mandatory Company Greenhouse Gas Reporting System 1.

Trading Futures proposals for emissions trading in the UK Chris Hewett Research Fellow Institute for Public Policy Research.

EU’s CO2 Emissions Trading Scheme – Benchmarks for Free Allocation from 2013 Onwards 9 September 2010 Hans Bergman DG Climate Action European Commission.

Cap and Trade A policy that is meant to reduce CO2 and other greenhouse gas emissions by fixing emissions through permits (emission allowances) – which.

Mitigation System PCEA 8 September 2015.

Entrepreneurship & Strategy

New Zealand Aluminium Smelters Ltd Climate Change Approach

Trends in the Taxation of Canadian Motor Fuels By Robert Lyman © 2018

Don Fullerton (Texas) Andrew Leicester (IFS) Stephen Smith (UCL & IFS)

CAP AND TRADE VS CARBON TAX

Presentation transcript:

Climate change AEBN Caltex speech ppt Australian Environment Business Network Industry and Greenhouse Conference Sydney, 27 February 2008 Alternative arrangements for carbon abatement and associated issues from a petroleum company’s perspective Frank Topham Government Affairs & Strategic Communications Manager Caltex Australia Limited

2 Climate change AEBN Caltex speech ppt Caltex profile Australian company - ASX listed Chevron 50% shareholder – but all decisions by Aust management and board No overseas operations, no exploration or production Refining and marketing only 2 refineries – Kurnell NSW and Lytton Qld 1750 branded service stations (Caltex, Caltex Woolworths, Ampol) of which 511 owned or leased #1 convenience retailer 3200 employees

3 Climate change AEBN Caltex speech ppt Caltex climate change policy Accept conclusions of IPCC on science Recognise climate change presents a significant risk to economies, societies and the environment Support long term aspirational goal for reduction of greenhouse gas emissions but experts to determine reduction % Support carbon pricing – carbon tax better for liquid fuels

4 Climate change AEBN Caltex speech ppt Australian greenhouse gas emissions Total Australian GHG emissions 559 Mt CO 2eq Contribution of petroleum products Source : Australia's National Greenhouse Accounts, National Greenhouse Gas Inventory % 4% 20% 1% Petrol (motorists) Diesel (transport/industry) Jet/other fuels Total Refinery emissions 47 Mt 44 Mt 22 Mt 113 Mt 5 Mt

5 Climate change AEBN Caltex speech ppt Customer emissions are 20 times Caltex emissions Greenhouse gas emissionsMt CO 2 eq Caltex direct emissions1.8 Caltex indirect emissions0.4 Caltex customers Petrol17 Diesel12 Jet fuel/other6 Total fuels35 Australia - petroleum products113 Australia - total emissions559

6 Climate change AEBN Caltex speech ppt Caltex key policies on carbon pricing Emission trading supported for refining - but must not reduce international competitiveness –energy intensive trade exposed industries require protection –issue free allocation of permits Carbon tax should apply to liquid fuels - not emission trading –Caltex proposes carbon tax be set equal to ET permit price –40 A$/t CO 2 is about 10 cpl petrol

7 Climate change AEBN Caltex speech ppt Carbon tax for liquid fuels more environmentally effective than emission trading Carbon tax more visible so stronger consumer influence –emission trading cost “lost” in fuel price volatility How much would carbon price reduce emissions? –A$40/tonne CO 2 is 10 cpl petrol –price elasticity of demand about -0.1 (short run), -0.5 (long run) –7% price increase reduces petrol emissions by 0.3 Mt (short run) and 3.5 Mt (long run) versus 47 Mt emissions in 2005 –so carbon price ineffective in substantially reducing emissions Alternative policy instruments may be needed

8 Climate change AEBN Caltex speech ppt Carbon tax more transparent than emission trading Carbon tax would operate in similar way to excise Price monitoring simple as carbon price known Emission trading carbon price very difficult to monitor

9 Climate change AEBN Caltex speech ppt Emission trading would cost motorists $200 million pa (1 cpl) more than carbon tax Under emission trading, fuel suppliers must purchase $5 billion of emission permits annually Caltex $1.4 billion v debt of $600 million/EBIT $675 million –so unable to significantly participate in permit auctions Financial middleman working capital cost/profit $200 million pa –no middleman with carbon tax Carbon tax allows more precise revenue recycling

10 Climate change AEBN Caltex speech ppt Other issues Emission trading for liquid fuels would not assist carbon price discovery as fuel suppliers can’t make technology choices End user liability would be very complex under emission trading, simple under carbon tax Emission trading for liquid fuels creates inequitable financial risks for fuel suppliers –no capacity to absorb carbon costs –but exposed to competitive risk of permit price under-recovery

11 Climate change AEBN Caltex speech ppt What are the policy options for 2010? Omit all liquid fuels from carbon pricing Omit all liquid fuels from carbon pricing except those within emission reporting threshold (eg 25,000 kt for facility) Apply emission trading to all liquid fuels Apply a carbon tax to all liquid fuels –with end user acquittal likely from 2011