1. Climate Change – Global Warming Scenarios

2. Electricity Generation and Emissions a 2050 Scenario Hydro (16) Electricity generation 2003 (TWh) Gas (34) Brown Coal (50) Black Coal (128) Greenhouse gas emissions 2003 (550 Mt CO 2 -e) Waste (11) Land use (35) Agriculture (97) Industrial (32) Primary energy supply (104) Transport (80) Electricity generation (190) Electricity generation 2050 (TWh) Notional emissions profile Electricity demand Electricity demand with improved energy efficiency 234 TWh 190 Mt CO 2 -e 2020 614 TWh 492 TWh 88 Mt CO 2 -e Coal (70) Gas (24) Hydro (19) Zero emissions electricity generation (500) 2030 200320102020203020402050

3. Generation Cost Comparisons

4. Main Steps in the Innovation Cycle

5. Global Emissions Trading Scheme

6. The Emissions Trajectory

7. The Forward Price Curve

8. Other (non trade-exposed emissions ‑ intensive) disproportionately affected industries Permits to be auctioned Sectors not covered (agriculture and land use in this example) Trade-exposed, emissions- intensive industries (existing plants) Mt CO 2 -e Allocated free permits National Emissions Domestic emissions trading scheme cap Stream of Permits

9. APP – collaborative adoption of technologies 13

10. Timeframe Phase 1 – Foundations – years 0-1 (2007 to 2008) –Finalise scheme design, establish emission reporting systems, determine long term aspirational goal, engage international partners Phase 2 – Establishment – year 2 (2009) –Pass relevant legislation, establish governance structures (independent regulator and advisory panel), broaden international cooperation (focusing on countries considering emissions trading), rationalise state/territory programmes Phase 3 – Trading - years 3-4 (2010-2011) –Set short term targets, allocate permits, commence trading in 2011, explore linkages with other countries

11. Allocation of Permits

12. Trade Exposed Emissions Intensive

14. Emissions Trading Review Members Peter Coates Xstrata Tony Concannon Int Power Russell Higgins APT, RGL Margaret Jackson Qantas Chris Lynch BHP Billiton John Marlay Alumina John Stewart NAB Secretary PM & C Secretary Treasury Secretary Industry Secretary Environment Secretary Foreign Affairs & Trade

15. Exports

16. Indicative emissions intensity of electricity generation (Figure 3 Page 135)