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

3. 3 Carbon Dioxide and Temperature last 1000 years

4. 4 Carbon Dioxide and Temperature last 420,000 years

5. 5

6. 6 Observed Climate Change IPCC TAR 2001 Findings

7. 7 Impacts and Vulnerabilities IPCC TAR 2001 Findings Average rainfall in Australia will decrease and water resources will be stressed Some agricultural production may initially benefit, but this benefit will disappear over time Tropical vector borne diseases will spread south Tourism will be affected by sea rises, ocean warming and snow cover reduction Insurance industry will factor in weather related risk

8. 8 Total National Emissions 1990 - 1999* *Excludes Land Clearing

9. 9 Emissions by Sector 1990 & 1999 -50 0 50 100 150 200 250 300 Stationary energy Transport Fugitive Industrial Processes Agriculture Forestry and Other Waste Land Clearing 1990 1999 Mt CO 2 -e

10. 10 UNFCCC & Kyoto Protocol How targets can be met: 1. Reductions in emissions in own country 2. Sequestration from sinks 3. International emissions trading (IET) 4. Joint Implementation projects with another country which has a target (JI) 5. Projects within a developing country (CDM)

11. 11 Australia’s Kyoto Protocol Target and Status  Principle of differentiation/equal effort  Limiting greenhouse gas emissions to 8% above 1990 by 2008/2012  Reduction of about 30% from BAU projection (EU windfall - UK/Germany & USSR sitution)  1999 situation 17.4% above 1990 not including land clearing or 7.3% accounting for land clearing / sinks under KP accounting basis

12. 12 Australia’s circumstances  heavy reliance on fossil fuels  production of energy and greenhouse intensive exports  significant transport needs  changing land use patterns  higher projected population growth than other developed countries

13. 13 Government Response Overview $ 1 Billion over Five Years Safeguarding the Future: Prime Minister’s $ 180 million 5 year package of November 1997 (25 programs, including establishment of the AGO, the world’s first dedicated greenhouse agency) Measures for a Better Environment: $796 million additional funding over 4 years announced in May 1999 in conjunction with the New Tax System, including the $400 million GGAP

14. 14 The Policy Framework To meet Australia’s greenhouse commitment in the most cost-effective manner possible without compromising economic competitiveness  Basically a three pronged, but overlapping approach:  Voluntary Action (eg GHC, CCP, GES, GF)  Regulated Mechanisms (eg MEPS, VFL, ABC)  Market Measures (eg MRET, GGAP, EC, ET)

15. 15 Standards and Greenhouse Standards and Greenhouse Sinks Renewable Energy systems Building and Construction standards Sulphur Hexaflouride Emissions abatement projects Others?

16. 16 Outcomes from COP 6 Bonn Agreement on implementation issues under the Protocol and the Convention, including: assistance to developing countries in adaptation and technology transfer a compliance package the operation of the market mechanisms inclusion of sinks

17. 17 International agenda - what next? Finish “translating” Bonn agreement into the detailed rules needed for implementing the Protocol (COP 7 in Marrakech) Resolution of outstanding ratification issues for Australia, e.g. pathway towards participation by all major emitters Response to any alternative proposals by the United States

18. 18 The Australian Greenhouse Office is the lead Commonwealth agency on greenhouse matters www.greenhouse.gov.au