1. City of Melbourne MELBOURNE - TOWARD NET ZERO GREENHOUSE GAS EMISSIONS BY 2020 What do low emission futures look like?

2. City of Melbourne The ‘BHAG’ A ‘triple bottom line’ vision that challenges the way we think about Greenhouse A target that gives focus to the City’s partnerships with authorities and stakeholders Strong focus on commercial drivers of mainstream investment with supporting regulations

3. City of Melbourne Scope 20 year timeframe Excludes transport, embodied energy Confined to City boundaries - no major new energy intensive industries such as smelters

4. City of Melbourne Original concept Council purchase of 100% renewable energy by 2020 25% renewable energy in the City as a whole by 2020 100% increase in efficiency in conventional (brown coal) energy generation by 2020 50% decrease in demand via efficiencies & design in commercial sector 15% decrease in demand via energy efficiencies in industry Sequestration projects to offset remaining emissions

5. City of Melbourne Major sources of emission reduction Remaining Greenhouse Emissions Renewable Energy Efficiency Increase Advanced Technology Sinks

6. City of Melbourne Drivers Maximising the NPV of buildings: –Productivity in green buildings –Regulations Green consumer power and green brands Sequestration as a triple bottom line investment Champions and alliances

7. City of Melbourne Methodology Partnership-building to align vision and effort Research to establish best practice Identify barriers through focus groups, roundtables, surveys Develop long term strategies Economic impact of regulatory change

8. City of Melbourne Maximising building NPV #1 Barrier Developers believe that energy efficiency is a cost and has no market value Strategies  Market leadership through public sector purchasing  Create a market premium for green buildings through better productivity, well being and comfort  Develop a clear statement of best practice design that saves energy and money  Assist developers to acquire ‘green’ design and construct skills

9. City of Melbourne Maximising building NPV #2 Barrier Energy efficiency: who captures the benefit? Strategies Enforce disclosure of energy costs and CO2 profile during rent/sale of property 5 star regulations for new buildings and major refurbs - 45% reduction in emissions, plus net economic boost Possible innovative financial products and growth of energy services contracting Tax reform of capital/operating conflict

10. City of Melbourne Maximising building NPV #3 Barrier Energy is not a significant business cost in the CBD – it’s not on management’s radar Strategies Green building productivity - document the ‘well-being value’ and raise market awareness Develop credible value parameters for green buildings with the finance industry to assist market valuations Exploit the low cost impact - a premium price for green power is a cheap way to establish a green brand

11. City of Melbourne Greenhouse friendlier power Barrier Reluctance of power companies to change Strategies Green buying consortia - using consumer power Influence through operating licences Commercial opportunities from new technology and tapping green investment funds International pressure

12. City of Melbourne Sequestration Triple bottom line investment opportunity Probably timber plantation-based Rural partnership recognises the City’s environmental footprint 3BL benefits: –Long term economic returns from timber –Salinity reduction and wildlife conservation –Employment and community re-building –Plus greenhouse gas sequestration

13. City of Melbourne Early milestones Public sector buying power to leverage green building development Green power buying consortia trial (2002) Partnership with rural Council (2002) Education program for developers and architects (2002) New building codes (residential by 2003 and commercial by 2004)

14. City of Melbourne Long term milestones

15. City of Melbourne Work in progress Clear, well documented statement of best practice to test with developers in focus groups Research on attitudes of power retailers and on consumer interest in green power buying consortia Identifying lighthouse projects and key points of public sector leverage Economic impact of new regulations Triple bottom line business case for sequestration

16. City of Melbourne Plan format Triple bottom line objectives based on balanced scorecard inputs Agreements with partners to take on continuing role High Level Steering Group to carry plan forward

17. City of Melbourne Next steps for APEC Working Group Next WG meeting in Australia to coincide with workshop Presentation of the final plan to a regional workshop Finalisation of template