SECCCA Autumn Update 2021
From the Executive Officer...
As we commence our return to a 'new normal' beyond COVID, it’s very encouraging to see that action on climate change remains front and centre for the community, the private sector and government.
In his first hundred days, US President Joe Biden held a summit on Earth Day, inviting leaders from around the world to recommit to holding global temperature increases to 1.5 degrees. At this meeting, the US committed to reducing its own emissions to 50% of 2005 levels by 2030. President Biden has embraced the substantial economic benefits that can be realised through green stimulus programs. Other countries have also doubled down on their emission reduction targets including the UK, China, India, Canada, Japan and Singapore.
On the same day, 101 Nobel Laureates called the continued expansion of the fossil fuel industry as “unconscionable”. Only weeks earlier, the United Nations said that phasing out coal from the electricity sector is the single most important step to get in line with the 1.5-degree goal.
With the rapid expansion of renewable energy infrastructure, Australia's day time electricity prices are falling and subsequently outcompeting prices from coal fired electricity. Future prices for baseload electricity in Victoria have fallen from more than $80 to $24 per megawatt-hour in the last 12 months. AGL, the largest emissions polluter in Australia, recently announced the creation of a separate zero-carbon energy retailer. Other carbon-heavy companies have implemented similar strategies including the $5.9 billion demerger of renewables company Uniper from E.ON, and the sale of 49 per cent of Repsol’s renewables business for $3.85 billion. The focus on Environmental, Social and Governance (ESG) issues by investors is a key driver of these changes.
SECCCA climate change action activity continues apace. Our Strategic Planning Day was a great success. Reunited in person for the first time in over 12 months, our members’ ever deepening commitment to a meaningful contribution to climate change action was clear and present. SECCCA's Asset Vulnerability Assessment project is on track and, through Victorian Greenhouse Alliance collaboration, some excellent outcomes from the Electricity Distribution Price Review have been achieved. Read on for more details.
Victorian Government Climate Change Strategy announced
Victoria’s long awaited interim emissions reduction target was finally announced as part of the state government's Climate Change Strategy.
The Government’s target is to reduce the state’s greenhouse gas emissions from 2005 levels by 28–33% by 2025 and 45–50% by 2030. SECCCA argued for a deeper cut of at least 44% by 2025 and greater than 65% by 2030, explaining that strong interim emissions reduction targets will send a clear investment signal to the Victorian economy, enabling businesses to more quickly position to leverage opportunities in a zero emissions economy.
The 50% renewable energy target by 2030 will support over 24,000 jobs. The target for all Victorian government operations, including metropolitan train and trams to be powered by 100% renewable electricity by 2025 is a strong signal. Transport is to be driven by 100% renewable energy by 2025 and 100% of new public transport buses to be zero emissions from 2025 present some very strong signals to the energy providers and users.
A Gas Substitution Roadmap is also being developed. The Roadmap will “detail the transition pathways to achieve net-zero emissions and will identify opportunities for households and businesses”. Local climate action, including the role of local councils and Victorian Greenhouse Alliances has been recognised. Climate resilience initiatives also feature in the Strategy.
Electricity Distribution Price Review
The Australian Energy Regulator has ruled in favour of the Victorian Greenhouse Alliance-led submissions to the 2021 - 2024 Victorian Electricity Distribution Price Review, assisting councils across Victoria to avoid over $10.7M in OMR charges over the next five years, plus a further $19.8M out to 2046.
Councils in the SECCCA region will save $2,436,622 between 2021 – 2026 and $4,448,281 in the 20 years post 2026.
For the first time in Australia, councils have undertaken a coordinated negotiation with a distributor (AusNet Services) to secure a $6.9M funding contribution to upgrade old mercury vapour lights to LEDs. The project will deliver over 220,000 tonnes in emission reductions over the next 20 years.
The AER has also approved the implementation of smart lighting control systems, paving the way for councils to pursue smart lighting and smart city programs; and network expenditure to upgrade the grid to support higher penetrations of local renewable energy resources such as solar and electric vehicles, a position supported through the Alliances submissions.
The impact on OMR charges means the business case for major road lighting upgrades has significantly improved across all networks – now approximately 5-8 years. The initiative has an annualised return on investment of 228% over the next five years, with savings exceeding Alliance membership fees by a factor of 60. These benefits are in addition to the $22M in savings already captured by all councils through the previous Alliance lead submission to the 2016-21 EDPR.
SECCCA's Strategic Planning Day
The SECCCA Councillor Advisory Group and Management Committee came together recently to refresh the SECCCA 2019 -2024 Strategic Plan and ensure it reflects the contemporary aspirations of SECCCA members.
The forum considered the significant changes that have occurred since the Plan’s development in 2018, including climate emergency and a deeper understanding of climate resilience. The meeting discussed SECCCA's vision, purpose and strategic direction, key advocacy issues and proposed projects and initiatives that SECCCA could consider undertaking.
Hosted by the Mornington Peninsula Shire Council, the forum was opened by Deputy Mayor Cr Sarah Race with opening remarks from CAG Chair and Bass Coast Shire Council Deputy Mayor Cr Michael Whelan. The refreshed Strategic Plan will be completed early in the 21/22 financial year.
Asset Vulnerability Assessment Project (AVA Project)
This complex project being undertaken to help SECCCA member Councils develop a more detailed understanding of how climate change will impact assets and service delivery, is now well underway. Climate impact and vulnerability assessments for the councils' drainage, local roads and buildings have been completed and the next major task is to conduct several case studies that will examine climate change impacts on specific council assets as well as adaptation options to mitigate increasing risk and the financial implications.
The project will deliver an interactive regional map using QGIS, the most common GIS systems used by members to represent data. It will show the climate impacts for the SECCCA region over time using three different climate models. Councils' roads, drains and building assets will be overlaid onto these maps to demonstrate the vulnerability of the assets amid a changing climate.
Council asset officers will also be trained in how to use QGIS and update the asset information as required. The findings of the case studies will be shared and, where possible, indicate their relevance to similar council asset and locations. The project findings will be shared in the coming months.
AGL Crib Point Advocacy
The SECCCA Councillor Advisory Group (CAG) wrote to Victorian and Federal Government Ministers expressing deep concern regarding the proposal to develop the AGL Gas Import Jetty Project.
Victorian Planning Minister, Richard Wynne decided to rule out the project due to environmental impacts. This decision followed a powerful and effective community campaign as part of the Environment Effects Statement process.
The CAG explained that if it were to proceed, the AGL Gas Import Jetty Project would likely result in a significant rise in greenhouse gas emissions, making the efforts of the Victorian community and business to reduce emissions in line with a 1.5 degree temperature increase even more challenging.
AGL formally withdrew their request for a proposed gas import facility at Crib Point. As the proposal has been withdrawn, neither an approval nor refusal decision will be made under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).
Councillor Training on Climate Change and Council Plans
With input from the Victorian Greenhouse Alliances, DELWP has produce a training program Your Council and Climate Change – Understanding the Risks and Learning to Adapt. The program was delivered online in each of the Greenhouse Alliance Regions.
The sessions were well attended by Councillors and covered the following key topics:
Climate change and its impacts on councils
Understanding climate change risk
Local Government roles and responsibilities
Climate action across business and the community
Embedding climate change in council business
Local government action.