London, 21 July (Argus) — The Australian state of Victoria plans to cut its greenhouse gas emissions by 20pc by 2020 from 2000. This equates to a total saving of 28mn t by the end of the decade to reach a target of 96mn t/yr of CO2e.

The 2020 target equates to a 4pc reduction from 1990 levels of about 100mn t of CO2e. This is in line with the national target of an unconditional 5pc cut by 2020 from 2000 levels, which is equivalent to a 4pc cut from 1990 levels. In 2008, Victoria emitted 121.9mn t of CO2 equivalent and would need to cut emissions by 21pc to reach the 2020 target.

The target was unveiled in a white paper policy document action plan released on 26 July, which will form the foundation of Victoria's climate change bill that will be introduced to the state parliament later this week. If passed, it would make it the first state government in Australia to legislate a cut in emissions.

Victoria is the third most emissions intensive state in Australia, emitting 121.9mn t of CO2 equivalent in 2008 — or 22pc of the national total of 549.5mn t of CO2. Power generation accounts for almost 70pc of Victoria's emissions, with most of the state's electricity generated from brown coal power stations. Another 16pc comes from transport, mainly from motor vehicles.

“The Victorian government is now setting a 20pc target representing a new benchmark for action on climate change in Australia,” the state government said in its 32-page document. The government said the 20pc target puts Victoria on a firm pathway to play its part in even larger reductions needed to avoid climate change.

“In the event the Commonwealth (Federal government) adopts a scheme to regulate greenhouse gases, including by establishing a carbon price, the climate change bill will be reviewed to ensure consistency with any higher target from the Commonwealth,” the white paper said.

Under a business as usual scenario, Victoria is estimated to see CO2 emissions rise to 130mn t by 2020.

The state government is committed to reducing emissions from brown coal fired power stations by up to 4mn t over the next four years, Victoria premier John Brumby said. This is equivalent to closing two units of the 1,675MW Hazelwood power station, which provides about a quarter of the state's electricity. Hazelwood is controlled and managed by UK-based utility International Power.

No agreement on the proposal is evident in the Victorian government's white paper, but discussions with both the state and federal government are continuing, International Power Australia group manager of corporate affairs Jim Kouts said.

“Over the past two years we have consistently offered to both state and federal governments an option that would deliver deep cuts in carbon emissions by the early closure of some older coal-fired generating plant,” Kouts said. “In the case of Hazelwood, this would require governments to support the phased closure of all generating units over the agreed term in return for a fixed capacity payment.”

The climate change legislation would also include 5pc of the state's electricity to be generated from solar energy by 2020, Brumby said. And it will amend powers under the state's Environmental Protection Act to effectively ban new power stations based on current brown coal technologies, and allow greenhouse gases to be regulated. The bill will also legislate for a climate change adaptation plan to be developed by the government every four years, outlining the climate change impacts and risks to the state.

Brumby plans to set up a climate change leadership forum that will meet every quarter to provide advice to the government in emerging issues and opportunities about climate change.

Send comments to feedback@argusmedia.com
km/ml 2.1

If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.

Copyright © 2010 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.