Climate Change and the Energy Industry in Australia - Case Study Example

Climate Change and the Energy Industry in Australia Name Date Course Climate Change and the Energy Industry in Australia Introduction Climate change mainly involves the alterations in the climate due to the concentration of high amount of greenhouse gases. The concentration of greenhouse gases is as a result of the high amount of carbon dioxide that is released in the atmosphere by the human activities. It causes the absorption of heat from the sun and prevents the escape of heat to the atmosphere. Climate change is taking place at a fast rate and hence affecting different industries across the globe. In Australia, the effects of climate change are evident in the energy industry. This has also raised the issues of sustainability when it comes to the industry. A sustainable business ensures that the operations of the company are friendly to the environment. Sustainability also plays an important role in ensuring that the resources are well utilized in order to ensure that the future generations can also benefit from the resources. In Australia, both the renewable and non-renewable energy are usually used (GeoScience Australia, 2012). The use of non-renewable energy has some negative impacts on sustainability and environmental protection. A sustainable business usually participates in activities that are environmentally friendly and hence impacting positively on the reduction of greenhouse gases which is responsible for the climate change. On the other hand it is also important to note that the climate change has no boundaries and the activities taking place in different parts of the world may have negative impacts on the entire globe. The paper critically discusses the issues climate change and sustainability in relation to the energy industry in Australia. Overview of the Industry The energy industry in Australia is vibrant and has a high amount of energy resources that is aimed at supporting its growing economy. The energy sector in the country mainly utilizes coal, natural gas and oil. The country is also exploiting other means of producing energy like solar, geothermal and hydropower. Australia is the largest exporter of coal in the world. The coal is mainly used for the purpose of energy generation. The country also has oil reserves although the oil production in the country has been on the decline which has impacts negatively on the sustainability. The country also has the largest natural gas reserves in the Asia-pacific region. Liquid natural gas is also produced in Australia and this form of energy is increasingly becoming popular in other parts of the world. Australia also produces large amounts of uranium used for nuclear energy but the country does not have any nuclear power plant for energy production. The hydro electric power generation accounts for about 6.5% of the total energy generation with coal amounting to about 77% (Bureau of Resources and Energy Economics, 2012). Wind power which is a renewable source of energy accounts for 2% of the total energy produced. Solar energy on the other hand accounts for only 1% of the total energy produced. Biodiesel fuels are also used generated in Australia for the purposes of use in combustion engine vehicles. The government is however exploring other forms of energy generation for the purpose of ensuring sustainability. Challenges to sustainability in relation to climate change Some of the practices that are taking place in the energy industry on Australia contribute to the increase in emission of the greenhouse gases. On the other hand, it is also important to note that the sustainability of an industry is dependant on the practices and measures that have been put in place to combat the climate change. The production of energy through the use of coal amounts to 38% of the total greenhouse gases produced in Australia. The high amount of greenhouse produced by the industry therefore contributes heavily to the climate change. The heavy reliance of the country on the coal has negative impacts as Australia was ranked the highest emitter of greenhouse gases per capita in the developed world in the year 2000 (Diesendorf, 2014). Reports also indicate that the country is among those at risk of climate change. The coal production process also contributes to a high level of environmental pollution. This has a negative on the sustainability of the energy industry in Australia. The increase on the demand for energy in Australia is also on the rise. This means that the country will continue to rely heavily on the use of coal in order to meet the demand. This is because of the other methods of energy generation may not met the required demand. In light of climate change, the country may be forced to stop the production of energy through the use of coal of reduce its dependence. This will impact negatively on the supply of energy in Australia. The increased use of coal as a means of energy production in Australia also has the potential of in creasing the risks of climate change. The sea level is set to rise due to the effects of climate change and hence impacting negatively on sustainability. On the other hand, other sectors will also be affected due to the increased use of coal as a means of producing energy. The agricultural sector as well as the health sector is set to suffer from the effects of climate change as a result of the heavy use of coal as a source of energy. This is an indication that the energy sector in Australia is set to present challenges to sustainability. The use of natural gas is also high in Australia for the purposes of producing energy. The process also involves a high level of environmental pollution during the extraction process. It is also important to note that environmental degradation is also caused during the extraction process. The emission of carbon dioxide gas in the atmosphere during the extraction of coal and natural gas has the potential of impacting negatively on the environment and hence contributing to the climate change. Scientists in the region are also concerned of the increasing levels of greenhouse gases in the atmosphere (Measham, 2013). This has also contributed to the high temperature that is usually witnessed in Australia during some seasons. Forest fires have occurred due to the high temperatures and hence impacting negatively on the natural resources. The future of the industry is not bright due to the heavy reliance of coal for the purpose of generating energy. This is because of the frisk of climate change that the country is already facing. The increase in temperatures due to global warming also impacts negatively on the ecosystem. Some of the species of animal and plants are at a risk of extinction due to the effects of climate change. This is considering that the climate change is fuelled by the practices in the energy industry. In light of the climate change, the industry is increasingly facing a lot of pressure. Most of the environmentalists are urging the government and stakeholders to reduce reliance on coal and other non-renewable methods of generating energy. The use of biodiesels in Australia is also harmful to the environment. This is due to the emission of carbon-dioxide in the atmosphere which also contributes to global warming. Oil is also used in the country for the purposes of producing energy. The oil resources in the country are however undergoing depletion due to the high levels of extraction (International Energy Agency, 2012). The oil production process also has negative impacts on the environment. Toxic gases are usually emitted in the atmosphere leading to the increase in greenhouse gases and hence contributing to climate change. This has a negative impact on the sustainability of the industry. The energy industry in Australia may not be sustainable due to the negative impacts that it has on the environment and its contribution to climate change. Stakeholders The industry has several stakeholders who can play an important role in reducing the emission of greenhouse gases which is responsible for the climate change. The policy in the energy sector is developed by three levels of government. The federal government is responsible for the purpose of developing policies with regards to the energy sector. The federal government therefore has an influence in terms of making policies that promotes sustainability of the industry. The Federal government also has the responsibility of ensuring that the emission of the greenhouse gases is reduced in accordance with the Kyoto Protocol. The state government is also a stakeholder in the industry. In Australia, the state governments also have the mandate of making policies with regards to the operations in the energy sector. Mandatory renewable energy target is one of the policies that were developed by the state for the purposes of reducing on the reliance of coal (Wegener, 2013). Other state agencies like the Australian Energy Market Commission, Australian Energy Regulator and Australian Energy Market Regulator are also important stakeholders that are directly involved in the implementation of policies. The involvement of the stakeholders will therefore play an essential role in ensuring that the sustainability policies are implemented. The companies that are directly involved in the generation of energy are also important stakeholders. The sensitization of the companies will also play an important role in reducing the emission of the greenhouse gases. The environmentalists are also stakeholders who can advise the regulators on the best approach to be used in order to reduce the greenhouse emission. Strategic responses and measures The government together with the different agencies has put in place measures to reduce the greenhouse emission. However, most of the policies that have been put in place have not been implement with some being ineffective. The government should start by sensitizing the stakeholders as well as the members of the public on the dangers of climate change and the effects of environmental pollution. The use of coal for the purpose of generating energy should be reduced in the country. This will play an essential role in ensuring that the amount of greenhouse gases being emitted is reduced. The reduction in the use of coal should be accompanied by the use of alternative methods of energy generation. The use of solar energy should be increased as this is a source of renewable energy. The utilization of the renewable energy instead of the non-renewable energy is import in reducing the greenhouse gases. The renewable energy is clean and it does not have any negative impacts on the environment (Settle, 2011). It can also be used for a long period of time and hence encouraging sustainability. Other forms of renewable energy also include wind energy and wave power. The wave power is sustainable as the country is surrounded by the ocean which produces strong waves. This form of energy does not emit greenhouse gases in the atmosphere and it will be beneficial to the country in terms of reducing the greenhouse gases. The policies developed should also be aimed at ensuring compliance with the Kyoto Protocol. This will be useful in ensuring that the country complies with the international standards and hence reducing the emission of the greenhouse gases. On the other hand, it is also important to note that the country should set aside funds that will ensure that the energy sector is reformed so as to reduce the dependence on coal for the production of energy. The government and should also consider removing some of the subsidies in the sector that encourages the use of coal energy. A lot of subsidies are available for the industry which promotes the exploitation of coal energy. The use of biomass power should also be considered as an alternative method of producing energy. This will play an essential role in ensuring that the reliance on the coal energy is reduced. The government should also come up with a policy that ensures every home is fitted with a solar panel. This will play an essential role in ensuring that the overdependence on coal as a source of energy is reduced. The scientists should also play an active role in developing alternative methods of power generation. This is because the scientists are important stakeholders and they play an important role in providing solutions to the modern day challenges (Zahedi, 2013). The strategies will therefore improve the situation and hence reduce the adverse effects of climate change in the industry. Time frame It is important for the measures to be implemented in phases for the purposes of ensuring that the emission of the greenhouse gases is reduced. The government should hold consultations with the scientists and environmentalist in order to decide on how to reduce the greenhouse gases. Sensitization of the stakeholders should also be carried out in order to ensure that they fully understand the reasons for the changes and how to deal with the changes. This should be the first phase and it should be rolled out for a period of one year. This is for the purposes of ensuring that the all the stakeholders have enough time to prepare themselves for the changes. The government should also set aside adequate funds for the process during the first phase. Policies with regards on dealing with the companies that violet the laws should also be developed at this stage. The second phase should involve the implementation of the policies. The energy companies should put in place measures to ensure that have been laid out for the purposes of ensuring that the emission of the greenhouse gases is reduced. The companies should be given adequate time to carry out the changes. The implementation should be completed within four years. The third and final stage should involve the continuous monitoring and improvements. This process should continue in order to ensure full compliance with the policies. Conclusion In conclusion, it is evident that Australia suffers a high risk of climate change and its negative impacts due to the heavy reliance on coal for the purposes of producing energy in the country. Coal produces a high amount of greenhouse gases which contributes to the climate change. It is also evident that the sustainability of the industry may not be achieved due to the heavy reliance on coal for generation of electricity. The energy industry in Australia also relies on other means of producing energy. However, the other means of producing energy are only used at a lower level. Several stakeholders are involved directly or indirectly in the industry. The government as a major stakeholder should focus on reducing the use if coal for the purposes of generating energy. It is important to ensure that policies are developed and implemented on a step by step basis. Adequate resources should also be invested by the government in order to ensure compliance with the international agreements like the Kyoto Protocol. The implementation process should be carried out in three phases to ensure total compliance. It is also evident that the sensitization of the stakeholders will play an essential role in enhancing the process of reduction. List of References GeoScience Australia, 2010, Australian Energy Resources Assessment, Chapter 10. Retrieved on 2 July 2014 from, . Bureau of Resources and Energy Economics, 2012, Energy in Australia 2012. BREE: Canberra, Retrieved on 2 July 2014 from, . Diesendorf, M, 2014, Sustainable Energy solutions for climate change, NewSouth Publishing: Sydney, NSW. International Energy Agency, 2012, Key World Energy Statistics 2012, OECD: Paris Garnaut Report, Retrieved on 2 July 2014 from, < www.garnautreview.org.au>. Measham, T, 2013, Local economic impacts of an unconventional energy boom: the coal seam gas industry in Australia, Report to the Gas Industry Social and Environmental Research Alliance (GISERA). Wegener, M, 2013, The challenge of renewable energy policy in Australia: Insights from Australian sugar industry experience, In 2013 Conference (57th), February 5-8, 2013, Sydney, Australia (No. 152189). Australian Agricultural and Resource Economics Society. Settle, D, 2011, Australia: approaching an energy crossroads, Energy Policy, 39(11), 6804-6813. Zahedi, G, 2013, A review of geothermal energy resources in Australia: Current status and prospects, Renewable and Sustainable Energy Reviews, 21, 29-34. Read More