Australia: Energy and Climate Change Policy

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Australia Energy and Climate Change Policy
H.E. Colin Heseltine Australian Ambassador to the
Republic of Korea
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Australias unique energy situation

• Large energy fuel reserves and small population.
• Large energy exporter.
• Distinct roles of Federal and state governments.

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Australia has vast energy reserves

• 4th largest black coal producer 250 year life.
• Significant oil exporter.
• Over 100 tcf in gas reserves and production of
  26 million tons a year by 2010.

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Australia has vast energy reserves cont.

• Generation of 9,500 Gigawatt hours (GWh) of
  extra renewable electricity per year by 2010
• Worlds largest reserves of low cost,
  recoverable uranium resources

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Australia can meet Koreas energy needs

• Exports around 60 per cent of our coal
  production and 40 per cent of our current natural
  gas production
• Koreas number 1 supplier of coal, uranium
• and one day, LNG?

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Australias energy policy

• Reliable supplies of competitively priced
  energy.
• Focused on improving competitiveness of
  electricity and gas sectors.

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Electricity Reform model for Korea

• Interconnected, inter-state electricity network
  National Electricity Market.
• Competitive neutrality between private sector
  and government.
• Separation of transmission and generation.

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Gas reform almost complete

• Objectives remove restrictions on interstate
  trade remove policy and regulatory impediments
  to retail competition and natural regulatory
  framework for third party access and facilitate
  interconnection of pipelines.

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Gas reform the benefits

• Growth in established gas markets and new
  regional centres.
• Encouraged basin on basin competition
• Gas prices have fallen.

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Impacts of climate change on Australia

• Increase in heat-related deaths
• Increased flood damage
• Increased erosion, run-off, and mudslides

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Impacts of climate change on Australia cont.

• Increased rates of mosquito-borne infections
• Increased risk of forest fires
• Increased pressure on water resources
• Pressures on important ecosystems including the
  Great Barrier Reef

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Kyoto Protocol not truly global

• Australia considers it should include developing
  countries and United States to be truly global.

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Will Kyoto enter into force?

• Russia may be the key, with 17.4 of emissions.
• But not likely to enter into force before 2003.

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What is the United States doing?

• Australia welcomes range of measures to reduce
  GGEs.
• We also support workable climate change regime
  which is economically manageable.
• Support US engagement with developing countries.

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Australias approach

• Will not ratify Kyoto unless analysis shows it
  is in Australias interests to do so
• Australia committed to addressing climate
  change.
• US role is critical as major emitter and also
  developer of technology.

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Developing country participation is vital

• Including for developing OECD countries such
  as Mexico, Turkey and Korea.
• They need to set the pace for other heavy
  emitters including India and China.

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Alternatives to Kyoto?

• Convince developing countries to be involved.
• Develop constructive engagement between US and
  international community.
• Open to exploring any global alternatives to
  Kyoto.

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Conclusion

• Climate change is a global issue.
• Australia committed to GGE reduction.
• Seek truly global solution.
• Take account of environmental protection and
  economic development.
• Korea is part of solution!