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Viticulture– Carbon introduction

Viticulture– Carbon introduction. Site / company name and logo here. Presenter/s names here. This is an Agrifood Skills Australia Ltd project developed in partnership with Energetics Pty Ltd and funded by the Australian Government under the Clean Energy and Other Skills Package.

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Viticulture– Carbon introduction

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  1. Viticulture– Carbon introduction • Site / company name and logo here • Presenter/s names here This is an Agrifood Skills Australia Ltd project developed in partnership with Energetics Pty Ltd and funded by the Australian Government under the Clean Energy and Other Skills Package

  2. What is the problem? • Climate change • Resource depletion • Energy • Water • Materials • Increased emissions, contamination & waste • Reduced air quality • Loss of biodiversity

  3. How is economic activity affected by climate change?

  4. Risks specific to Australia • Energy pricing • Low energy costs, greenhouse intensive coal sources • Costs to increase – oil prices, carbon, lack of investment, drought conditions • Access to Water • Australia is the driest continent on earth • Many industry sectors are dependent on access to water for operation. • Regulatory uncertainty • Carbon Price and Emissions Trading. • Uncertainty - difficulty in long-term infrastructure/ asset planning. • Market related risks • Climate change risks in other countries may differ remarkably – regulations, consumer behaviour

  5. Things to consider when managing carbon – organisational boundaries Decisions must be made as to how emissions will be aggregated. Three approaches include: • Equity share • Financial control • Operational control Operational control is default boundary! What is operational control? Defined in Australian law as the right to introduce or implement operating, health and safety or environmental policies

  6. Things to consider when managing carbon – operational boundaries Scope 1“Fuel You Burn” Scope 2 “Fuel burnt for You” Scope 3 “Emissions from services You use and products You produce” LPG Nat Gas Petrol Process emissions Electricity

  7. The business case for carbon management – carbon neutrality Vineyards producing ‘carbon neutral’ wine. • Case Study: Temple Brewer - Carbon Neutral • “From 2011 onwards all wines produced by Temple Bruer are and always will be carbon neutral. Temple Bruer has achieved carbon neutrality through measuring its carbon footprint through a cradle to gate lifecycle analysis, working tirelessly to reduce our footprint through all means possible and finally purchasing environmental and socially sustainable carbon credits to offset the remainder.. We hope to achieve this through increasing our generation of renewable electricity through a combination of solar with future plans to invest in a pyrolysis plant, Continuing to search for further savings and participating in the Federal Governments carbon farming initiative and further reducing our footprint in any way possible.” .

  8. The business case for carbon management – carbon labelinguk carbon trust • Aldi – first company in Australia to introduce Carbon Reduction Labels. • Suppliers now required to • report GHG emissions • commit to GHG reductions Woolworths and the Australian Food and Grocery Council conducting study on benefits of carbon labeling .

  9. The business case for carbon management – carbon trading • Japan – currently designing ETS that is likely to be implemented in 2011 • NZ – ETS started 1 July 2010 • China - likely to have an ETS • EU – existing ETS may legislate a 30% reduction target • UK Coalition - setting a floor price for carbon • US – multiple regional ETS’ From 1 July 2012 – Australia has a price on carbon set at $23 per tonne of CO2-e – following a number of other countries NB: Emissions trading works: EU verified emissions showed a decrease of 11% in 2009

  10. The business case for carbon management – carbon price Some pay directly eg. Large users of coal such as coal fired power stations Q: Who pays the Carbon price? Some pay indirectly eg. Consumers of electricity / smaller users of fuels Think petrol excise – you pay, but payment collected upstream

  11. The business case for carbon management – what level of price? NB: Very costly for some Costs spread across the economy

  12. The business case for carbon management Experience shows that sustainability makes good business sense • Embedding sustainability within an organisation’s broader business strategies frequently results in organisational and technical innovations that generate both top- and bottom-line returns. • Reducing inputs to a business, due to a carbon-constrained economy, reduces costs. • Reducing inputs requires new or improved products or even new business lines.

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