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Tag Archives: Climate Change

Grant opportunities in New South Wales and Victoria

The NSW government has announced four grants available to improve recycling and waste services.  

> Organics Infrastructure: $6 million is available to support the processing of organic waste. This grant is available to local businesses, councils and projects that upgrade, build and expand organics processing infrastructure. Applications close October 21.

> Organics Collection: $12 million is available to support councils and regional organisations tied to councils to divert FOGO waste from kerbside collection. Applications close October 28.

> Circular Solar Grants: $7 million is available for government organisations councils research organisations, industry and not for profits for the development of innovative schemes that recycle and battery waste and solar panels. Applications close November 4.

> Litter Prevention Grants: $2 million is available for community litter reduction projects and schemes. These initiatives could include cigarette butt bin installations or community clean up days. Applications close November 8.

Round two of Innovation Fund grants open for applications in Victoria

In Victoria funding is available to support collaborative projects that aim to design out waste, improving both economic and environmental outcomes. Applications for both streams are open for projects that emphasize action within all phases of a resources’ lifecycle, promoting circular economy initiatives.

The two streams of funding available are:

>Stream One: Textiles Innovation: Between $75,000 – $150,000 of funding is available per project. Grants are available for projects which have a focus on preventing textile waste. Applications are open to industry groups, businesses, charities and research institutions.

> Stream Two: Collaborative Innovation: Between $150,000 and $250,000 of funding is available for each project. Grants are available to businesses, industry groups, charities and research institutions. Projects must have a collaborative focus on preventing waste from multiple organisations within a specific region, supply chain or sector.

The closing date for both Victorian grants is Monday 15th of November at 11:59pm.

Manufacturing and Life Cycle Assessment

The manufacturing industry plays an important role in global economic development, however it contributes to a significant share of negative environmental impacts in the form of pollution and waste. Manufacturing companies are subject to increasing pressure from consumers and legislation to improve their own activities towards more environmentally conscious manufacturing processes which create less environmentally damaging products. This pressure calls for product designers and production engineers to identify improvement measures for existing manufacturing systems, as well as create innovative concepts for new products. These investigations need to consider the entire life cycle of the manufacturing system and product, including the impacts related to production, use and end of life disposal. 

Life Cycle Assessment (LCA) is a tool used by companies and product designers to better understand their products’ overall and complete impacts – positive and negative. It helps businesses to quantify impacts at the various stages and provides insights  to improve performance and reduce environmental impacts. 

Why undertake an LCA? There are various reasons:

Stakeholder and consumer expectations: Increasingly consumers are seeking products with reduced environmental impacts, this is reflected in product purchasing choices.
> Industry directions: The manufacturing industry in Australia has a leading role in improving sustainability of its products.
> Voluntary environmental management systems: ISO 14001 is driving continuous improvement and uncovering business efficiency. 

While the key objectives for an LCA often begin with aiming to better understand environmental footprint, the framework can be used to assess other issues including economic and social factors. Examples may include:

> Uncovering production losses, which manufacturing business may refer to as ‘scrap rates’.
> Identifying areas of high energy use, where if savings can be made, will reduce costs and greenhouse emissions.
> Transport and logistics reviews may reveal options to reduce emissions and save costs.
> Raw materials choice for manufacture, including reviewing supplier social procurement practices to protect business reputation.

Businesses that are currently assessing their internal footprint are already on the path to developing an LCA. Examples of this include energy efficiency studies, where energy per unit production helps set a benchmark for assessing business improvements. 

If you would like to know more about LCA’s and how an LCA study may help your business development please contact us.

A simple diagram of life cycle assessment

 

 

Climate Active

Climate Active certification provides businesses and organisations with the opportunity to demonstrate their commitment to managing their environmental impacts and committing to sustainable outcomes. Climate Active is the Australian Government backed program that enables business to measure, manage and offset carbon emissions from their operations or products and services. Organisations can also apply the certification to events, buildings and precincts that demonstrates their commitment to driving voluntary climate action in the growing face of pressures from customers and investors.

The Climate Active certification is awarded to organisations and businesses that have credibly reached state of carbon neutrality/ net zero emissions. The certification and verification process as well as public reporting requirements ensures that like for like businesses can be compared with respect to assessing, reducing and offsetting carbon emissions. 

The emergence of voluntary schemes such as Climate Active are driven by “social license” and responsible business practice. The scheme presents the opportunity to achieve greater staff engagement and demonstrate to customers you have in place a robust climate strategy commitment. The scheme aims to incentivise voluntary action, with the certification assisting the greater community by making it easier to identify brands, businesses and organisations that are committing to making a real difference.

Addressing barriers to Product Stewardship in Australia

Product stewardship calls for companies, supply chains and retailers to take greater responsibility for their services and products across their whole life cycle, from design to production to use and, finally, disposal. 

Earlier in July the Product Stewardship Centre of Excellence released a white paper report “Addressing the Barriers: A needs assessment of product stewardship in Australia.” The paper aims to explore and understand the barriers to product stewardship in Australia, investigating opportunities for further development and expansion of product stewardship across the nation.

The paper discusses the major challenge such as free-riders; businesses or organisations that may benefit from product stewardship activity without contributing to the implementation or operation. 

Although not discussed in the paper, the voluntary trend of product stewardship in Australia is also an issue to consider. 

This trend is a particularly Australian phenomenon, as most other countries support regulatory approaches. Australian industry leadership towards product stewardship should be congratulated. For example, the recent announcement of the Australian Toy Association partnering with other leading brands to investigate product stewardship of toys, and the recognition of best practice for Tyre Stewardship Australia are positive developments. 

However, similar to the free-riding organisations, companies and industries who use voluntary as a means to defer, delay or avoid responsibility should be brought to account. 

Voluntary approaches cannot be realistically expected to work in a timely manner where there is no industry agreement and coordination, and where the brand owners are diffuse, have little or no local decision-making authority or are no longer trading. In such cases it at best will be a slow process and many years before some sort of voluntary approach is figured out. 

In general, the need for government intervention is generally greater the more complex the products and supply chain.

For product stewardship broadly to meet community expectations, to reach waste and recycling targets, to discourage free-riders and to support genuine leadership efforts, there therefore needs to be clear market signals that government will regulate when and where needed. 

While the Centre’s white paper correctly highlights key barriers, overcoming them will require the government to act where appropriate to put pressure on industry and ensure accountability, and that includes judicious use of regulatory powers.

Toy Industry to collaborate and develop sustainability solutions

The Australian Toy Association (ATA) has been supported with a through the Circular Economy Business Innovation Centre (CEBIC) delivered by Sustainability Victoria. This is a world first for the toy industry and another example of an industry taking responsibility for its products.

In collaboration with leading toy industry brands and retailers, the funding enables the ATA to develop and investigate circular economy options for toys. The project’s first stage will develop a material flows analysis, building an understanding of the movement of toys through the economy. The results of the analysis will link into the overarching project to develop solutions that will reduce the environmental impact of toys. 

Equilibrium congratulates ATA for their leadership and vision and is excited to partner with them on this project in developing circular economy options for toys.

ARENA launch $43 million Industrial Energy Transformation Studies Program

The Australian Renewable Energy Agency announced a $43 million grant program on behalf of the federal government to assist in identifying methods to cut industrial energy costs and emissions. The first round of the Industrial Energy Transformation Studies Program will offer $25 million to assist research and the development of business case projects for organisations in the mining, agriculture, manufacturing sectors, water supply, gas supply, waste services and data centres. Applicants can apply under one of two rounds: 

>Round 1A – Feasibility Studies (Up to $10 million available). Grants can be between $100,000 and $500,00 for up to 75% of eligible project costs
>Round 1B –
Engineering Studies (up to $15 million available). Grants can be between $250,000 and $5 million for up to 50% of eligible project costs.

The program aims to fund studies that deliver transformational improvements in de-carbonisation technology and energy efficiency practices for industry. Eligible projects must also demonstrate high replicability potential across similar industry settings.

Applications for the initial round of funding will be open on the 6th of July.

ARENA will be hosting separate information sessions for Round 1A and Round 1B in the week commencing 12 July, further information regarding these information sessions will be published on the Industrial Energy Transformation Studies Program website in the coming weeks.

Greenwashing and the ‘race to zero’

Global markets, shareholders and consumers are impelling corporates to announce climate action and net zero policies across the globe. This movement has resulted in a rush of company directors announcing net zero pledges without fully examining their capacity and ability to meet their goals.

Renew Economy stressed that failures to meet these goals, could be considered “guilty or misleading conduct”, resulting in legal or regulatory penalties. The long timeframe to achieve net zero goals and the current lack of clear, unified regulatory approach, may have set a false sense of ease. In March, The Conversation among other researchers published the first analysis of net zero commitments of 4,000+ sub-national governments and companies which account for 80% of global emissions. The study highlighted that only 60% of plans announced interim targets and 62% of the corporates announced reporting mechanisms.

If corporates are serious with their net zero intent, it will be met with robust measures in place and pledging a target which can be held accountable by shareholders and consumers. Credibility should be demonstrated by accreditations from impartial mechanisms such as a science-based target, which will validate whether the plan is credible. Last week Australia Post and Newcastle Port have become the latest Australian organisation to have their emissions targets recognised by the Science-Based Targets program, validating both the corporates’ efforts to limit temperature rise “well below two degrees”.

Net zero targets are statements of corporate intent, and should not be made unless research has been undertaken to ensure they are deliverable. Corporates are encouraged to seek advice and support regarding this. Goals should be genuine, and importantly realistic in their approach to reach net zero.

Considerations for the impacts on SMEs as major corporates ‘race to zero’

Numerous corporations have joined the “race to net zero” emissions, announcing targets and policies to reduce their carbon outputs. The impacts these declarations will have on small to medium sized enterprises (SME) within major corporates’ supply chains should be considered.

For example, Unilever is a leader in producing fast moving consumer goods (FMCG) and their announced climate policy and targets in their Climate Transition Action Plan. The plan was put to shareholder vote earlier this month with the majority of shareholders voting in support of the climate action strategy. The company’s voluntary targets, signify a movement that responsible businesses cannot and should not wait for regulation. Corporates opting for voluntary annual emission reports and in this case, an advisory shareholder vote, signify an increased level of transparency and accountability between investors, consumers and businesses. 

However, the impacts of these policies on the supply chain and wider network need to be considered.  

>Where does the cost lie? The plan discusses the intent to cost neutrally reduce the emissions from raw material suppliers. The cost of reducing these emissions will be placed onto the suppliers, potentially placing the burden on the supply chains of SME’s to shoulder.
>What support for SMEs will be provided? The introduction of carbon data invoices is an example of an area where smaller companies will need assistance. Although it may sound like a simple tweak to the system, it may be complex to set up and deliver and potentially not cost neutral.
>How will the new supplier reporting frameworks chosen by major multinationals start to shape and influence the uptake of different reporting methodologies? As there are an overwhelming variety of these methodologies in use (TFCD, Science based targets, GRI, CDP, as well as national government systems), there is much debate around how to select one global standard to use. Unilever in this case have chosen Science Based Targets, which may have an influence on the uptake of that particular framework at a global scale. 

Corporates are setting expectations on acceptable reporting methodologies for their suppliers. This has the potential to be a positive environmental step, as data will be influential in setting a global consensus for mass scale climate reporting methods. When large corporations dictate that science based targets are the new reporting frameworks they want from suppliers, it may be hard to envision how this reporting framework won’t become a new norm for SMEs in Australia and elsewhere.

Written by Marita Doak and Donald Fraser

Victorian Government announce state’s climate change strategy

The Victorian Government Climate Change Strategy aims to keep the state on track to meet the emissions target of net zero emissions by 2050. Victoria’s announcement marks all of Australia’s states and territories committing to a net zero target by 2050, despite the absence of the federal government’s embracing a national the goal. The strategy announced interim targets aiming to decrease emissions by 28-33% by 2025 and 45 – 50% by 2030. The objectives at the focus of the strategy include; 

>$100 million package for electric vehicle subsidies, granting $3,000 for all new zero emission vehicles that cost less than $69,000 and a target for 50% of all new vehicle sales to be electric or hydrogen by 2030.
>Public transport – all buses purchased from 2025 onwards are zero emissions.
>Gas substitution roadmap – encouraging users to shift to electricity and other fuels.
>Investing $31 million to support high-energy using businesses to adopt energy solutions to reduce costs and prepare for a low – emissions future.
>$380 million to deliver “Recycling Victoria” – a 10-year plan assisting businesses and households to improve their resource efficiency, recycling and reduce waste. 

The announcement signifies the push from state governments to reach net zero emissions and develop a harmonised approach to electric vehicle standards. 

Agriculture is one of the state’s largest carbon emitters, and an industry that the federal government is debating to exempt from the national  net zero targets. The Victorian strategy includes pledges for the agricultural industry announcing;

>$15.3 million invested in agroforestry, encouraging farmers to plant trees to sequester carbon and realise other on farm benefits such as protecting crops/animals from extreme weather
>Expanding the Agriculture Energy Investment Plan, providing an additional $30 million to support farmers to improve on-farm energy generation and efficiency.

The plan aims to ensure that farmers are well placed to be supported in using information and tools which will help realise emissions reductions opportunities on farms.

Placing an emphasis on supplier sustainability

Organisations in Australia are demanding more environmental reporting, driving suppliers to update and make mandatory environmental commitments and changes. This is a growing trend in the agricultural industry and supply chain in particular. Large companies such as Coles and Woolworths are seeking additional control and oversight, requiring their suppliers to help them meet their environmental targets. 

Last week the Coles group announced a “together to zero” campaign, outlining a collaborative scheme with consumers and its supply chain to meet their emissions targets. The group announced plans to be powered entirely by renewable energy by 2025 and to cut operational emissions by 75% below FY20 levels by 2030. 

Equilibrium is working with a number of suppliers in the agriculture and food manufacturing sectors to develop and implement sustainability programs, including Environmental Management Systems (EMS)

An EMS aims to implement a plan and system of environmental actions and targets which align with the company’s environmental policy and business objectives and extend all the way to a ground level approach. An EMS is a journey of continuous improvement (plan > do > check > act) and assists organisations to manage their environmental impacts through; 

> Achieving and maintaining compliance with relevant environmental laws, standards and the company’s environmental commitment
>Establishing systematic risk management processes to identify and rectify environmental risks;
>Establish a required level or environmental performance within the groups corporate environment to prevent the occurrence of events that are likely to significantly impact the environment
>Enabling visibility and periodic evaluation of environmental targets and performance metrics for decision making

The movement towards corporate responsibility, the ambition of businesses to meet their environmental objectives and better business outcomes are increasingly seen as mutually inclusive.