NSW Climate Change Policy Framework

1 NSW Climate Change Policy Framework

1 HOW THIS FRAMEWORK OPERATES The aim of this policy framework is to maximise the economic, social and environmental wellbeing of NSW in the context of a changing climate and current and emerging international and national policy settings and actions to address climate change. The framework: »» defines the NSW Government’s role in reducing carbon emissions and adapting to the impacts of climate change »» sets policy directions to guide implementation of the framework »» commits NSW to achieving aspirational long-term objectives of net-zero emissions by 2050 and to help NSW become more resilient to a changing climate »» sets out next steps for implementation. Voltage optimisation (credit: iStock) NSW Climate Change Policy Framework 2 2 THE INTERNATIONAL, NATIONAL AND STATE CONTEXT International context National context The world in which NSW operates is in transition The Commonwealth Government has signed and because of actions by governments, communities and announced its intention to ratify the Paris Agreement. business to limit the increase in global temperatures The agreement’s review and ratchet mechanism means and adapt to a changing climate. that Australia’s interim emissions reduction targets are likely to become more ambitious over time, with the In December 2015, 195 countries agreed on the first review due in 2017. The current interim targets are: United Nations Paris Agreement on climate change. The key objectives of the Paris Agreement include: » 5 per cent below 2000 levels by 2020 » a goal to limit the increase in global temperatures » 26 to 28 per cent below 2005 levels by 2030. to well below 2 degrees and pursue efforts to limit The 2030 target is equivalent to a 50 to 52 per cent the rise to 1.5 degrees reduction in per capita emissions and a 64 to 65 per cent » a commitment to achieve net-zero emissions, reduction in the emissions intensity of the economy. globally, by the second half of the century » differentiated expectations for developed nations, including Australia, that they will reduce their emissions sooner than developing nations » a five year review and ratchet process which is likely to lead to more ambitious commitments from countries in the future. Figure 1 shows that more ambitious commitments will be needed globally to achieve the Paris Agreement’s temperature and emissions objectives. Figure 1: Global emission trajectories: objectives, pledges and current policies under Paris Agreement

200 Warming Global greenhouse gas emissions (GtCO2eq.) projected by 2100 150 Baselines: 4.1–4.8˚C 100 Current Policies: 3.3–3.9˚C 50 Pledges and INDCs: 2.4–2.7˚C Below 2˚C: 0 1.5–1.7˚C Below 1.5˚C: 1.3–1.5˚C -50 90 00 10 20 30 40 50 60 70 80 90 00 19 20 20 20 20 20 20 20 20 20 20 21 Adapted from: The Climate Tracker 2015, http://climateactiontracker.org/global.html

3 NSW Climate Change Policy Framework State context Our state is a national and international leader in energy efficiency. Our programs helping The NSW Government endorses the Paris Agreement households and business to cut their electricity use and will take action that is consistent with the level have been very successful, with the NSW Energy of effort to achieve Australia’s commitments to the Savings Scheme expected to support projects that Paris Agreement. Our response will complement will save over 50,000 gigawatt hours of energy, national action. over 40 million tonnes of greenhouse gas emissions and reduce power bills by over $13 billion from Our response will build on NSW’s strong track record in 2015 to 2040. expanding renewable energy, helping households and businesses reduce their energy bills by saving energy While we’re seeing the effects of climate change in and preparing for the impacts of climate change. New South Wales, we have taken steps to prepare for them. For example, we have developed the south-east For example, NSW is home to Australia’s largest utility Australian regional climate model, known as NARCliM, scale solar plants at Nyngan, Moree and Broken Hill, which provides climate change projections for NSW and in 2014–15 had more ongoing renewable energy and the Australian Capital Territory to 2030 and 2070, jobs than any other state or territory in Australia. down to the nearest 10km. Central Park, Sydney, 2014 International Green Infrastructure Award Winner (credit: Lisa Madden/OEH) NSW Climate Change Policy Framework 4

3 ASPIRATIONAL OBJECTIVES FOR NSW The NSW Government’s emissions savings objective and adaptation objectives aim to: » attract investment by providing policy certainty » guide public and private sector decision making, particularly for long-lived assets » ensure consistency of NSW Government policy with the international and national policy context and the likely long term direction of government and private sector action on climate change. An aspirational emissions savings objective The NSW Government’s objective is to achieve net-zero emissions by 2050. This long-term objective sets a clear statement of government’s intent, commitment and level of ambition and sets expectations about future emissions constraints that will help the private sector to plan and act. An aspirational impacts and adaptation objective The NSW Government’s objective is for NSW to be more resilient to a changing climate. Most effective climate change adaptation occurs at a local level through the actions of individuals, businesses and communities in response to locally-specific climate change impacts. The NSW Government will help NSW adjust to a changing climate by supporting local adaptation actions, managing climate change risks to its own assets and services and removing market, regulatory and governance barriers to the private sector and local government adapting effectively. Monroe Springs in Alexandria (credit: Lisa Madden/OEH)

5 NSW Climate Change Policy Framework

4 THE NSW GOVERNMENT'S ROLES IN CLIMATE CHANGE The NSW Government will take emissions savings action that is broadly consistent with the level of effort to achieve Australia’s short and long term emissions » Government operations: The NSW Government is a major purchaser in the NSW economy through delivering government services and managing savings objectives and take adaptation action that government assets. The government will lead helps the NSW community adjust to a changing climate. by example and drive market change. The NSW Government will apply this level of effort » National and international advocacy: across the following roles of government: The NSW Government will advocate for climate policy action at national and international levels. » Government policy: The NSW Government will set policy to achieve emissions savings, consistent with The following table shows how this level of effort Commonwealth action, and to enable effective will be applied across these three roles. adaptation to climate change. Role Emissions savings Impacts and adaptation Policy Implement emission savings policies that are Implement policies to plan for climate risks consistent with achieving the Commonwealth and provide targeted information and support Government’s interim and long-term for households, communities and businesses emissions savings objectives and are fair, that is fair, efficient and in the public interest efficient and in the public interest For example: regional climate impact For example: energy efficiency, advanced information, planning to help coastal councils energy, transport, carbon farming and regional and vulnerable communities, growing the adaptation services market Operations Lead by example to save emissions Assess and effectively manage climate change in government operations risk to assets and services For example: government purchasing, For example: impacts on service delivery, asset management, service delivery asset management and infrastructure provision Advocacy Advocate for Commonwealth, COAG Advocate for Commonwealth, COAG and international action consistent and international action to support with the Paris Agreement effective adaptation For example: advocating within For example: building standards, the COAG Energy Council for reforms national climate modelling to the National Electricity Market NSW Climate Change Policy Framework 6

5 POLICY DIRECTIONS Policy directions will guide government action including implementation of this policy framework. Direction Rationale Create a certain As the world moves to net-zero emissions, NSW will be part of the global investment transformation of the world’s energy system. This will create investment and environment by job opportunities in emerging industries such as advanced energy, transport, working with the carbon farming and environmental services. Commonwealth to Private sector investment will flow to jurisdictions with stable and supportive manage transition policy environments. NSW will work with the Commonwealth Government and take complementary action to create a certain investment environment in NSW and make the transition to a net-zero emissions economy for NSW more affordable. Boost energy Boosting energy and resource productivity can reduce the impact of rising productivity, put energy prices and the cost of transition to a net-zero emissions economy. downward pressure NSW will strengthen its position as the national leader in energy efficiency, on household and including its programs for vulnerable households. business energy bills Capture co-benefits There will be positive co-benefits from emissions savings efforts, such as improved and manage health from reduced air pollution. These benefits can be an important consideration unintended impacts in the design of emissions savings actions. of external policies NSW will advocate for Commonwealth and COAG policy reform and provide complementary programs, to ensure that market design, consumer protections and environmental protection measures work together with emissions savings policies. Take advantage of The shift to a net-zero emissions economy is likely to create new opportunities opportunities to grow in sectors in which NSW has a competitive advantage, such as professional new industries in NSW services, agriculture, advanced energy technology, property management and financial services. There will also be new opportunities in these sectors as the world adapts to climate change, and the government will look for opportunities to grow these emerging industries in NSW. Reduce risks and Climate change will lead to more extreme weather, heatwaves and sea level damage to public rise, which increase the risk of direct costs to public and private assets and and private assets services. The government will manage the impact of climate change on its in NSW arising from assets and services by embedding climate change considerations into asset climate change and risk management. The government will also reduce barriers that would prevent effective private sector adaptation by providing information and a supportive regulatory framework for adaptation measures at the local level.

7 NSW Climate Change Policy Framework Direction Rationale Reduce climate change The government will enable communities and individuals to be better prepared impacts on health and more resilient to climate change impacts by anticipating increased demand for and wellbeing services, such as health and emergency services. The government will also identify ways to support communities that are more vulnerable to the health impacts of climate change. Manage impacts The government will provide long-term and coordinated efforts to increase on natural resources, the resilience of our primary industries and rural communities as climate ecosystems and change impacts water availability and water quality. communities The government will also manage the environment impacts of climate change, such as the impacts on habitats, weeds and air pollution. Tree plantings (credit: Western Sydney Parklands Trust) NSW Climate Change Policy Framework 8

6 DELIVERING THE POLICY FRAMEWORK The next steps to implement this framework are: Climate Change Fund Strategic Plan » energy efficiency: to boost energy productivity, put downward pressure on energy bills, capture health co-benefits, manage price impacts of external The Premier and the Minister for the Environment policies and take advantage of opportunities to have released the Draft Climate Change Fund grow the energy efficiency industry Strategic Plan for public consultation. » climate change adaptation: to reduce costs to public Develop value for emissions savings and private assets, reduce impacts on health and wellbeing, manage impacts on natural resources, The NSW Government will develop a value for ecosystems and communities, and take advantage emissions savings and apply this consistently of opportunities to grow adaptation services. in government economic appraisal. Agencies will undertake additional policy investigation Embedding climate change consideration for sectors with significant opportunities and in government decision making risks, including: The NSW Government will investigate how to embed » energy productivity consideration of climate change mitigation and (Office of Environment and Heritage) adaptation across government operations including service delivery, infrastructure, purchasing decisions » fugitive emissions (Division of Resources and Energy) and regulatory frameworks. » primary industries emissions and adaptation Develop action plans and strategies (Department of Primary Industries) Climate change action plans will implement the policy » health and wellbeing directions in this policy framework and give effect (Ministry of Health). to potential actions in the Draft Climate Change Fund Strategic Plan. Three action plans will be Review mechanisms developed in 2017: All action plans will be regularly reviewed consistent » advanced energy (how clean generation and with NSW Government program evaluation guidelines. storage technologies can be combined with existing Climate Change Fund projects will be reported on infrastructure, the internet, software, regulation, annually and will include progress on program goals demand management solutions, energy efficiency, and expenditure. market design, pricing and other innovations to This policy framework will be reviewed in 2020. ensure the energy supply remains or becomes more reliable and affordable): to manage the transition to net-zero emissions and increase investment certainty, take advantage of opportunities to grow emissions savings industries, capture health co-benefits and manage security and reliability impacts of external policies

9 NSW Climate Change Policy Framework © 2016 State of NSW and Office of Environment and Heritage The State of NSW and Office of Environment and Heritage are pleased to allow this material to be reproduced in whole or in part for educational and non-commercial use, provided the meaning is unchanged and its source, publisher and authorship are acknowledged. The Office of Environment and Heritage (OEH) has compiled this report in good faith, exercising all due care and attention. No representation is made about the accuracy, completeness or suitability of the information in this publication for any particular purpose. OEH shall not be liable for any damage which may occur to any person or organisation taking action or not on the basis of this publication. Readers should seek appropriate advice when applying the information to their specific needs. This document may be subject to revision without notice and readers should ensure they are using the latest version. All content in this publication is owned by OEH and is protected by Crown Copyright. It is licensed under the Creative Commons Attribution 4.0 International (CC BY 4.0), subject to the exemptions contained in the licence. The legal code for the licence is available at Creative Commons. OEH asserts the right to be attributed as author of the original material in the following manner: © State of New South Wales and Office of Environment and Heritage 2016. Published by: Office of Environment and Heritage

59 Goulburn Street, Sydney NSW 2000 PO Box A290, Sydney South NSW 1232 Phone: +61 2 9995 5000 (switchboard) Phone: 131 555 (environment information and publications requests) Phone: 1300 361 967 (national parks, general environmental enquiries, and publications requests) Fax: +61 2 9995 5999 TTY users: phone 133 677, then ask for 131 555 Speak and listen users: phone 1300 555 727, then ask for 131 555 Email: info@environment.nsw.gov.au Website: www.environment.nsw.gov.au Report pollution and environmental incidents Environment Line: 131 555 (NSW only) or info@environment.nsw.gov.au See also www.environment.nsw.gov.au ISBN 978 1 76039 526 1 OEH 2016/0618 November 2016 Back cover: Bonnie Vale picnic area Royal National Park (credit: Simone Cottrell/OEH) NSW Climate Change Policy Framework 10