Being Responsible for our surroundings plays a important
role in the Sustainability Process,
From growing up on a farm I always wondered why people didn't have water tanks on normal house
blocks, as people took water for granted. I also wondered why the paddocks were not used all the time, and
now understand why a paddock was rested to let the grass grow back. We always had to measure how much water
was in the tanks, to see if there was enough water for the animals and a shower at the end of the day. We
didn't have the benefit of a city water supply, the road was dirt and was smoother driving on the footpath
than the road, and it was often that the person coming the other way had the same idea. Now the road has a
bitumen seal and the city rim expanded to parts of town where it would take an hour to get there before
the highway's were put into place.
If we take the business as usual method then there will be a increase in emissions and
activity. We therefore all need to take steps to reduce our impact on the environment as nothing last's
forever. A prime example is paint on a house, this usually lasts for 10 Years. When we moved into our house i thought paint would last forever, i was in for a rude shock
when the paint started to peel of the walls.
There is a finite amount of rescourses and if we run out, what are we going to do.
That is why we need to look at other measures to create energy, so we don't abuse what we are fortunate to
Common Sence is not so common in trying to work out what everybody needs to do,
without the politicial debate on which policy to follow. We all have to be responsible it's that
Please find Glossary of terms below:
project or activity which removes GHG from the atmosphere or reduces emissions of these gasses below what they
would otherwise have been.
Abatement: Activities that deliver a reduction in the amount of GHG in the atmosphere that is beyond, or
additional, “business-as-usual’. This is often referred to as the ‘additionality’ of an offset
Afforestaton is the planting of new forests on land not recently used as forest land.
Auctioning: A method of allocating permits (units) into the market through an
Unit (AEU): The term used in the Carbon Pollution Reduction
Scheme (CPRS) legislation to refer to a permit which gives the holder the right to emit one metric ton of carbon
Change Regulatory Authority: This Authority will administer all Commonwealth climate change regulations,
including the Carbon Pollution Reduction Scheme and the National Greenhouse and Energy Reporting
banking of permits by they private sector (that is, permits purchased in excess of current acquittal liability
may be held as an asset on a firm’s balance sheet).
Official lending of permits by the authorities to the private sector. The private sector party incurs a
liability to repay the permits at a future date. (Note, this differs from the commonly held notion
of “borrowing” which allows an obliged party to any use future
dated permits that it may hold to acquit its current
obligations. The proposed scheme does not entail date stamped permits.)
Corporations and Markets Advisory Committee. This committee established under Part 9 of the Australian
Securities and Investment Commission Act 1989, advises the Australian Government on the operation and reform of
corporations legislation, the efficiency of financial markets and the regulation of companies
Cap and Trade: A
cap and trade system involves the trading of emission allowances, where the total allowance is strictly limited
or ‘capped’. A regulatory authority establishes the cap which is usually considerably lower than the historic
level of emissions. Trading occurs when an entity with excess permits, either through actions taken or
improvements made, sells them to an entity that needs permits to offset an increase in emissions or a inability
to make cost-effective reductions.
Carbon Capture and
Storage (CCS): Technology used to capture and store CO2 emissions. Captured CO2 can be store din a variety
of geological or ocean sites.
Equivalent (CO2e): The universal unit of measurement used to indicate the global warming potential of each
of the six greenhouse gases. CO2e is used to evaluate the impacts of releasing ( or avoiding the release of)
different greenhouse gases.
Footprint: A measure of the amount of carbon dioxide equivalents emitted through the combustion of fossil
fuels; it is commonly used at an individual, household or business level.
Achieving climate change mitigation and managing climate change risk through market
The effect when a firm facing increased costs in on country due to an emissions price chooses to reduce, close
or relocate production or to close or relocate production to a country with less stringent climate change
A series of actions by an organization that are designed to reduce that organization’s carbon footprint (on the
Earth) to a position of zero net carbon dioxide (or equivalent) emissions. The term has become so popular that
the Oxford University Press recently declared carbon neutrality as 2006’s word of the year.
Reduction Scheme (CPRS): The Federal Government’s proposed emissions trading scheme for
Sequestration: The long-term storage of CO2 in forests, soils, oceans or underground in depleted oil and gas
reservoirs, coal seams and saline aquifers. For example- removal of CO2 from the atmosphere through land-use
change, afforestation or reforestation.
Carbon Tax: A
surcharge on the carbon content of products. At present, the Federal Government has not proposed to introduce a
CDP4: The Carbon
Disclosure Project is a program where institutional investors collectively sign a single global request for
disclosure of information on greenhouse gas emissions and climate change risk by the largest companies in the
world. The first request was sent in 2002, resulting in the publication of the CDP1 report in 2003. The CDP4
report was released in 2006. The request for information to be compiled into CDP5 was sent to companies in
Mechanism (CDM): A mechanism established by Article 12 of the Kyoto Protocol for project-bases emission
reduction activities in developing countries (e.g. China). The CDM’s two main objectives are to address the
sustainable development needs of the host country, and increase the opportunities for meeting emissions
Action Fund: The $2.15b Climate Change Action Fund provides
targeted assistance, over five years, to businesses, community sector organizations, workers, regions and
communities to smooth the transition to a carbon constrained economy.
System in which all wastes are recycled or re-used so that no new
materials are needed to provide a new generation of products.
Reduction (CER): A Kyoto unit corresponding to one metric ton of carbon dioxide equivalent missions, and
issued for verified emission reductions or removals achieved by projects approved under the clean development
dioxide equivalent. There are a range of Greenhouse Gases that contribute to the greenhouse effect and climate
change. However, each contributes to different degrees (i.e. they have a different Global Warming Potential).
For example one molecule of methane has the same effect as 21 molecules of carbon dioxide. Fore ease of
calculation emissions of GHGs other an CO2 are described in terms of the equivalent number of molecules of CO2
that hey represent.
Corporation: Defined in the National Greenhouse and Energy Reporting
Act 2007 (Cth) as a constitutional corporation that dos not have a holding company incorporated in
Australia’ (i.e. a parent corporation).
Corporate Responsibility Index. Reporting initiative overseen by the St James Ethics Centre which allows
companies to voluntarily assess their CR performance. The CRI is based on a program developed by the UK
organization “Business in the Community.”
Social Responsibility: the term corporate responsibility (CR) has been used to refer to issues
traditionally understood to be covered by the term corporate social responsibility. Typically CSR covers a range
of corporate activities which extend beyond traditional legal compliance requirement in the areas of social and
labor policy and include environmental protection, corporate governance and the like.
Sustainability Index (DJSI): Index designed to measure the corporate sustainability of companies. The
leading 10% of companies in terms of sustainability out of the biggest 2, 500 companies on the Dow Jones Global
Index, and the top 20% of the Dow Jones STOXX 600 are rated. Investment managers in 14 countries hold licenses
to use the DJSI to assess and manage financial products.
Footprint: A measure of an individual or organization’s impact on the environment, an ecological footprint
is a representation of the total quantity of resources that are used directly and indirectly as a result of the
organizations activities. The original means of representing a ecological footprint was by quantifying the area
of land required to support resource use.
Adjustment Scheme: A federal Government will provide assistance to help the coal-fired electricity
generation sector transition to a low emissions economy through the Electricity Sector Adjustment
Trading: Emissions trading is a general term used for a market-based system that gives firms the flexibility
to select cost-effective solutions to achieve established environmental goals. Emissions trading encourages
compliance and financial manages to pursue cost-effective emission reduction strategies and provides incentives
to emitters to develop the means by which emissions can inexpensively be reduced.
Trade Exposed Industries (EITE industries): Industries that are assessed to have an emissions intensity
above a defined threshold and are trade exposed. These industries will be allocated a number of free AEUs under
ecologically sustainable development
The precautionary principle- if there are threats of serious or irreversible
environmental damage, lack of full-scientific certainty should not be used as a reason for
postponing measures to prevent environmental degradation
Inter-generational equity- the present generation should ensure that the health,
diversity and productivity of the environment are maintained or enhanced for the benefit of future
Conservation of biological diversity and ecological integrity
Improved valuation, pricing and incentive mechanism- environmental factors should
be included in the valuation of assets and services
Emissions Trading Scheme (EU ETS): The EU ETS commenced in 2005 and is currently in its second phase
(2008-2012). It is a mandatory cap and trade emission trading scheme covering 27 European countries. European
Union allowances (EUAs) are the main unit of trade.
Principles: A framework for banks to manage the environmental and social issues of projects for which they
are giving project financing. Signatories to the Principles agree not to loan money to a project with a total
capital cost of US$10 million unless the sponsors of the project comply with requirement to undertake
environmental and social assessments and, in some cases, to develop management plans for the environmental and
social impacts of the project.
the National Greenhouse and Energy Reporting Act 2007 (Cth), a
facility is defined as an activity, or a series of activities (including ancillary activities) that form a
single undertaking or enterprise and meet the requirement of the regulations.
Practices Act: US law that outlaws the bribery of foreign public officials by US citizens or corporations.
They Foreign Practices Act was the first law of its kind, preceding the OECD Anti-Bribery Convention by 20
years. In 1998 the Act was amended to conform with the Anti-Bribery Convention.
developed by FTSE Group to measure the performance of companies that meet globally recognized corporate
responsibility standards: used to guide Socially Responsible Investment.
Geosequestration: A form of carbon capture and storage involving technology
that aims to store CO2 in deep underground geological structures.
Potential: The index used to translate the level of emissions of various gases into a common measure in
order to compare the relative radiative forcing of different gases without directly calculating the changes n
atmospheric concentrations. GWPs are calculate das the ratio of the radiative forcing that would result from the
emission of the kilogram of a greenhouse gas to that from the emissions of one kilogram of carbon dioxide over a
period of time (usually 100 years).
(GHG): There are six greenhouse gases recognized under the Kyoto Protocl, being carbon dioxide (CO2),
methane (CH4), nitrous oxide (N20), sulphur hexafluoride (SF6), certain hydrofluorocarbons (HFCs) and certain
Land Use, land-use
change and forestry (LULUCF): Land use and land-use changes can result in emissions or increase carbon
sequestration. Emissions from land use are those that result from cropping and livestock production. Land-use
change refers to the conversation of land to alternative uses, such as from forest to crop land or from grazing
land to forest.
An entity that has an obligation under the Federal Government’s proposed Carbon A Pollution Reduction Scheme.
This is sometimes referred to as a ‘covered entity’.
technology: Technology which produces a product with minimal greenhouse gas emission. The term is commonly
used to refer to power generation technologies (such as renewable, nuclear and ‘clean coal’ generation), but
applies equally to other sectors, including transport and agriculture.
Cost (MAC): The cost of reduction emissions by one ton of CO2e. An aggregation of these cost against total
tons abated creates a firm’s marginal abatement cost curve. The lower the MAC curve, the more effective the
firm’s emission reduction strategies. The aim of market-based incentives measures, such as emissions trading, is
to encourage participants to reduce their emissions at the lowest cost.
Human intervention to reduce the sources of, or enhance the sinks for, greenhouse gases.
and Energy Reporting Scheme (NGERS): A federal scheme requiring certain entities to monitor and report their
energy production, energy use and greenhouse gas emissions. NGERS is governed by the National Greenhouse and
Energy Reporting Act 2007 (Cth) and subordinate instruments.
Gas Inventory: An inventory of Australia’s greenhouse gas emissions, prepared as part of Australian’s
National Greenhouse Accounts and used by the Australian Government to meet its international reporting
Covenant (NPC): A voluntary agreement between all levels in Australia and organizations that sign it aimed
at increasing the proportion of packaging by reducing the volume of packaging waste ending up in a landfill.
Brand owners who sign the NPC may be subject to state legislation which implements that National Protection
Measure on Used Packaging Materials (NEPM)>.
These represent abatement and can be used to counterbalance emissions that are covered by the emissions trading
Control: Under the NGER Act, only one corporation can have operational control of a facility at any one
time. If more than one corporation is able to satisfy the operational control requirement, the corporation
having the greatest authority to introduce and implement operating, health and safety, and environmental
policies will be taken to have the requisite control.
Where the additional cost to liable entities under the scheme is passed through the production chain and
reflected in the final price for a product.
Price cap: Where
the additional cost to liable entities under the scheme is passed through the production chain and reflected in
the final price for a product.
(RMU): A Kyoto unit corresponding to on metric ton of carbon dioxide equivalent, and issued for the removal
of carbon dioxide from the atmosphere by eligible land sue, land-use change and forestry activities undertaken
in a developed country.
Target (RET): A national Renewable Energy Target scheme places a legal obligation on parties who buy
wholesale electricity (retailers and large users) to source a certain percentage of there electricity purchases
from renewable-based generation. Liable parties can demonstrate compliance with the scheme by acquiring and
surrendering, to the scheme regulator, tradeable renewable energy certificates. Renewable energy certificates
are created by accredited renewable energy generators.
Framework: The national Greenhouse and Energy Reporting Act 2007 (Cth) requires mandatory reporting of
certain emissions of GHG and production and consumption of energy.
This reporting will be used to underpin emissions trading.
International: International NGO that works to eliminate corporate corruption
Nations Environment Programme. Arm of the United Nations responsible for the UN-administered environmental
Framework Convention on Climate Change (UNFCCC): An international treaty that entered into force in 1994.
The convention established an objective of avoiding dangerous anthropogenic climate change, and set out
provision outlining actions to avoid future increase in global warming (including non-binding emissions targets
for developed countries) and provisions to cope with whatever temperature increase are
Compact: Initiative of the United Nations that facilitates a network of UN agencies, governments, business,
labor, and non-government organizations to encourage companies to adopt a set of principles of corporate
UN PRI: United
Nations Principles for Responsible Investment. Voluntary, aspirational principles to guide large institutional
investors(in particular pension and superannuation funds) and asset managers towards corporate social and
environmental responsibility. It was established by UN Global Compact and the United Nations Environment
Programme Finance Initiative.
Declaration on Human Rights: Statement of rights recognized by General Assembly of the United Nations in
1948. Rights recognized in the Declaration include the right to equal treatment of human beings, the right to a
fair trial, the right of freedom of expression and the rights to freedom from slavery and
Market: Voluntary purchase of abatements, normally in the form of carbon offset credits-in order to reduce
or completely offset their carbon emissions. By contrast, participants in an emissions trading scheme will be
legally obliged to acquire or offset credits to cover emissions.
Safeguards: Environmental and social safeguard policies designed to prevent and mitigate undue harm to
people and their environment during the development process. The policies are used as a guide by World Bank
staff in the identification, preparation, and implementation of programs and projects.
Accounting Standards Board
Building Greenhouse Rating
Competition and Consumer Commission
Australian Capital Territory Greenhouse Gas Abatement Scheme
Energy Market Commission
Australian Greenhouse Emissions Information System
Institute of Petroleum
Australian and New Zealand Standard Industrial Classification
Office of Financial Management
Australian Petroleum Production & Exploration Association
Standard on Assurance Engagements
Capture and Storage
CISA- Centre for
Integrated Sustainability Analysis
Management Maturity Model
COAG- Council of
Pollution Reduction Scheme
Commonwealth Scientific and Industrial Research Organization
Department of Climate Change
DSA- Demand side
service coverage ratio
Investment Association Australasia
Input Output (method)
Supply Association of Australia
Electricity Sector Adjustment Scheme
Environmental, Social and Governance Factors
EU ETS- European
Union Emissions Trading Scheme
FTA- Free Trade
Carbon Capture and Storage Initiative
and Energy Data Officer
GGAS- New South
Wales Greenhouse Gas Abatement Scheme
Integrated Assessment Model
GST- Goods and
Trade and Environmental Model
International Accounting Standards Board
International Carbon Action Partnership
International Finance Corporation
International Financial reporting Standards
International Financial Reporting Standards
International Labor Organization
Independent Market Operator of Western Australia
Independent Pricing and Review Tribunal
Intergovernmental Panel on Climate Change
for Social and ethical Accountability
LCA- Life Cycle
certified emission reduction
LCI- Life Cycle
LUAC- Large User
council on Energy
Multi Regional forecasting model
Renewable Energy Target Scheme
Electricity market Management Company
Emissions Trading Taskforce
Greenhouse Gas Abatement Certificate
Greenhouse and Energy Reporting System
Greenhouse Gas Inventory
Low Emissions Coal Initiative
Renewable Energy Certificate
NRET- New South
Wales Renewable Energy Target Scheme
NSW GGAS- New
South Wales Greenhouse Gas Reduction Scheme
Organization of Petroleum Exporting Countries
ORER- Office of
Renewable Energy regulator
System for Comprehensive Activity Reporting
Ppm- Parts per
Regional Clean Air Incentives Market
emissions form deforestation and forest degradation
Greenhouse Gas Initiative
certified emission reduction
TGET- Task Group
on Emissions Trading
Nations Environment Program
Nations Framework Convention on Climate Change
Renewable Energy Certificate
Renewable Energy Target Scheme
Electricity Market (Western Australia)
WTO- World Trade