Climate Changes and Australian Energy Industry - Case Study Example

THE AUSTRALIAN ENERGY INDUSTRY: STRATEGIC CHALLENGES AND RESPONSES By Student’s Name Code + Course Name Professor’s Name University Cite, State Date Introduction The current level of sustainability within the Australian energy industry is considered to be dynamic and developed. In fact, the fundamental issue for the Australian economy rests with the sustainability of energy utilisation and production as well (Australian Government 2004). The current strategies being proposed and implemented within the industry are directed towards attaining greater level of sustainability in relation to the local, regional and national as well as international market positions. The strategies are set in this regards in order to ensure that a desired energy mix is pursued to attain sustainability objectives on a national and international scale and, also to contribute to the overall global sustainability considerations (Australian Government 2004). The purpose of this paper is thus to examine the industry’s immediate sustainability in regards to climate changes over a short, medium and long term. Subsequently, the paper evaluates and provides a distinctive discussion on possible responses and implications and goes ahead to imminently identify strategies to effectively implement the aforementioned responses. Strategic Challenges to Australian Energy Industry It is important to ascertain that sustainability within this industry does not only revolve around the environment but also, it relates to sustaining future of the energy sector as a whole. The industry is more focused on establishing strategies as opposed to targets or even quotas. The move towards integration of societal aspirations as well as policies helps enhance the protection as well as restoration of natural systems (ACT Government, 2012). Subsequently, energy and energy-based resources result to a fundamental contribution to the overall quality of life of all Australians in general. For instance, the industry has ensured to create and operate a distinctively competitive market for its electricity product and is now making efforts to emphasise a similar approach for gas market. These markets will always provide a distinctive level of considerable assistance for regional industries in the course of producing energy-rich goods at competitive prices (ACT Government, 2012). It is noted that the Australian energy sector is known for extensive portions of coals, gas and solar that are deemed to be enough to avail the country’s foreseeable energy requirements. Notwithstanding, the expected growth and development within the Australia’s immediate human population in the coming decades is deemed to be useful. The expected local and regional population growth will avail distinctively newer opportunities for Australian energy sector (ACT Government, 2012). In fact, the export of energy raw materials is deemed to be the largest single component of Australia’s export levels. For this reason, the sector has a unique role as well as opportunity to play in the assistance of those sectors in meeting their energy postulations in a more sustainable approach while at the same time enhancing its economic and environmental position. The strategic challenges within the Australian energy industry are mainly focused on a human-induced climate change especially within the current decade. Emissions related to greenhouse gases have a potential to increase the relative international-level of temperatures, which results to a possible stronger effects to people as well as nature, land as well as seascapes (Australian Government 2004). In the Australian market, energy production and its utilisation is considered to be the fundamental source of greenhouse emissions on a local and global space. In essence, energy covers at least 68% of the overall national gas emissions and the percentage is deemed to be rising on a fast pace. In the short term period, the Australian energy sector emissions should be minimised as a way of ensuring helpful global climate change responses (Australian Government 2004). The strategic challenges for the government and the energy resource industry is based on the immediate responses to the pressures that relates to a sustainable energy utilisation and production so that a balance is attained towards an environmental considerations for future benefits. To achieve this, the Australian sector should, in the short and medium term, ensure that there is a rapid improvement in the level of efficiency of all fuel conversions as well as the immediate end use (Australian Government 2004). Notably, the sector should make provisions that tackle greenhouse gases emissions that relates to energy so that it can be held at an agreeable level regardless of the continual rise in energy utilisation. To ensure effectiveness, an international-based response should incorporate the world’s largest emitters and thereafter, address the challenges related to economic operations as well as emissions that shift between one to another country with overall greenhouse gas emission (Australian Government 2004). In the medium period, the Australian energy sector sustainability progress is affected by the current production of electricity and transportation activities. About 41 per cent of the overall energy use within the country is derived from transport-based activities, which emanates from petroleum-related products. The increase is also perceived within the electricity industry (AEMO, N, d). It means that the continuous production of electricity and accumulated of carbon in the air will result to a significant change in the state of the climate. In the long term, the climate change will result to irreversible effects on the operational environment since a permanent distortion will have been made. Depletion of natural resources that currently forms the major composition of energy reserves will have a long-term effect given that it will result to reduction in production and progress of the overall sector (AEMO, N, d). Following this line of reasoning, it will be important that the government proposes intensive environmental policy frameworks to tackle future issues. Stakeholders Involved in Australian Energy Sector The Australian energy sector involves lots of stakeholders, which are composed of both groups and a set of individuals, which influence or are influenced by all business operations as well as fundamental key assets used in conducting activities. Some of the notable stakeholders involved in the sector and their involvements are discussed as below; First, these stakeholders involve employees and contractors who are tasked with the responsibility of ensuring constant production of energy-related products and services (AEMO, N, d). The company provides a healthy and safe workplace as well as career development chances as way of facilitating their respective efforts to ensure maximum production process. The employees Second, the sector relies on customers who provide an easy and ready market for all of the products and services. Loyal customers make sure that they remain true to only purchasing these products at a substantial period hence resulting to intensive profitability levels (AEMO, N, d). The sector is expected to avail unique and quality customer service as well as address the overall environmental impact of energy generation. These stakeholders provide relevant feedback especially on social media platforms where they avail insights on their perception towards the operations of the company altogether (AEMO, N, d). For this case, the customers are perceived as being the crucial providers of information needed in improving the growth and development of the industry as a whole. Third, the industry incorporates the government as one of its fundamental stakeholders. The Australian government is mandated with the responsibility of creating and implementing the overall guidance policies that affect the energy sector as a whole (Australian Bureau of Statistics 2010). The government puts up policies that are meant to regulate the activities of this industry in a more safer and effective manner. The energy industry incorporates the goals and target set by the government with their respective goals thereafter ensuring that they attain a common goal of operation. In cases of breach of regulation, the specific Australian energy corporate are fined for the atrocities committed as a way of ensuring a positive working environment is maintained at all times (Australian Bureau of Statistics 2010). Some of the notable involvements between these stakeholders and the entire Australian energy industry include; creating platforms for holding regular communication with the Federal and State government members as well as advisers and regulators and, also the participation of energy discussion groups in energy forums. Fourth, another significant group of stakeholders involved within the energy industry rests with the local communities. These communities present the immediate external surroundings upon where operations are conducted (Australian Bureau of Statistics 2010). It is expected that these stakeholders provide a favourable working environment by way of supporting the activities of the sector while the industry is expected to ensure that it maintains a healthy and sustainable operational environment that will ensure perfect relations. The local communities also provide imminent levels of support to the operations of the industry by availing their respective labour services at all times (Australian Bureau of Statistics 2010). The industry ensures to maintain positive working relation with this group by way of conducting regular environmental liaison meetings as well as creating open days in order to access the overall community feedback regarding the development of production assets at respective locations (Australian Bureau of Statistics 2010). Other ways through which these stakeholders are involved include; the provision of corporate community and distinctive sponsorship programs aimed at upholding the activities of the industry at all times. Possible Strategic Responses, Timeframe and Preferred Approach The current climatic changes being witnessed is expected to affect the overall Australian energy industry by making it hotter and drier, which will definitely affect the level of production. These climatic changes will have a far-reaching implication for such aspects as health, safety and practice-based evidence policies in place. Some of the strategic responses that might help minimise the effects of these changes include; First, the response will involve the monitoring, reporting and engagement in stringent future decisions-making processes. The Australian government should be committed to ensuring that the overall energy industry operates under higher levels of transparency and accountability by creation of new public reporting frameworks (Australian Bureau of Statistics 2010). For instance, the government should ensure that the industry engages in the formulation of online data comprehensive reports that limit the 90% of gases emission within a period not exceeding 6 months or so for each operational year (Australian Bureau of Statistics 2010). The framework should also emphasise on reporting of fundamental indirect emissions that might include; road and air travels. Secondly, there should be unique measures put in place to ensure reduction of residential sector emissions. In regards to the regulatory impact assessments, legislation should be formulated to limit the replacement and installation of high-emission water heaters in each and every household and subsequently, conduct thorough expansive investigations of emissions standards for hot water heaters to all of the upcoming building structures by the end of December 2015, with a perspective to launch newer standards in the year ending 2015 in the event the legislation is found to be effective in nature (Australian Bureau of Statistics 2010). Thirdly, the strategic response could include reduction of non-residential industry gas emissions. It can be said that by the end of 2016, the current regulatory impact assessment should broaden the responsibility of energy efficiency checking to involve the overall Australian business fraternity (Australian Bureau of Statistics 2010). For this case, the government together with other stakeholders will develop Smart Energy Advice in order to avail modern knowledge needed for supporting SMEs. Subsequently, the same government can embark on surveying building structures in key commercial centres in order to ascertain and create a distinctive map of heating and cooling loads (Australian Government 2004). Fourth, the relevant stakeholders should come up with a policy that strives to reduce both waste and transport sector emissions. For these cases, the government is expected to implement the Transport for Canberra policy as well as a waste management strategy that can be achieved before the end of 2018 while attains a carbon-neutral waste industry by 2019 (Australian Bureau of Statistics 2010). However, despite the fact that there are most formidable strategic approaches that can be assumed, the most viable and applicable strategic response will involve the monitoring, reporting and engagement in stringent future decisions-making processes. Under this strategy, the Australian government should be committed to ensuring that the overall energy industry operates under higher levels of transparency and accountability by creation of new public reporting frameworks. For instance, the government should ensure that the industry engages in the formulation of online data comprehensive reports that limit the 90% of gases emission within a period not exceeding 6 months or so for each operational year. The framework should also emphasise on reporting of fundamental indirect emissions that might include; road and air travels. Conclusion To sum up the discussion above, it can be seen that the Australian energy industry is dynamic and developed so that the only key issue for the Australian economy rests with the sustainability of energy utilisation and production as well. The current strategies being proposed and implemented within the industry are directed towards attaining greater level of sustainability in relation to the local, regional and national as well as international market positions. These strategies are set in this regards in order to ensure that a desired energy mix is pursued to attain sustainability objectives on a national and international scale and, also to contribute to the overall global sustainability considerations. The sector is composed of different groups of stakeholders that perform different roles and involved at different capacities. The notable stakeholders involve customers, employees, government as well as local communities. The strategic issue for this industry can be solved using a number of responses. However, the most viable and practical one rests with monitoring, reporting and engagement in stringent future decisions-making processes. Under this strategy, the Australian government should be committed to ensuring that the overall energy industry operates under higher levels of transparency and accountability by creation of new public reporting frameworks. References List ACT Government. 2012. A new climate change strategy and action plan for the Australian Capital Territory. AP2, Retrieved on www.environment.act.gov.au Australian Government 2004. Securing Australia’s energy future. Energy Task Force. Retrieved on July 9, 2015 from http://www.efa.com.au/Library/cthEnergyWhitePaper.pdf AEMO.N, d. Stakeholder engagement strategy. Corporate Development. Retrieved on July 6, 2015 from http://www.aemo.com.au/~/media/Files/Other/corporate/0000-0283%20pdf.pdf Australian Bureau of Statistics 2010. Australian environment issues and trends. Retrieved on July 7, 2015 from http://www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/41D729B432E03FA0CA2576B800164E89/$File/46130_2010.pdf Clean Energy Council.2013. Clean energy Australia Report. Retrieved July 6, 2015 from https://www.cleanenergycouncil.org.au/dam/cec/policy-and-advocacy/reports/2014/Clean-Energy-Australia-Report-2013.pdf Read More