For Australia to achieve net-zero emissions by 2050, businesses have a responsibility to look beyond their bottom lines, writes Allen Zuo, country manager, CHINT Australia.
In the context of decarbonising our heavily polluted planet, why do businesses need to look beyond the confines of their operations? The World Economic Forum has posited that decarbonisation of our energy systems is the only solution to climate stabilisation. According to the Climate Action Tracker – an independent science-based assessment which tracks the emission commitments and actions of countries – we are already lagging from the 2°C target. Our current policies would, at best, lead to an increase of 2.1°C, and in the worst-case scenario, 3.9°C.
1°C, 2°C, 3°C – what’s the difference? In 1950, the average temperature in Australia was 21.14°C. In 2020, it was 22.65°C. It might seem insignificant – perhaps all this means wearing less outerwear than your parents and grandparents had to. But as an Australian, you would have witnessed the country has been enduring extreme weather conditions, such as in 2019, when the national daily average maximum temperatures exceeded a sweltering 39°C for 33 days; and in 2022, floods caused by torrential rain were hitting large swathes of southeast Australia.
Could it be too late? There is no guarantee we will be able to restore the planet completely, but our only option is to try. Businesses have a unique role to play as they fundamentally bridge governments and communities.
Australia does not stand alone as it is part of the rapidly developing Asia Pacific (APAC) region. It has been posited that the growing energy needs of APAC are inherently at odds with decarbonisation goals. This demand for energy is a result of the rising standard of living in the region, and subsequently burgeoning consumer needs. APAC businesses and governments are simply ramping up energy supply to match the pace of demand.
However, there is some good news. The APAC region is expected to generate 43 per cent of its energy from renewable sources by 2030. Already, APAC countries such as China, Japan and Australia are among the top 10 countries in terms of installed capacity of solar power. As one of the countries bearing the effects of climate change, land-rich Australia, which also has a legacy in coal and mineral mining, has been investing heavily in solar energy in a bid to decarbonise and hopefully mitigate the extreme weather plaguing the nation.
Queensland is home to two of Australia’s most significant solar farms. The Western Downs Green Power Hub, 300km northwest of Brisbane, can produce more than 1080GWh of electricity annually, which is the equivalent of displacing 864,000 tons of CO2 emissions, powering 235,000 homes, removing 242,000 cars from the road, or planting 8.8 million trees.
The 88MW Mica Creek Solar Farm, 5km south of Mount Isa, spans 198 hectares and is slated to be commissioned in 2023, post-construction.
These solar farms mark a significant step towards our journey to generate clean and green energy.
For a long time, the Australian mining industry has been driven by coalfired power stations, but it is now exploring alternative energy sources. Across the nation, change is happening, such as the Western Australian Government’s plans to shut down its last coalfired power plant before 2030, and the Queensland Government aiming to end its reliance on coalfired power by 2035 under a 10-year $62 billion energy plan to create a clean grid comprising solar, wind and hydroelectric power.
These momentous feats are not solo undertakings. For example, the Western Downs Green Power Hub – for which construction was overseen by engineering, procurement and construction contractor Sterling & Wilson, and was financed by French developer Neoen – had smart energy solutions provider CHINT supply its power transformers that allow the farm to efficiently transmit useable energy. The switch to cleaner energy was made possible through cooperation between various stakeholders.
In March 2022, the International Renewable Energy Agency (IRENA) declared that short-term interventions addressing the current energy crisis must be complemented by a steadfast focus on the mid-term and long-term goals of energy transition. The switch to solar farms is not just about meeting this year’s sustainability KPIs, nor is it a stop-gap measure to keep pollution levels down. It involves long-term planning and seeks to match the seismic change Australia will undergo in coming years, mainly the shutting down of all coalfired power stations.
This mindset is mirrored by CHINT, a global leader in smart energy that has been actively reaching outside its usual business operations to support the transition to renewable energy. The company has been involved with the Green Bank Network – which serves as a network for jurisdictions seeking to establish a green bank – supplying more than 10 per cent of the project’s power inverters, which amount to $30 million. The Green Bank Network is a membership organisation formed to foster collaboration and knowledge exchange among existing green banks, enabling them to share information and best practices.
CHINT has been in the smart energy industry for more than 30 years, reimagining smart energy solutions with next-generation innovations to meet the sustainability goals of businesses, governments and communities. In Australia, the company’s contribution to the Green Bank Network has helped facilitate more private investment in domestic low-carbon, climate-resilient infrastructures.
IRENA launched the World Energy Transitions Outlook 2022, which outlines priority areas and actions based on available technologies that must be realised by 2030 to achieve net-zero emissions by 2050. Factoring in the progress across all energy uses to date, it clearly shows the current pace and scale of the renewables-based transition is inadequate.
In the pursuit of driving sufficient change to combat the climate crisis, it is pivotal the public and private sectors make significant changes to the way they operate. Businesses must think beyond their daily operations and consider what they can do to effect greater change.
With the climate crisis upon us, companies need to holistically incorporate decarbonisation into their business models. They must look at where they can invest or donate to, what they can spread awareness about, and who to educate. As an integral part of economies and industries, businesses are in a uniquely powerful position to drive decarbonisation to save the planet for future generations.