Classroom

FAQs

What is climate change?

Climate change is caused by global warming, which refers to the rise in global average temperature. Did you know that ten of the last fourteen years have been the hottest on record?

Why is it getting hotter?

Human activity is the main reason.

In the past two hundred years, the burning of fossil fuels (coal, oil and gas) has dramatically increased the concentration of greenhouse gases in our atmosphere.

There is now irrefutable scientific evidence that this increase in greenhouse gas levels is causing an enhancement of the greenhouse effect, with global warming the result.

Where do greenhouse gases come from?

Electricity generation is the single biggest contributor to global warming. Anything that involves the burning of fossil fuels creates greenhouse gases.

Watching TV (coal is needed for the electricity), driving a car (oil) and even enjoying a warm bath (gas) are just a few of the daily activities that contribute to global warming.

There is no doubt that domestic consumers are a significant source of greenhouse emissions. However, power use by business is by far the biggest polluter - responsible for almost 80 percent of Australia's annual greenhouse gas pollution. This is due mainly to the use of electricity.

Burning fossil fuels also causes health problems, with air pollution linked to heart disease deaths and respiratory attacks.

Electricity demand continues to rise rapidly, making it vital that Australians reduce their reliance on fossil fuels and look to clean energy sources.

Is climate change something I should worry about?

Scientists predict that the average global temperature will increase by up to 2C by 2030, and by as much as 6C by 2070.

Given that a rise of less than half of one degree produces dramatic climate change, the potential impacts of global warming could be devastating. Extreme weather fluctuations such as severe droughts, storms, floods, heat waves and hail are already more frequent.

Climate change is the greatest global challenge facing humankind in the 21st century, according to business and government leaders at the World Economic Forum held in Davos, Switzerland 2000.

How are the terms climate change, global warming and global change different?

The term climate change is often used as if it means the same thing as the term global warming. According to the National Academy of Sciences, however, "the phrase 'climate change' is growing in preferred use to 'global warming' because it helps convey that there are [other] changes in addition to rising temperatures." Climate change refers to any distinct change in measures of climate lasting for a long period of time. In other words, "climate change" means major changes in temperature, rainfall, snow, or wind patterns lasting for decades or longer. Climate change may result from:

a. natural factors, such as changes in the Sun's energy or slow changes in the Earth's orbit around the Sun;
b. natural processes within the climate system (e.g., changes in ocean circulation);
c. human activities that change the atmosphere's makeup (e.g, burning fossil fuels) and the land surface (e.g., cutting down forests, planting trees, building developments in cities and suburbs, etc.).
d. Global warming is an average increase in temperatures near the Earth's surface and in the lowest layer of the atmosphere. Increases in temperatures in our Earth's atmosphere can contribute to changes in global climate patterns. Global warming is probably the most talked about climate change we are experiencing, but is just one of many changes along with precipitation levels, storm intensity, etc. Global warming can be considered part of climate change along with changes in precipitation, sea level, etc.

Global change is a broad term that refers to changes in the global environment, including climate change, ozone depletion, and land-use change.

Source: EPA Climate Change Basic Information

What is the greenhouse effect?

The Earth's greenhouse effect is a natural occurrence that helps regulate the temperature of our planet. When the Sun heats the Earth, some of this heat escapes back to space. The rest of the heat, also known as infrared radiation, is trapped in the atmosphere by clouds and greenhouse gases, such as water vapor and carbon dioxide. If all of these greenhouse gases were to suddenly disappear, our planet would be 60ºF (33ºC) colder and would not support life as we know it. Human activities have enhanced the natural greenhouse effect by adding greenhouse gases to the atmosphere, very likely (greater than 90 percent chance) causing the Earth's average temperature to rise. These additional greenhouse gases come from burning fossil fuels such as coal, natural gas, and oil to power our cars, factories, power plants, homes, offices, and schools. Cutting down trees, generating waste and farming also produce greenhouse gases.

Source: IPCC "AR4 WG1 FAQs" 2007 (PDF)
Source: EPA Climate Change Basic Information

Are human activities responsible for the warming climate?

Intergovernmental Panel on Climate Change (IPCC) scientists believe that it is very likely (greater than 90 percent chance) that most of the warming we have experienced since the 1950s is due to the increase in greenhouse gas emissions from human activities.

Source: IPCC "AR4 WG1 FAQs" 2007 (PDF)
Source: IPCC Climate Change 2007: WGI Summary for Policy Makers (PDF)

How do scientists predict future climate change?

The Earth's climate is very complex and involves the influences of air, land, and oceans on one another. Scientists use computer models to study these interactions. The models project future climate changes based on expected changes to the atmosphere. Though the models are not exact, they are able to simulate many aspects of the climate. Scientists reason that if the models can mimic currently observed features of the climate, then they are also most likely able to project future changes. For more information, visit the State of Knowledge page on EPA's Climate Change site.

Source: IPCC "AR4 WG1 FAQs" 2007 (PDF)

How much will the Earth warm if emissions of greenhouse gases continue to rise?

If humans continue to emit greenhouse gases at or above the current pace, we will probably see an average global temperature increase of 3 to 7°F (2 to 4ºC) by 2100, and greater warming after that. Temperatures in some parts of the globe (e.g., over land and in the polar regions) are expected to rise even more.

Even if we drastically reduce greenhouse gas emissions, returning them to year 2000 levels and holding them constant, the Earth would still warm about 1°F (0.6ºC) over the next one hundred years. This is due to the long lifetime of many greenhouse gases and the slow cycling of heat from the ocean to the atmosphere. For more information, visit the Future Climate Change page on EPA's Climate Change site.
Source: IPCC Climate Change 2007: The Physical Science Basis

How much electricity can wind energy produce?

The European Wind Energy Association (EWEA) released a report not so long ago forecasting that wind power has the potential to supply 12 percent of the world's electricity by 2020.

Wind_chart_1

We're already on the way. By the end of 2005 there were 59,322 megawatts (MW) of installed wind capacity worldwide generating enough clean electricity for the equivalent of 18 million homes. Over the past decade the installed generation capacity for wind energy has increased at an average rate of 30 percent per annum.

Source: BTM Consult ApS, March 2006, www.btm.dk

Does wind energy create jobs?

Yes, it does and it's a growth industry. The business of producing energy from wind is huge, already turning over $A13 billion. In 2003 it employed an estimated 100,000 people. By 2020, the wind energy industry is expected to employ 1.8 million people and be worth $A120 billion a year.

The emerging Australian wind industry could create thousands of jobs. It is already delivering hundreds of new jobs in Victorian and Tasmanian manufacturing facilities and many more direct and indirect jobs in transport, installation, operations and management.
Sources: European Wind Energy Association www.ewea.org;
Australian Wind Energy Association www.auswind.org/main.php

How much does wind energy cost?

According to a recent AusWEA report, the price of wind power in Australia will be competitive with that of fossil fuels before 2020 if the uptake of wind energy continues to grow at current rates. The price of wind energy has already fallen more than 75 percent over the last 25 years. Economies of scale and technical refinements are expected to deliver further price reductions of 5 percent a year.

Source: Cost Convergence of Wind Power and Conventional Generation in Australia published at http://www.auswind.org/main.php

energy_cost_table

Is wind energy used in Australia?

The Australian wind industry has some of the finest wind resources in the world. There is now the potential to generate enough clean electricity to power two in five Australian homes.
In the last five years, wind energy has grown 400 percent. In early 2006 there was 708MW of total installed capacity. Projects capable of providing another 1,5000MW were either approved or under construction.
The Australian Greenhouse Office has forecast, in a recent review, that wind energy will capture 41 percent of the market of new renewable energy projects by 2020.
Source: AusWEA http://www.auswind.org/main.php
Source: A Review of the Operation of the Renewable Energy (Electricity) Act 2000, published at www.mretreview.gov.au

What is the Mandatory Renewable Energy Target?

In April 2001, the Federal Government introduced a target designed to increase by 2 percent (or 9,500 gigawatt hours), the share of renewable energy in Australia's energy mix by 2010. This was called the Mandatory Renewable Energy Target, or MRET.

Under the MRET, wholesale purchasers of electricity (mainly electricity retailers) must purchase an increasing amount of their electricity from renewable sources (e.g. wind, hydro, solar, etc.), so that Australia becomes less reliant on non-renewable and polluting energy sources.

Source: Office of the Renewable Energy Regulator www.orer.gov.au

What is the Victorian Renewable Energy Target?

Victoria recently introduced the VRET to increase renewable energy's market share from the current level of 3 percent to 10 percent by 2016.

Like the MRET, the Victorian scheme requires wholesale purchasers of electricity (mainly electricity retailers) to source an increasing amount of their electricity from renewable sources. Other states, including New South Wales and South Australia have announced plans to introduce their own renewable energy schemes.

Source: Essential Services Commission www.esc.vic.gov.au

What is wind?

This might surprise you but wind is actually an indirect form of solar energy.

Wind is created by the movement of air, due to the heating and cooling of air parcels by the sun.
As air is heated it becomes less dense and rises, creating an area of low pressure. This then causes air from neighbouring areas to move, traveling in the direction of the low pressure, creating winds.
Surface winds occur close to the earth's surface and are affected by the shape of the land and sea, which is why some areas are more windy than others.

In coastal areas, the air on the land heats faster than the sea, which can create a sea breeze - a wind that travels from the sea to the shore.

At night, the land cools down faster than the sea, so the wind changes direction, now traveling out to sea.
In mountain areas, as the air on the slopes is heated, it rises to the top of the mountains. At night, the wind direction is reversed and becomes a down-slope wind.

Wind directions are important when Pacific Hydro is deciding where to place wind generators, since we want to place our windmills in the areas that have the least obstacles from the natural wind directions.

Source: Danish Wind Industry Association www.windpower.org

wind_diagram

Is there enough wind?

Absolutely. If we properly harnessed the world's wind, there is enough wind energy spread around the globe to meet the whole world's electricity needs more than 4 times over. Less than 0.1 percent of the global wind resource is currently being used. Plus, unlike fossil fuels, wind energy will never run out.

How does a windmill make electricity?

Wind generator blades are modeled after airplane wings. They're designed so that they rotate because of a pressure differential, caused by air moving over the surface of the blade. The blades cause a rotor to turn, which then drives an electrical generator.

The windmills installed at Pacific Hydro's wind farms are 'smart machines' - able to operate without intervention. Each windmill uses its own internal computer system to monitor the direction and speed of the wind, with electricity production commencing automatically at wind speeds above 14km/h.

The amount of electricity produced continues to increase with the wind speed until the wind generators reach their maximum or 'rated' capacity at winds of around 55km/h.

With blades rotating slowly at 17 revolutions per minute, the wind generators continue to operate at their maximum output until the wind speed reaches 90km/h, at which point the windmills automatically shut down and turn out of the wind to avoid being damaged.

However, winds of that speed are not very common. In fact, only one windmill needed to shut down at Challicum Hills in the development's first eight months of operation.

Can a wind farm be installed anywhere?

No. Finding the right site for a wind farm takes a lot of work, and Pacific Hydro works closely with landholders and local communities to identify and then check the perfect site is available.

The windmills need very careful placement.

How's your maths? The energy content of the wind can be calculated by working out the cube (the third power) of the wind speed. Twice as much wind yields 8 times the energy (i.e. 23 = 2 x 2 x 2 = 8).

The short answer is that wind farm developers aim to place windmills in the most windy areas they can find.
The roughness of the terrain (including the terrain surface, its contours, and the presence of buildings, trees, plants, and bushes) affects the local wind speed. Very rough terrain, or nearby large obstacles, may create turbulence, which decreases energy production and increases wear and tear on the generators.

Predicting the annual energy production from a windmill is quite a complex task. It requires detailed maps of the area and accurate meteorological wind measurements for at least one year before the site can be confirmed as suitable.

Source: Danish Wind Industry Association www.windpower.org

codrington_layout
Codrington Wind Farm layout

Are windmills producing electricity 24 hours a day?

Almost. A typical wind farm generates electricity between 90 to 95 percent of the time.

Source: AusWEA http://www.auswind.org/main.php

How much electricity can one wind generator produce?

Each windmill installed at Pacific Hydro's Challicum Hills Wind Farm produces enough clean electricity to meet the annual needs of more than 800 Victorian households.

Is there any progress in windmill technology?

The latest technology is continuously introduced into new wind generators. A modern wind generator produces more than one hundred times the annual output of a 1980 vintage generator.

windmill_progress_chart

Source: World Wind Energy Association www.wwindea.org

Where does your electricity come from?

More than 90 percent of our electricity comes from highly polluting fossil fuels. Not only do they pollute the Earth, damaging the environment, but they are running out, so new ways of generating electricity are required.

aust_electricity_by_source

Source: Electricity Supply Association of Australia 2003

Where could electricity come from?

Did you know that, according to a recent study, there are enough resources of "clean energy" like wind, solar, and bioenergy, to make up 70 percent of our required electricity supply by 2040? That would cut Australia's greenhouse gas emissions by half.

Source: A Clean Energy Future for Australia, BCSE, March 2004

aust_electricity_2040

* About 13 percent is natural gas and about 2 percent is biomass

Why are we building wind farms?

Scientists around the world agree that climate change is the biggest environmental threat facing the world today. Essentially, increased levels of greenhouse gas emissions in the atmosphere are causing this climate change problem.

This is an issue already affecting our world. With ten out of the last fourteen years being the warmest on record, we urgently need to take effective action for reducing greenhouse gas emissions.

Some of the impacts of serious global warming in Australia could include:
More frequent and severe droughts and storms,
The destruction of the Great Barrier Reef,
An end to ski-able snowfields in the highlands,
Mass species extinction, and
The spread of tropical illnesses.

Wind energy is already playing a central role in helping to reduce the impacts of climate change for future generations.

Source: Climate change - An Australian Guide to the Science and Potential Impacts, Australian Greenhouse Office 2003 published at www.greenhouse.gov.au

How do wind farms avoid pollution if we need to use other power stations when the wind doesn't blow?

Wind farms avoid greenhouse pollution in a similar way to energy conservation.

If you turn off an electrical appliance, such as a light or an air conditioner, you reduce demand for electricity generation. The more that people conserve electricity, the less fossil fuels will be burnt, which is good for the environment.

Similarly, when the wind blows, pollution-free electricity is fed into the National Electricity Grid, reducing the demand for fossil fuel generation. Every time a household uses renewable energy, it is not using fossil fuel.

Our windmills work hard. On average, a single windmill can provide enough pollution free energy to supply the annual energy needs of 800 homes. So the more windmills we build, the more we can reduce our reliance and demand for fossil fuel energy.

Wind energy production does fluctuate but that does not mean your lights will go out when the wind stops blowing.

All electricity systems in the world are structured to react quickly to fluctuations in electricity demand as people turn electrical appliances on and off. The same systems can be used to deal with the situation when the wind stops blowing to ensure a constant, reliable power source is always available.

The only difference is the major one - a reduction in greenhouse pollution as we build more wind farms.

How long does it take for a wind farm to payback the energy used to make it?

A modern wind farm pays back the energy used in its manufacture and construction in just three months. Over its twenty five year life, a windmill will produce more than 100 times the energy required to make and install it.

Source: A Clean Energy Future for Australia published at www.wwf.org.au

Do wind farms harm wild life?

Studies from Canada, Denmark and the US have shown that the total impact on native wild life from wind farms is negligible compared to the impact from road traffic.

Australian wind farms are required to undertake detailed flora and fauna studies during their planning process to ensure they will not threaten any species.

The release of two landmark surveys into the impact of Victoria's wind farms on birds and bats in 2004 revealed an average of one to two collisions per generator per year and there were no rare, threatened or endangered birds or bats killed at the surveyed wind farms. In comparison to the risks posed by power lines, cars and, most importantly, global warming, the risks from wind farms to birds and bats is minimal. Also, wind farming is popular with farmers, because their land can continue to be used for growing crops or grazing livestock.

Sources: American Wind Energy Association www.awea.org; Danish Wind Industry Association www.windpower.org Environment Victoria www.envict.org.au

Are wind generators noisy?

A wind generator is made up of moving parts and therefore does make some noise - such as the hum of the generator and the whoosh of the blades passing the tower.

But, thanks to advances in technology, well designed, appropriately sited windmills are quiet enough to cause no disturbance to people living just a few hundred metres away. You are able to carry out a normal conversation while standing underneath a modern windmill.

The maximum noise level from a wind farm at any surrounding dwelling in Victoria is 40 decibels (about the same noise level as a library), or 5 decibels above a usual level of existing background noise, whichever is louder.

And that's the worst case scenario. Depending on local weather conditions, the noise level will usually be much lower or non-existent.

People react differently to noise - the best way to learn more about noise levels is to visit one of Pacific Hydro's wind farms and listen for yourself.
Source: www.yes2wind.com

Is wind energy popular?

Absolutely. Wind energy enjoys wide popular support both in Australia and around the world.

A 2002 Auspoll survey found 95 percent of Victorians support wind farms with 86 percent preferring wind energy to new gas or coal-fired power stations.

A 2003 national survey also found 95 percent of the population support wind farms.
Source: National survey published at http://www.auswind.org/main.php

wind_research

Do wind farms affect tourism?

Yes, wind farms are tourist attractions, which is great news for local businesses.

Codrington Wind Farm in southwest Victoria attracts 50,000 visitors a year. It also supports a successful tour operator business, and enhances the local economy.

Source: Pacific Hydro www.pacifichydro.com.au

Can I visit a wind farm?

Guided tours of Pacific Hydro's Codrington Wind Farm can be booked through local operators.

To book a tour of Codrington Wind Farm (near Port Fairy) call 03 5568 1853.

Do wind generators take up much land?

Windmills and access roads occupy around 1-2 percent of the land area in a typical wind farm site, leaving farmers free to grow crops or graze livestock.

Source: AusWEA http://www.auswind.org/main.php

Is the landscape affected after a windmill has been dismantled?

Restoring the surrounding landscape near to its original state after the useful life of the wind farm has become a routine task for developers.

Source: AusWEA http://www.auswind.org/main.php

How can I buy wind energy for my home?

Once we have created electricity through our wind farms, we sell it to a power company. Therefore, to ensure that your home is receiving wind power, you need to check that your electricity company is trading in clean energy as well as the usual non-renewable power sources.

The electricity from both the Codrington and Challicum Hills wind farms is retailed by Origin Energy, which includes it as part of their Green Earth product.

For more information, contact Origin on 13 21 14.

What makes a good wind farm site?

Pacific Hydro looks for many essential elements when choosing a site for a wind farm, including:
Strong and consistent winds
Close connection into the National Electricity Grid
Compatible land use
Large land area for optimum spacing of wind generators
Accessibility for construction vehicles and machinery
Supportive landholders and local community.

By the way, this long list of essential criteria rules out most of the coastline and many inland sites.

What are the main steps in developing a wind farm?

Pacific Hydro only develops wind farms which are appropriately-sited, well-designed and locally supported.

A typical wind farm takes around three to five years to develop from the installation of the wind monitoring mast through to first electricity generation.

The main steps in development are shown below.

wind_development_chart

What makes Pacific Hydro different from other developers?

Unlike many other wind farm developers, Pacific Hydro is a specialist renewable energy company focused solely on developing wind and hydro projects.

Pacific Hydro sets the benchmark for responsible wind farm development. We have gained the trust of farmers and communities around Australia as a company that is honest, responsive, and considerate of local needs.

Our company is committed to keeping communities informed at every step of the development process.

Our public information sessions, presentations to community groups and local media briefings helping Pacific Hydro develop both the Codrington and Challicum Hills wind farms in western Victoria without a single objection

Why develop wind energy?

Wind energy is a welcome addition to the energy mix.
Wind energy is cost-competitive, abundant, environmentally friendly and widely popular with consumers.

As one of the world's fastest growing energy sources, installed wind power has increased 300 percent over the last five years and could supply 12 percent of the world's electricity by 2020.

The inclusion of wind energy can be a strong selling point for your company. With consumers now able to choose their electricity supplier, wind energy offers an opportunity for retailers to differentiate themselves from competitors. Consumers and investors appreciate the 'green' nature of wind energy and it is widely popular with national surveys consistently showing more than 70 percent of Australians want more wind energy in the electricity mix.

How much does it cost to generate electricity from wind energy?

The cost of generating electricity from the wind has fallen more than 80 percent over the last 25 years. Economies of scale and technical advances are expected to deliver further cost reductions of 5 percent a year. Meanwhile, fossil fuels are increasing in cost as the price of fuel rises, and costs are likely to increase significantly in the near future when generators are required to factor in the cost of their greenhouse gas pollution

How will a wind farm benefit a community?

A successful wind farm goes way beyond providing clean electricity, although that is the primary focus. The development of each wind farm creates local jobs and brings investment into a region. We provide a secondary revenue stream for wind farm landowners, help protect the environment and boost tourism. Our wind farms also contribute significantly to local government revenues through annual rates payments.

How long does it take to start a construction?

It can take three to five years to develop a wind farm, from initial site identification to the first energy generation.
Pacific Hydro cannot and would not compromise this long but essential stage of the development.

Technically, we allow a full year of monitoring the wind at a potential project site, with a wind monitoring mast checking all variable elements of wind flow, strength and direction.
During this time, we ensure that the output from the wind farm will be optimised but we are also working in the wider community, checking that the interests of stakeholders, including landholders, neighbours and local communities, are considered in the process.

Actual construction usually takes only nine to twelve months

Why is Pacific Hydro so focused in community consultation when developing wind projects?

Pacific Hydro's reputation is critical to its permission to operate. This is why the company works so hard to build community support at every stage of the wind farm development process.

Unlike many other wind farm developers, Pacific Hydro is a specialist renewable energy company focused solely on developing wind and hydro projects.

We are proud that we set the benchmark for responsible wind farm development. We have gained the trust of farmers and communities around Australia as a company that is honest, responsive, and considerate of local needs.

Our company is committed to keeping communities informed at every step of the development process. Our public information sessions, presentations to community groups and local media briefings helped Pacific Hydro develop both the Codrington and Challicum Hills wind farms in western Victoria without a single objection.

What is Carbon Finance?

Carbon finance is basically a payment to a project entity (this can be any legal entity, public or private, NGO, etc) for the emission reductions generated from that project, once the project is operational and tipically at yearly basis, like a commercial transaction. The selling of emission reductions - or carbon finance - has been shown to increase the financial viability of projects, by adding an additional revenue stream in hard currency, which reduces the risks of commercial lending or grant finance. The carbon finance can also help overcoming barriers for project developement and implementation, e.g. improving acces to financial resources, enabling transfer of technologies and know-how. Thus, carbon finance provides a means of leveraging new private and public investment into projects in developing countries and economies in transition that reduce greenhouse gas emissions, thereby mitigating climate change while contributing to sustainable development.

Source: www.worldbank.org

Why has climate change become a development issue?

Climate change threatens to disrupt the weakest economies and disadvantage the poorest people in developing countries. Those with the least resources and the least capacity to cope.the poor of the developing world.will be hardest hit. The United Nations Intergovernmental Panel on Climate Change (IPCC) estimates that the steady warming of the Earth's surface temperature will lead to:

A decrease in the quantity and quality of water in many arid and semi-arid areas, and a decrease in the likelihood of making clean water available to the more than one billion people that already experience severe water shortages;
A decrease in the reliability of hydropower and plantation biomass, where energy supplies are already unreliable;
An increase in the incidence of vector-borne diseases (e.g., malaria and dengue), water-borne diseases (e.g., cholera), and malnutrition throughout the tropics and sub-tropics, where millions of lives are lost every year;
A decrease in agricultural productivity in the tropics and sub-tropics. In particular, parts of Africa would be under additional stress, where an estimated loss of 10-30 percent of cereal production during the next several decades would make it even more difficult to attain the Millennium Development Goals (MDGs) of halving hunger by 2015;
An increase in the loss of species and degradation of key ecosystems such as coral reefs, which play a critical role in the economy of some developing countries;
The displacement of tens of millions of people in low-lying areas;
An increased threat in national and regional security because of the loss of natural resources and the potential flow of environmental refugees;
For low-lying areas in the world, the threat of climate change is a matter of survival. In the absence of concerted global action on climate change, the IPCC estimates that the sea level could rise by one meter over the next century, which would have the following consequences:
- on countries with significant low-lying areas, coastal communities would be severely threatened. For example, 17% of the land area of Bangladesh would be lost and tens of millions of people displaced.
- The survival of low-lying small island states would be in doubt, in particular for the many island states in the Indian and Pacific Ocean and Caribbean that are only a few meters above sea level.

Source: www.worldbank.org

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Which countries are engaged in the Kyoto Protocol?

With the entry into force of the Kyoto Protocol on February 16, 2005, more than one hundred and forty countries agree to work together to fight global climate change. The thirty six industrialized countries that ratified the Protocol - namely Canada, Japan, members of the European Union, as well economies in transition from Central and Eastern Europe - agree to put in place policies and measures to collectively reduce 5 percent of their emissions between 2008 to 2012 as measured against 1990 levels. To meet this binding commitment, industrialized countries have the option to reduce part of their emissions domestically, and they can also emission reductions from developing countries (through the Clean Development Mechanism), or from countries with economies in transition (through Joint Implementation or International Emissions Trading).

The Kyoto Protocol fulfills the commitment made by one hundred and eighty six countries under the UN Framework Convention on Climate Change (UNFCC) that industrialized countries - who are responsible for the vast majority of emissions that cause climate change - should take the first steps towards sustainable energy consumption, use of clean technologies and sustainable land management practices, which are needed to mitigate the impacts of climate change.

Source: www.worldbank.org

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Why do greenhouse gas emission reductions have value?

Meeting the Kyoto targets will require public and private investments. Many industrialized governments that have ratified the Protocol have already begun implementing domestic policies and regulations that will require emitters to reduce greenhouse gas emissions, according to the established targets. So far, experience has shown that the cost of reducing one ton of carbon dioxide (a greenhouse gas) can cost from $15 up to $100 in industrialized countries.

By contrast, there are many opportunities to reduce greenhouse gases in developing countries at a cost of $1 to $4 per ton of carbon dioxide. Hence, an emission reduction that was achieved at a lower cost has value to a public or private entity in an industrialized country that is required by regulation to reduce its emissions

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Who are the main players in the carbon market at this point in time?

a) The global community. The Bank's efforts to catalyze a market for greenhouse gas mitigation and sustainable development hopefully contributes to the success of the market mechanisms, which are essential to lowering the cost of global action on climate change.

b) The Public and Private sectors that wish to participate in the market. Through the establishment of Carbon Funds, and by pooling early participants in the market, the World Bank has reduced the market entry risk for other market players. The Bank's procedures to create carbon assets are in the public domain.

c) The least developed countries and poor areas of all developing countries. The Bank is involved in market areas that the private sector simply won't go because they perceive the risk as being too high. By doing this , the World Bank is helping to bring the benefits of carbon finance to those parts of the world that would be by-passed by the market. The Bank provides technical assistance in order to develop the set of procedures and institutional arrangements that can make the market more sustainable. For example in one developing country, it took eightteen months to get the first approval for a carbon finance project. Now there are almost a dozen projects in that country.

Source: www.worldbank.org

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What types of renewable energy projects should be eligible for carbon trade?

The Political Declaration of the Bonn International Conference for Renewable Energies 2004 that was discussed and adopted by ministers and government representatives from one hundred fifty four countries acknowledged that "in the context of Renewables 2004, renewable energy sources and technologies include: solar energy, wind energy, hydropower, biomass energy including biofuels and geothermal energy," with no distinction with respect to scale. This is consistent with the discussions that took place at the World Summit on Sustainable Development held in 2002.

A shortage of access to energy is recognized as one of the great obstacles to development, impeding business activity and disproportionately affecting the poor who have traditionally the least access. Many OECD countries have developed more than 80 percent of the potential of their economically-viable hydropower, and hydropower development has been a vital platform for economic growth. This is in contrast to 20 percent in developing countries as a whole, and under 5 percent in African countries. Developing countries themselves have repeatedly stressed the importance they attach to utilizing this large domestic source of energy, particularly when oil prices are now around $50 per barrel level. In recent years, they have improved the environmental and social quality of their renewable energy projects through the use of environmental assessments, resettlement action plans and related instruments.

For these reasons, the Bank considers that all renewable energy projects should be eligible for carbon trade, regardless of the scale and size, provided that such projects meet eligibility criteria, are environmentally and socially sustainable, and are consistent with applicable domestic policies and regulations.

Source: www.worldbank.org

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Classroom

FAQs

Economics

Technical Stuff

Environmental Questions

Windfarm Development

Climate Change

Carbon Market

What is climate change?

Why is it getting hotter?

Where do greenhouse gases come from?

Is climate change something I should worry about?

How are the terms climate change, global warming and global change different?

What is the greenhouse effect?

Are human activities responsible for the warming climate?

How do scientists predict future climate change?

How much will the Earth warm if emissions of greenhouse gases continue to rise?

How much electricity can wind energy produce?

Does wind energy create jobs?

How much does wind energy cost?

Is wind energy used in Australia?

What is the Mandatory Renewable Energy Target?

What is the Victorian Renewable Energy Target?

What is wind?

Is there enough wind?

How does a windmill make electricity?

Can a wind farm be installed anywhere?

Are windmills producing electricity 24 hours a day?

How much electricity can one wind generator produce?

Is there any progress in windmill technology?

Where does your electricity come from?

Where could electricity come from?

Why are we building wind farms?

How do wind farms avoid pollution if we need to use other power stations when the wind doesn't blow?

How long does it take for a wind farm to payback the energy used to make it?

Do wind farms harm wild life?

Are wind generators noisy?

Is wind energy popular?

Do wind farms affect tourism?

Can I visit a wind farm?

Do wind generators take up much land?

Is the landscape affected after a windmill has been dismantled?

How can I buy wind energy for my home?

What makes a good wind farm site?

What are the main steps in developing a wind farm?

What makes Pacific Hydro different from other developers?

Why develop wind energy?

How much does it cost to generate electricity from wind energy?

How will a wind farm benefit a community?

How long does it take to start a construction?

Why is Pacific Hydro so focused in community consultation when developing wind projects?

What is Carbon Finance?

Why has climate change become a development issue?

Which countries are engaged in the Kyoto Protocol?

Why do greenhouse gas emission reductions have value?

Who are the main players in the carbon market at this point in time?

What types of renewable energy projects should be eligible for carbon trade?