Assignment on the India vs Australia Carbon Management

Part: 1

1)      India vs Australia Carbon Management

i)                   Compare and Contract of India vs Australia Carbon Management

The following table represents the information regarding total annual scope 1 with and without LULUCF for India and Australia. Although, the table also includes information regarding per capita greenhouse emission in the selected countries.

	India	Australia
Total Annual Scope 1 without LULUCF	2008.67	5827.7
Total Annual Scope 1 with  LULUCF	1831.65	6586.7
Per Capita Greenhouse Gas Emissions	1.58	0.4 GT (Ucsusa.org, 2018)
Scope 1 Emissions by Primary sector	1388307	125000
Scope 1 and 2 emissions by end use sector	Direct GHG emission by federal, heat, steam. 500 kt	1536 MtCO2e

The above table represents the comparative analysis of Australia and India regarding carbon emission and GHG emissions. Although, scope 1 and scope 2 are analyzed in detail and projected in the table.

ii)                 Sectoral Analysis using IPCCs 5^th Assessment working Group

In Australia and India, the energy emission and carbon emission are different in ratios as recorded by the previous research studies and reports by the government of each state. Each industry, for instance, the transportation industry and agriculture have presented details regarding the impact of emission on GDP. The following graph further represents the annual change in GHG emissions from 1990 to 2014.

Figure 1 Sectoral Analysis of India from 1990 to 2014.

Additionally, another graph is projected below which covers the latest information about various sectors of India and greenhouse gas emissions. According to this graph, the percentage of greenhouse emission by agriculture, energy, waste, and industrial processes are 19%, 69%, 57.7, and 9%.

Figure 2 Sectoral Analysis of India

The sectoral analysis of Australia with percentage and total greenhouse gas emission are presented here.  According to the latest reports published by the government of Australia, the greenhouse gas emission in Australia was following (see the presented below table) in different sectors such as manufacturing and mining.  

	WA	VIC	NSW	QLD	Total
Industries & Sectors of Australia
Manufacturing Sector	14.6	6.1	14.7	12	52.1
Agriculture, forestry & fishing Sector	-3	7.4	7.3	40.4	74.4
Mining Sector	26.7	2.7	17.2	27.8	47.4
Electricity gas & water Sector	27.2	60.4	54.5	54	196.1
Residential Sector	8	21.2	18.9	13.3	27.4
Commercial services and construction	6.5	7.4	7.5	6	29.1
Transport and Storage Sector	6.5	6.1	8.8	7.7	61.4
Total	86.4	111.2	128.9	161.2	487.7

 The following line chart represents the comparative analysis of sector performance and records toward greenhouse gas emission in 2017.

Although, the presented below pie chart is representing the percentage values for each sector calculated by the information shared in IPPC reports and other greenhouse gas emission reports of the Australian government.

iii)               Average Abatement cost range by Sector

The average abatement cost range by sector for implementing the measures in the IPCC’s report is expected to be 44 percent of total abatement potential. The following figure represents the cumulative abatement potential by grouping in Australia by 2020 (Publications.industry.gov.au, 2020).  

URL: https://www.environment.gov.au/system/files/resources/b8540c8a-8a31-4aba-a8b5-63cc46466e33/files/modelling-and-analysis-australias-2030-abatement-opportunities.pdf

According to this figure, the government is planning to invest in and promote low carbon transport. Moreover, another most recommended mitigation plan for greenhouse gas emission and carbon is an improvement in agriculture by advanced emissions farming practices in the country. The abatement for each sector would be as following:

Measures for Implementation	Annual Abatement Cost
Smart Urban Design  and Low Carbon Precincts	4784
Digital infrastructure in the industries and projecting the requirement of transport fuel	2267
High-performance low carbon energy generation and distribution	7447.36
Low carbon transport	19233
Advanced commercial energy-efficient equipment	13311
Intelligent industrial and building management systems (BMS)	9165.8
Improve land management and low emissions farming practices	51180
Advanced industrial energy-efficient equipment and process improvement	17443
Total Abatement Cost	124831.16

           Total abatement cost for each measure is projected by the following graph. According to this graph, the improvement of land will require the highest percentage of the total federal budget. Somehow, the least amount required by the measure is 2267 which is about digital infrastructures and intelligent systems (Environment.gov.au, 2016).

2)      Sugar Mills and Short-Run average marginal abatement Cost

To produce power a sugar mill burns 75kt of bagasse per year derived from 250kt of sugar case input. The mill can choose from three sugar cane varieties which have different costs and emission contribution. Using variety A as a base case, the following histogram is plotted with the short-run average marginal abatement cost and marginal abatement cost curve for the sugar mill. See the following graph for sugar mills case.

Part: 2

3)      GHG emissions reduction

iv)               NPV and Long-run average Abatement Cost

The shire of fabricated is a local government area in the north of Queensland. As a part of the sustainability strategy, it is looking to reduce the greenhouse gas emission from its activities. The table represents the NPV and long-run average abatement cost.

NPV of Project 1
Year	Cash Inflows	Cash Outflows	Net Cash flow	Discount Factor	PV	Cumulative PV
1	750000	$10,000	$740,000	0.714286	$528,571.43	$528,571.43
2	750000	$10,000	$740,000	0.510204	$377,551.02	$906,122.45
3	750000	$10,000	$740,000	0.364431	$269,679.30	$1,175,801.75
4	750000	$10,000	$740,000	0.260308	$192,628.07	$1,368,429.82
5	750000	$10,000	$740,000	0.185934	$137,591.48	$1,506,021.30
6	750000	$10,000	$740,000	0.13281	$98,279.63	$1,604,300.93
7	750000	$10,000	$740,000	0.094865	$70,199.73	$1,674,500.66

The NPV analysis for the second project

NPV of Project 2
Year	Cash Inflows	Cash Outflows	Net Cash flow	Discount Factor	PV	Cumulative PV
1	152306	$10,000	$142,306	0.714286	$101,647.14	$101,647.14
2	152306	$10,000	$142,306	0.510204	$72,605.10	$174,252.24
3	152306	$10,000	$142,306	0.364431	$51,860.79	$226,113.03
4	152306	$10,000	$142,306	0.260308	$37,043.42	$263,156.45
5	152306	$10,000	$142,306	0.185934	$26,459.59	$289,616.04
6	152306	$10,000	$142,306	0.13281	$18,899.70	$308,515.74
7	152306	$10,000	$142,306	0.094865	$13,499.79	$322,015.53

Project: 3 option

NPV of Project 3
Year	Cash Inflows	Cash Outflows	Net Cash flow	Discount Factor	PV	Cumulative PV
1	2235000	$10,000	$2,225,000	0.714286	$1,589,285.71	$1,589,285.71
2	2235000	$10,000	$2,225,000	0.510204	$1,135,204.08	$2,724,489.80
3	2235000	$10,000	$2,225,000	0.364431	$810,860.06	$3,535,349.85
4	2235000	$10,000	$2,225,000	0.260308	$579,185.76	$4,114,535.61
5	2235000	$10,000	$2,225,000	0.185934	$413,704.11	$4,528,239.72
6	2235000	$10,000	$2,225,000	0.13281	$295,502.94	$4,823,742.66
7	2235000	$10,000	$2,225,000	0.094865	$211,073.53	$5,034,816.18

Project: 4 option

NPV of Project 4
Year	Cash Inflows	Cash Outflows	Net Cash flow	Discount Factor	PV	Cumulative PV
1	11500	$10,000	$1,500	0.714286	$1,071.43	$1,071.43
2	11500	$10,000	$1,500	0.510204	$765.31	$1,836.73
3	11500	$10,000	$1,500	0.364431	$546.65	$2,383.38
4	11500	$10,000	$1,500	0.260308	$390.46	$2,773.84
5	11500	$10,000	$1,500	0.185934	$278.90	$3,052.75
6	11500	$10,000	$1,500	0.13281	$199.22	$3,251.96
7	11500	$10,000	$1,500	0.094865	$142.30	$3,394.26

Project: 5 Option

NPV of Project 5
Year	Cash Inflows	Cash Outflows	Net Cash flow	Discount Factor	PV	Cumulative PV
1	10200	$10,000	$200	0.714286	$142.86	$142.86
2	10200	$10,000	$200	0.510204	$102.04	$244.90
3	10200	$10,000	$200	0.364431	$72.89	$317.78
4	10200	$10,000	$200	0.260308	$52.06	$369.85
5	10200	$10,000	$200	0.185934	$37.19	$407.03
6	10200	$10,000	$200	0.13281	$26.56	$433.59
7	10200	$10,000	$200	0.094865	$18.97	$452.57

Now calculating the abatement cost and emission abated for the projects.

 

v)                  The Marginal Abatement Cost and Curves

The marginal cost can be calculated by finding the difference in the total cost of two or more than two projects. Then, calculating the total difference in the output or revenue generated by these projects. Now the next step is to divide the difference of cost by the difference of output or revenue. Considering this the marginal cost cannot be calculated if all projects have the same revenue amounts. Thus, the marginal cost is calculated by changing the revenue stream.

4)      Potential role of Carbon Capture and Storage

a)      Appropriate Scale of Technology

b)      The carbon capture and storage can generate a negative impact on our environment if proper storage and inventory control measures are not taken by the responsible authorities. According to the recent research studies and reports, carbon is creating threats for our environmental safety and goals of zero pollution. Carbon not only promote an unhealthy lifestyle but also increases pollution. The technology has been trying to control these issues carbon-related issues in our society. Following the research, it is already succeeded to reduce carbon by spreading awareness in the society and industrial sectors to control the generation of carbon after machine processing.

c)      Incentives of India vs Australia Carbon Management

Carbon prices for each activity are different. Somehow, at least millions of dollars are required to pay for the carbon prices in our society.  In 2017, India set a budget of 1.4 billion for three charging infrastructures.

d)     Barriers of India vs Australia Carbon Management

Some technical, regulatory, environmental, and social barriers are drawing impact on carbon control strategies and developmental plans (Carbonbrief.org, 2019).

Technical	Some machines and equipment generating carbon cannot be replaced because of the excessive cost of replacement.
Environmental	Some companies are taking advantages of their environmental position therefore they do not take interest in carbon control strategies.
Regulatory	Poor implementation of laws and regulations.
Social Barriers	In many countries, illiterate people are not well aware of possible strategies to control such issues.