The CPRS White Paper sets out the Federal Government’s plan to reduce emissions, adapt to climate change and help shape a global solution. Trenchless Technology can be a part of the solution, producing fewer emissions than traditional pipe installation methods. How the CPRS will work

Emitters of greenhouse gases will need to acquire and surrender a permit for every tonne of greenhouse gas they emit. The quantity of emissions produced by firms will be monitored, reported and audited. Firms will compete to purchase the number of permits that they require. Firms that value the permits most highly will be prepared to pay the most for them, either at auction or on a secondary trading market. For some it will be cheaper to reduce emissions than buy permits.

The Government estimates that 75 per cent of Australian emissions will be covered, with around 1,000 entities having mandatory obligations. The Government will auction approximately 70 per cent of the permits with the remainder to be administratively allocated.

The obligation threshold under the CPRS is 25,000 tonnes of carbon dioxide equivalent (CO2e) direct emissions in any of the following sectors: stationary energy, transport, fugitive emissions, industrial processes, waste, and forestry.

CPRS and the trenchless industry

The trenchless industry has long identified the advantages of trenchless over open cut, such as limiting inconvenience and disruption to business, traffic and residents. More recently, as governments and populations all over the world are demanding environmentally friendly construction solutions, trenchless industry representatives are looking to identify and quantify the ecological advantages of selecting trenchless techniques.

Taming the Traffic At this stage there is limited Australian data recording the reduced emissions produced by trenchless methods. The British Columbia chapter of the NASTT (NASTT-BC) commissioned Mark Knight and Rashid Rehan of the Centre for the Advancement of Trenchless Technology, University of Waterloo, Ontario to research if trenchless pipeline construction methods reduce greenhouse gas emissions.

The research identified two areas of difference whereby trenchless and open cut differ in the production of greenhouse gas emissions.

• Increased fuel consumption due to traffic delays and increased travel distances for detours;
• Fuel consumption of construction machinery and equipment involved in excavation, compaction, backfilling, and re-paving operations.

The preliminary analysis found that the use of trenchless construction methods can result in 78 to 100 per cent lower greenhouse gas emissions than open cut pipeline installation methods. The reduction in emissions associated with trenchless construction are achieved mainly due to its shorter job duration using less construction equipment and limited or no disruption to traffic flow.

The case studies in the research demonstrated that large amounts of CO2 are released due to traffic disruptions associated with construction of sewers under major roads. It also shows that depending on the traffic plan used a small net reduction in CO2 emissions may occur due to reduced speeds that increases vehicle fuel economy. Time delays during vehicle slow downs will still occur. It was also shown that trenchless construction is considerably efficient in reducing CO2 emissions. Based on this research, the NASTT carbon calculator has been designed in order to estimate the reduction in carbon dioxide emissions when Trenchless Technology methods are used over open cut methods. By entering job specific parameters, contractors and municipal engineers can estimate the amount of CO2 that would otherwise be released into the atmosphere. The calculator has been designed to be used for typical utility replacement projects, where the pipe diameter is to be no less than 50 mm. Please visit www.nastt-bc.org for more information. Environmental Excavation

David O’Sullivan, a director of the NASTT-BC, has been working on the link between a low carbon footprint and Trenchless Technology. Mr O’Sullivan said that the main difference between trenchless and open cut is the large differential in energy used to remove and replace the material above the utility.

“In the case of trenchless techniques, the only area we work in is the area immediately surrounding the utility. Thus, at most we excavate an area 150 per cent of the surface area of the utility. However in open cut we have to start from the ground surface and remove all the material above the utility zone, waste it and replace it, rebuild that material to solid ground over the pipe and reinstate the ground surface,” said Mr O’Sullivan.

“Open cut techniques use a lot of energy. When you start to look at most utilities, the proportional cross section of the utility to the cross section of the required trench can be smaller by orders of magnitude of 60 times.

“The difference in material, to be removed between trenchless and open cut, to allow the installation of the pipe, is 53 times or 5,300 per cent.”

Mr O’Sullivan said “As the trenchless systems develop and mature, we will become more efficient and get closer to achieving these enormous savings.”

The CPRS White Paper

The White Paper is the Australian Federal Government’s primary policy tool for the mitigation of climate change. Following Treasury modelling, the Garnaut Climate Change Review report and over 1,000 submissions in response to the Green Paper, the White Paper sets out the Government’s plan to reduce emissions through market reform, specifically through the introduction of a national emissions trading scheme.

The Government has committed to cut emissions unconditionally by 5 per cent by 2020, and up to 15 per cent below 2000 levels – or 4 - 14 per cent below 1990 levels – if the international community commits to comparable reductions. This equates to a 27 - 34 per cent reduction per capita below 2000 levels.

The Government has said that these are comparable with international 2020 targets, with Europe committed to 20 - 30 per cent below 1990 levels, the United Kingdom’s 26-34 per cent below 1990 levels target and the United State’s commitment to return to 1990 levels. The scheme’s long term target is a 60 per cent reduction from 2000 levels by 2050.

The government will release legislation for the CPRS on 10 March with hopes of it being approved by Parliament later this year. Strong opposition from conservative parties and the Greens, who could muster a majority in the Senate to block it, may delay the passage of the legislation. Cap and trading a carbon tonne

In line with these targets, the White Paper sets out Australia’s indicative emission trajectory, with an annual cap set until 2015.

The annual caps will determine the number of carbon permits, or Australian emissions units (AEUs), allocated each year. Scheme caps will be announced prior to the scheme’s commencement – but after the UNFCC’s Copenhagen meeting – and five years in advance. Gateways, or yearly cap ranges, will guide scheme caps over a ten year period and will be reassessed every five years.

The White Paper assumes a starting price of around $25 per tonne of CO2e. The price of emissions will be capped at $40 per tonne and will escalate at 5 per cent real per annum.

With this initial carbon price, the White Paper estimates that average electricity prices will increase by 18 per cent, and that this will lead to a 1.1 per cent increase in the consumer price index in 2010–11.

Emissions trading in New Zealand

The New Zealand Government introduced a bill for emissions trading schemes before a select committee. Various reports by a range of groups support the scheme but differ in opinion as to how it should be implemented. The emissions trading bill passed into law on 10 September 2008. In November 2008, the newly formed National-led government announced that it would delay implementation of the ETS pending a full review of climate change policy.

Conclusion

Trenchless techniques reduce traffic congestion and disruption and minimise the excavation required, reducing energy consumption.

In Australia, the trenchless industry needs to take advantage of the move towards a carbon-constrained economy and promote these greener credentials to governments and the community at large.

Deloitte Climate Change and Sustainability lead partner Chris Wilson said “Australia has now taken a major step towards becoming a carbon-constrained economy. The Government announcement has eroded the uncertainty for businesses delaying action on understanding and managing their carbon exposure.

“The timing and targets for an emissions trading scheme are now firmly on the table as Boards and senior executives realise that this is now a new item on the balance sheet.”

GHD Principal for Sustainability and Climate Change Patrick Crittenden says the message to business is clear – it needs to understand the risks and the opportunities of the CPRS. With Government assistance available up to the commencement of the CPRS and the likelihood of a significant increase in the cost of carbon after the first few years of scheme operation, the time for business to plan and act is now.

References

1. Knight, M. and Rehan, Rashid, Preliminary Report, ‘Do trenchless pipeline construction methods reduce greenhouse gas emissions?’ University of Waterloo, Ontario, 2007.