27 August 2019<\/p>\nThe Committee Manager
\nLegislative Assembly, Environment and Planning Committee
\nParliament House, Spring Street
\nEAST MELBOURNE VIC 3002\n
Dear Committee Members<\/p>\n
Re: Inquiry into Tackling Climate Change in Victorian Communities<\/p>\n
Thank you for the opportunity to respond to the Parliamentary Inquiry into Tackling Climate Change in Victorian Communities. VicWater is the peak body of the Victorian water industry with its membership comprising Victoria\u2019s 19 statutory water corporations. They are responsible for the provision of urban water and wastewater services, rural water supply including irrigation and related drainage services.<\/p>\n
Tackling climate change is naturally a core priority for the water industry. Water corporations\u2019 focus on this challenge has three distinct dimensions:<\/p>\n
This Inquiry\u2019s Terms of Reference necessarily focus attention on the Victorian Government\u2019s role to assist communities to tackle climate change. The core contention of this submission is that the water industry is uniquely capable of promoting community action to tackle climate change. By supporting our members with a clear mandate and efficient regulatory framework, government can maximise their impact \u2013 for the benefit of Victorian communities.<\/p>\n
It is the water industry\u2019s natural role to lead community action to tackle climate change, to adopt renewable energy and to showcase Victoria\u2019s skills and innovation in renewable energy:<\/p>\n
This submission will focus on how the water industry is working with, and on behalf of, Victorian communities to expand the state\u2019s renewable energy sector, and tackle climate change, by directly lowering emissions. It will also describe aspects of the regulatory framework that are key to empowering our members to perform that role. A separate, online, compendium of water industry initiatives<\/a> is provided for detailed reference<\/a>.<\/p>\n The Victorian water industry\u2019s enthusiastic adoption of renewable energy would not be possible without the joint efforts of water corporations and the Department of Environment, Land, Water and Planning (DELWP), as part of the Victorian Governments Water for Victoria Strategy. Water for Victoria set an ambitious new policy for the Victorian water industry to become carbon neutral. This policy was welcomed by water corporations, many of which had already taken steps in that direction, including by investing in renewable energy, improving energy efficiency, and enhancing process efficiencies.<\/p>\n VicWater worked closely with DELWP to implement a robust policy framework for water corporations to transition to carbon neutrality and invest directly in renewable energy. In particular, the framework provided flexibility for water corporations\u2019 different context and baseline emission intensity, and it clearly integrated with the economic regulatory framework, providing certainty for investment and outcomes. This allowed water corporations to just get on with \u2018the doing\u2019.<\/p>\nThe precise result of this collaboration was of the Water Industry Statement of Obligations (Emission Reduction)<\/a>, which was signed by Water Minister Neville in March 2018. The Emission Reduction SoO sets out clear ground rules for achieving carbon neutrality such as calculating emissions and provides water corporations a mechanism to independently set interim targets. The success of our members\u2019 ongoing transition to carbon neutrality provides a case study in how a clear mandate and an efficient regulatory framework can underpin an expanded role for the water industry in Victorian communities. These lessons can equally be applied to other policy areas such as liveability, recreation, environmental management and the circular economy.<\/p>\n To accompany this submission, VicWater has prepared a compendium of information on ways the Victorian water industry is tackling climate change. These case studies fall into four categories: joint water industry initiatives, behind the meter renewable energy generation, water and energy efficient housing development, community engagement, and customer-centric initiatives.<\/p>\n Joint water industry initiatives<\/strong><\/p>\n The Victorian water industry is highly agile and prepared to adopt innovative commercial strategies to achieve outcomes. Intelligent Water Networks (IWN) is a water industry and DELWP collaboration vehicle for investigating new technologies and innovations to meet common challenges in a manner more efficient than acting individually. The IWN Largescale Renewables Project recognises that, for single corporations, some on-site renewable energy generation projects can be too expensive, complex or small to be viable. And that water corporations\u2019 commitment to carbon neutrality should not force otherwise uneconomic projects to proceed. By jointly investing in a Large Scale Renewable Energy Project, water corporations can achieve long-term price certainty, reduce their operational risk and complexity, and eliminate emissions.<\/p>\nWater for Victoria<\/h4>\n
\nThe joint process that gave rise to the Emission Reduction SoO has been a high point for cooperative policy development between the water industry and DELWP. It laid the foundation for the subsequent rapid rollout of emission-cutting infrastructure, innovations and community-based initiatives, with minimal impact on water prices, which are featured herein.\nOutcomes<\/h4>\n