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Chapter 5 | Projection <strong>and</strong> estimation uncertainties<br />
• related emissions from additional sources, such as military transport or energy<br />
use for commodity movements by pipelines (where Australian military fuels plus<br />
the energy consumption to operate major oil <strong>and</strong> gas pipelines probably account<br />
for a further 2–4 per cent <strong>of</strong> aggregate transport emissions)<br />
• any <strong>of</strong> a wide range <strong>of</strong> additional life cycle emissions, from sources associated<br />
with transport vehicle use <strong>and</strong> transport infrastructure provision (e.g. emissions<br />
from energy used in vehicle construction, repairs <strong>and</strong> disposal; evaporative<br />
losses from service stations; road <strong>and</strong> rail-track construction, maintenance <strong>and</strong><br />
signal operation; energy consumption due to railway stations <strong>and</strong> airports). BITRE<br />
estimates <strong>of</strong> the emission add-on for such full system cycle effects are in the order<br />
<strong>of</strong> a further 15 per cent (BTCE 1995a).<br />
Choosing the most reasonable method for allocating international transport<br />
emissions between the various countries involved in international trade is a very<br />
controversial <strong>and</strong> complicated question, which has already been at the centre <strong>of</strong><br />
many policy debates (for some background to this issue see Faber et al. 2007, Aviation<br />
<strong>and</strong> maritime transport in a post 2012 climate policy regime).<br />
The current targets under the Kyoto Protocol do not cover international transport<br />
emissions, <strong>and</strong> existing NGGI guidelines do not require the inclusion <strong>of</strong> emissions<br />
from fuel use by international vessels or aircraft within the national CO 2<br />
equivalent<br />
totals, though emissions from those international craft consuming fuel purchased<br />
in Australia are reported separately to the national domestic totals (see Tables 2.5<br />
<strong>and</strong> 2.8 for BITRE time series estimates <strong>and</strong> projections <strong>of</strong> this component <strong>of</strong> total<br />
international fuel use).<br />
This st<strong>and</strong>ard jurisdictional allocation used currently for international transport (i.e.<br />
based on the amount <strong>of</strong> fuel uplifted or bought within the country) probably serves<br />
to understate a properly equitable share <strong>of</strong> Australian emissions, since the bulk<br />
<strong>of</strong> fuel consumed by international shipping involved in Australian trade is bought<br />
overseas. On the other h<strong>and</strong>, allocating all fuel used by international craft both into<br />
<strong>and</strong> out <strong>of</strong> Australia (see Tables 2.4 <strong>and</strong> 2.7 for consumption estimates) would grossly<br />
exaggerate a suitable national allocation. As an indicative estimate <strong>of</strong> the relative<br />
importance <strong>of</strong> international transport’s contribution to aggregate sector totals (i.e.<br />
for demonstration purposes, <strong>and</strong> not necessarily suggested as a suitable allocation<br />
mechanism), Table 5.2 also gives FFC estimates that include half <strong>of</strong> the emissions<br />
due to total fuel use by international shipping <strong>and</strong> aviation travelling to <strong>and</strong> from<br />
Australia. This will still tend to overstate Australia’s share <strong>of</strong> international transport<br />
emissions (since a proportion <strong>of</strong> international travel will involve several ports-<strong>of</strong>-call<br />
during the full voyage), but should be closer to a balanced allocation than purely<br />
country <strong>of</strong> fuel uplift.<br />
Referring to Table 5.2, the BITRE base case estimates <strong>of</strong> total CO 2<br />
equivalent emissions<br />
(direct <strong>and</strong> indirect effects) for Australian transport sector fuel use (civil transport<br />
energy use on a full fuel cycle basis, including the international transport allocation)<br />
are approximately 149 million tonnes for 2007, around 74 per cent higher than the<br />
domestic end use totals given in Table 5.1, <strong>and</strong> are projected to grow to around 185.5<br />
million tonnes by 2020 (76 per cent higher than the 2020 domestic energy end use<br />
estimates). These calculations are done on the assumption that the indirect GWP<br />
unit values derived for the domestic aviation estimates are also valid for international<br />
aviation.<br />
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