University of Melbourne chief financial officer Allan Tait.

Australia’s richest university is set to offload fossil fuel-exposed companies from its $2 billion ­endowment by 2021 in a bid to become carbon neutral by 2030.

The University of Melbourne said it was creating a framework to guide divestment decisions, rather than using the blunt selldown of all companies

This would take into account a company’s emissions intensity and emissions reduction plan, its alignment with global climate change agreements and its transition towards embracing renewable energy. Even so, holdings in up to $100 million worth of shares could still be offloaded.

Melbourne joins a growing list of Australian and international universities, superannuation and endowment funds committing to eliminate their exposure to fossil fuels. The move has drawn the ire of politicians and some companies have accused organisations ­involved in divesting as not understanding their businesses.

Melbourne will join with Australian National University, Swin­burne, Sydney and Queensland University of Technology in divestment plans, but other institutions such as the University of Queensland and the University of NSW have said they will not ­divest.

Melbourne chief financial officer Allan Tait said: “Within five years, the university will be divested from, or in the process of divesting from, any material holdings that don’t satisfy the requirements of this framework.

“The university has a responsibility to lead strongly and act decisively in addressing global societal challenges, such as building a more sustainable world.

“Melbourne has close to $2bn in investment funds. At any one time the allocation that is applied to the Carbon Underground 200 list is anywhere between 3 and 5 per cent,” Mr Tait added.

“Our view is that fossil fuel-related companies are going to be part of the solution.”

That list represents the top publicly traded coal, oil and gas reserve-owning companies globally, ranked by the carbon emission potential of their reported fossil fuel reserves.

“They are not necessarily just causing the problem but will contribute to the solution and we think any solution is going to require serious engagement and collaboration and that includes with elements of the fossil fuel industry,” Mr Tait said.

Mr Tait said the university had links with 19 of the CU200 list, including research partnerships, scholarships, alumni relations and intern arrangements.

“Our Energy Institute has relationships with some of the biggest companies, such as BHP Billiton and Rio Tinto. We are committed to working with them to help determine what some of the solutions might be, such as new energy sources, how to harness them, more efficient ways to use and store alternative energy, and secure energy waste.

“We think working with these companies is of fundamental importance and we don’t think it compromises us on our sustainability or investment front.”

Melbourne will cut mains water use by floor area by 12 per cent, reduce landfill waste by 20kg per person by 2020, shrink the car fleet by 20 per cent and increase the number of bicycle spaces by 10 per cent. It will also embed sustainability thinking into undergraduate study.

Malcolm Turnbull has highlighted his longstanding belief in coal as part of the world’s energy mix for the foreseeable future, in an oblique dig at Tony Abbott and others within the right of the Coalition who do not agree with his stance on climate change.

The Prime Minister said every credible agency and research group had underlined the importance of coal in the world’s energy mix, and harked back to 2009, when he lost the Liberal Party leadership to Tony Abbott after MPs lost faith in him over his support for an emissions trading scheme.

“If I go back to 2009, when I was the opposition leader, I made this very point then,” Mr Turnbull told a press conference in Brisbane this afternoon.

“We are the biggest coal exporter in the world. If anybody — if any country — has a vested interest in demonstrating that clean coal and cleaner coal with new technologies can make a big contribution to our energy mix — and, at the same time, reduce our emissions in net terms — it’s us.”

“Our approach, and my approach, to energy is absolutely pragmatic and practical. This is not a matter for ideology.”

Mr Turnbull said both renewables and fossil fuels would have a role to play in energy production in the future.

“Treating this as an ideological thing where people say, “Renewables are bad” or “All fossil fuel is bad” is wrong. You’ve got to make sure you get the right mix,” he said.

“And above all, this is the most important point — energy has to be affordable.

“We’ve got to be able to afford to pay the bills, and it’s got to be reliable.

“You don’t want to be in the situation South Australia is, where they have the most expensive — and the least reliable — electricity in Australia.”

Malcolm Turnbull says he will not be releasing the findings of his department’s investigation into sacked health minister Sussan Ley’s travel claims.

The Prime Minister received the Department of Prime Minister and Cabinet’s report on Friday, shortly before he accepted Ms Ley’s resignation.

Ms Ley stood aside five days earlier pending an investigation into her travel, which included the purchase of an $795,000 apartment and New Year’s Eve celebrations with one of Australia’s wealthiest women during taxpayer-funded trips to the Gold Coast.

Asked whether Cabinet Secretary Arthur Sinodinos, who is currently acting as Ms Ley’s replacement, would take on the role permanently, Mr Turnbull said he would be making an announcement “very shortly”.

But he said the departmental report into Ms Ley’s claims would not be released.

“The advice that I’ve received from the secretary of my department is advice to me and the governance committee of Cabinet, so the practice has not been to release advice of that kind,” Mr Turnbull said.

“In the past, the practice has not been to release advice of that kind.”

The Prime Minister refused to give any indication as to whether Mr Sinodinos would be promoted.

“I have such a talented team — they’re all extremely able, and I’m not going to comment on any individual in respect of the vacancy that you’ve referred to,” he said.

Bill Shorten accused Mr Turnbull of being “so bereft of supporters in his cabinet” that he’s been forced to “recycle the dodgy Senator Sinodinos”.

The Opposition Leader said Mr Turnbull would only elevate Senator Sinodinos because he didn’t want to bring Tony Abbott back into the cabinet or cause a wider reshuffle.

“The only reason Malcolm Turnbull is having a reshuffle is because one of his government ministers was simply mistreating the expenses system and making Australians really angry at all politicians,” he said.

“What Malcolm Turnbull should be doing today is not recycling the dodgy Senator Sinodinos, he should, instead, be focusing on policies which help this company and thousands of companies like it around Australia promote and maintain Australian jobs. We are happy to take questions on this and other matters.

Definition: a natural fuel such as coal or gas, formed in the geological past from the remains of living organisms. Sources of energy formed from the accumulated remains of living organisms.

Renewable or Non Renewable? Fossil fuels are non-renewable sources as they are used up faster than they can be produced on Earth.

Examples are: Natural gas, oil, peat, petroleum and coal

Energy Transformations involved: 

Petroleum 2C8H18(l) + 25O2(g)->16CO2 (g) + 18H2O
 
 Natural Gas CH4(g) + 2O2(g) -> CO2(g) + 2H2O(g)

Environmental Impact: Burning fossil fuels releases harmful air pollutants into the air that are damaging to the environment and public health. Primarily releases sulphur dioxide emissions as a result of burning coal which contributes to the formation of harmful particulate matter and can in turn lead to acid rain. Burning fossil fuels also releases carbon dioxide and other gases that trap heat in the Earth’s atmosphere, contributing to global climate change.

Advantages:

·         Easily available- great source of energy used daily. High demand has also improved mining and refinery advancements

·         Produces large amounts of energy- easily combustible and produce high amounts of energy, process to harness energy is quite simple

·         Stable- don’t form any other compounds if stored for a long time

·         Easily stored and transported

·         Low cost

·         Easy set up

Disadvantages:

·         Environmental hazards

Are alternative sources to fossil fuels - allowing for greater fuel security for countries with little or no oil reserves of their own

May not produce any particulates, such as soot and other fine particles 

Land is not cleared of other plants just to make way for biofuel crops

The biofuels are used at the same rate as the rate of production of biomass

1. Cost Benefit: As of now, biofuels cost the same in the market as gasoline does. However, the overall cost benefit of using them is much higher. They are cleaner fuels, which means they produce fewer emissions on burning. Biofuels are adaptable to current engine designs and perform very well in most conditions. This keeps the engine running for longer, requires less maintenance and brings down overall pollution check costs. With the increased demand of biofuels, they have a potential of becoming cheaper in future as well. So, the use of biofuels will be less of a drain on the wallet.

2. Easy To Source: Gasoline is refined from crude oil, which happens to be a non-renewable resource. Although current reservoirs of gas will sustain for many years, they will end sometime in near future. Biofuels are made from many different sources such as manure, waste from crops and plants grown specifically for the fuel.

3. Renewable: Most of the fossil fuels will expire and end up in smoke one day. Since most of the sources like manure, corn, switchgrass, soyabeans, waste from crops and plants are renewable and are not likely to run out any time soon, making the use of biofuels efficient in nature. These crops can be replanted again and again.

4. Reduce Greenhouse Gases:Fossil fuels, when burnt, produce large amount of greenhouse gases i.e. carbon dioxide in the atmosphere. These greenhouse gases trap sunlight and cause planet to warm. The burning of coal and oil increases the temperature and causes global warming. To reduce the impact of greenhouse gases, people around the world are using biofuels. Studies suggests that biofuels reduces greenhouse gases up to 65 percent.

5. Economic Security: Not every country has large reserves of crude oil. For them, having to import the oil puts a huge dent in the economy. If more people start shifting towards biofuels, a country can reduce its dependance on fossil fuels. More jobs will be created with a growing biofuel industry, which will keep our economy secure.

6. Reduce Dependance on Foreign Oil: While locally grown crops has reduce the nation’s dependance on fossil fuels, many experts believe that it will take a long time to solve our energy needs. As prices of crude oil is touching sky high, we need some more alternative energy solutions to reduce our dependance on fossil fuels.

7. Lower Levels of Pollution: Since biofuels can be made from renewable resources, they cause less pollution to the planet. However, that is not the only reason why the use of biofuels is being encouraged. They release lower levels of carbon dioxide and other emissions when burnt. Although the production of biofuels creates carbon dioxide as a byproduct, it is frequently used to grow the plants that will be converted into the fuel. This allows it to become something close to a self sustaining system.

Biofuels are a renewable energy source in that they are created from plants that can be regrown each year. Biofuels also do not require many changes(if any) in cars and other places of use to be utilized. Some consider the use of biofuels as carbon neutral since the carbon produced when burning them is offset by the carbon consumed by the plants they came from. In the United States, biofuels can help reduce the dependence on foreign oils, which fluctuate in price rapidly. Biofuels may help to buffer against the change.

Biofuel advocates frequently point out the advantages of these plant- and animal-based fuels, such as: 

·         Certain fuels can cause damage to the machine for example E10 fuel in a car

·         Biofuels are still in the early stages of development, so the results vary and we do not have a full grasp on the topic

·         The land required to grow crops could become costly

·         Land for growth will diminish as cities continue to push out their borders

·         Many nations will be unable to provide land that is suitable such as middle eastern or African countries as the climates, and ground conditions do not support life in abundances required

·         As of the moment, biofuels are more expensive for less of a result in comparison to the fossil fuel counterpart

·         Can hurt, even destroy middle-eastern countries such as Saudi-Arabia or Iraq as their economy’s thrive off the exporting of oils