Part 1 Introduction

Introduction

39 | Contents

I1 About this Report 41 I2 About the Commissioner for Environmental Sustainability 41 1 I3 Ecosystem Services 42 I4 Environmental Awareness 43 Environmental change 43 Increasing awareness 43 Environmental governance 44 International governance 45 Australian national governance 45 State responsibilities 45 The role of local governments 45 The role of the Indigenous community 46 The role of the non-government sector 46 Environmental reporting 46 I5 Victoria’s Report on the State of the Environment 47 The reporting framework 47 Issues and indicators 48 Objectives, responses and recommendations 48 Critical environmental issues for Victoria 49 Data limitations of this report 49 Future reports 49 Acknowledgments 49

| 40 Part 1 Introduction

I2 About the Commissioner I1 About this Report for Environmental Sustainability The purpose of this report, the first Throughout this report the capacity of The Commissioner for Environmental comprehensive report prepared on the the environment to provide essential Sustainability is an independent voice on state of Victoria’s environment, is to: ecosystem services is described. These environmental sustainability. His statutory include a stable climate, clean air and objectives are to report on matters relating • provide access to scientifically credible, water, productive land, and thriving to the condition of the natural environment timely and relevant information on the fisheries. Ecological Footprint is one of Victoria; encourage decision making current environmental conditions and measure of the impact of consumption that facilitates ecologically sustainable trends in Victoria. on the capacity of the Earth to provide development (ESD); enhance knowledge • identify driving forces and direct ecosystem services. Since the 1980s the and understanding of issues relating pressures influencing environmental planet has been in “ecological overshoot” to ESD and the environment; and change in Victoria. as the world’s population uses resources encourage sound environmental practices • identify the likely implications of at a faster rate than they can be replaced. and procedures to be adopted by environmental trends. Australia as a rich nation has a footprint the Government of Victoria and local • evaluate the effectiveness of higher than the average but Victoria’s government as a basis for ESD. current management responses to own footprint is even higher such that if environmental issues. everyone lived like Victorians, almost four Box I1 Definition and guiding planets would be needed. This indicates • assist decision-making in policy principles of Ecologically that - in the global context – Victorians’ development, environmental Sustainable Development way of life is not sustainable. management and resource use. The Commissioner for Environmental • raise public awareness and The Commissioner has assessed the Sustainability Act 2003 (the Act) defines understanding of environmental effectiveness of current policy and ESD as development that improves issues in order to improve the way management responses, and offers the total quality of life, both now and Victorians use, manage and value the recommendations for consideration in the future, in a way that maintains environment. by the Government and the Victorian the ecological processes on which community. A repeating theme • make recommendations on specific life depends. The Act requires that amongst the findings, and hence the actions and future directions required the following guiding principles are recommendations, is lack of suitable to advance Victoria’s progress towards considered: environmental sustainability. data to enable analytical reporting. The Commissioner recommends that better • that decision-making processes This report considers the state of Victoria’s data collection, monitoring and reporting should effectively integrate both environment not as an issue disconnected regimes be implemented, with a stress long-term and short-term economic, from the world but in the context of social on long-term, consistent data sets. A key environmental, social and equity and economic factors. These factors are focus of the next report, due by 2013, considerations. explored through an analysis of the driving will be an assessment of progress in the • if there are threats of serious or forces that lead to environmental change, condition of the environment over that irreversible environmental damage, and through an analysis of production, five-year period. This will be a more useful lack of full scientific certainty consumption and waste of three key assessment if data collection is improved. should not be used as a reason for resources – energy, water and materials, Improved environmental monitoring and postponing measures to prevent which identifies how the use of those improved coordination of reporting would environmental degradation. resources places direct pressures on the enable the Government to better manage • the need to consider the global natural environment. This provides the the environment as a valued asset from a dimension of environmental impacts context for a full analysis of the condition more informed perspective. of actions and policies. of the natural environment, which is described through four chapters on the • the need to develop a strong, atmosphere; land and biodiversity; inland growing and diversified economy waters; and coasts, estuaries and the sea. which can enhance the capacity for The report concludes with a reflection on environment protection. the implications of the state of Victoria’s • the need to maintain and enhance environment both now and into the future. international competitiveness in an environmentally sound manner. • the need to adopt cost effective and flexible policy instruments such as improved valuation, pricing and incentive mechanisms. • the need to facilitate community involvement in decisions and actions on issues that affect the community.

One of the key functions of the Commissioner is to prepare a report on the state of Victoria’s environment at intervals not exceeding five years. The Minister is required to table the report in Parliament and the Government is required to table a response to the Commissioner’s recommendations within 12 months.

41 | State of the Environment Report - Victoria 2008 I3 Ecosystem Services

The international Convention on Biological Ongoing degradation of ecosystem decline, albeit unevenly5. The value of Diversity defines an ecosystem as a services may prevent the UN’s Millennium ecosystem services is being recognised 1 ‘dynamic complex of plant, animal and Development Goals being reached. as a monetary price is being placed on micro-organism communities and their them. At the national level, the Carbon Since European settlement, much of non-living environment interacting as Pollution Reduction Scheme is the primary Victoria’s native vegetation has been a functional unit’. The Convention, to economic tool for managing greenhouse cleared to make way for towns and which Australia is a party, is dedicated to gas emissions to achieve a stable climate, primary production. Whilst those altered promoting sustainable development and though this is widely recognised as not landscapes are no longer high quality recognises that: sufficient alone and complementary habitat for indigenous flora and fauna, they measures are needed. biological diversity is about more than do provide other ecosystem services such plants, animals and micro-organisms as food production. An example of what The Victorian Government’s statement and their ecosystems – it is about can be done to reverse the degradation Our Environment, Our Future (OEOF) people and our need for food security, is through the use of water sensitive 2006 outlines actions to make Victoria medicines, fresh air and water, shelter, urban design. This enables filtration of a sustainable state. The ecoMarkets6 and a clean and healthy environment in nutrients from stormwater that can create project uses a market-based approach which to live.1 quality wetland habitat in urban settings. to environmental policy to achieve a Protection and maintenance of Victoria’s full range of ecosystem services whilst Throughout this report many issues are natural assets is essential not only for the improving agricultural productivity. The reported in terms of the benefits provided environment but also for society and the scheme provides economic incentives for to the environment, society and the economy. If ecosystems are degraded, delivering ecosystem services such as economy by healthy ecosystems. These their capacity to provide essential biodiversity conservation, salinity control, are known as ecosystem services. They ecosystem services is diminished. maintenance of water quality and land are the services that nature provides Throughout this report information is protection. Instead of relying on income which are essential for maintaining the presented on the condition of Victoria’s from primary production, ecoMarkets Earth in a state that can support life. They natural assets and what that means for the offers a potential new income stream include regulation of the atmosphere and environment and society. that rewards land-holders for improving climate; protection from the effects of ecosystem health. However, economic extreme weather; provision and storage Increasing community awareness of instruments are only part of the solution of water; production and protection of environmental issues is just one factor for improving and maintaining healthy soils and associated nutrients; treatment that is driving improvements in the and functioning ecosystems, so caution is of wastes; provision of systems that way natural assets are managed. In required in the use of these tools7. support biodiversity; food and fibre addition, consideration of ecosystem production; provision of natural medicines; services is now being made in more Recognition of the need to maintain opportunities for outdoor recreation; and a economic decisions. The CSIRO found Victoria’s natural assets, which include range of cultural values. that Australian farmers spend about $1.6 plants and animals found nowhere else billion a year on herbicides and pesticides, in the world, and the ecosystem services These services are complex and cannot yet research indicates that if habitat they provide is a factor that has influenced easily or economically be replaced by were provided on farms to encourage the choice of issues reported here. A technology, at least within the timescale natural predators the costs could be cut better understanding of ecosystems and in which humans have degraded some dramatically4. the services they provide is needed. A ecosystems. For example, it takes a commitment to improving and maintaining combination of sunlight, carbon and Victoria has a legacy of natural resource ecosystems will both ensure quality of life nitrogen, plus activities of fungi, worms exploitation that is now recognised as and lead to environmental sustainability by and bacteria, and about 300 years, to being part of the cause of environmental matching community needs with the ability create a centimetre of soil2. So, soil lost degradation such that now a more holistic of the natural environment to support our through poor vegetation management suite of policy and management tools current and predicted needs. and erosion cannot be replaced in the are being implemented to reverse the short-term. Soil erosion is one example of the importance of ecosystem services and is a problem that can lead to a reduction in farm productivity and higher prices for primary produce. In 2005 the United Nations (UN) reported that approximately 60 percent of global ecosystem services were being degraded or used unsustainably3: Any progress achieved in addressing the goals of poverty and hunger eradication, improved health, and environmental protection is unlikely to be sustained if most of the ecosystem services on which humanity relies continue to be degraded.

Regenerating grass trees following the 2006 fire in the Brisbane Ranges west of Melbourne Photo: Jane Tovey

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I4 Environmental Awareness

Environmental change However, it is not climate change that Globally and locally people are has degraded Victoria’s environment. In acutely aware of the big environmental Change in the state of the environment Victoria it is past and present management challenges including climate change, is nothing new. The land on which the of Victoria’s environmental assets and ozone depletion, land clearing, loss of State of Victoria is located has undergone other overarching driving forces that biodiversity, urban sprawl, pollution and massive change over billions of years. have caused the majority of the State’s soil erosion. This is in part due to the Once part of a landlocked southern super- environmental degradation to date. effectiveness of environmental lobby continent known as Gondwana, Victoria Climate change is a further compounding groups that have been working to raise has been inundated by sea, creating pressure which, if untreated, is likely to awareness. Environment Victoria, the limestone; frozen under glaciers; has overwhelm environmental health. peak environmental non-government supported rainforests which subsequently organisation, is supported by 150 smaller Increasing awareness formed extensive coal deposits; has organisations to address the urgent and been uplifted by tectonic activity creating Modern Australia has a long history of ongoing environmental challenges facing the Great Divide; and has been home environmental awareness. In the 1820s the Victoria today17. to gigantic, now extinct, megafauna. Philosophical Society of Australasia was Changes over billions of years have Victoria’s school students have a good formed to study natural history11. By the created the Victorian landscape of today, understanding of environmental issues, late 19th century scientists were warning home to many unique plant and animal as environmental education is an integral of the need to slow down clearing of land species whose ancestry can be linked part of school education at both primary and forests, preserve natural landscapes back to times before dinosaurs roamed and secondary levels. Further awareness and discourage exotic flora and fauna12. Victoria. of environmental sustainability comes Public interest in natural history led to the through participation in the Australian creation of national parks, with Mount Victoria continues to be influenced Sustainable Schools Initiative, a Buffalo National Park being declared in by natural events that change the partnership of the Australian Government, 189813. In the early 20th century, water environment. These include climate states and territories that supports schools catchments were protected and soil variability, erosion, drought, bushfire and to work towards a sustainable future. conservation was recognised as a serious evolution. Indigenous people, whilst living Interest in environmental issues continues environmental issue. Now, around 17.5% in harmony with the environment, also at the tertiary level, with almost fifty of the State’s land and 5% of coastal changed the natural environment over a undergraduate courses focusing on the waters are protected in the National Park long period for their own benefit through environment on offer in 200818. such practices as firestick farming. system. Outside the formal education system After the 1939 bushfires a Save the Over the last two centuries the activities of are many opportunities for increasing Forests campaign caught the attention of modern society have significantly altered environmental awareness, including visitor the Victorian public and led to community the state of the environment. The global activities provided by national parks, zoos tree planting, with the campaign being human population of 6.7 billion in 2007 and museums. Both government and transformed to become the Natural is six times that of 1800 and is predicted non-government providers are involved Resources Conservation League in to grow at a rate of 75 million people in community education for sustainability. 8,9 1951. This growing interest in nature and per year . This population growth has Further, the Victorian Government conservation also led to the formation of led to greater economic activity based runs education and behaviour change the Victorian National Parks Association on an increasing capacity to use natural programs such as Sustainability Victoria’s in 195214. resources. Forests have been cut down Black Balloons campaign, designed to to produce timber for construction and Through the industrial age new raise community awareness of climate paper, and wild rivers have been dammed technologies have improved quality of life change and reduce greenhouse gas to create artificial lakes for irrigated but have also damaged the environment. emissions from energy use. agriculture. Natural ecosystems have Pollution, the impact of toxic chemicals been transformed into farmland and built Concerns about the environment have and species extinctions have been a environments, with industrial cities facing become part of the mainstream as cause for concern for many years, but it the challenge of dealing with the pollution awareness of the issues is extensive and was during the 1960s that awareness of and waste from industrial processes. the need for action is now well accepted. many environmental issues became more Due to acceptance that the climate is widespread, for example, through the Recent human activity is changing the changing and of the long-term reduction publication of Rachel Carson’s book on environment at a much faster pace in rainfall, environmental awareness has the impacts of pollution, Silent Spring15. than ever before. If action to address increased dramatically over the time this climate change is not taken the Earth In the late 1960s a high profile dispute report was being developed. All Victorians could experience temperature increases over the use of Victoria’s Little Desert are now so aware of the need to conserve in the next 100 years that it has not led to the creation of a national park water that per capita consumption has experienced for 40 million years10. National and the establishment of the Land dropped dramatically. governments must wake up from their Conservation Council, raising the profile complacency and start addressing the of environmental issues for Victorians16 so issues. that today community awareness of issues such as logging old-growth forest in East Gippsland and human-induced climate change is high.

43 | State of the Environment Report - Victoria 2008 Environmental governance In 1992 the governments of the The agreement articulates the roles and Commonwealth, states and responsibilities of the Commonwealth 1 The governance structure established territories joined the Australian Local and the states, recognises the need to to monitor, manage and improve Government Association in signing the develop co-operative arrangements to the environment is complex and has Intergovernmental Agreement on the protect Australia’s environment, and elements at global, national, state, Environment (IGAE)19. The Agreement sets out principles of environmental regional and local levels. The scale of specifically recognises that: policy, including reference to ecologically many environmental issues presents real sustainable development (ESD). challenges to environmental management environmental concerns and impacts and governance arrangements. Issues respect neither physical nor political such as climate change or habitat loss boundaries and are increasingly taking that are not confined by national or state on inter-jurisdictional, international and boundaries necessitate high levels of co- global significance in a way that was not operation across a range of jurisdictions. contemplated by those who framed the Management of environmental issues is a Australian Constitution20. challenge, as the systems themselves are so complex.

Table 1.1 Selected overarching environmental instruments

Instrument Responsible authority Key features and response type Growing Victorian Government A ten-year vision that articulates what is important to Victorians, and the priorities the Victoria Government has set to build a better society so that by 2010 Victoria will be a state Key State policy Together with a thriving economy; quality health and education; a healthy environment; caring communities; and a vibrant democracy. This document was under review at the time of writing. Our Environment Department of The Our Environment, Our Future – Sustainability Action Statement 2006 is a package of Our Future Sustainability 150 priority sustainability initiatives to secure a sustainable State for future generations and Environment of Victorians, based on the directions articulated in Victoria’s Environmental Sustainability Framework 2006. It includes responding to the challenge of climate change; maintaining Key State and restoring our natural assets; using our resources more efficiently; reducing our environment policy everyday environmental impacts; and government leadership. A suite of objectives and targets is included. Land and Department of The White Paper, due for release in 2009, will set the direction for Victorian Government Biodiversity in a Sustainability policy and investment priorities in natural resource management, land health, and Time of Climate and Environment biodiversity for the next 20-50 years; consider how environment and natural resource Change management activity at the regional, catchment, local and farm scale and on public Draft policy for natural land is contributing to Victoria’s overall environmental health; and make sure Victorian resource management Government policy and investment is responsive to new threats and opportunities. Our Water Our Department of In 2004 the Victorian Government put in place a long-term plan for water conservation Future Sustainability and aimed at every sector of the community, seeking to provide water to sustain growth Environment over the next 50 years. The next stage of the plan, released in 2007, provides long-term solutions to secure water supplies. Policy for water management Victoria’s Climate Department of Premier Following the Climate Change Summit held in 2008, the Victorian Government is Change Strategy and Cabinet developing its climate change strategy to be released later this year. Upon release of a Green Paper, a broad public consultation program will be conducted before finalising Draft policy for climate the Climate Change White Paper in mid-2009. change responses Planning and Minister for Planning The purpose of this Act is to establish a framework for planning the use, development Environment Act and protection of land in Victoria in the present and long-term interests of all Victorians. Victorian legislation 1987 Catchment and Minister for This Act sets up a framework for integrated management and protection of catchments Land Protection Environment and through establishment of Catchment Management Authorities; encourages community Act 1994 Climate Change participation in land and water management; and sets up a system for control of noxious weeds and pest animals. Victorian legislation Environment Minister for The purpose of this Act is to create a legislative framework for the protection of the Protection Act Environment and environment in Victoria having regard to the principles of environment protection. 1970 Climate Change It enables the EPA to work with the community to protect, care for and improve our environment. Victorian legislation Environment Commonwealth The Commonwealth Government’s central piece of environmental legislation, which Protection and Minister for provides a legal framework to protect and manage nationally and internationally Biodiversity Environment important flora, fauna, ecological communities and heritage places - defined in the Act Conservation Act as matters of national environmental significance. Commonwealth 1999 (Cwth) legislation

| 44 Part 1 Introduction

International governance Australian national governance Since the 1990s there has been an increasing trend in Victoria to deliver some Debate and action around environmental The Australian Constitution established a public services through private rather than issues at the international level has played federal system and a division of powers public mechanisms. The privatisation of a significant role in shaping environmental between the Commonwealth and the utilities such as gas and electricity has governance and action at the national, states. The Commonwealth does not created a regulatory and governance state and local levels in Australia. Since have a direct power to legislate on context that presents new challenges the early 1970s, the United Nations (UN) environmental matters so relies on its for the management of environmental has been responsible for ensuring that trade and commerce and external affairs resources. This is particularly challenging environmental issues have received global powers. The Environmental Protection in the area of water management, where attention. The UN Environment Program and Biodiversity Conservation Act 1999 the goals of the CMAs (to manage (UNEP) has played a key role in driving provides protection for environmental environmental flows) and the water research, debate and action amongst issues of national significance including authority (to manage extraction) may be its member states around environmental international conventions for which the at odds. issues. UNEP delivers a broad range of Australian Government has responsibility. programs and includes scientific advisory The role of local governments groups such as the Intergovernmental State responsibilities The ‘Think Global, Act Local’ campaign Panel on Climate Change and The states are responsible for all other has manifested strongly at the local partnerships such as the Commission on matters not specifically retained for the government level in Victoria. There Sustainable Development. Commonwealth under the Constitution. are 79 local authorities across the The Kyoto Protocol is an international This includes matters relating to State. Local government powers are treaty made under the UN Framework the environment, which, when the authorised by State legislation to Convention on Climate Change to limit Constitution was drafted in 1900, had provide works and services for land use global greenhouse gas emissions. not been a consideration. Whilst Victoria planning, environment protection, public Australia ratified the Protocol in 2007, has a highly developed set of formal health, traffic and parking, and animal agreeing to be engaged with the treaty- government structures for environmental management23. This level of government making process21. The Protocol has been management, many environmental issues has a very immediate role in shaping the legally binding for countries that have are managed through collaboration local environment through urban planning, ratified it since 16 February 2005. The first between jurisdictions and agencies. The open space design and maintenance, phase of the Protocol requires developed Victorian Department of Sustainability and waste management. The International nations to cut their emissions by a total of and Environment (DSE) is responsible Council for Local Environmental 5.2% of 1990 levels by 201222. However, for sustainable management of water Initiatives (ICLEI) works to assist local Australia’s internationally agreed target is resources, climate change, bushfires, governments to develop programs that to limit emissions to 108% of 1990 levels public land, forests and ecosystems. The promote sustainable practices. The between 2008 and 2012. Victorian Government has responded Oceania secretariat for ICLEI is based in to the jurisdictional complexities around Melbourne. Initiatives such as the United A new international agreement to reduce the issue of climate change by creating Nation’s Agenda 21 and ICLEI’s Cities for global greenhouse gas emissions and an Office of Climate Change within the Climate Protection are implemented by respond to the threats of human-induced Department of Premier and Cabinet. It local governments in response to global climate change from 2013 onwards is is responsible for whole-of-government environmental challenges. being developed, and is expected to be policy and strategy focusing on finalised in Copenhagen at the end of longer-term issues and the economic, 2009. environmental and social impacts of climate change. A number of separate statutory authorities are responsible for delivering specific services, including the Environment Protection Authority (EPA), Sustainability Victoria, Parks Victoria, and ten Catchment Management Authorities (CMAs) that deliver integrated catchment management as a means of achieving sustainable land, water and biodiversity management. Further, there are a number of bodies that provide advice to the Victorian Government, including the Victorian Environmental Assessment Council, the Victorian Catchment Management Council, the Victorian Coastal Council and the Commissioner for Environmental Sustainability.

45 | State of the Environment Report - Victoria 2008 The role of the The role of the Environmental reporting takes place at Indigenous community non-government sector both national and state levels in Australia 1 and is being adopted by some local The Commissioner acknowledges the Despite such complex formal governance governments. The first Australian report connection of Victoria’s Indigenous arrangements there is always the potential was published in 1996, largely as a result community to the land. A number of for some areas to remain contested. of international obligations articulated practical arrangements are in place Formal non-government organisations in the National Strategy for Ecologically to ensure that members of Victoria’s (NGOs) play a significant role in Sustainable Development. The Australian Indigenous community can participate in campaigning, educating the community Government is now obliged to report natural resource management. and lobbying governments. International every five years, whilst the states report environmental NGOs are represented Indigenous land management facilitators every three to five years. Some local at the State level, for example WWF. In act as a practical two-way link between governments prepare reports on the Victoria, environmental NGOs such as Indigenous land managers, other state of the local environment. Unlike in the Australian Conservation Foundation, individuals and organisations involved in New South Wales, where authorities are Environment Victoria, the Wilderness promoting sustainable land management required to report in a consistent and Society, the Victorian National Parks and nature conservation. They assist regular manner, environmental reporting Association and the Victoria Naturally in the representation and promotion is at the discretion of each authority and Alliance run environmental campaigns and of Indigenous values, aspirations and is often a reflection of the commitment lobby governments and industry in relation capacity-building in land management to environmental management against a to environmental concerns. through local and regional meetings, range of competing priorities. including through Natural Resource At a local level community-based groups, SoE reports were previously published in Management (NRM) regional and State such as Landcare and issue-based Victoria in 1988 and 1991, with a focus on planning bodies. groups participate in activities to improve inland waters and agriculture respectively. the local environment. The activities of In March 2008 the Victorian Traditional SoE reporting has now been formalised some of these groups are explored in Part Owner Land Justice Group (VTOLJG) was by the Victorian Government through 4.2: Land and Biodiversity. asked by the Government to provide a the Commissioner for Environmental new policy framework for native title and Bodies such as the Victorian Employers Sustainability Act 2003. This report is land justice. The group’s representatives Chamber of Commerce and Industry the first all-encompassing report on the will advocate for the strongest possible (VECCI), the Australian Industry Group State of the Environment for Victoria. The outcomes for Traditional Owners in a (AIG) and the Victorian Farmers Federation Commissioner is required to prepare and number of areas, including: (VFF) represent industry and agricultural make publicly available the SoE Report interests. Some organisations such as the at intervals not exceeding five years. The • ownership and management of land Environment Business Association and the SoE Report makes recommendations to and waters. Business Council for Sustainable Energy the Victorian Government on possible • relationship between alternative have emerged to promote business responses for the future management settlements and cultural heritage. opportunities in emerging environmental of the environment. The Minister must markets, and strongly support market- table a copy of this report in Parliament • exercise of traditional activities in public based approaches to creating incentives and must also table a response to the land and waters. to adopt more efficient and more recommendations within 12 months. The Commissioner’s reports are independent • effective participation of Traditional environmentally responsible practices. from Government and are not required to Owners in relation to planning and In short, environmental issues are be approved by Cabinet. development. vigorously debated throughout the This State of the Environment Report is The VTOLJG will report to the Government community. just one source of information on Victoria’s by the end of 2008. Environmental reporting environment. The Victorian Government Victoria’s Indigenous community is also provides information on a range of Governments and NGOs throughout being consulted by DSE as part of the specific environmental issues through the world are recognising that access to development of the White Paper on Land reports on parks, catchment condition, environmental information and a better and Biodiversity in a Time of Climate forests, water, regional issues and waste. understanding of both ecosystems Change, to ensure that their views can be In addition, the Commissioner reports and the inter-relationships between incorporated into the strategy for the next on the Victorian Government’s own environmental factors is crucial to 20 to 50 years. operational environmental performance achieving sustainable development. and integration of environmental State of Environment (SoE) reports considerations into government decision- communicate key information about making processes. These Strategic Audit the condition of the environment (and Reports can be found at www.ces.vic.gov. pressures acting upon it) to the public, au. government, industry and non-government organisations. The purpose is to raise awareness and understanding of the environment and to assist decision- making by highlighting the cumulative environmental impacts of natural events and human activities, identifying trends, and highlighting the actions needed to improve the management of our environment.

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I5 Victoria’s Report on the State of the Environment

The reporting framework The DPSIR framework represents a Figure I3 shows the interdependent nature comprehensive approach to assessing of environmental issues in a simplified and A framework for preparing the State of the state of the environment through the linear form. This level of interdependence the Environment Report was produced inclusion of causes and consequences means that an issue may be referred to through broad community, industry of environmental change. Within this repeatedly in different sections of the and government consultation. This was framework, the status of an indicator will report; it may be mentioned in one section approved by the Minister, who tabled shift, depending upon the way that the but fully explored in another. the document in Parliament in 2005. The issue is framed. For example, estuarine No single model is capable of capturing framework has guided preparation of the turbidity is an implication of soil erosion the full complexity of the natural Commissioner’s first report. rates (state), which in turn are caused in environment and its relationship with part by increased fire regimes (pressure) The framework for preparing the SoE human activities. The chosen model, (see Figure I3 (A)). When looking at the report is based on the Driving force – however, does provide a comprehensive issue of climate change, however, fire Pressure – State – Implication – Response framework through which to navigate the regimes are reframed as an implication; (DPSIR) model as shown in Figure 1.2. multiple causal relationships, linkages and anomalies in temperature indicate the This provides information on driving cross-sectoral issues which emerge in state and greenhouse gas emission rates forces, which are the underlying causes such a complex system. of activities that affect the environment; are the pressure (Figure I3 (B)). pressures affecting the natural environment; the state (or condition) of the environment and the functioning of natural processes; the implication of the state and trends in environmental quality on the functioning of ecosystems and human health; and societal responses implemented to address the pressures and environmental issues. This information is reported through the use of indicators.

Figure I2 Application of the DPSIR model across the report sections

Driving force Pressure State Implication Response A description of A discussion Description of Description of A brief overview key drivers of of direct the current state some pressures of management environmental pressures on of environmental that are specific responses change the environment issues to the issues and implemented to from production, their implications address the issue consumption for the current and waste of key state resources Part 1 Part 2 Part 3 Part 4 Part 5 Introduction Driving Forces Production, State of the Environment Living Well Consumption Within Our and Waste Environment

3.1 Energy 4.1 Atmosphere

3.2 Water 4.2 Land and Biodiversity Resources

3.3 Materials 4.3 Inland Waters

4.4 Coasts, Estuaries and the Sea

47 | State of the Environment Report - Victoria 2008 Issues and indicators Objectives, responses The recommendations to address the and recommendations environmental issues reported were Using the results of the public consultation 1 developed by the Commissioner in as a starting point, the SoE team scoped The report includes a set of objectives consultation with key stakeholders. each section of the report to determine the developed by the Commissioner for The Commissioner expects that the breadth of issues to consider for inclusion. each environmental issue to illustrate the government response would provide Authors established Expert Reference preferred state of an issue. In some cases information on which recommendations Groups to assist in the development the objectives also indicate broadly how are accepted and how those process. These groups included that state might be attained. For example, recommendations are to be implemented government policy and service delivery in the section covering climate change the to enable an improvement in the state of agencies, environmental non-government preferred state is a stable climate and, in Victoria’s environment. organisations, academics and industry order to achieve that, concentrations of peak bodies. Authors met with the groups greenhouse gases should be declining. Driving Forces Influencing to fine tune the scope of the report, identify Whilst the objectives are consistent in Environmental Change indicators and source data sets. nature with the general objectives and This section of the report recognises that targets set in the Victorian Government’s A multi-criteria analysis was applied to lists environmental conditions, trends and Environmental Sustainability Framework of potential issues and indicators to assist problems are often deeply embedded 2005 (ESF), they have been framed by authors in deciding on the final list. The in the socio-economic structures of our the Commissioner and aligned against criteria were used to assess whether the societies, while at the same time our the more specific issues detailed in the indicator was: wellbeing depends upon the natural report. Like the ESF they are focused on environment. It explores a range of • representative of the issue/system being environmental outcomes. However, this factors driving environmental change, assessed. Office has not had the resource capacity including climate change, population and (nor arguably the role) to evaluate the full • able to show trends over time and settlements, and economic growth and socio-economic cost benefit assessment sensitive to change. consumption. necessary to determine the Government’s • supported by data that is scientifically final public policy positions. credible and statistically verifiable. Production, Consumption and Waste • supported by data that is accessible. The analysis includes a high-level This section represents Victoria as an assessment of the effectiveness of the integrated system, having inputs of energy, key policy response to the issues in water resources and materials, and achieving the stated objectives. The outputs of goods and services, pollution policy responses reported and analysed and waste. This resource consumption were selected as representative policy analysis identifies the natural resource responses in consultation with government stocks available in Victoria and describes representatives. This report does not broad consumption patterns. The attempt an in-depth analysis of the processes of extracting, processing and effectiveness of all current policies; rather, consuming resources are examined and it provides information on key responses the resulting pressures on the environment and how they contribute overall to are described. The implications of the achieving the objectives. pressures resulting from resource use and consumption on different aspects of the natural environment are explored in the next part of the report.

Figure I3 Application of the DPSIR model (simplified) A.

Pressure State Implication Degraded Marine Increased CO Climate Change 2 Biodiversity Increased Fire Soil erosion Estuarine Turbidity

B.

Pressure State Implication Estuarine Degraded Marine Soil Erosion Turbidity Biodiversity Increased CO2 Climate Change Increased Fire

| 48 Part 1 Introduction

The State of Victoria’s Environment Critical environmental issues for Victoria Future reports This part of the report evaluates the The critical issue of climate change is The Commissioner is required to report on condition and trends of Victoria’s natural considered thoughout this report from a the state of Victoria’s environment at least environment through the use of indicators range of perspectives. The primary source once every five years, with the next report within the following broad themes: of Victoria’s greenhouse gas emissions is due by 2013. That report will include an atmosphere; land and biodiversity; inland reported in Part 3.1: Energy; the climate assessment of environmental performance waters; and coasts, estuaries and the sea. science and the state of Victoria’s climate over the intervening period. The impacts of the direct pressures on the are presented in Part 4.1: Atmosphere environment, some of which result from – Climate Change. The implications for Acknowledgments the processes of production, consumption climate change on the environment are This report has been developed by and waste, are reported. The implications considered in subsequent sections within the Office of the Commissioner for of the current condition of the environment Part 4. In order to gain an understanding Environmental Sustainability. A small team are discussed, along with societal of this complex issue readers should view of authors was responsible for scoping, responses. Part 3.1: Energy and Part 4.1: Atmosphere research, analysis and writing the report. – Climate Change, together. The Atmosphere section considers the They were assisted and advised by Expert science behind climate change, reports on Water security is also a critical issue for Reference Groups, which included many climate trends, as well as considering the Victoria. Part 3.2: Water Resources covers people from government, academia, short- and long-term impacts of climate the stocks, supply and use of water. environmental NGOs and industry peak predictions. It discusses the trends in Part 4.3: Inland Waters covers the state bodies. stratospheric ozone and air quality. of ecosystem health of Victoria’s rivers, The SoE team members who primarily wetlands and groundwater. Readers who The Land and Biodiversity section identifies contributed to the development of this wish to gain a full understanding of the the importance of ecosystem services report were: complexities of managing water security provided by land. The condition of the and ecosystem health should read both Hamish Walker (Director), Jane Tovey land and soil and processes that lead sections. (Program Manager), Dr Susie Moloney, to change are described. Trends in the Cristina Davey, Geoff Browne, Dr Amanda condition of terrestrial biodiversity are Data limitations of this report Ellery, Bruce Greenop, Claire Maries, included. A repeating theme amongst the findings, and Dr James Fitzsimons (Victorian The Inland Waters section reports on and hence the recommendations, is Environment Assessment Council). the condition and quality of rivers, lack of suitable data to enable sufficient In addition, the following people also groundwater and wetlands. This includes a reporting. Problems with access to contributed to the development of this description of the implications of state and suitable data encountered during report: Ryan Bath (DSE), Kim Bege, Derek trends in the health of aquatic systems development of this report included: Benjamin, Anne Dansey, Tom Garrish, and water quality. • lack of long-term and consistent Lee Knaggsi, Dr Carlos Rodriguez, Sylvia The Coasts, Estuaries and the Sea section data sets. Webb and Lynette Wilks (Sustainability describes the condition of marine, coastal Victoria). and estuarine environments. The impacts • uncertainty over indicators, which The Commissioner thanks the Department of climate change on coastal communities prevents focused data collection. of Sustainability and Environment for its and the impact of ‘sea change’ • collection of data for project specific support and assistance during the project, development on coastal environments are purposes rather than for strategic or particularly provision of expert advice discussed. integrated environmental assessment. and access to data, as well as technical support from the Spatial Information Living Well within Our Environment The result of these limitations has been Infrastructure group, who provided the that some ideal indicators could not The final part of the report draws on the maps used throughout the report; the be used. In such cases other sources key findings, considers how the state of Victorian Environment Assessment Council of information have been used to the environment influences our quality of for providing expert assistance for the provide a snapshot of the issue, with a life, examines progress towards achieving biodiversity elements of the report; the recommendation that data be collected for environmental sustainability and provides EPA for its support and expert assistance, future reporting. recommendations for future directions. It particularly in relation to preparation of the considers what changes Victorians could Ecological Footprint and sections on air make to achieve short-term improvements Recommendations and water quality; CSIRO for its assistance in the state of the environment. It in preparing the section on stratospheric I1 That a strategic review of considers how as a society we might ozone and providing modelled information environmental data collection, address some of the driving forces that used in the materials section; the Bureau monitoring and access be conducted are having negative impacts on the natural of Meteorology for provision of advice and to assess the needs for government environment, as well as encouraging those data; and other agencies who provided environmental reporting requirements. that have a positive impact. expertise, support and data, including the I2 That better data collection, Department of Primary Industries and the monitoring and reporting regimes be Department of Transport. implemented to enable more accurate, integrated and long-term reporting and an up-to-date understanding of environmental health and pressures.

49 | State of the Environment Report - Victoria 2008 The Commissioner thanks members of In addition, members of the This final report was prepared in light of the SoE Inter Agency Committee for their Commissioner’s Reference Group a wide range of advice received from all 1 advice and assistance. The Committee provided advice during development and reviewers including members of Expert was chaired by Bruce Thompson (DSE) production of this report. At the time of Reference Groups, peer reviewers, and included representatives from writing the members were: Alex Arbuthnot government agencies, members of most departments and environmental AM (Landcare Australia), Dan Atkins the Reference Group and other key agencies who provided advice throughout (Sustainable Business Practices Pty Ltd), stakeholders. While the Commissioner is development of the report. The members Cheryl Batagol (Melbourne Water), Dr grateful for the input of all of these people, also assisted by nominating expert Sarah Bekessy (RMIT), Patricia Caswell, this report presents the views of the contacts in their agency. Catherine Dale (Booroondara City Commissioner and not necessarily those Council), Robert Gell (Victorian Coastal of the experts, advisors or Reference Expert Reference Groups (ERGs) were Council), Russell Higgins (Victorian Group and others engaged as part of established for each section of the Employers Chamber of Commerce the consultation and review process. report. These included members from and Industry), Mick Murphy (Victorian Following consideration of all advice the government department responsible Catchment Management Council), Kelly received, the Commissioner has made for policy, an agency responsible for O’Shanassy (Environment Victoria), Dr his recommendations as to the actions service delivery, an environmental NGO, Gillian Sparkes (Australian Sustainable required to improve the state of Victoria’s an academic and, where relevant, an Industry Research Centre Ltd), Kate Vinot environment. industry peak body. These groups (South East Water), and Dr Terry Walshe were used in developing each section (Melbourne University). The Commissioner up to the point of developing the draft also thanks past members of the for peer review, including provision of Reference Group, Christine Forster, Greg advice on management responses and Bourne, Mike Hill, Dr Russell Reicheldt, recommendations. The Commissioner is Professor John Lovering and Marcus grateful to members of these groups for Godinho for their assistance. their assistance. Sections of the report were reviewed by the experts listed in Table I2.

Table I2 External Peer Reviewers for the State of the Environment Report

Report section Reviewer Organisation Expertise Driving Forces Professor Peter Newton Swinburne University Sustainability Professor David Yencken Melbourne University Sustainability Mike Waller Sustainability Victoria Environmental economics Energy Professor Graham Currie Monash University Transport Adjunct Professor Alan Pears RMIT Energy policy Brad Page Energy Supply Association Energy supply Water Resources Professor Sam Lake Monash University Aquatic ecology Cheryl Batagol Melbourne Water Water supply Christine Forster Victorian Catchment Catchment and water Management Council management Materials Professor Peter Newton Swinburne University Sustainability Dr Ralph Horne RMIT Sustainability and life cycle analysis Climate Change Professor David Karoly Melbourne University Climatology Dr Graeme Pearman Monash University and GP Climate change and impacts Consulting Pty Ltd

Land & Biodiversity Professor Robert White Melbourne University Soil science Dr Barbara Wilson WA Department of Environment Biodiversity Associate Professor Jann Wilson University of Tasmania Landscape ecology Dr Peter Bridgewater Joint Nature Conservation Land and biodiversity Committee (UK) Inland Waters Professor Barry Hart Monash University Water science Professor Sam Lake Monash University Aquatic ecology Professor Ian Rutherfurd Melbourne University Fluvial geomorphology and water resource management Christine Forster Victorian Catchment Catchment and water management Management Council Coasts, Estuaries Dr Dustin Marshall University of Queensland Marine biodiversity & the Sea Professor Geoff Westcott Deakin University Marine and coastal science Dr David McDonald CSIRO Ecological modelling

| 50 Part 2 Driving Forces

Driving Forces

51 | Contents

Key Findings 53 DF0 Introduction 54 DF1Climate Change 55 DF2 Population Growth and Settlements 57 A Rapidly Growing Victoria 57 2 Population Growth 57 Peri-Urban Growth 58 Housing and Density 59 Urban Form and Transport 60 DF3 Economic Growth and Consumption 62 Valuing the Environment 63 Economic trends 64 Resource Intensity in Victoria 64 DF4 Summary 66

| 52 Part 2 Driving Forces

Key Findings

• Climate change, population growth • Development in peri-urban regions • The resource intensity of the economy and settlements, and consumption is driving loss of natural habitat and is improving, however total (absolute) associated with economic growth biodiversity, as well as agricultural land. resource use and associated are the overarching driving forces of The challenge is to ensure development environmental pressures are increasing, environmental degradation. does not put undue stress on the with the exception of water which environment; uses resources such has decreased due to a combination • The Victorian community has a history as land, water, materials and energy of resource scarcity and demand of finding innovative solutions to efficiently; and allows replenishment of management. environmental problems and is well the natural resource base. placed to lead innovative solutions that • The environment does not care how may make a difference well beyond its • As household sizes have declined resource efficient the economy is if borders. and the number of rooms per house absolute environmental pressures has increased there has also been a continue to increase. • Climate change provides a defining marked rise in floor area per house. context for this report because of • Improvements in human wellbeing and The trend to larger and more luxurious the extent to which it is affecting and economic development have been housing is a driver of consumption. is projected to affect ecosystems. achieved at the expense of ecosystem Further, as this trend is most evident on Significant environmental and economic services essential to life. the urban fringes there are implications policy changes are required to ensure for biodiversity, food production and • It is currently cheaper to protect the the Victorian community lives well within infrastructure as land use changes from environment than it is to attempt a healthy environment. rural to urban. restoration, but it is even cheaper to • Trends in greenhouse gas emissions, degrade the environment, externalising • Melbourne is an energy intensive city in insufficient and uncertain policy and the costs. international terms, and in common with uncertain technological development other Australian cities, has a low-density pathways highlight the current policy urban form with high levels of car use. and technology gap between business as usual and emission reduction • The cost of environmental degradation targets. Victoria, with its high energy is not integrated into economic systems. and emissions intensive economy has a Current measures of growth such as leading role to play. GDP or GSP do not adequately capture environmental degradation or social • Continuing growth of Victoria’s wellbeing. population will increase demand for land, energy and other resources, as • Victoria’s economy has been growing well as housing and transport services, at a faster rate than population, an potentially leading to more waste and indication of an affluent society. This pollution. Extra demand for water is affluence comes with increased particularly pertinent given the predicted consumption of goods and services that effects of climate change on already place pressure on the environment. depleted water storages.

53 | State of the Environment Report - Victoria 2008 DF0 Introduction

An environmental driving force can be Changes in factors indirectly affecting any natural or human-induced factor ecosystems, such as population, causing environmental change. Climate technology, and consumption, can lead to change is a direct driver, while population changes in factors directly affecting them. and settlements as well as consumption For example using fertilisers to increase 2 associated with economic growth are food production may affect environmental indirect drivers. A direct driver influences health, causing environments to change natural processes in an immediate way. and affecting human well-being. These For example rising temperatures, reduced interactions can take place at more than rainfall and runoff are damaging the one scale and can cross scales. For Murray-Darling basin. By contrast, the example, the growth of a global market for impacts of an indirect driver are mediated timber may lead to regional loss of forest by other phenomena. For example rising cover, which can increase the magnitude population on the outskirts of Melbourne of floods. Similarly, the interactions can creates a demand for roads, and road- take place across different time scales. building in turn may damage vulnerable Human intervention can have positive or ecosystems. Similarly rapid economic negative impacts at almost all points. growth fuels a demand for larger homes The Victorian community has a history and new household furnishings, which of finding innovative solutions to in turn places demands on forests that environmental problems, such as the provide materials for buildings and now internationally successful Landcare furniture. Environmental changes usually movement. This community based result from multiple, interacting drivers organisation has brought together operating across a variety of scales1. individuals, scientists and governments It is often difficult to identify direct causal to find solutions to local environmental relationships between a driver and its problems. Now with increasing impacts. Moreover the interactions community awareness of a broad range between climate change, population of environmental issues, and the urgency growth and settlements, and economic required in finding solutions, Victoria is growth and consumption are particularly well placed to lead in finding innovative complex. The complexities are increased solutions that may make a difference well with the increasing globalisation of beyond its borders. economic, social and political landscapes. While there is growing recognition that human activity is causing environmental degradation, finding ways to prevent and/or reverse these impacts involves unpacking and resolving complex political and social as well as scientific issues. It is necessary to decouple these drivers from relationships where they have a negative impact on the environment. For example Victoria’s growing population consumes materials at an increasing rate, placing increasing pressure on limited resources. One solution is to invest in technologies that increase material use efficiency, or resource substitution, reducing overall consumption of raw materials. It may then be possible to decouple the impact of growing population from environmental degradation. Not all technological solutions achieve this, however.

Photo: Jane Tovey

| 54 Part 2 Driving Forces

DF1 Climate Change

Climate change is one of the most There is now a strong policy momentum The Australian and Victorian policy complex and pressing issues facing the in Victoria, around Australia and in much environment is experiencing dynamic global community. It has become a direct of the world, to advance mitigation and change, stimulated by the new driver of environmental change in every adaptation. International bodies such as Commonwealth Government, the corner of the globe; at the same time The UN’s Intergovernmental Panel on Garnaut Climate Change Review and the environmental changes of many kinds also Climate Change (IPCC) have established, Commonwealth Government’s Carbon contribute to the global climate change at a high degree of scientific probability Pollution Reduction Scheme Green Paper dynamic. (greater than 90%), that anthropogenic and subsequent white paper, as well as greenhouse gas emissions have caused the Victorian Government’s proposed Climate change can refer to any change most of the observed increases in global white papers on Climate Change and in the climate, whether due to natural average temperature since the mid-20th Land and Biodiversity, and the Victorian variability or human activity, but today the century. The financial cost of inaction Coastal Strategy. These foreshadow term is commonly applied to an urgent on climate change (or following an the advent of new policy approaches environmental, social and economic adaptation-only policy approach) could and technologies, particularly carbon challenge. Human activity is causing rise to 20% of global GDP or more2. Part capture and storage from coal-based global temperature increases through 4.1 Atmosphere, Climate Change shows electricity generation – assuming that the the accumulation of greenhouse gases the IPCC’s best estimates of temperature technology works and can be delivered at in the atmosphere. This will have wide- and sea level rise, depending on the level a commercial scale to sufficiently reduce ranging social and economic impacts on at which CO -e concentration is stabilised. emissions in time. basic elements of life such as access to 2 water, food production, health and the Both the Australian and Victorian Combustion of fossil fuels has combined environment (for more information on Governments have committed to a 60% with a massive intensification in livestock Victoria’s climate and projections see Part reduction in greenhouse gas emissions numbers to release unprecedented 4.1 Atmosphere, Climate Change). by 2050 (compared to 2000 levels)3. amounts of greenhouse gas into the Figure DF1 shows current emissions and atmosphere. Meanwhile, the capacity of Climate change is driving many the current policy gap between business the Earth to store carbon in terrestrial and environmental sustainability problems, as usual and the 2050 target. The graph ocean sinks is thought to be diminishing. and must be addressed at a variety of shows that Victoria’s emissions intensity IPCC modelling indicates a significant scales, from local energy initiatives to has significantly improved between increase in global temperature with the international agreements to cut emissions. 1990 and 2006. This improvement is potential for catastrophic risks to global Impacts cut across sectors and regions. associated with a slower rate of total economic, social and environmental well- For example, impacts on water resources emissions growth. However, it also being. affect not only agriculture, but also highlights that total greenhouse gas energy and manufacturing. Impacts on Climate change is likely to a shift in emissions are increasing and that critical natural resources, forestry, biodiversity agricultural regions within the State, with policy and technological measures to and tourism form a complex of issues broad-acre cropping forced to move south reduce greenhouse gases are not yet in confronting Victoria. Impacts will be felt in because of advancing aridity. This could place. Urgent action is required to prevent such diverse areas as health care, primary intensify competition for water amongst dangerous climate change and Victoria, production, fire, and loss of snow cover different users resulting in migration of with its high energy and emissions in alpine resorts. Victoria is also likely to some primary production to other states intensive economy has a leading role encounter impacts not yet foreseen. (see Part 3.2 Water Resources, Part 4.2 to play (see also Part 4.1 Atmosphere, Land and Biodiversity and Part 4.3 Inland At the same time, the workings of industrial Climate Change). Waters). society contribute to climate change by generating greenhouse gas from energy production, transport, manufacturing, agriculture and personal activities. The interaction of cause and effect is exceptionally complex, being determined by trends in key climate variables, climate changes already underway, mitigation efforts and natural climate variability. Climate change provides a defining context for this report because of the extent to which it is affecting the balance of the Earth’s ecosystems. Significant economic and social policy changes are needed to address this, to ensure the Victorian community lives well within a healthy environment. It requires a strategic, coordinated and collaborative approach between the private and public sectors and all levels of jurisdictional governance.

55 | State of the Environment Report - Victoria 2008 As a result of climate change, rising sea levels, floods and storm surges are likely to put coastal areas at risk of severe damage. Intrusion of saltwater into aquifers will compromise groundwater 2 quality, impacting on consumptive use and natural systems (see Part 3.2 Water Resources and Part 4.4 Coasts, Estuaries and the Sea). Higher temperatures will lead to more frequent bushfires. Streams will reduce in flow, with much of the available water being captured for consumptive uses. This decrease in flow will seriously change streambed and bank conditions, and affect the animal and plant species that depend upon them (see Part 3.2 Water Resources and Part 4.3 Inland Waters). Climate change will force plants and animals to move or adapt. Alpine species will lose their habitat and be trapped on islands of high altitude. Cleared land will act as a barrier to the migration of plants and animals toward suitable habitats. The southern coastline will provide another barrier to migration, which may result in the further loss of plant and animal species (see Part 4.2 Land and Biodiversity). Evolutionary adaptive capacity is projected to be exceeded in many species.

Photo: OCES

Figure DF1 Current Victorian policy and technology gap between “business as usual” greenhouse gas emissions and the 2050 target Sources: DPC 2007, Department of Climate Change 2008, ABS Note: Mitigated emissions to 2050 are very unlikely to track evenly (as shown) but rather will decline in steps and at varying rates, depending on deployment of policies and abatement technologies as their efficacy is proven. Carbon emissions intensity (t/$million GSP)(right Y axis) Projected emissions (2 scenarios) Emissions (actual)

-e 200,000 Greenhouse gas 700 2 Business as usual: emissions intensity of +40% of 2000 180,000 the enconomy is improving emissions (linear) 600 160,000

140,000 500 Megatonnes CO 120,000 Current policy and technology gap 400 Total emissions Tonnes per $ million GSP Tonnes 100,000 have been increasing 300 80,000

60,000 Carbon Pollution 200 Reduction Scheme Carbon capture Carbon capture 2050 target 40,000 est. start & storage & storage implementation -60% of 2000 research and (if technology emissions (linear) 100 20,000 development is viable & safe)

0 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 | 56 Part 2 Driving Forces

DF2 Population Growth and Settlements

Population growth is causing fundamental A Rapidly Growing Victoria Population Growth environmental change. The demands of a In September 2008 the Australian Bureau Victoria’s population growth and bourgeoning world population (6.8 billion of Statistics published projections for the expansion of Melbourne, and in 20084) along with urbanisation leads population trends under three scenarios. associated affluence, has brought to a depletion of natural resources, for Victoria’s population was projected to with it unsustainable levels of resource example through reduction of biodiversity reach totals ranging from 6.5 million to consumption and waste production, with and agricultural production, and reduced 6.9 million by 2026, and totals ranging direct environmental impacts through quality of waterways. The Millennium from 7.8 million to 9.9 million by 2056. changes in land use from conservation Ecosystem Assessment reports that “over The totals for Melbourne were projected and agriculture to built environment. The the past 50 years, humans have changed to range from 4.9 million to 5.3 million impacts include harvesting and diversion ecosystems more rapidly and extensively by 2026, and to range from 6.1 million of water for residential and manufacturing than in any comparable period of time to 8.0 million by 2056. The balance of purposes, altering river flows; discharge in human history, largely to meet rapidly the State was projected to reach totals of human wastes to land and sea; loss of growing demands for food, fresh water, around 1.6 million by 2026 and between native vegetation; disposal of solid wastes timber, fibre and fuel. This has resulted in 1.7 million and 1.9 million by 2056. Under to landfill; and discharge of liquid wastes a substantial and largely irreversible loss all the scenarios the proportion living in from industrial processes to adjacent in the diversity of life on Earth. In addition, Melbourne was projected to increase. water bodies. 15 out of 24 ecosystem services examined While the ABS emphasized that these Immigration makes a major contribution in the Assessment are being degraded or were not predictions or forecasts, they to the growth of Victoria’s population, used unsustainably, including fresh water, nevertheless show in striking fashion the and especially to Melbourne’s. Between fisheries, air and water purification; as urgent need to decouple the impacts of 1987 and 2004, net international well as the regulation of regional and local population growth and settlements from 5 migration contributed 71% of Melbourne’s climate, natural hazards, and pests.” environmental degradation.7 population growth, whilst natural increase While developed nations have low rates of The Melbourne metropolitan area has contributed 61%. (The total exceeds 100%, population growth, their consumption expanded beyond its initial semi-circular but was offset by a 32% rate of internal rates are currently far higher than those of pattern around Port Phillip Bay to meet migration away from Melbourne to other developing nations; approximately 86% of the hill country to the north and east. The locations in Victoria and Australia.10) global private consumption expenditure is Victorian Government’s Melbourne 2030 As shown in Figure DF2 population growth accounted for by 20% of the world’s strategy outlines a framework for urban 6 in regional Victoria is uneven. Research population . Developing countries, with development in the coming decades. for the Victorian Government published in some of the largest populations, are As a result of consensus about the 2005 stated that “most growth occurred in currently experiencing rapid economic strategy’s effectiveness an expert audit the metropolitan sphere of influence, the growth leading to significant further identified key aspects requiring review major provincial centres and hinterlands, pressures on the natural environment. and rectification as: “better management coastal and major recreation areas, and Continuing growth of Victoria’s population of growth (economy and employment, the Murray River region”11. The fastest will increase demand for land (see Part 4.2 central and inner Melbourne, activity growing Local Government Areas (LGAs) Land and Biodiversity), energy and other centres, established suburbs, growth in Victoria from 2001 to 2006 were Melton resources (see Part 3 Production, area planning, managing the Urban (8.9%), Melbourne (8.6%) and Wyndham Consumption and Waste), as well as Growth Boundary (the area that has been (5.9%). Melbourne had the largest housing and transport services; potentially identified for future urban development) population growth of all Australian capital leading to more waste and pollution. Extra and developing networks with regional cities during that period. demand for water is particularly pertinent cities); transport; environmental given the predicted effects of climate sustainability; affordable housing; and Population growth in regional Victoria change on already depleted water storages. monitoring”8. In responding to the audit can be partly attributed to government the Government has emphasized four incentives, investment in infrastructure, areas for action: planning for all of education and health, and transport Melbourne; transport and managing services. The fastest growth rate outside congestion; environmental sustainability the metropolitan area was at Golden and climate change; and managing urban Plains (between Ballarat and Bendigo) with growth and change.9 an average annual growth rate of 2.5% and Mitchell to the north of Melbourne which grew at 2.4%. Some LGAs, mostly in the West, experienced a population decline.12

57 | State of the Environment Report - Victoria 2008 Figure DF2 Average annual population growth for Victoria 1996 - 2006. Data source: ABS

2

Victoria’s coastal settlements are also Peri-Urban Growth Victoria’s peri-urban areas have been growing. This ‘sea-change’ trend can The term peri-urban refers to belts of defined on the basis of a number of be attributed to lifestyle choices, an land on the periphery of urban centres, factors including population density. extended commuter belt and retirement which are neither entirely metropolitan It may be more useful to consider the 13 migration (see Part 4.4, Coasts, Estuaries nor entirely rural, but rather mixed and rural amenity value of the land, being the and the Sea). Over 20% of Victoria’s in transition.16 The greatest population relationship between the value of rural population live on the coast, with total growth in Melbourne tends to occur land and the agricultural production value. coastal population forecast to reach in peri-urban areas. In the Melbourne Figure DF3 shows areas of rural amenity 14 1,063,099 by 2011 . In the period from Statistical Division the largest growth rate land that are more likely to be purchased 2001 to 2006 LGAs leading this growth in the period from 2001 to 2006 occurred for lifestyle reasons than its agricultural 19 included the Surf Coast (1.8%) and Bass in the outer Local Government Areas of potential. Coast (1.4%)15. These areas are already Casey, Wyndham and Melton.17 Life-style Development in peri-urban regions experiencing environmental pressures factors such as demand for more space is driving loss of natural habitat and which further population growth will and larger homes, as well as the rising biodiversity, as well as agricultural land. In intensify, such as land use change, loss of cost of city living are driving the increased the Urban Melbourne reporting area of the biodiversity, increased water consumption, demand for peri-urban development. Port Phillip and Westernport Catchment generation of waste, and the impacts Consequently, peri-urban regions are Management Authority, only 5% of original of road construction and transport. In expanding further into rural and coastal vegetation remains.20 This is a significant addition climate change is becoming a areas. The expansion has driven increased concern in Wyndham and Melton where consideration in planning decisions on demand for transport infrastructure, urbanisation is driving a reduction in the the coast with some areas predicted to be such as freeways, ring-roads, and public extent of native grasslands on Victoria’s subject to inundation more frequently. This transport. Construction of these facilities volcanic plains, the most depleted issue is discussed in Part 4.1 Atmosphere, aligned to growth area planning along bioregion in the State (see Part 4.2 Land Climate Change, Part 4.2 Land and with public amenities, attracts new and Biodiversity, Vegetation loss and Biodiversity, Contemporary Land Use residents, further stimulating peri-urban modification). The challenge is to ensure Change, Part 4.4 Coasts, Estuaries and development.18 development does not put undue stress the Sea, and Part 5 Living Well Within Our on the environment; uses resources such Environment. as land, water, materials and energy efficiently; and allows replenishment of the natural resource base (see Part 4.2 Land and Biodiversity).

| 58 Part 2 Driving Forces

Figure DF3 Areas of Victoria classified as rural amenity based on 2001 census data Source: Victorian Government 2005

Peri-urban development also places Housing and Density The inner city also is becoming more pressure on infrastructure, including densely populated. In 2001 Melbourne With growing population there is increased water and sewer provision. In Victoria, had 50,673 inner city residents, while by demand for housing in both the inner and a number of major water storages are 2006 the number had grown to 76,67827, outer suburbs of Melbourne as well as in located in peri-urban regions, and urban (though this may be indicative in part of Victoria’s regional towns. In Melbourne sprawl creates additional demand for a boundary change). Two key groups are single person households tend to locate infrastructure development. Consequently, contributing to this trend: young adults in the inner areas, where there is greater the water supply needs of Melbourne have seeking proximity to work, education, availability of amenities matching lifestyle significant impacts on the urban fringe and and social and recreational venues; and choices23. By contrast families with the rural areas beyond.21 Environmental financially secure families and middle- children tend to locate in outer suburbs, impacts of peri-urban development aged people, looking for established where more affordable housing and larger include an increase in introduced housing in wealthier areas close to the lots are available24. Consequently for every species, a reduction in availability of core business district and amenities. person moving to the inner suburbs there productive agricultural land, conflicting Increased demand for inner city housing are five moving to the outer suburbs. This fire management needs, an increase has come about as “people put place (i.e. drives land-releases in Melbourne’s Urban in aesthetic dams, and degradation of a convenient location) ahead of space”28. Growth Zone.25 waterways.22 Increased tourism and Victoria has a large proportion of recreation, transport and road construction Much of the housing demand in middle detached dwellings (88%), compared all intensify these impacts. For example and outer urban areas comes from to higher density housing29. Detached road building leads to an increase in traditional patterns of household formation dwellings are considered to have a impervious surfaces, and hence increased whereby young people start families and greater environmental impact than vulnerability to flooding and damage to seek adequately sized and affordable high density housing, which is why the waterways. housing. The development of the urban Victorian Government is promoting urban fringe also results from established family consolidation and higher density housing households trading up into larger and through implementation of Melbourne newer dwellings26. This is accompanied by 2030. The average density of dwellings the ‘McMansion’ phenomenon, with poor per square kilometre in Victoria in 2006 climate-sensitive design and a large floor was 7.7 whilst the highest density was for area per occupant placing heavy stress the City of Melbourne with 817.1 dwellings on artificial climate control. Managing per square kilometre. In the outer urban expectations about what is appropriate LGAs with a fast rate of population growth housing design will be critical in sustaining the density was 47.8 for Melton, 67.7 for liveability whilst retaining affordability. Wyndham and 84.7 for Casey. The fastest

59 | State of the Environment Report - Victoria 2008 growing coastal LGAs, Surf Coast and Figure DF4 shows that as household traffic congestion, high and increasing Bass Coast showed a much lower density sizes have declined, the number of petrol prices and to a minor extent, of housing with 4.9 and 12.2 respectively. rooms per house has increased. Recently environmental concerns. There has been The regional LGAs with the fastest rates there has also been a marked rise in increased interest in the principles of of population growth, Golden Plains and floor area per house. The trend to larger Transit Oriented Development, which 2 Mitchell, had housing density of 2.0 and and more luxurious housing is a driver creates compact, walkable communities 3.62 dwellings per square kilometre.30 of consumption as each of these large centred on high quality public transport homes will require more furniture, fittings systems.36 Several factors are interacting to change and appliances than the smaller homes the structure of household formation. However transport in Victoria is still that were more common decades ago Changing attitudes towards partnering dominated by motor vehicles, both for (see Part 3.3 Materials). Further, as this and marriage, aging populations, and travel and freight. Only in the inner city trend is most evident on the urban fringes increasing divorce rates are leading does a sizeable majority travel to work by there are implications for biodiversity, food to a decline in the size of households. means other than car. In 2006 transport production and infrastructure as land use As is shown in Figure DF4 the number accounted for 16.7% of Victoria’s total changes from rural to urban (see Part 4.2 of persons per household has been greenhouse gas emissions.37 Motor Land and Biodiversity, Contemporary Land declining for many years. The average vehicles are a primary source of urban Use Change). household size in Australia is projected air pollution, with exhaust emissions to decline from 2.6 people per household Urban Form and Transport accounting for 77% of carbon monoxide in 2001 to between 2.2 and 2.3 people and 72% of oxides of nitrogen in the Port Melbourne is an energy intensive city in per household in 202631. This decline, Phillip region (see Part 4.1 Atmosphere, international terms, and in common with combined with an increase in the number Air Quality). Other impacts include other Australian cities, has a low-density of dwellings, has important social and increased noise and safety issues. Being urban form with high levels of car use. environmental implications, such as resource intensive, car use leads to Historically, changes in urban form have increased housing and land demand. greater environmental consequences interacted dynamically with changes Greater demand for household furniture than alternatives such as public in transport. Post Gold Rush Victorians and appliances, as well as space heating transport, cycling or walking. While more created a world-class rail-based public and cooling has led to an increased greenhouse gas efficient than cars, public transport system, which in turn helped requirement for ecosystem services which transport is nevertheless itself responsible create a spacious and accessible city. In provide the raw materials. for significant emissions through the the twentieth city, motor vehicles emerged brown coal-sourced electricity used to Social conditions also influence the as a major form of transport as the city power trains and trams, and the diesel way housing space is occupied. For spread and cross-suburban travel became 4&$5*0/$0-0634 used for buses. instance, children are now less likely to more important and oil availability and share bedrooms1"350/& than1"35580 they1"355)3&& were1"35'063 in the 1"35'*7& affordability encouraged motor vehicle Land use patterns, the location of past, leading to an increased number of use. After the Second World War the residences, employment services and bedrooms per house; there is also greater relative importance of public transport facilities respond to the available modes  1.4 1.4 1.4 1.4 demand for additional1.4 rooms, such as declined. The oil shocks of the seventies of transport. In Victoria a focus on road- games rooms. Accordingly Victorians tend heralded a new interest in public transport, building has enabled people to live in to occupy more/&653"-$0-0634 space per person. but Melbourne’s “car culture” persisted as locations once deemed too isolated from shown by extensive freeway construction.35 employment opportunities and the inner city in general. A direct consequence of Only in recent years has interest in this increased access to, and mobility 1.4 1.4 1.4 1.4 public transport assumed a sense of around, the outer suburbs is increased (3"1)4 urgency, as a consequence of continuing development.

Figure DF4 Change in average house size (rooms & floor area per house) compared to average household size (persons per house) 1.4Australia1.4 1911-2003.1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Data sources: Adapted from ABS 32,33,34 Note - Rooms per house not available after 1982; floor area not available prior to 1985.

6.0 300 2 Persons per house (left y axis) Floor area per house (right y axis) Rooms per house (left y axis)

5.0 250

4.0 200

3.0 150 Floor area per house - m

2.0 100 Persons per house / rooms Persons

1.0 50

0 0.0 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011

| 60 Part 2 Driving Forces

Transport featured prominently in the A social concern over increased car The Melbourne 2030 strategy seeks to recent independent audit report of dependency away from the centre of achieve urban efficiencies in areas such Melbourne 2030, which noted that Melbourne has been illustrated through as infrastructure and energy use, reducing providing a greater range of transport the VAMPIRE index42 (see Figure DF6) social and environmental costs in areas options and reducing car dependency which demonstrates that the social and such as water, congestion, travel patterns both encourages physical activity and economic impacts increase with distance and urban sprawl. While this initiative enhances liveability. It recommended that away from the CBD. It indicates that demonstrates government commitment ‘transport should be the servant of land car dependency in the outer suburbs to improving sustainability, there are uses, not the dictator’38. of Melbourne will lead to increased recognised gaps and shortfalls in the vulnerability to future rises in oil prices implementation. Greater investment in Peri-urban development has increased the for those residents because a higher rail and bus services and the provision of average distance travelled to work. Longer percentage of the household budget more walking and cycling paths, would journeys mean higher emissions per trip is spent on transport, pushing up the achieve greater urban efficiency. and increasingly complex road navigation. total cost of living. Victoria’s public This may lead to less family time, more Transport pricing which made those transport issues are discussed further sedentary lifestyles resulting in health responsible for social and environmental in the Commissioner’s separate reports, problems such as obesity, increased pressures associated with car use bear Creating a City That Works43 and Public traffic congestion and air pollution. The a commensurate proportion of the total Transport’s Role in Reducing Greenhouse distribution of mobility choices is uneven cost would remove current incentives to Emissions44. Reports are available from across the metropolitan area; people living depend on passenger cars. Regulation is www.ces.vic.gov.au. in inner Melbourne have a wider range of needed to induce individual consumers transport options, whereas people living in The legacy of past urban transport and businesses to buy vehicles with outer suburbs are more car dependent.39 planning in Victoria is car dependency greater fuel efficiency, and to adapt as a result of policies that favoured road existing fleets where possible. Budgetary There has been a dramatic rise in car trips building at a higher rate than development allocations should avoid funding the taken to work over the last 30 years, with of public transport. This reflected a model continued expansion of urban road Melbourne experiencing the largest where demand for roads drove policy. networks to the detriment of public increase of any capital city, from 56.1% in There is now a shift in policy direction transport. Independent auditing and 1976 to 72.6% in 2006. Only 43% of this represented by the government’s Meeting improved institutional coordination are increase is attributable to a growing Our Transport Challenges plan (MOTC) also important.46 See also Part 3.3 Energy workforce, the remaining 57% resulted indicating emphasis on funding public for further information on transport in from a shift away from more environmentally transport with a commitment to spend Victoria. friendly modes of transport40. Between 4&$5*0/$0-0634 $10.5 billion on Victoria’s transport 1985 and 2006 metropolitan Melbourne’s 1"350/& 1"35580 1"355)3&& 1"35'063 1"35'*7& network from 2006 to 2016. The 2008 demand for urban mobility increased by budget delivered more than $429 million 45%, as measured by person-kilometres. in projects in addition to the Government’s The vast majority (93% in 2006) of this  1.4 1.4 1.4 1.4 MOTC commitments. The Victorian demand was1.4 met by the private passenger Government is also expected to release car (see Figure DF5). In terms of an updated transport strategy by the end vehicle-kilometres/&653"-$0-0634 travelled (VKT), travel of 2008. demand in metropolitan Melbourne increased from 28.08 to 31.8 billion 41 kilometres between1.4 1.4 2001 1.4and 20061.4 . (Note this data does not capture more (3"1)4 recent shifts to public transport use in response to rising petrol prices.)

1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Figure DF5 Metropolitan Melbourne travel demand as measured by person-kilometres travelled (PKT) Source: ACG & RMIT Note: The period 1992/93 - 1998/99 (dotted lines) includes cycling & walking in Melbourne as estimated by the Victorian Activity and Travel Survey, 1993 – 1999 (VATS). 60,000 Cars All other modes Total 2005/06 - 55,328 millions PKT

50,000 millions PKT

40,000

30,000 Cars Trams Trains 20,000 Motor cycle Bus

10,000

0 84/85 87/88 90/91 93/94 96/97 99/00 02/03 05/06

61 | State of the Environment Report - Victoria 2008 DF3 Economic Growth and Consumption Figure DF6 Vulnerability assessment for mortgage, petrol and inflation risks and To achieve sustainable development expenditure (VAMPIRE) assessment for Melbourne. High values indicate Victorians must, in the words of the 1987 higher levels of vulnerability. Brundtland Report, “meet the needs of Source: Dodson and Sipe (2004)45 the present without compromising the ability of future generations to meet their 2 own needs”47. Whilst there was some recognition at the time that economic growth was impacting on the environment, there was considerable discussion in the 1990s about the prospect that economic growth and rising incomes could lead to better environmental quality48. However it is now more widely accepted that current patterns of economic development represent a primary driver in the depletion of global natural resources. The Millennium Ecosystem Assessment Report (2005) stated that substantial net gains in human well-being and economic development have been achieved at the expense of ecosystem services essential to life49. According to the Limits to Growth Report: The 30-Year Update, humanity’s demands are exceeding the Earth’s carrying capacity50. This is also shown by the Ecological Footprint which shows that humanity is using resources at a greater rate than that at which they are being replenished. The Footprint tracks the capacity of the planet to provide ecosystem services in terms of biocapacity – the amount of land required to provide for the needs of humanity. Since the late 1980s the planet has been in overshoot, that is, the Ecological Footprint exceeds the biocapacity of the Earth. This means that people are turning natural resources into waste at a faster rate than nature can turn waste back into resources. This pressure drives habitat destruction or degradation, threatening natural systems and human well-being.51 (See Part 3 Production, Consumption and Waste for information on Victoria’s Ecological Footprint.) The conversion of natural materials into producer and consumer goods places increasing pressure on the environment because per capita and total consumption continues to increase. Economic growth is not achieved in ways that take full account of the environmental impacts (rather it involves unsustainable levels of resource consumption and waste production), and the environment is not properly valued in market exchanges and decision-making (see Part 3.3 Materials.)

| 62 Part 2 Driving Forces

While increased consumption is a global Valuing the Environment The cost of water, energy and waste trend, the highest rates of consumption The economy tends to operate on the disposal in Victoria does not currently occur in wealthier, developed nations; principle that companies and individuals account for the full environmental cost 56 there is a clear correlation between choose cost-effective alternatives, which benefits ratio . Electricity costs in Victoria, a nation’s standard of living, its per historically has led to a prioritisation of which are low because environmental capita consumption and its ecological fiscal gains over environmental benefits. costs are not fully captured, offer little footprint. As developing nations expand, Governing frameworks, legislation and incentive for consumers to cut their their consumption can be expected to policies within contemporary approaches energy use, or switch to alternatives such increase, which is likely to place even to economic management seek to be as slightly more expensive renewable greater pressure on the Earth’s non- market-friendly. It is only in cases of sources. renewable resources. Industrialisation market failure that the government has Likewise, it is relatively cheap to send of developing nations is also increasing a strong policy imperative to intervene. waste to landfill, so there is little incentive global consumption of fossil fuels, thus Such interventions may themselves take to seek alternative ways to dispose contributing to climate change. market forms, as with Australia’s proposed of waste or better still, reduce waste The 2004 CSIRO report Environmental emissions trading scheme. production at the design stage. Thus Sustainability Issues Analysis for Victoria Economic growth is generally measured there is a danger that it appears cheaper addressed the link between GDP growth by statistics such as the growth in gross to degrade the environment than to and its environmental impacts. The domestic product (GDP), or gross state conserve it. This has been graphically authors used energy use to illustrate the product (GSP), which show the value illustrated at contaminated sites such as challenge facing policy makers: of goods and services produced by the the Metropolitan Fire Brigade complex in Burnley and the former Cranbourne “Despite major changes to the structure nation or the state per year. Reflecting the landfill; both examples of contamination of the economy, primary energy use market environment discussed above, from former land use (see Part 3.3 (predominantly fossil fuels) and GDP GDP is confined to values registered by Materials). These incidents clearly have been growing together at an monetary transactions. This misses some demonstrate that polluters effectively average rate of 3.6 % per year throughout important contributions to well-being. defer substantial risks and costs to later the 20th century. There may be no Moreover it registers some negative generations. necessary connection between energy phenomena as if they were positive. As use and GDP, but the close correlation Dowrick and Quiggin put it: The challenge of fully capturing suggests a structural constant of the “No allowance is made for environmental environmental costs and benefits appears Australian economy. Breaking this differences, non-market household in a number of guises. In costing long- correlation would require changes to the production or production and term projects, such as wind farms or 52 current development path.“ consumption externalities. For example, coal-based power generation, a discount rate is applied to future costs and benefits One aspect of our development path that if polluting industries cause illnesses that to measure them against present values. needs review is how we assess the costs require expensive medical treatment, There has been much controversy over and benefits of actions that impact on the both the output of the polluting industry how to discount environmental costs and environment (see Part 5 Living Well Within and the expenditure on medical services benefits in such contexts.57 Another related Our Environment for more information on will be counted as part of GDP. Thus, issue is ‘opportunity cost’, which involves decoupling). aggregate output may increase whilst well-being declines.”53 the costs associated with alternative courses of action. When contention Conventional growth measures may fail arises over these issues, it is commonly to alert us to serious problems because about differing assumptions underlying these problems are ‘externalities’ – i.e. economic models, which may reflect they lie outside conventional economic different community interests. Part 5 of this and market frameworks. Consequently report explores alternative measures of GDP is an unsatisfactory measure of growth and well-being. human well being. 54 To identify environmental externalities, This statistical issue reflects a serious accurately value them, and regulate the market failure, in that the market does not market to ensure this value is reflected adequately value environmental services in human behaviour represents a major and assets. If the environment is not ‘paid’ policy challenge. Part 5 Living Well Within for its services, they appear to be without Our Environment considers a range of cost to those using them. For example, economic instruments which may assist. an industrial plant may release effluent into a river. If the plant were not charged for this activity, use of the river to dispose of effluent would appear ‘free’ – and free (or underpriced) goods and services tend to be overused. Ultimately, of course, the cost would register when someone had to pay to clean up the river.55

63 | State of the Environment Report - Victoria 2008 Economic trends necessarily reduce overall environmental dominated by the service sector (see impacts; indeed it could conceivably Figure DF8), with manufacturing retaining Australia has enjoyed the benefits of a intensify them or at the very least increase a certain importance. Victoria’s service global resources boom, driven to a large pressure not to adequately treat current sector has grown since 1990 in its extent by rapid growth in developing and emerging environmental degradation. contribution to the State’s economy from countries such as China. Consequently 2 Whilst the growth in total consumption 47% to 60% in 2006. Manufacturing and it has experienced relatively strong would be likely to slow, industry and the primary industries are also significant growth over recent years. From 1997 to community might face new economic contributors to the Victorian economy, 2006, Australia experienced an average pressures (such as reduced profitability providing close to 20% of Victoria’s total annual growth4&$5*0/$0-0634 rate of 3.5% for GDP in 58 and concerns about unemployment) which factor income (see Figure DF8). However, real terms, higher1"350/& than1"35580 any1"355)3&& ‘G7’1"35'063 country1"35'*7&. compete for attention with environmental primary industry’s contribution to the Commensurately, in the decade to 2005- concerns. Also, there may be increasing economy has declined from 7.5% in 06, Victoria experienced an average pressure to not harm economic growth 1990 to 5% in 2006. The manufacturing, annual GSP growth 1.4 rate of1.4 3.6%1.459. 1.4 1.4 during periods of worldwide financial electricity, gas, water and construction As shown in Figure DF7 Victoria’s volatility. This may delay or influence sectors have also experienced some economy has/&653"-$0-0634 been growing at a faster the effectiveness of the implementation decline in their relative contribution to the rate than population, an indication of an of emissions trading as the principal economy. increasingly affluent society. Since 1990 measure to reduce levels of greenhouse Victoria’s exports comprised 18.8% of Gross State Product1.4 1.4 has grown1.4 1.4by more gas emissions. Australia’s total exports in 2000-01. In than 60%. However, more recently the (3"1)4 The overall structure of the economy 2004, Victoria exported almost $26 billion global economic environment has become contrasts with the structure of exports. of goods and services with food and much more challenging, causing GDP The economy as a whole is increasingly manufacturing the key drivers of export growth to slow.62 Slower growth would not 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4growth.1.4 Dairy1.4 is the largest component Figure DF7 Victorian GSP compared to population of Victoria’s food industry providing $2.3 Source: ABS60,61 billion in exports in 200064. 300 7 Victorian GSP Victorian population In 2007-08 Victoria’s merchandise exports left y axis right y axis were valued at $20.5 billion, making up

Millions 11.4% of Australia’s merchandise exports. 6 250 Manufactured products contributed 86.5% Billion $AU of the total Victorian value of exports,

4&$5*0/$0-0634 5 with the Food, Beverages & Tobacco 200 Industry exports valued at $5.4 billion and 1"350/& 1"35580 1"355)3&& 1"35'063 1"35'*7& Metal Products Industry exports valued 4 at $5.3 billion. The biggest contributing 150 industry groups were motor vehicle  1.4 1.4 1.4 1.4 1.4 3 & parts manufacturing valued at $2.8 billion and Dairy product manufacturing 100 /&653"-$0-0634 valued at $2.4 billion. Direct exports 2 from Agriculture, Forestry and Fishing contributed 5.9% of the total Victorian 50 1.4 1.4 1.4 1.4 value in 2007-08. Mining Industries exports 1 (3"1)4 were valued at $327 million or 1.6% of the total.65 0 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 Resource Intensity in Victoria Figure DF81.4 Victorian1.4 Industries1.4 1.4 19901.4 – 20061.4 as a1.4 contribution1.4 1.4 to Total1.4 Factor1.4 Income1.4 1.4Victoria’s1.4 1.4 economy exhibits increases in Source: ABS 200663 the efficiency of a number of key indicators NOTE: Total factor income is a measure of industry’s contribution to the economy of resource use (pressure per million 100% Construction dollars worth of GSP). However, increased Electricity, efficiency does not necessarily equate to gas & water a reduction in absolute pressure. In fact Manufacturing increasing efficiency, by reducing prices, 80% Mining can induce greater consumption, which Agriculture, may lead to increased pressure and forestry & fishing potentially to increased environmental All services 60% degradation. This phenomenon is sometimes called the rebound effect.

40%

20%

0% 1990 1992 1994 1996 1998 2000 2002 2004 2006 Industry percentage contribution to total factor income factor total to contribution percentage Industry | 64 Part 2 Driving Forces

Box DF1 Defining the Indirect: Even if consumption of energy improvement, so a rebound effect of 20% rebound effect: services remains unchanged, there are means that only 80% of the expected reasons why energy savings across energy savings are achieved. Direct: Many energy efficiency the economy may be less than simple improvements do not reduce energy Disputes over the magnitude of rebound calculations suggest. For example, consumption by the amount predicted effects arise in part from a lack of clarity drivers of fuel-efficient cars may spend by simple engineering models. This is about definitions. Energy efficiency the money saved buying petrol on other because, as rising efficiency makes can be measured in a variety of ways, energy-intensive goods and services, energy services cheaper, the lower costs for example using physical indicators such as an overseas flight. Similarly, any encourage consumption. For example, (tonnes of coal to produce a tonne of 4&$5*0/$0-0634 reductions in energy demand will translate since fuel-efficient vehicles make travel steel) or economic ones (energy per 1"350/& 1"35580 1"355)3&& 1"35'063 1"35'*7& into lower energy prices which encourage cheaper, consumers may choose to unit of output measured in dollars). increased energy consumption. These drive further and or more often, thereby Energy efficiency can also be measured mechanisms are collectively known as offsetting some of the energy savings at different levels, for example for an  1.4 1.4 1.4 1.4 indirect rebound effects. The sum of direct achieved. Similarly,1.4 if a factory uses individual manufacturing process, a and indirect rebound effects represents energy more efficiently it becomes more factory, a company, a sector or even the the economy-wide rebound effect. profitable, /&653"-$0-0634thereby encouraging further economy as a whole. Estimates of the Rebound effects are normally expressed investment and greater levels of output. rebound effect therefore depend upon as a percentage of the expected energy This is termed the direct rebound effect. the indicators chosen and the level of savings from an energy efficiency 66 1.4 1.4 1.4 1.4 analysis .

(3"1)4

Figure DF9 The estimated environmental intensity of the Victorian economy: Energy use (A), CO2-e emissions (B), waste (C)

1.4and water1.4 use1.4 (D)1.4 per $million1.4 1.4GSP 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Source: ABS, ABARE, DSE and Sustainability Victoria 67,68,69,70,71. A. B. 1,600 0.010 160,000 0.80 Energy use Energy use per $m/GSP CO2 -e emissions CO2 -e emissions per $m/GSP

0.008 1,200 120,000 4&$5*0/$0-0634 0.60 -e (gigagrams) PJ per $ million 2 Energy use (PJ) 1"350/& 1"35580 1"355)3&& 1"35'063 1"35'*7&

0.006 CO

 1.4 1.4 1.4 1.4 1.4

800 80,000 0.40 -e emissions per $ million 2

0.004 /&653"-$0-0634 CO

400 40,000 0.20 0.002 1.4 1.4 1.4 1.4

(3"1)4

0.000 0 0 0 1990 1994 1998 2002 2006 19901.4 1.419941.4 1.419981.4 1.42002 1.4 20061.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4

C. D. 12 50 600,000 4.0 Recycling & Landfill Water consumption Water consumption per $m/GSP Recycling & Landfill per $m/GSP 45 10 40 3.0 35 8 400,000 30 tonnes per $ million Waste (million tonnes) Waste Megalitres per $ million 6 25 2.0

20 Water consumption (megalitres) Water 4 200,000 15 1.0 10 2 5

0 0 0 0.0 1990 1994 1998 2002 2006 1990 1994 1998 2002 2006

65 | State of the Environment Report - Victoria 2008 DF4 Summary

For example, the Victorian economy is This section has identified and discussed becoming more efficient in its use of the key drivers of environmental energy. In 1990 0.0077 petajoules were degradation: climate change; population consumed for every million dollars worth growth and settlements; and consumption of GSP generated, while by 2006, this associated with economic growth. Their 2 had been reduced by 22% to 0.0063 wide-ranging impacts are explored petajoules. Over the same period throughout this report. Most immediately however, total energy use increased 30% they inform the analysis of energy, water (see Figure DF9). While efficiency has and materials in Part 3 Production, increased, absolute pressure has also Consumption and Waste. Then in Part increased. The same pattern is observable 4: State of the Environment, the drivers for CO2 emissions. For material flows there are reflected in the discussions of is no significant decoupling of waste from atmosphere, land and biodiversity, inland the economy and in terms of absolutes waters; and coasts, estuaries and the sea. waste production more than doubled from A challenge for the Victorian community 1994 to 2007 (see Part 3.3 Materials). is to find solutions to break the cycle and The combined effect of efficiency put the State on track to truly become improvements and demand management a sustainable State. Options for new measures (restrictions) created as a result directions are explored in Part 5: Living of scarcity has resulted in a decrease in Well Within Our Environment, which water consumption. Efficiency gains are re-examines the drivers in light of the more likely to translate into decreased findings, and suggests solutions. consumption if they are accompanied by other factors such as scarcities, economic incentives and/ or government regulation.

Photo: Jane Tovey

| 66 Part 3 Production, Consumption and Waste

Production, Consumption and Waste

67 | Contents

PCW0 Introduction 72 Key findings 72 What are production, consumption and waste? 73 Key resources 73 Energy 73 Water resources 73 Materials 73 Resource consumption in Victoria 74 3 Measuring consumption 74 Victoria’s Ecological Footprint 75 The impacts of production and consumption on the environment 76

3.1 Energy 78 Key findings 78 Objectives 78 Description 79 Victoria’s energy resources 80 Primary energy consumption 81 Indicator E1 Primary energy consumption 81 Conversion, transmission and distribution 82 Final energy consumption 84 Indicator E2 Final energy consumption 84 Stationary energy 85 Indicator E3 Sectoral final energy consumption 85 Manufacturing sector 85 Residential sector 86 Commercial and services sector 87 Drivers of final energy consumption 87 Environmental pressures 88 Indicator E4 Greenhouse gas emissions 88 Indicator E5 Water extraction, consumption and flow 90 Indicator E6 Land disturbance and rehabilitation 92 Indicator E7 Air pollutants from stationary energy 92 Transport energy 93 Indicator E8 Final transport energy consumption 93 Environmental pressures 94 Indicator E9 Greenhouse gas emissions from transport 94 Indicator E10 Air pollution from transport energy 95 Biofuels 96 Transport funding 96 Management Responses 96 Reducing greenhouse gas emissions 97 Reducing energy demand 98 Increasing renewable energy 100 Reducing transport emissions 102 Reducing water consumption in energy generation 103 Evaluation of management responses 103 For further information 105

| 68 Part 3 Production, Consumption and Waste

Contents

3.2 Water Resources 108 Key findings 108 Objectives 108 Description 109 Water Resources 109 Rainfall 110 Surface Water 111 Over-allocation 114 Water Storages 115 Groundwater 117 Managing groundwater 117 Trends in groundwater levels 118 Harvesting Water 119 Major schemes 119 Goulburn-Murray Irrigation District 119 Melbourne Water Grid 119 Macalister Irrigation District 120 Wimmera-Mallee Stock and Domestic Supply system 120 Hydro-electricity and power generation 121 Urban Water harvesting 121 Recycled water 122 Stormwater and drainage 122 Rainwater 123 Grey water re-use 123 Water consumption 123 Irrigated agriculture 125 Residential and non-residential consumption 127 Residential consumption 127 Non-residential consumption 128 Unaccounted water 128 Pressures on the environment 130 Climate change 130 Surface water harvested for consumptive use 131 Modification of flow regimes 132 Impact on groundwater dependent ecosystems 132 Loss of habitat connectivity 132 Water Pollution 133 Cold water pollution 133 Increasing salinity 133 Nutrients, toxicants and pathogens 133 Management Responses 133 Evaluation of responses 138

69 | 3.3 Materials 142 Key findings 142 Objectives 142 Description 143 Production and Consumption of Materials 144 Primary industries 146 Minerals 146 Agriculture 146 3 Fisheries 147 Forestry 148 Primary industries - Summary 148 Hidden flows 148 Construction, manufacturing, imports and transport 149 Construction and manufacturing 149 Imports 150 Trade and transport 151 Construction, manufacturing, imports and transport – Summary 152 Consumption of materials 152 Material outputs; waste and recycling 153 Production and consumption of materials - Summary 155 Material Use and Environmental Pressures 155 Environmental disturbance and resource depletion 155 Hypothetical modelled scenario - Agriculture and land degradation 155 Summary 157 Embodied energy and water 157 Embodied energy 157 Embodied water 159 Summary 160 Environmental pressures of waste 161 Landfill 162 Recycling 163 Prescribed waste 164 Unmanaged waste – Litter and dissipative outputs 164 Summary 165 Lifecycle assessment – Case studies 165 Case study 1 – A packet of corn chips 166 Case study 2 – Dulux paint 167 Summary 167 Management Responses 168 Evaluation of management responses 171 For further information 171

| 70 IntroductionProduction, Consumption and Waste Part 13 Introduction

Production, Consumption and Waste Introduction 71 | State of the Environment Report - Victoria 2008 PCW0 Introduction

Key Findings • Current patterns of resource use in Victoria are unsustainable. The way many resources are used, and the amount that is used, is placing stress on natural systems. • The Victorian Ecological Footprint is three times larger than the world average. Energy generation and consumption has the single biggest impact on Victoria’s ecological footprint. 3

• To date resource efficiency gains have generally fed into higher Introduction economic productivity, not environmental benefits. Increasing 3.0 the efficiency of resource use is essential but insufficient unless it can demonstrate a reduction in absolute environmental impacts/pressures. • To address sustainable consumption and production requires significant technological research and development with an increased emphasis on appropriate governance frameworks, industry partnerships and behavioural change.

| 72 Production, Consumption and Waste Part 3 Introduction

What are production, The consumption choices we make as Energy consumption and waste? individuals, and as a wider community, The Energy section explores the can result in a significant impact on the This section represents Victoria as an fundamental issues relating to the natural environment. In 2005 a study integrated system having inputs of energy, supply of and demand for stationary found that Australian household wasteful water and materials and outputs of goods and transport energy in Victoria, and consumption, that is, annual spending on and services, pollution and waste. The the key implications of the extraction, unused goods and services, amounts to way these resources are produced, processing, distribution and use of energy over $10.5 billion per year, of which food used and discarded can place a direct for the environment, such as greenhouse accounts for $5.3 billion1. Household pressure on the natural environment. The gas emissions, land disturbance, water energy consumption patterns, production specific focus in this section of the report extraction and emission of air pollutants. of waste, as well as our choices about is in identifying pressures that result from Key issues reported include the range of modes of transport are all part of a chain production and consumption of the key fuels used, the efficiency of conversion of decision making which has implications resources of energy, water and materials, and processing of fossil fuels into a that are identified here and further and the waste generated from using those useable form; the efficiency of distribution; explored in Part 4 of the report. resources. as well as the level of demand for energy. To a large extent the activities analysed Also covered is the influence of population Energy, water and material resources are here encompass the physical processes growth, economic activity, and consumer fundamental to human well-being and resulting from the driving forces, upon choices. economic prosperity. The way in which which Victoria’s industrial economy resources are used and the amount used Water resources depends. Physical processes are has created pressures on the environment. understood to mean the energy, water The Water section examines the trends Current patterns of production and and material ‘stocks and flows’ involved in water storages, consumption across consumption have resulted from a narrow in maintaining our livelihoods. Victorians, different industry sectors and the Victorian historical focus of exploiting resources for and the Victorian economy, are reliant on community. It identifies key pressures on human needs and to maximise economic the natural environment; it is the very basis the natural environment resulting from utility. However, ecosystems have been for our way of life and as such should be the water extraction, storage, supply and under-valued and mostly un-priced in managed well, not only for its own intrinsic consumption system. Governance and societal decision-making and damage to value but also for the essential services a the structure of the industry are described. the natural environment has occurred as healthy environment provides for Victoria. Demand management tools, used at least costs have been externalised. in part to reduce pressure on rivers, such Potential approaches to encourage In the previous section broad level driving as the water market and pricing are also more sustainable production and forces affecting environmental change discussed. consumption are outlined. This includes were identified. The socio-economic recommendations on how management Materials drivers, population and settlements, and responses could be further enhanced economic growth and consumption, have The Materials section provides an or scoped for implementation in light of important implications for production overview of the use of natural resources international, national and state policy and consumption processes, which in used for production of goods and approaches (including approaches turn have direct impacts on the natural services, which can ultimately become undertaken in partnership with industry). environment. In order to promote more waste released to the environment. The potential of Material Flow Accounting tools sustainable behaviour patterns, it is Key resources critical to improve understanding of is explored, and through use of case those processes that lead to depletion This section examines the key resources studies, the flow of the natural resources or degradation of natural resources. of energy, water and materials. These used to produce goods and services are This part of the report examines in more resources were chosen as their use has a highlighted as they are used, recycled or detail the key human activities driving direct impact on the natural environment. enter the waste stream. natural resource consumption and waste Energy is the major source of greenhouse generation in Victoria. gases associated with climate change, and in Victoria is a particularly difficult A range of activities and processes have issue to deal with as the State places been identified as having the potential to such reliance on energy supplied from significantly impact on the environment, brown coal, one of the most greenhouse and include both the natural resource intensive of all energy options. Water or primary industry sectors, such as is also a key issue for Victoria as with agriculture, forestry, fishing and mining, ongoing drought and significantly reduced and other activities and processes such flows, maintaining security of supply must as energy generation and consumption, be balanced against critical base flows manufacturing, transport, water usage, needed to maintain river health. Materials urbanisation, tourism and waste are the physical substance that provides generation and disposal. The impacts of the basis for Victoria’s economy. As shown these activities and processes can be both in the previous section on driving forces positive and negative for the environment. as population and affluence increases While they can include many ‘risks’ consumption of material resources and or ‘pressures’ there are also potential manufactured goods also increases. ‘opportunities’ for better managing the This places pressure on the natural environment and changing behaviour. environment through resource depletion, disturbance of ecosystems and also through the water and energy needed to produce and transport those goods.

73 | State of the Environment Report - Victoria 2008 Resource consumption in Victoria Smarter production and consumption, Measuring consumption whereby resource intensity decreases, Due to significant commodity exports, There are various tools for measuring and forging optimal policy and process Australia has one of the highest material consumption. Victoria’s Ecological solutions to these are essential. However, resource requirements per capita in the Footprint is a ‘snapshot’ indicator efficiency is not enough unless it can world. Victorians are one of the highest for understanding resource use and demonstrate a reduction in absolute per capita users of energy in the world. implications, with the size of the footprint environmental pressures. If this cannot Victorian water consumption per capita reflecting the impact attributable to be demonstrated then strong demand has historically been one of the highest in resources used to satisfy needs such as 3

management is required. Energy and Introduction the world, although through a combination food, shelter, health, energy and mobility. material use is increasing as a trend and of efficiency and scarcity (restrictions), An updated Ecological Footprint report 3.0 water use exceeds that available to ensure consumption has dropped in recent years. for Victoria illustrates the level of resource healthy inland waters and ecosystems. use compared to the world’s available Connections are being made. There is However, in many cases, the current resources. Ecological Footprints are now an increasing recognition that human economic value of resources does not used as a tool to communicate overall resource use has been detrimental to the reflect the ‘true value’ of the resource resource use, however they are limited natural environment. Improving humanity’s and so costs to the environment are in their capacity to measure the impact stewardship of the environment requires externalised. Society generally recognises of policy changes discretely. They do, a fundamental change in the way in that it cannot continue to exploit its natural however provide information that can be which natural resources are exploited to resources as if there is no impact on the used to illustrate where excessive levels of ensure a sustainable environment both environment, yet actions to address these resource are being consumed. now and into the future. Governments have, to date, been insufficient. are increasingly taking environmental September 23rd in 2008 marked an policy to their centre, however, the unfortunate milestone: the day humanity extent of degradation, creates increased used all the resources nature will urgency for stronger action. More regenerate in the year, according to Global forceful measures need to be adopted Footprint Network data. Earth Overshoot including internalising impacts (polluter Day marks the day when humanity begins pays and price signalling), a step-change living beyond its ecological means. in investment in technology, and the re- Beyond that day, we move into the design of production and consumption ecological equivalent of deficit spending, patterns in society to drive those with less utilising resources at a rate faster than environmental impacts. what the planet can regenerate in a calendar year.

Figure PCW1 Increasing Global Ecological Overshoot (2008) Source: Global Footprint Network

| 74 Production, Consumption and Waste Part 3 Introduction

Victoria’s Ecological Footprint On a global scale it is important to note Australia as a rich nation has a footprint that it is mostly developing nations that higher than the average but Victoria’s have footprints below the global average own footprint is even higher such that if biocapacity of 1.8 gha, although a everyone lived like Victorians, almost four number of large developing countries, planets would be needed. There is only most notably but by no means the one available. This indicates that - in the only countries, China and India, are global context – Victorians’ way of life is dramatically increasing their consumption not sustainable. profiles. On a global scale a small number of rich nations are currently consuming The Ecological Footprint measures well in excess of global and even local biocapacity in global hectares (gha), biocapacity. which represent the average yield of all biologically productive areas on Earth. Figure PCW2 shows the twelve largest There are currently 1.8 gha available per Ecological Footprints and Victoria far person. Since the 1980s the planet has exceeding the 1.8 gha available. The been in “ecological overshoot” as the graph also compares the footprints of world’s population uses resources at a China at 1.6 gha and India at 0.8 gha faster rate than they can be replaced. indicating that although these are fast This pressure drives habitat destruction or developing countries their footprints degradation, threatening natural systems are currently still well below the global and human well-being, see Figure PCW1. average biocapacity of 1.8 gha. It is clear that Victorians need to reduce On average Victorians consume 6.8 gha their Ecological Footprint. Ways in to support their lifestyle for one year. This which Victorians could reduce their equates to a total Footprint of 33 million environmental impact are to live ‘smarter’ gha, or one and a half times the land area by choosing goods and services that have of Victoria. Victoria’s Footprint is three a small footprint, reducing their overall times higher than the world average of electricity consumption and switching 2.2 gha per person. The impact of energy to less emissions intensive electricity is the biggest4&$5*0/$0-0634 contributor to Victoria’s (GreenPower). footprint. This is largely due to Victoria’s 1"350/& 1"35580 1"355)3&& 1"35'063 1"35'*7& reliance on emissions-intensive electricity For information on the specific findings generation and use. of Victoria’s Ecological Footprint refer to Office of the Commissioner for  1.4 1.4 1.4 1.4 1.4 Environmental Sustainability website www. ces.vic.gov.au. /&653"-$0-0634

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1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Figure PCW2 Twelve largest Ecological Footprints by country compared to Victoria, China and India (2006)2

12 11 10 9 8 Victoria Australia 7 High income country average 6 Global hectares per person 5 4 3 Middle income country average 2 World available 1 Low income country average 0 UK UAE USA India China Kuwait France Estonia Finland Canada Victoria Sweden Australia Belgium & Luxembourg New Zealand

75 | State of the Environment Report - Victoria 2008 The impacts of production and Specific recommendations for action Recommendation consumption on the environment included: PCW1 The Victorian Government As seen in the previous section on • Identifying and eliminating perverse should form and implement the Driving Forces, both the inefficiency and subsidies. Sustainable Production and the absolute levels of consumption and • Internalising environmental costs (due Consumption Taskforce, as detailed production are two of the major drivers to lack of policy frameworks to provide within the Environmental Sustainability influencing environmental change. signals to business). Action Statement (ESAS), 2006. Consumption in particular bears many 3 direct and indirect impacts on the • Shifting tax from labour and profit to Introduction environment, both local and global. The resource use and pollution. 3.0 United Nations Environment Program • Developing and implementing (UNEP) considers “unsustainable patterns economic instruments. of consumption and production (to • Promoting voluntary initiatives and be) a primary cause of climate change negotiated agreements6. and (this) leads to other ecological and social challenges. These include: land The total level of material and energy degradation, air and water pollution, and consumed in Victoria is increasing due to resource depletion”3 and risks to social a range of factors, including population cohesion, economic growth and geo- growth and societal affluence. Within political security. both national and state (and indeed international) governments’ policy UNEP is encouraging the development measures to date, there remains a lack of of integrated national programs on certainty around their capacity to deliver Sustainable Consumption and Production the gains required to reduce absolute (SCP). Recently guidance was developed environmental pressures. Key national drawing on several case studies from and State policy measures supporting participating nations. This has enabled the sustainable consumption and production UNEP to develop guidelines on SCP4. The are the proposed Carbon Pollution guidance provides advice to government Reduction Scheme (CPRS) along with on how to plan, develop, implement and a range of complementary and sectoral monitor a national SCP program aimed measures including technological at taking an integrated approach to development, water supply efficiency and accelerating the shift toward decoupling demand management programs and economic growth from environmental waste minimisation through resource use degradation. efficiency. The current Commonwealth Government However commentators7 argue that the approach to sustainable consumption current focus on technological and big and production has highlighted a number project solutions misses out on other of strengths and weaknesses. A recent solutions with lesser economic and review of national policy approaches environmental costs. Market-oriented on the resource efficiency of Australian solutions are seen as critical in that they industry was undertaken. The report’s seek to internalise environmental impacts analysis identified “clear evidence of through pricing mechanisms, both market, policy and organisational failures incentive and penalty-based. However, in regard to the uptake of resource for a range of reasons their efficacy is efficiency. Markets insufficiently convert constrained and strong complementary society’s expectations for a clean measures continue to be required. environment into business opportunities for clean and resource-efficient products As discussed earlier, high levels of and services. To achieve resource optimism with respect to technological efficiency, businesses need to look advances and efficiency fail to beyond cost savings through minimisation acknowledge the risks involved and the of process wastes, and include value potential for efficiency rebounds, (see Part adding, innovation and flexibility”5. 2: Driving Forces and Part 5: Living Well Within Our Environment). The implications of the pressures resulting from resource use and consumption on different aspects of the natural environment are explored in Part 4 of this report.

| 76 Part 4 State of the Environment

State of the Environment

173 | Contents

Introduction 184 Key findings 184 Victoria’s natural environment 185 A0 Introduction 188 Key findings 188 Victorian atmosphere assets 189 Overall Condition 190 Condition of the climate 190 Condition of stratospheric ozone 190 Condition of air quality 190 Pressures on Victoria’s atmosphere 190 Management Responses 191 Reducing Greenhouse Emissions 191 Reducing Emissions of Ozone Depleting Substances 191 Improving air quality 191 Evaluation of atmosphere responses 191 Issue A1 Climate change 192 Key findings 192 Observed changes 192 4 Projections 192 Context and policy responses 192 Description 193 The climate challenge 193 Scientific evidence 193 Australia’s vulnerability 194 Objectives 194 A1.1 The natural and enhanced greenhouse effect 195 Global climate change: A disturbing picture 197

Stabilisation of atmospheric CO2 levels: International and national perspectives 200 A1.2 State of the climate 202 Indicator A1 Observed surface temperature 202 Indicator A2 Projected changes in temperature 204 Indicator A3 Observed average rainfall 204 Indicator A4 Projected changes to average rainfall 205 Indicator A5 Observed inflows to storages 206 Indicator A6 Projected runoff to dams and catchments 207 Indicator A7 Snow cover 207 Indicator A8 Incidence of drought 207 Indicator A9 Observed Sea level 208 Indicator A10 Projected sea level 208 Indicator A11 Projected Wind Speed 209 Regional climate change projections 209 Indicator A12 Trends in greenhouse gas emissions in Victoria 210 Indicator A13 Projections of greenhouse gas emissions for Victoria 210 A1.4 Implications of the state of the climate 211 Implications for stratospheric ozone and air quality 211 Implications for land and biodiversity 211 Implications for inland waters 211 Implications for coasts, estuaries and the sea 212 Implications for human settlements 212 Health 212 Infrastructure 212 Energy and water supply 212 Emergency services 212 A1.5 Management responses 212 Reducing greenhouse emissions (mitigation responses) 213 Adapting to climate change (adaptation responses) 216 Climate Change adaptation: an issue of risk 216 Evaluation of climate change responses 217 Critical decisions 218 Impacts on the economy 219 Victoria 220

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Contents

Issue A2 Stratospheric Ozone Depletion 222 Key Findings 222 Description 222 Objectives 222 A2.1 State of Stratospheric Ozone 223 Indicator A12 Observed Stratospheric Ozone Concentration 223 Indicator A13 Average size of the ozone hole over Antarctica 223 Indicator A14 Ultraviolet radiation flux at the surface 224 A2.2 Pressures 225 Indicator A15 Concentration of ozone depleting substances 225 Indicator A16 Victorian emissions of ozone depleting substances 226 A2.3 Implications 227 Indicator A17 Incidence of skin cancer 227 Marine ecosystems 227 Terrestrial vegetation and agriculture 227 Unintended consequences of phasing out ozone depleting substances 228 A2.4 Management responses 228 A2.5 Evaluation of stratospheric ozone responses 229 Issue A3 Air Quality 230 Key findings 230 Description 230 Objective 230 A3.1 State of air quality 231 Indicator A18 Status and trends in particle levels 231 Indicator A19 Status and trends in ambient ozone levels (an indicator of summer smog) 234 Indicator A20 Status and trends in levels of other pollutants 236 Carbon monoxide and nitrogen dioxide 237 Sulfur dioxide and lead 237 A3.2 Pressures 238 Indicator A21 Emissions of major air pollutants by sector 238 A3.3 Implications 239 The health costs of air pollution 239 Air quality and regional Victoria 240 A3.4 Management responses 240 Evaluation of air quality responses 241 For further information 241

175 | Land and Biodiversity 244 LB0 Introduction 244 Key findings 244 Victorian land and biodiversity assets 245 Objectives 246 Overall Condition 247 Condition of land 247 Condition of biodiversity 247 Pressures on Victorian land and biodiversity 248 Management responses 249 Evaluation of responses to land and biodiversity issues 251 For further information 252 LB1 Vegetation loss and modification 253 Key findings 253 Description 253 Objectives 254 State 255 Indicator LB1 Extent of Victoria’s native vegetation 255 Indicator LB2 Depletion of native vegetation by bioregion 255 4 Indicator LB3 Depletion of native vegetation by EVC broad groupings 256 Indicator LB4 Quality, condition and fragmentation of Victoria’s native vegetation 259 Indicator LB5 Area of native forest harvested 263 Indicator LB6 Annual production of sawlogs from State forest compared with sustainable yield 263 Pressures 264 Historic clearing 264 Land degradation 264 Land use change 264 Timber harvesting 265 Fire regimes 265 Altered flow regimes 265 Climate change 265 Implications 265 Ecological implications of loss and fragmentation of native vegetation 265 Functional implications of vegetation fragmentation 266 Implications of disturbances for largely intact vegetation 266 Management responses 267 Response Indicator LB7 Proportion of ecosystems meeting nationally agreed reservation targets 268 Response Indicator LB8 Area and number of properties involved in private vegetation conservation mechanisms 270 Evaluation of native vegetation responses 273 For further information 274 LB2 Contemporary land use change 275 Key findings 275 Description 275 Objectives 276 State 277 Indicator LB9 Land use types in Victoria 277 Indicator LB10 Changes in major land uses in Victoria 279 Pressures 280 Urbanisation 280 Indicator LB11 Urbanised area of Melbourne 280 Rural and peri-urban development 281 Indicator LB12 Ratio of land value to production value 281 Intensification of agriculture 282 Indicator LB13 Area sown to crops and pastures 282 Indicator LB14 Area irrigated 283 Indicator LB15 Area of plantation forestry on private land 286 Market-driven pressures 286 Climate change pressures on current land uses 286 Political and economic pressures of climate change 286 Implications 287 Threats to vegetation and habitat arising from land use change 287 Opportunities for habitat and vegetation improvement 288 Implications for soil and water 289

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Management responses 290 Evaluation of responses to land use change 292 Response Indicator LB16 Participation in natural resource management activities 293 Response Indicator LB17 Participation in Landcare 294 For further information 294 LB3 Threatened species 295 Key findings 295 Description 295 Objectives 295 State 296 Indicator LB18 Number of threatened species in Victoria 296 Indicator LB19 Trends in populations of selected threatened species 299 Indicator LB20 Input into flora and fauna databases 305 Species data collection and storage 305 Pressures 307 Indicator LB21 Impact of threatening processes on native species 307 Implications 307 Ecosystem processes 307 Economic Impacts of Recovery Actions 308 Management responses 308 Evaluation of threatened species responses 309 For further information 310 LB4 Pest plants and animals 311 Key findings 311 Description 311 Objectives 311 State 312 Indicator LB22 Number of introduced plant and animal species in Victorian bioregions 312 Pressures 313 Indicator LB23 Trends in populations of invasive plant species 313 Indicator LB24 Trends in populations of pest animals 313 Implications 313 Ecological impacts of invasive species 313 Sale of weedy plant species 314 Economic impacts of invasive species 314 Management responses 316 Evaluation of pest species responses 317 For further information 317 LB5 Soil structure and erosion 318 Key findings 318 Description 318 Objectives 318 State 319 Susceptibility of Victorian soils to soil structure decline and erosion 319 Indicator LB25 Occurrence and rate of soil erosion 321 Indicator LB26 Extent of soil structure decline 323 Indicator LB27 Likelihood of erosion in Victoria’s cropping region 323 Soil organic matter 323 Pressures 324 Soil structure 324 Erosion 324 Vegetation cover and primary production 325 Climate change and drought 325 Implications 325 Erosion and water quality 325 Implications for natural ecosystems 326 Implications for agriculture and soil biology 326 Soil carbon implications 327 Management responses 327 Evaluation of responses to soil structure and erosion 328 Response Indicator LB28 Adoption of best management practices 329 For further information 330

177 | LB6 Salinity 331 Key findings 331 Description 332 Objectives 332 State 332 Indicator LB29 Area of salt-affected land 332 Indicator LB30 Area at risk of dryland salinity 334 Pressures 336 Indicator LB31 Area of land sown to annual and perennial species 336 Implications 336 Impacts of salinity on terrestrial systems 337 Implications for agriculture 337 Impacts of salinity on freshwater systems 337 Impacts of salinity on infrastructure 338 Management responses 338 Evaluation of responses to salinity 339 For further information 340 LB7 Soil acidification 341 Key findings 341 4 Description 341 Objectives 341 State 342 Extent of acid soils 342 Indicator LB32 Rate of soil acidification 343 Pressures 343 Indicator LB33 Use of nitrogen fertiliser 343 Implications 343 Management responses 344 Evaluation of responses to soil acidification 345 For further information 345 LB8 Fire in the Victorian Environment 346 Key findings 346 Description 346 Objectives 346 State 346 Indicator LB34 Area of native vegetation burnt in planned fires and wildfires 2001–2007 346 Pressures 349 Indicator LB35 Actual fire regimes compared to ‘optimal fire regimes’ 349 Implications 351 Implications for forest structure 351 Implications of fires for biodiversity 351 Implications of fire for water quality and river health 352 Implications for human settlements 352 Management responses 353 Evaluation of fire responses 354 For further information 354 LB9 Impacts of Climate Change on Land and Biodiversity 355 Key findings 355 Description 355 Objectives 356 State 356 Pressures 356 Implications 356 Land 356 Vegetation 357 Forests and plantations 357 Plant community responses to climate change 357 Climate change impacts on native animal species 357 Climate change in alpine ecosystems 359 Implications for primary production 360 Implications of changed policy environment 361 Management responses 361 Evaluation of climate change responses 363 For further information 364

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Contents

4.3 Inland Waters 366 Key Findings 366 IW0 Introduction 367 Victoria’s inland water assets 367 Objectives 367 Pressures 367 Overall condition 368 Management responses 369 Evaluation of responses 372 For further information 373 IW1 Flow Regimes 373 Key findings 373 Description 374 Objectives 374 State 374 Indicator IW1 Condition of flow regimes of major rivers and tributaries 374 Indicator IW2 Trends in regional groundwater levels 376 Pressures 376 Indicator IW3 Surface water harvested for consumptive use as a percentage of the total water in the basin 376 Implications 377 Management responses 379 Indicator IW4 Delivering the Environmental Water Reserve 380 Evaluation of responses to flow regimes 382 For further information 383 IW2 In-stream and Wetland Habitat 384 Key findings 384 Description 384 Objectives 384 State 385 Indicator IW5 Condition of in-stream habitat in major rivers and tributaries 385 Indicator IW6 Extent of wetlands compared to pre-European settlement 386 Pressures 389 Implications 391 Management responses 392 Evaluation of responses to in-stream and wetland habitat 392 For further information 392 IW3 Riparian Vegetation 393 Key findings 393 Description 393 Objective 393 State 394 Indicator IW7 Condition of riparian vegetation of major rivers and tributaries 394 Pressures 395 Indicator IW8 Extent of willows across Victoria 396 Implications 398 Management responses 398 Evaluation of responses to riparian vegetation 399 For further information 400 IW4 Water Quality 401 Key findings 401 Description 401 Objectives 401 State 402 Indicator IW9 Trends and status of salinity concentrations in rivers 402 Indicator IW10 Trends and status of turbidity concentrations in rivers 403 Indicator IW11 Trends and status of total phosphorus concentrations in rivers 403 Indicator IW12 Trends and status of total nitrogen concentrations in rivers 404 Indicator IW13 Presence of cyanobacterial blooms 405

179 | Pressures 405 Indicator IW14 Use of artificial fertilisers 406 Implications 407 Management responses 409 Evaluation of responses to water quality 410 For further information 410 IW5 Aquatic Fauna 411 Key findings 411 Description 411 Objectives 411 State 412 Indicator IW15 Conservation status of aquatic vertebrate and macro-invertebrate fauna 412 Indicator IW16 Observed versus predicted presence of native fish species 412 Indicator IW17 Abundance of native fish compared to introduced fish 413 Indicator IW18 – The condition of macro-invertebrate communities of major rivers and tributaries 415 Indicator IW19 the abundance of waterbirds in Victoria 416 Pressures 417 4 Implications 418 Management responses 419 Evaluation of responses to aquatic fauna 420 IW6 Impacts of Climate Change on Inland Waters 421 Key findings 421 Description 421 Objectives 421 State 421 Pressures 421 Implications 422 Management responses 424 Evaluation of responses to the impacts of climate change on inland waters 425 For further information 425

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4.4 Coasts, Estuaries and the Sea 428 Introduction 428 Key Findings 428 Victorian coastal and marine assets 429 Objectives 429 Overall condition 429 Pressures on coasts, estuaries and the sea 430 Management responses 431 Evaluation of management responses 432 CES1 Coastal Modification 433 Key findings 433 Description 433 Objectives 434 State 434 Indicator CES1 Amount of coastline urbanised 434 Indicator CES2 Amount of coast in protected area system 434 Indicator CES3 Condition of coastal vegetation communities 434 Indicator CES4 Estuarine condition 437 Pressures 438 Indicator CES5 Coastal population growth 438 Indicator CES6 Coastal recreation and tourism 438 Indicator CES7 Coastal subdivision 440 Implications 441 Indicator CES8 Occurrence of acid sulfate soils 441 Management Responses 442 Indicator CES9 Townships with settlement plans and boundaries 443 Evaluation of coastal modification responses 444 For further information 444 CES2 Water quality 445 Key findings 445 Objectives 445 Description 445 State 446 Indicator CES10 Denitrification efficiency 448 Indicator CES11 Concentration of chlorophyll-a 449 Indicator CES12 Lead concentration 451 Indicator CES13 Secchi depth 453 Indicator CES14 Enterococci concentration 455 Pressures 457 Indicator CES15 Commercial shipping 457 Indicator CES16 Dredging in Port Phillip Bay and Western Port 458 Indicator CES17 Reported marine pollution 459 Indicator CES18 Point source discharges 462 Implications 464 Management responses 465 Evaluation of water quality responses 466 For further information 466 CES3 Marine biodiversity 467 Key Findings 467 Description 467 Objectives 468 State 468 Indicator CES19: Conversion of subtidal reef communities to simplified states 468 Indicator CES20: Changes in the distribution and extent of seagrass habitats 470 Indicator CES21: Trends in abundance of marine mammals that were previously hunted in Victoria 473 Indicator CES22: Marine communities and species listed as threatened 473

181 | Pressures 476 Indicator CES23: Number of introduced species in Victorian marine environments 477 Indicator CES24: Number of introduced species that have the potential to cause large impacts 477 Implications 479 Management responses 480 Evaluation of marine biodiversity responses 483 For further information 484 CES4 Climate Change 485 Key findings 485 Objectives 485 Description 485 State 485 Pressures 487 Implications 491 Coastal systems 491 Marine systems 493 Management responses 494 4 Evaluation of climate change responses 495 For further information 495

| 182 IntroductionState of the Environment Part 14 Introduction

Introduction

183 | State of the Environment Report - Victoria 2008 4.0 Introduction

Key findings • The wellbeing of Victorians is ultimately dependent upon the health of the natural environment. The ecosystem services upon which we depend have been compromised through a long history of management actions taken for short term benefits that have left a legacy of poor environmental condition. • Despite improved understanding of environmental issues and processes, the policies and initiatives implemented in recent decades, and extensive investment in the environment, the condition of Victoria’s natural environment has continued to decline. • Society is dependent on the natural environment which is characterised by the interconnectedness of air, land, biodiversity, inland waters, coasts and the sea. Actions of society, and in any of these natural systems, are likely to have consequences in another, so it is essential that they be managed as interlinked environmental systems. • Climate change will exacerbate existing pressures on Victoria’s natural environment. It has significant implications not only for 4 a stable climate but also for biodiversity, river health, coastal Introduction integrity and air quality as well as the social and economic 4.0 implications as activities such as agriculture are forced to change due reduced rainfall and new temperature regimes. • A lack of consistent, co-ordinated and repeated data collection and reporting limits the ability to assess and report on the condition of Victoria’s environments at the statewide level.

| 184 State of the Environment Part 4 Land and Biodiversity

Victoria’s natural environment The section on Land and Biodiversity illustrates the importance of ecosystem Recommendations This core part of the report represents services provided by the Victorian SoE1 The Victorian Government should the entirety of a traditional state of the landscape. The condition of the land reinforce its commitment to significantly environment report. However, this report and soil, so critical in supporting both improving the health of Victoria’s provides added value to the community biodiversity and agriculture, is described. land, biodiversity, rivers, coasts, and by considering not only the current state This section shows that despite much other environments as set out in Our and trends in environmental condition, but effort from the community, the condition Environment, Our Future, Our Water Our also the causes and consequences. It is of many of Victoria’s land and biodiversity Future, and other initiatives, and take only through this understanding that real assets continues to decline. However, an urgent action to reverse the poor trends progress can be made in improving the area where Victoria is leading the way in in environmental health. state of Victoria’s environment. ecosystem management is through the SoE2 Ecosystem services should be Part 4 evaluates the condition and use of market-based instruments. These recognised as a component of the value trends of Victoria’s natural environment tools are considered in the context of of the landscape, so that landholders through the use of indicators within the land stewardship, as landholders take are supported in taking active broad themes of atmosphere, land and on responsibility to manage ecosystem stewardship of Victoria’s landscape. biodiversity, inland waters, and coasts, services on their land for the whole Knowledge of the interaction between estuaries and the sea. The impacts community. ecosystems and the services they of the direct pressures acting on the Inland Waters are reported through provide to human settlements should be environment, some of which result from a focus on the condition and quality improved. the processes of production, consumption of rivers, wetlands and groundwater. and waste of energy, water and materials SoE3 The Flora and Fauna Guarantee This section continues on from the as identified in Part 3, are reported. The Act 1988 has failed and should discussion on water resources in Part 3. implications of the current condition of be reviewed. Future management The impacts of long-term drought and the environment is also discussed, along frameworks for Victoria’s natural competing uses for water are described with societal responses. As this report environment should be funded for long- in detail through an assessment of river, considers the causes and consequences term improvement in the condition of wetland and groundwater health using of environmental issues the Commissioner Victoria’s unique flora and fauna. a range of indicators. The importance provides recommendations against each of environmental flows is shown as an of the issues reported. essential component of healthy inland The Atmosphere section discusses waters. One of the key themes in this the science of climate change as a section is the interconnectedness of land, global phenomenon. It considers the water and the sea. Activities on the land implications for Australia in general and can degrade river health, which in turn can Victoria specifically. It reports on climate have negative impacts on the coast. trends as well as short and long-term The final section in Part 4 covers Coasts, impacts of climate predictions. Part 3.1 Estuaries and the Sea. Victoria’s coast Energy provides important context for is highly modified by human activity, an understanding of the climate change such as through recent trends to coastal debate for Victoria. The Atmosphere residential developments, and it is also the section also includes a discussion on the most popular place to visit. Some of the trends in air quality and also stratospheric Victoria’s most prized marine ecosystems ozone, the well known “hole” in the ozone are protected through a series of marine layer that can lead to skin cancer. Both of and coastal parks. However, there are these issues are showing postive trends, many threats to the health of coastal, however, with climate change some of the estuarine and marine environments. The trends may reverse. implications of these threats for the future health of Victoria’s coasts are discussed, particularly in light of climate change, which is predicted to have direct effects on the coast through sea level rises and the impacts of damaging storms. The final chapter of this report, Part 5 Living Well Within Our Environment, further considers the implications of the state of the environment as detailed in this chapter. It proposes some new directions and describes the importance of finding realistic ways in which Victorians can live well and improve the state of the natural environment.

185 | State of the Environment Report - Victoria 2008 4 Introduction

4.0

| 186 Part 5 Living Well Within our Environment

Living Well Within our Environment

497 | Contents

5 Living Well in Our Environment 499 Key findings 499 LW1 Introduction 500 The state of the environment 500 LW2 The Commissioner’s Approach 501 Victoria, looking back from 2050 501 LW3 From Vision to Principles 504 Services that enable us to live well 504 Monitoring Living Well 504 LW4 Essential Concepts 506 Ecologically sustainable use 506 The importance of decoupling 506 Understanding shifting baselines and tipping points 507 Rebuilding resilience 508 LW5 Mechanisms of Change 510 Natural system governance, environment policy and SEA 510 Economic solutions 513 The role of technology 515 Consumer behaviour 516 Mechanisms of change – Conclusion 518

5

| 498 Part 5 Living Well Within our Environment

Key Findings • ESU becomes a reality when However, due to associated inherent decoupling (a separation between risks such as the rebound effect and the • The wellbeing of Victorians is ultimately an indicator of wellbeing and an paradox of efficiency, technology alone dependent upon the health of the indicator of environmental pressure) must not be seen as a ‘silver bullet’. The natural environment. The ecosystem is demonstrated. Relative decoupling environment doesn’t care how efficient services upon which we depend has commenced in many sectors, but our technologies are if overall pressures have been, and under business-as- ESU will only be realised when absolute continue to increase. usual scenarios will continue to be, decoupling is achieved. compromised. • Victorians recognise their ability to • Resilience is so fundamental to influence the environment through • Social and economic systems are sustainability as to be almost invisible. their actions as consumers. They will vulnerable; as a result, so is human Essential ecosystem services and be further empowered to reduce their wellbeing. Urgent and fundamental liveability, valued by all Victorians, can personal impact through government’s changes are needed and government only be maintained when resilience – fostering of ethical and informed must provide transparent, exemplary the ability to adapt to system shocks decision-making, and establishment of leadership. – is re-established within ecological frameworks that provide certainty, such • Vulnerabilities are partly the inadvertent systems and in society. as standardised eco-labels. by-product of increasing efficiency, • In the context of the scale of the • On a global scale, Victoria’s level reducing the capacity of Victoria challenge, environmental governance is of responsibility for environmental to adapt to looming sustainability disparate and inconsistent. The current problems is small in absolute terms. challenges. Current vulnerabilities nature of environmental challenges However, as a first world state with one include the dependence on brown means that governance must become of the highest levels of environmental coal and petroleum and, globally, the strategic and future-focused. The intensity per capita, Victoria has an ability to supply food under conditions technique of strategic environmental obligation to develop its role as an of expected climate change and global assessment should be used to address international environmental leader while population growth. the long-term and wider implications of also taking advantage of the huge • A vision of Victoria where wellbeing planning and policy. business opportunities presented. is decoupled from increasing • Market based instruments – a way of environmental pressure must be rationally pricing the environmental articulated and realised. Several impact of goods and services – are methods for measuring and tracking being used increasingly in Victoria. progress towards sustainability have Provided that ecosystem services are been proposed. For these to have adequately valued and are supported influence, they require refinement and by legislation, MBIs are a valid way of ownership at the highest levels of internalising environmental pressures government. within the economic framework. • Victorians have proven talented and • MBIs can only come into effect through innovative, and, with government regulatory action, while many activities support, they are well equipped to and requirements will still need deal with the challenges of moving command and control approaches: into a post-carbon economy. Victorian carbon trading will only begin when industries want strong leadership and government sets a cap and timetable. certainty from government as they Appliance, liquid wastes and building adapt to this future. construction standards depend on • While it is essential to ensure that future deliberate decisions being taken by development is within sustainable government. The role of government limits, Victorian society is unsustainable continues to be critical. now. Refocusing on current patterns is • Technology has a significant role to play necessary and possible through use of in reducing environmental pressures. the term ecologically sustainable use (ESU). ESU is applied in this discussion to make the point that present uses affect the state of the environment as much as do growth and change.

499 | State of the Environment Report - Victoria 2008 LW1 Introduction

The state of the environment services like clean water and air, is Key vulnerabilities include, but are continuing to decline. This report finds not limited to, Victoria’s dependence The preceding sections of the State of that apart from individual and some sub- upon brown coal for electricity; our the Environment Report show that the regional efforts, the massive investment homogenised, oil-dependent road natural environment is subject to ongoing in the Natural Heritage Trust and similar transport system; water scarcity; threats pressures from humans. Part 3 shows funding arrangements has led to little to coastal settlements; and geopolitical how both the rate and the way in which measurable improvement in overall land risks from regional implications of climate we use the three fundamental resources condition. Also, in this State, vegetation change. These vulnerabilities are detailed of energy, water and materials are putting quality is divided between that found on further in Parts 2, 3 and 4 of this report. pressure on natural systems. Efficiency public and private lands. The only high As a responsive State, Victoria is leading in gains in industry and farming have led quality vegetation and stream condition is a number of environmental management to some disconnection (decoupling) to be found in national parks, conservation areas. For example, it was the first state between population growth and the rate areas and State forests. Moreover, this is to establish an Environment Protection of environmental degradation, but steadily not the result of active management but Authority and to make rapid gains in urban increasing local and global populations rather an artefact of forests’ remoteness, air quality. It has also led the country in have meant these gains have both their relatively large area, and other development of an emissions trading enabled the rebound effect (see Part 2: protective wilderness qualities. scheme (the Carbon Pollution Reduction Driving Forces) and been overwhelmed Compounding these pressures, the Scheme – CPRS) and has been far ahead by a strong increase in overall resource State’s greenhouse gas emissions have of the other states in the management consumption, production of harmful steadily increased and are on a trajectory of water resources (albeit under substances and wastes, and pressure on to push the absolute level of emissions conditions of ongoing drought). Victoria the land. Absolute pressures continue to to ever higher levels. While not the cause has also taken a vigorous lead in urban increase. of the majority of degradation to date, water management, employing some The ecological footprint section unless prompt action is taken, climate outstanding public education programs summarises this spatially by showing that change impacts will both compound and in the process. The Environmental each Victorian uses 6.8 global hectares overwhelm many of the existing pressures. Sustainability Framework 2005 was a (gha) to maintain his or her lifestyle, pioneering decision taken by Cabinet, Major environmental improvements with Australia’s additional food and fibre while the review of the Biodiversity have been achieved in urban air demand met by imports from the entire Strategy is providing a fresh look at how quality and in water quality in certain world. Our high levels of consumption, natural systems can gain full recognition metropolitan streams. Likewise, there marked by elaborately transformed in the economy. Together, these initiatives have been significant shifts in liquid waste materials, in fact rely on supplementation show that Victorians are innovative, willing management through the sewerage from production in other parts of the and capable of tackling environmental system and hazardous solid waste world. In comparison to Australia, global problems. through specialised disposal. At the time, average use of resources amounts to a 5 these initiatives required considerable As a first world state, the importance of footprint of 2.2 gha per person. However, effort to establish. This effort should not Victoria’s role in the global community even this represents an overshoot. The be under-estimated, but rather considered should not be underestimated. In the capacity of the Earth is estimated at 1.8 indicative of the scale of possible future global scale of environmental problems, gha per person. Under business as usual investment in environmental remediation. Victoria is a small player, but Victoria has scenarios, as developing nations seek a comparatively large ecological footprint. to improve their standard of living, this In summary, the preceding chapters of As Professor Garnaut stated in regard overshoot will increase. this State of the Environment Report show to greenhouse gas emission reduction, that whilst there is some understanding Part 4 describes in detail how this taking international initiative for resolving of the nature and effect of environmental ecological overshoot is affecting Victoria’s environmental problems is: problems, our lifestyle continues to natural environment. There is little be maintained and enhanced through partly a question of historical evidence to suggest that in the last fifty the gradual degradation of the natural responsibility. It’s partly a question of years there has been any measurable environment. This in turn is now beginning capacity, of capital and technology decrease in overall human pressure on to impact on our way of life due to the and incomes but most importantly, it’s the Victorian environment. A history of vulnerability of the systems upon which we a practical necessity in getting others land clearance has meant that, outside depend. This means that: to take the next step and they need to Crown lands, most of the State is used follow quickly2. for agriculture. This report demonstrates We are forced to decide … what we that land and biodiversity health, the will be prepared to pay in terms of This section of the report, Part 5: Living foundation of essential ecosystem consumption of goods and services Well in our Environment, explores the foregone to avoid uncertain prospects importance of clearly understanding and of possibly immensely unhappy articulating future challenges, setting outcomes. We are forced to decide targets for the reduction of vulnerabilities what consumption of goods and and employing innovative strategies and services we will be prepared to forego proven approaches within a framework to avoid loss of things that we value of strong government leadership. By but are not accustomed to valuing in doing each of these, Victoria will be able monetary terms1 . to tackle successfully the environmental challenges of the 21st century and take on an international leadership role in environmental sustainability.

| 500 Part 5 Living Well Within our Environment

LW2 The Commissioner’s Approach

Figure LW1 Visioning and ‘back-casting’ enables a clearer path for future progress than does forecasting (after Junko Edahiro)

Sustainable Society Sustainable Society ?

Back-cast

Forecast

Current Society Current Society

Victorians, and no doubt all others on least in step with, need. This ensured that This enabled Victorians to re-invigorate the the planet, understandably seek an wider measures of well-being were met landscape with the strategic expansion improvement in their overall quality of through adequate service provision while of remnant vegetation side by side with life. The term ecologically sustainable continuing a successful and defensible sustainable food, fibre and minerals development is used to describe how rate of economic growth. production. The resultant corridors and this desire for an improvement in quality riparian ecology now maximise species’ of life should come without compromise Rural adaptation: survival and replacement capacity and are to ecosystem values and services. The Valuing ecosystem services of sufficient scale to provide ecosystem challenge is to ensure that our society services to surrounding agriculture. In and its economy continue to provide With full acceptance that natural systems addition, continued investment in pest the services that we value while still are the basis of the economy, Victorians plant and animal controls, restoration, maintaining ecosystems so that they brought ecosystem management and visitor management have ensured too can continue to provide the services increasingly to the centre of government. that ecosystem resilience is protected on that we need, both now and into the Society no longer discounts natural public land. future. Achieving a Victoria where this systems and the free services that they occurs requires creative re-imagination provide. Land-owners now have a fresh Highly distributed production appreciation of the value of ecosystem and visioning and then ‘back-casting’ to – a new paradigm determine the steps needed to get to that services through the remuneration future. opportunities that provide additional Melbourne has become a greater income where services are protected. contributor to energy and water production Several agencies have engaged in Clean water has become a valuable farm through decentralised water sources (for visioning, and each vision is different (see, product alongside offering a financial example, rainwater tanks) and distributed for example, Box LW1). Nevertheless, return for carbon offsets and the protection energy generation (for example, domestic there are a number of common elements and restoration of biodiversity. Supporting solar) rather than absorbing resources that are essential if long-term sustainability these markets, rigorous enforcement of from hinterlands. Widespread application is to be achieved. regulations ensures that basic community of industrial ecology principles have obligations regarding ecosystems continue seen waste produced by Victoria’s Victoria, looking back from 2050 to be met. cities, including organic waste, become People As a result, autonomous and planned feedstock for manufacturing and adaptation has occurred throughout agriculture. Urban food production As the world population continues on rural areas in response to both climate supplies a much greater proportion of the its trajectory towards 9 billion peope, change and the intensified global demand food for the city, reducing pressure on national population policy has been for food and fibre. This was enabled Victoria’s rural environments. Rather than modified. The stress in the 2000 decade through the rebuilding of resilience in farm being seen as a resource sink and as a on skilled migrant entry and temporary communities, enabling them to actively burden on Victoria’s natural environment, visas for labour market purposes was diversify cropping and pastoral patterns. Melbourne is seen as actively contributing altered to emphasise economic and State Government ensured, in cooperation resources to improving the environment of environmental refugees. This assisted the with rural communities and industries, that Victoria. State Government by producing a marginal this was not at the cost of water, soil quality slowing in population growth in Victoria and soil health. and the Melbourne metropolitan region to allow public transport infrastructure and other major health and education works to be supplied if not ahead of, at

501 | State of the Environment Report - Victoria 2008 Energy generation and emission technology, real time metering and cutting Government evolved its environmental reductions edge irrigation techniques now ensure that management and Environmental water for farming is secure and that water Sustainability Framework systems to cover Through a range of financial and trading is backed by certainty. all government departments and agencies. complementary regulatory instruments, In its own buildings, government now technologies and behaviour change, The old paradigms of gravity-fed water leads by example, even where buildings Victorians exceeded their obligations under supply and sewage systems based on are built and owned by the private sector. the Carbon Pollution Reduction Scheme. vulnerable catchment input and sea The mark of government occupation is Rather than deferring the necessary discharge have been heavily modified quality buildings, sympathetic to the street structural changes, Victorians captured into a distributed system that is more character, and at the highest possible and profited from the opportunities created resilient to environmental shocks. Via the environmental performance rating. by the new economic regime. Within its use of tanks, every house supplies a large own operations, the Victorian Government proportion of its own water and the third Planning, urban design and mobility adopted and achieved a carbon-neutral pipe and black water recycling for selected The Department of Transport initiated the position. As well as the shifted paradigm purposes is standard. Intermediate ‘water creation of a proper, though dynamic, of distributed generation, mandatory factories’ recycle water for local and balance between road and public transport energy-efficient manufacturing processes industrial uses at points along the system. provision. Significant urban efficiencies, were accepted as essential for rebuilding At terminal treatment plants, both the particularly transport efficiencies, were the resilience of vulnerable centralised recycling of water and the commercial achieved through high density, mixed- systems. Efficiency gains are no longer use of effluent have turned these areas use, transit-oriented activity centres, harnessed for increased production unless into production centres in their own right. improved public transport, increased use it is demonstrated that there is no increase Both increased efficiencies and increased of walking and cycling, and by keeping in absolute emissions. The reduced demand management have ensured that new dwellings within a robust urban demand for energy is now met through a demand matches available water. Drought growth boundary to the benefit of both combination of new renewable resources. tolerant plantings, water sensitive design agriculture and ecosystems, including The remaining proportion of electricity in all urban developments and a proper native grasslands3. By providing high generated from brown coal has become understanding of ground and surface water density housing in established areas zero emission through carbon capture interactions are standard. and centres, development also took and storage. In reaching this position, Reliable environmental baselines, advantage of current water, sewerage succeeding governments in Victoria had monitoring cumulative impacts and social infrastructure. These urban to face up to making hard choices in planning objectives did underpin the relation to energy availability and price, and Research and development in a variety strategies outlined in Melbourne 20304, were able to assist established operators of institutions on biodiversity status, but Melbourne 2030 audit reports through a transition period. In return, this urban quality, sustainability measures suggested that implementation was abundant energy, free of major greenhouse (including National Environment Accounts) too slow. Melbourne 2050 and Growing gas emissions, provided the basis for a and broader indices of well-being are 5 Victoria Together, however, were planning flourishing electricity-based motor vehicle systematically supported by governments strategies led by flagship case studies of technology. Household and commercial for the long term. Governments and the world’s best practice urban design and design and fittings accompanied by community hold sufficient information locality planning. They achieved better national standard energy labelling should such that shifting baselines are no longer results in reconciling community planning follow as a matter of course. accepted. There is no longer the claim objectives with environmental values. that a development will cause minimal Water supply and the health of rivers They also provided greater certainty environmental harm relative to present to developers, communities and local Victorians have abandoned the false conditions while ignoring the cumulative authorities in decision making, especially assumption that activity can be planned reductions that have already occurred. in regard to rapidly altering conditions due around an historical view of a ‘normal’ Comprehensive environmental baselines to climate change. Both in the cities and rainfall year. Instead, it has become have been established and are subject rural areas, planning policies were broadly accepted that Victoria is a drying state to full monitoring and reporting on a accepted and understood, and achieved with restricted water availability. Culturally continuous basis. All development is greatly improved implementation. accepted, sustainable patterns of justified on the grounds that it makes use, rather than removal of water use both local, short-term improvements and Vehicle congestion was reduced restrictions, are now the objective. also contributes to global, longer-term through the use of road pricing, tolls improvements in environmental condition. and congestion charges, which were Water resource debates between widely supported because of the rapidly consumptive uses and environmental Leadership by example in the Victorian expanded and integrated public transport flows have been settled. From 2010, Government network. Trams, trains and buses of governments actively provided support Leading up to 2050, the Victorian the most advanced designs integrated for adjusting land use through an interim Government was seen as a national leader seamlessly with walking and cycling, using period. Now, governments no longer in estate management, procurement, intuitive timetabling and wayfinding. A re-allocate environmental flows in order and vehicle fleet selection in its new, more rational approach to individual to offset any reluctance on the part of implementation of carbon neutrality and mobility patterns evolved due to the users who fail to adjust to the overall water lifecycle approaches to environmental increased expense of oil, but it was also availability regime. Water trading is now management. The State Government fully supported by better urban design that subject to prudent oversight to ensure actively downsized its executive fleet to induced further demand for these modes. that water banking and water migration do a minimum while the Commonwealth not put otherwise productive areas at risk. changed the favourable taxation Agriculture on marginal soils has been arrangements that were associated with retired. Throughout the Victorian portion vehicle leasing in salary packages. of the Murray system, modern channel

| 502 Part 5 Living Well Within our Environment

Victoria emerged as a leader in the resilient to changing conditions. This adoption of new fuel technologies, engines Box LW1 Melbourne 2032: transformation of the electricity system and motive power, to ensure the movement Looking back over the last 25 would not have generated a general of goods and services remained years - an exercise in visioning sense of paradigm change were it not affordable in the face of oil and carbon Sometimes we need to be reminded for the fact that essentially the same prices. Government insisted that locally just how profoundly different Melbourne pattern of change in production and manufactured vehicles have the most is in 2032, in its structure, in its consumption was taking place in fuel efficient engines, including the many economic base and in the nature of relation to water. Old systems of dams alternatives to petrol combustion previously daily life, from the city that it was at the distributing water to distant users were never seen as viable in this country. turn of the century. replaced by ‘water sensitive systems Enabled by steadily improving public The years 2007-2015 are frequently design’ approaches, retaining rainwater transport, Victorian regions under peri- identified as an era of significant where it fell for local use. Freshwater urban influence became increasingly structural change in the economy of supply was complemented by treatment important in the metropolitan system. Victoria (along with much of the rest of of wastewater at various local scales. Key centres beyond this region (Portland, Australia) and historians rightly point to Cities such as Melbourne were Warrnambool, Mildura, Bairnsdale and this period as a flowering of ‘innovation suddenly viewed as ‘catchments’. others) are now strongly linked into virtual for sustainability’ across all sectors of A general sense of distrust of existing networks, such that tele-commuting is as society. Following a well understood systems was also evident from the viable a means of business communication pattern in technological and social beginning of the century in relation as is travel. Nevertheless, as manufacturing development, it is clear that the shape to food. A mixture of issues (health, and tourist centres, they continue to of Melbourne over these past 25 years environmental and ethical) brought thrive with competitive country freight and was affected by a ‘disruptive paradigm’ food to the centre of controversy passenger rail services supported by all that was to fundamentally change about the sustainability of modern life. sectors. Beyond the major regional towns, about the organisation of systems of The competition for land for bio-fuels sea change and tree change continue production and consumption, life-styles became a major policy concern, as did but are subject to stronger ecological and infrastructure. Many terms have the rising cost of food from increased standards and conditions, ensuring that been used to describe that change, but fuel and water prices. The development dunes, estuaries, forests, wetlands and the term ‘distributed’ has been the most of our extensive ‘urban agriculture’ waterways remain in, or are restored to, consistently used. (and the protection of peri-urban food excellent condition. The new pattern of distributed production against urban sprawl) Waste a thing of the past development emerged as a response to resulted from this period. growing concern over the implications The internalisation of environmental costs and impacts of global warming, In the early years of the century there has meant that the disposal of wastes to consumption and waste. Central to that was much hype about new low-carbon the environment is seen as unacceptable concern were issues of security and technologies. Public interest and both because of the threat to ecosystem resilience. Concern about deliberate confidence was invested in the idea services and for the opportunity cost attacks on life was greatly compounded of new super-efficient technologies implied. Disposal of solid waste to landfill by concerns about disruption caused by with low greenhouse gas production. and liquid waste to the sea has reduced natural events, particularly from severe In retrospect, the real force of the to zero. Manufacturers, packagers, weather activity, new global diseases, ‘low-carbon’ revolution lay elsewhere, distributors, enterprises and households all sea level rise and so on. Every major in the (re)organisation of systems play a role in a system that contains major climate incident increased the general of production and consumption, incentives for recycling and cost penalties sense of insecurity. Drought highlighted involving new products and services for waste generation. the vulnerability of past investment in and businesses, new infrastructure, new lifestyles and new consumption For materials, these systems now take the water-hungry systems, from agriculture behaviours. Much of this has relied form of sophisticated regimes of package and food, to parks and home gardens, on exploiting existing technologies; minimisation and producer responsibility, building systems, bathrooms, kitchens, innovation has resulted from the including ‘smart’ production, full resource laundry and sewage. Fires, cyclones, creative recombination of existing recovery, and re-use. For energy and water, unusually high rainfall days, floods – technologies to provide new ways to new fuel technologies and water recovery even sudden and crippling cold spells do old things, as well as old ways to do cycles that fully integrate environmental – all added to the sense of insecurity. new things5. costs into the services provided by these Big engineering solutions introduced utilities are well established. new dependencies and vulnerabilities By Chris Ryan; Victorian Eco - when supplies were disrupted through Innovation Lab University of Melbourne This means that the characteristic 20th technical and other failures. century practice of externalising wastes to the environment has been eliminated. Zero carbon electricity systems Consequently negative environmental developed around diverse renewable feedbacks requiring the rehabilitation energy sources (solar, wind, biomass, Recommendation of heavily contaminated sites and the CHP, micro-hydro, geothermal LW1 The Victorian Government develop prevention of leaching and methane and wave/sea power), distributed and use a single robust and clearly escape no longer transfer costs from the across the country and connected defined vision of an environmentally producer of the wastes to governments, to the grid. The old system of highly sustainable Victoria, incorporating taxpayers and ratepayers. concentrated (‘centralised’) power environmentally sustainable use of generation, supplying dispersed users, natural resources, and use this to was quickly outmoded. Distributed develop an update to Growing Victoria systems were more efficient and more Together.

503 | State of the Environment Report - Victoria 2008 LW3 From Vision to Principles Monitoring Living Well

Services that enable us to live well Living well can therefore be described We can’t know if we are achieving as a condition in which valued services sustainability unless progress toward that Degradation of the natural environment continue to be provided and in which goal is measured. Are we living well? Are reduces Victorians’ ability to live well. needs are met, both now and for the economy and society providing the Some of these impacts, such as those on future generations. In order that future services that we value? There is no doubt air quality, are observable, and actions generations of Victorians are able to meet that in many aspects of life they are. For have been or are being taken to alleviate their needs, it is essential to protect: the majority of Victorians, life expectancy is them. Others, such as the way that climate higher than at almost any time in history10. • human life change affects our way of life, have in the Further, Part 2: Driving Forces, shows past not been well addressed by policy, • the capabilities that the natural that gross state product (GSP) is also although that is now changing (see Part environment has to maintain the living increasing faster than population growth 3.1: Energy and Part 4.1 Atmosphere, conditions for people and other species or resource use, indicating that Victorians Climate Change). (for example, clean water and air, a are becoming more affluent. suitable climate) as well as food and Clean air and a temperate climate that In other areas of life, however, we are not fibre, which are basic to human survival enables Victorians to grow food are two living as well as we might. For example, examples of ecosystem services that • the aspects of the environment that while GSP continues to increase, there enable Victorians to live well. Victoria’s produce renewable resources such as is evidence that the gap between rich natural environment is valued for these water, timber, fish, solar energy and poor is also increasing11. Similarly, in important services. In 1997, the value terms of health, the 2005 National Health of ecosystem services worldwide was • the functioning of society, despite non- Survey found that more adults are drinking estimated at US$54 trillion per year, most renewable resource depletion alcohol at high risk levels and more adults of which is outside the economic system6. • the quality of life for all people – the are overweight or obese compared with The United Nations is now undertaking liveability and beauty of the environment results from the 2001 survey12. The mental the task of updating this figure, itemising health of Victorians, particularly young it to particular services7. In Australia there • and proposed actions to increase the people, also continues to be a significant is now a push to develop methods of chance of living well in the future (cases social issue13. 9 environmental accounting systems8, which below) . Progress towards sustainable in turn will be used to develop economic Therefore it is essential that the Victorian development can be tracked via the solutions to sustainability challenges. community shares the understanding that use of triple bottom line (TBL) reporting. Just as the environment provides the maintenance of ecosystem services The preceding sections of the State of ecosystem services that enable Victorians is basic to future prosperity and that in the Environment Report have sets of to live well, it is also the foundation upon local, state regional and global forums, verified, valid and statistically reliable which Victoria’s society and its economy Victoria should seek the best strategies indicators to evaluate numerous aspects is based. In turn, each of these provides and programs to improve natural resource of one component of sustainability: the 5 services. The economy, itself a subset of utilisation and ensure their sustainability environmental. In turn, summary analyses society, provides4&$5*0/$0-0634 money and wealth. The into the future. (for example, overall greenhouse gas social structures1"350/& that Victorians1"35580 1"355)3&& have1"35'063 built1"35'*7& emissions, extent of native vegetation over the past 200 years, themselves made Recommendation cover) are used to provide the reader possible by the natural environment, also LW2 The Victorian Government should with information on the quality of major  1.4 1.4 1.4 1.4 provide services.1.4 For example, personal ensure that the value of ecosystem elements of the Victorian environment. health and safety, sophisticated medical services is factored into economic At a still higher level, indices such as the /&653"-$0-0634 care and a sense of community are decision-making, as water and climate Ecological Footprint provide a quick and services provided by society that enable are starting to be. Agencies should effective comparison of Victoria against us to live well, and are valued by all become as adept at valuing and other states and countries. 1.4 1.4 1.4 1.4 Victorians. accounting for ecosystem services as (3"1)4 they are in regard to economic and social services.

1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Figure LW2 All services of value and that enable us to live well fundamentally originate from the natural environment

The triple bottom Examples of mechanisms The services that we value line framework that provide service and that enable us to ‘live well’

Money & wealth Economy Comfort

Health & safety Society Wellbeing Living Well Resilient & stimulating community within our environment

Essential life-supporting services Stable climate Natural Clean air & Environment Pleasant surrounds Water recreation

| 504 Part 5 Living Well Within our Environment

Triple bottom line reporting adds social By combining indicators of environmental, The conclusion drawn from this and economic indicators to complement social and economic values into single comparison is that the high growth rates in these environmental indicators in order to indices, comparisons with traditional the Victorian economy have assess the degree to which we are living measures such as GDP can be made. The failed to translate effectively into well within the environment and moving Index of Social Economic Welfare (ISEW)18 increases in the sustainable well-being towards sustainability. and the Genuine Progress Indicator (GPI) of the average Victorian (suggesting are two such indices. GPI was developed A number of organisations have that) the extra benefits generated by in the USA19 and has been applied to developed sets of indicators for tracking high rates of growth were largely offset Victoria (see Figure LW3)20. sustainable development. For example, by the ever-increasing rise in social and the UK Department of Environment, In broad terms, the GPI makes environmental costs (p. 388)24. Food and Rural Affairs monitors adjustments to the GSP by valuing goods Despite the apparent strength of the GPI, progress via the use of 68 indicators and services against their positive or due to the significant aggregation, there that measure environmental, social and negative contribution to sustainable well- is a case for continued debate regarding economic values of importance to that being. For example, the GPI excludes whether it is possible for a single index to community14 while the United Nations expenditure on tobacco, as it is deemed integrate the many elements of wellbeing has also developed a set of sustainability to make no positive contribution to and remain broadly valid. Nevertheless, indicators. In addition to the more widely sustainable well-being, and includes the there is one nation whose guiding accepted indicators of environmental, value of non-paid household labour using principle incorporates broad sustainability social and economic development, this the net opportunity cost method. The GPI indicators, explicitly decoupling wellbeing set also includes indicators of institutional also factors a range of environmental costs from economic growth. In the international adaptability15; that is, the level of resilience into its calculation, including the cost of: sphere, Bhutan’s Indicators of Gross within social systems. The Commonwealth • non-renewable resource depletion National Happiness are now drawing Department of the Environment, Water, attention for their progressive approach in Heritage and the Arts has also developed • lost agricultural land defining sustainability25. a set of 21 sustainability indicators that track important environmental, • irrigation water use social and economic values16, while • forest depletion Recommendations the ABS has developed the Measuring LW3 The Victorian government continue • air pollution Australia’s Progress (MAP) indicator to develop Growing Victoria Together to set. Both of these projects use a suite of • urban waste-water pollution monitor and report on holistic wellbeing representative indicators from each of 4&$5*0/$0-0634 using consistent, valid and statistically the domains – environment, society (and • long term environmental damage 1"350/& 1"35580 1"355)3&& 1"35'063 1"35'*7& verified sustainability indicators that, as individuals) and the economy – and track • natural capital services21,22. a set, comprehensively covers each of progress within and between them to build the environmental, social and economic a picture of sustainability. Comparing the result with GSP shows  1.4 1.4 1.4 1.4 values of importance to Victorians. 1.4 that while the economy is growing and Similarly, within Victoria, both Community developing, negative growth (degradation) LW4 The Victorian Government Indicators Victoria and the State /&653"-$0-0634 of social and environmental values pulls develops an index of holistic Government’s ten-year vision, Growing the GPI back to leave it relatively static sustainability (such as the GPI) for Victoria Together, use sets of indicators since 1986 (see Figure LW3). Victoria and report annually on progress that assess the environment, society and 1.4 1.4 1.4 1.4 towards sustainability. the economy17. Generally, these show that most economic(3"1)4 and social values are improving steadily, while environmental values are being degraded.

1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4

Figure LW3 Genuine Progress Indicator (GPI) & Gross State Product (GSP), Victoria Source: Clarke & Lawn23 45 Per capita GPI Per capita GSP

40 $,000 AU

35

30

25

20

15

10

5

0 1986 1988 1990 1992 1994 1996 1998 2000 2002

505 | State of the Environment Report - Victoria 2008 LW4 Essential Concepts

Four essential concepts that will be At the time of the Brundtland Commission, The importance of decoupling necessary for government and individuals the objective was to confront the pressure to own and to integrate into all decision- for economic growth at the cost of further The preceding sections of this report making if the vision is to be achieved are degradation of natural systems and show that currently, strong causal explored: to attempt to broker a resolution. The relationships exist between economic preceding sections of this State of the growth and environmental pressure and 1. Ecologically sustainable use Environment Report, however, compel degradation. Victoria remains a classic 2. The importance of decoupling a reflection on present patterns of use. example of a high consumption society As well as focusing attention on the that has overshot efficiency gains because 3. Understanding shifting baselines & impacts of future development, it is current of increasing environmental pressure tipping points patterns that should be continuously due to increasing population, affluence 4. The role that resilience and its elements tested for their sustainability. and consumption (the rebound effect). Efficiency gains traditionally flow through must play This report points out that past to increased productivity (economic development and present urban and rural Ecologically sustainable use growth), not back to the environment. uses have led to a continuing degradation The urgent challenge is to ‘decouple’ Within the Triple Bottom Line (Environment, of natural systems and that rectification is environmental impacts from growth, Society and Economy) framework, of urgent importance. Development, the or, more specifically, from wellbeing. environmental values are theoretically commonly understood word for growth Decoupling is a necessary process if accorded the same consideration as are or expansion, speaks of works that add sustainability is to be achieved. economic and social values. However, to present structures, while ‘use’ calls historically and overall (rather than in all into review existing practices as well as The importance of decoupling is cases), it has been the environment that future development actions. Therefore, applicable to many sectors. It is likely has been most often discounted. The ecologically sustainable use (ESU) is a that to fully disassociate environmental Commissioner argues that the phrase vision of the use of natural resources in degradation from wellbeing, decoupling ‘ecologically sustainable development’ such a way that they maintain and grow will need to occur at many stages in can be, and continues to be, production while the natural resource base the chain of environmental causes and misinterpreted. The term ‘development’ is not reduced in viability or productive consequences (see Part 1: Introduction, has come both to mean, and to justify, value. Figure I3). The greatest decoupling effort, economic growth in its simplest sense. however, should be made in attempting to A full environmental baseline must be As a result, ‘development’ is, for some, break the causal links between wellbeing established not only to facilitate more indistinguishable from environmental and anthropogenic pressures, rather than accurate decision-making but to provide pressure. By this logic, any development between pressures and environmental for the incorporation of measures of quality changes existing environmental stocks, impacts. This is because attempting of life (see Monitoring Living Well). This and experience shows us that these to ameliorate pressures and replacing report does not take an ideological view changes are usually detrimental. To others, ecosystem services (rather than reducing 5 concerning development, but throughout ‘development’ fails to provide testable pressures) would be cost prohibitive26, and demonstrates the consequences of benchmarks or to stimulate monitoring simply because these will be the areas ecosystems’ ability to cope with and be and reporting. For many it allows claims within which humans will have the greatest resilient to increasing natural resource that business as usual is sustainable efficacy. To do this successfully will be a consumption. Certainly the introduction of because no real tests exist, while grab- challenge in itself. bags of national targets measured in an altered concept such as ecologically different ways accumulate to a claimed sustainable use would act as a modifier There are different levels of decoupling27: of the assumption that a high rate of measure of sustainability which is often Relative: where the environmental development is the sole goal of the spurious and improbable. Development intensity of an activity is reduced, yet economy. is seen as the source of the problem, and it continues to exert pressure on the so the phrase ‘ecologically sustainable environment, and increases in degradation development’ itself is an oxymoron. Recommendation may continue to occur. Relative In fact this was not the implication of LW5 When considering ecological decoupling often occurs when an industry the word development as used by the sustainable development, the or sector becomes more efficient. Brundtland Commission. Rather, it was Victorian Government should take into Absolute: where the environmental intended to describe a justifiable desire account the present and short-term intensity of an activity is zero, or the activity for improvements in health, wealth and (as well as longer-term) impacts of actually improves the environment. happiness. Add to this ‘ecologically the development process and use all sustainable development’, and it is available development opportunities The following graph shows stages of understood that the Commission was to achieve reductions in absolute decoupling in a hypothetical example.In referring to advancement in the values environmental pressures. this hypothetical example of decoupling, that are important to humans and that the indicator of environmental pressure enable us to live well (see Figure LW2) is, at first, rising with wellbeing (1). The without an increase, and in fact explicitly indicator of pressure begins to decouple with a decrease, in absolute environmental from wellbeing around 2018 (2), due, pressure (see Decoupling). for example, to environmental initiatives or eco-efficiency programs. After a time, relative decoupling is complete, wellbeing is no longer dependent upon environmental pressure being incurred (3), and the potential for improvement of the environmental attribute in question accelerates. Real world examples of | 506 4&$5*0/$0-0634

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1.4 1.4 1.4 1.4

(3"1)4

1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4

Figure LW4 The stages of decoupling - hypothetical sections of this report include the Rock Lobster Fishery (Part 3.3: Materials), and Indicator of social/economic wellbeign coastal biodiversity (Part 4.4: Coasts, Indicator of environmental pressure Potential for environmental improvement Estuaries and The Sea). 2014: 2031: 2048: If unexpected, additional or compounding Decoupling Full relative Absolute pressures are brought to bear on the + begins decoupling decoupling system, it can reach a threshold or ‘tipping achieved achieved point’ sooner than expected if shifted baselines mask actual proximity to the threshold. At a tipping point, a major change of state occurs, and the eco- or human system will no longer function in the same way. Examples of thresholds are the change in state of potential acid 3 4 sulfate soils to actual acid sulfate soils 2 (see Part 4.4: Coasts, Estuaries and 1 the Sea, Indicator CES8), tipping points 0 5 at which vegetation cover provides insufficient habitat for woodland birds (see - Part 4.2: Land and Biodiversity and wetland 2008 2014 2020 2026 2032 2038 2044 2050 salinity thresholds for frogs (see Part 4.3: Inland Waters). For some systems relative decoupling are shown in Part crossing a threshold equates to collapse. 2: Driving Forces, Figure DF9 and Part Recommendations In regard to climate change phenomena, 3.1: Energy, Figure E15. With continued LW6 That decoupling of wellbeing there are a number of potential tipping decoupling (4), environmental pressure from environmental pressures should points that are now thought likely at the decreases further and absolute decoupling be a major policy objective of the macro scale. These include increases is achieved by 2048 (5). While pressure Victorian Government. Targeted policy, in the rate of warming as absorption of itself cannot fall below zero, decoupling as well as public education programs, carbon dioxide by the oceans reaches environmental pressure absolutely from should be introduced to reduce the saturation, melting of parts of Antarctica wellbeing means that the potential for dependence of economic wellbeing and the Greenland ice sheet greatly environmental improvement continues to on high consumption and its attributed raising sea level, and permanent alteration increase and historic damage caused by environmental pressures. of the ocean thermohaline circulation the pressure may also be repairedi,28,29. LW7 That the Victorian Government currents (see Part 4.1: Atmosphere – Government at all levels plays a comprehensively integrates decoupling, Climate change). Australia 21ii states that critical role in enabling decoupling by its stages and importance, into all …at a global scale, carbon dioxide ensuring that the negative environmental Victorian Government decision-making accumulation in the atmosphere is a implications of economic growth are at the strategic level. slowly changing variable that will almost reduced through effective strategic policy, certainly lead to several threshold legislation and strong regulation, planning, Understanding shifting baselines effects in terms of climate change, at economic incentives or disincentives, and tipping points various scales. It is a good example investment in technological solutions, and of what happens when slow changes the development of education initiatives. Preceding sections of the State of the go unnoticed or unacknowledged over Because decoupling means change, Environment Report describe many a long time until they accumulate to a resilience is also essential for enabling instances of steady and increasing point that catches society unprepared the transition. To ensure that the gains in pressure on natural systems. A degree for an effective response30. efficiencies translate effectively to truly of external pressure on natural and Furthermore, at a local scale, while not ‘sustainable living’; that is, that they assist human systems is natural, and under the cause of much of the environmental society towards absolute decoupling, such conditions, resilient systems are degradation to date in Victoria, climate innovative application of technological capable of internal adjustment such that change factors are likely to represent an solutions and close monitoring of the they can continue to perform essentially additional stress on many natural systems effects of decoupling are also required. the same function. However, for many that are already under pressure. This Market-based instruments (such as the natural systems, the rate of environmental additional pressure will bring them closer Carbon Pollution Reduction Scheme – see change has been faster than that to which to tipping points. Market Based Instruments, below) that they can actively respond. Furthermore, fully integrate environmental costs into the absence of consistent, long-term Understanding the likelihood of and risks the economy and that are supported by monitoring means that it is likely that they associated with reaching ecological (and robust regulation will challenge enterprises are also subject to the shifting baseline social) thresholds is of high importance to make the quantum leaps necessary syndrome, whereby targets set for ‘no in the development of policy to tackle to introduce new and radically more further degradation’, or even ‘restoration’, environmental challenges. Rebuilding efficient technology. In addition, changing actually represent already degraded the resilience of systems (see Rebuilding consumer behaviour will also play an levels – levels at which the system may not resilience, below) to respond to important role in enabling decoupling to be able to respond to additional external environmental pressures enables them to occur (see LW5). pressures. Examples from preceding avoid crossing dangerous thresholds.

i An example of decoupling creating opportunity for historic damage to be repaired is given by James Hansen of NASA: Greenhouse gas emission rates must be first

stabilised (relative decoupling), then reduced to zero (absolute decoupling). Atmospheric CO2 already emitted since the beginning of the industrial revolution should then be drawn down via bio-sequestration if the climate is to be re-stabilised. ii Australia 21 is ‘an independent research network that was formed in 2001 as a non-profit group to fill a national need for fresh and independent thinking about large and unsolved problems that confront us in the new century’. http://www.australia21.org.au/ 507 | State of the Environment Report - Victoria 2008 how the level of resilience within societies modified by exotic plants, their size can Recommendations determines their ability to adapt to a crisis, assist resilience to external impacts. LW8 That the Victorian Government, and the result of successful or failed The opposite is true for small areas of generally, employ better data collection, adaptation. reserved biodiversity. Edge effects are monitoring and reporting regimes, with dramatic and in many instances the quality In this hypothetical example, growth in a stress on long-term, consistent data of the protected habitat is marginal and wellbeing is used as the indicator of a sets. declining. Such areas are less resilient to functioning society. At a crisis (which change and more likely to collapse. LW9 That the Victorian Government, could be economic in origin, such as the wherever possible, prevent the ramping up of a carbon price), a society Some key questions for Victoria arising perpetuation of shifting baselines, that has a high level of resilience may from resilience thinking are: particularly in regard to natural systems suffer a temporary setback in wellbeing, • What sorts of shocks is Australia likely for which the crossing of thresholds are but, longer term, will adapt and prosper. to face? known to lead to ecosystem collapse. For example, prosperity in a future where carbon is rationally priced (see •  LW10 That the Victorian Government What big thresholds and variables could Economic solutions, below) can only be factor in likely compounding pressures, potentially de-stabilise our current way brought about by decoupling wellbeing such as the expected effects of climate of living? from carbon-intensive industries (see change, when setting targets for Decoupling, above). In contrast, societies • Given that all systems function at ecological restoration. with poor resilience, unable to decouple multiple scales with cascading wellbeing from carbon intensive industries, resilience effects, are there sets of can suffer. interacting changes occurring at various Rebuilding resilience scales in different kinds of variables The crisis/resilience/adaptation model is Resilience is defined as: that have the potential for significant applicable to many scales and systems. consequences for Australia? the capacity of a system to absorb The climate changes that Australia will disturbance and re-organise so as to experience are likely to act as shocks to • How do current trends and government retain essentially the same function, our ecological, agricultural and social policies align with the ideas of resilience thinking? structure and4&$5*0/$0-0634 feedbacks, to have the systems, and whether we are able to 31 same identity1"350/& . 1"35580 1"355)3&& 1"35'063 1"35'*7& absorb these shocks and keep society Further, Australia 21 states that functioning as before will depend on The concept of resilience is equally whether the shocks push these systems Approaches to policy seldom applicable to both natural systems and 33 acknowledge or deal with the possible  1.4 1.4 1.4 1.4 across thresholds . human society.1.4 Societies that have high existence of alternate states and resilience are able to anticipate shocks A similar case exists within Victorian threshold effects. They tend to assume that might be/&653"-$0-0634 coming, prepare for a range ecology. The dichotomy that exists that recovery from any disturbance is 5 of possible changes, respond to them in between the quality of biodiversity possible; that all disturbances can be appropriate and timely ways, and have the on public and private land has been managed after they have emerged and adaptive capacity1.4 to1.4 deal 1.4with complete1.4 discussed (see Part 4.2: Land and are established. Societies promote surprises, that is, to novel shocks that Biodiversity). National parks, other (3"1)4 the persistence of currently favoured 32 couldn’t be anticipated . Figure LW5 reserved areas and State forests have states and in general do not embrace describes, in a hypothetical example, bulk and area. While many are heavily change as a necessary component of progress34. 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Figure LW5 How societies with different levels of resilience adapt, or fail to adapt, to a crisis

- + - Intensity of economic restructure (eg CPRS, oil shock).

Crisis point of shock

Economic Adaptation - Prosperity

Survival Social Wellbeing Indicator (e.g. GSP or GPI) Social Wellbeing Collapse

Time

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This issue highlights the need for • building the motivation and capacity redundancy actually enables adaptation38. government to raise the profile of change of individuals to deal with social and Redundancy should not been seen as a as a fundamental component of resilience economic problems dirty word, and in fact is already integrated thinking and to encourage community into environmental theory via the term, the • trust and respect exemplified by participation in innovation and adaptation. precautionary principle39. Incorporating transparent governance. The media, while playing an important resilience into environmental management role in raising awareness for people In short, diversity (in approaches, regimes implies that natural resources struggling to adapt to change, also often technologies and process), innovation, should not be ‘fully exploited’ or managed sensationalise issues such that resistance rebuilding capital (natural, social and for ‘maximum sustainable yield’40, but to essential change is fostered and financial), and the ability to embrace should be managed so that they are able resilience is reduced. As an example, the change within and across subsystems of to adapt to unknown, as well as known, increasing price of oil, forecast by CSIRO society are essential qualities of a resilient pressures. to reach as much as $8 per litre by 201835, society, and many of these are exhibited Resilience is an essential characteristic creates significant social vulnerabilities. within the communities and subcultures of of a society that can respond to the Rather than dwelling on the negative Melbourne and Victoria. challenges of environmental sustainability. aspects of this likely change, there is a The established discipline of risk role for strong yet optimistic government Also fundamental to resilience is an management can be used to develop leadership in building society’s resilience understanding of the limitations of the methodologies and the metrics and its ability to adapt to this impending increasing efficiency. While increasing the needed to track a society’s resilience to scenario. resource efficiency of society, especially energy intensive industries, is essential environmental pressures and to build Breaking the concept of resilience down for sustainability, alone it is unlikely to be understanding of when urgent intervention further enables better understanding of sufficient. One by-product of efficiency, is needed or might be too late. As the its elements. Australia 2136 describes a ‘the rebound effect’, describes how role of resilience and the importance number of factors believed to be essential increasing efficiency can actually increase of its elements (diversity, innovation to a resilient society. Amongst others, environmental pressure (see Part 2: and modularity) are realised, numerous these include: Driving Forces and Part 3.3: Materials). business opportunities will emerge. • both official, and unofficial, Another perverse outcome of increasing encouragement of diverse ideas, skills, the efficiency of a system is that it can and viewpoints make it more vulnerable to shocks and disturbances. A process that is highly • modularity and decentralisation; for tuned or optimised is more likely to example, distributed energy, water and collapse entirely when a single component food supplies gives way. In contrast, a system with a • exploration and identification of diversity of methods for performing the challenges and opportunities same function – for example, modularity Recommendations – is more resilient overall, since what • use of subsidies that facilitate change to a rationalist may seem to be built-in LW11 The Victorian Government should rather than subsidies not to change develop indices of resilience within the natural systems of Victoria so that • investment in, and support for, defensible management measures can innovation be determined. LW12 The Victorian Government should Box LW2 Permablitz – Permablitz contributes to urban develop and monitor indices of social Community innovation for resilience by improving wellbeing resilience, measuring all its elements sustainable urban food through physical exercise, healthy (for example, innovation, diversity, production www.permablitz.net organic food and creating community distributed systems and the ability to networks of gardeners. Distributed embrace change). Permablitz, based on the idea of organic food production mitigates ‘Backyard Blitz’, is a reciprocal environmental impact and vulnerability LW13 The Victorian Government should volunteer network that retrofits areas to food shortage by minimising investigate ways to build greater levels of participants’ backyards for food resources used to grow, package and of resilience into the community by: production. During a ‘blitz’, volunteers transport produce. ‘The ultimate aim • providing social (financial) support for spend a day sharing skills (workshops of Permablitz’, says organiser Dan communities to adapt, rather than not on edible plants, pruning fruit trees, Palmer, ‘is to make the suburbs edible to adapt reducing household energy use, enough such that as food costs rise, we companion planting, propagation don’t even notice’. Melbourne recently • encouraging diversity of employment and preserving foods) to create an celebrated its 50th Permablitz since the patterns, lifestyles and cultures edible garden. After a volunteer has network was established in 2006 with attended a few blitzes, organisers assist • actively encouraging community- projects supported by the Dandenong based social support networks with designing his or her garden and Development Board and the Planning coordinating a ‘blitz’. Designs are based Minister37. • promoting and supporting innovation on permaculture, a design system at its most fundamental level that provides for human needs with minimal effort while improving the local • building awareness of the limitations environment. of increasing efficiency.

509 | State of the Environment Report - Victoria 2008 LW5 Mechanisms of Change

Figure LW6 Governance in the form of legislation and regulation are vital to supporting each of economic instruments, technology and consumer behaviour

Governance: legislation, regulation and leadership. Environmental policies and SEA

Economic Personal ethics, instruments: MBIs, Technology Informed consumer levies, fines behaviour

Governance, economic solutions, and management of native vegetation on preventing environmental management. technology and individual action are four private land). The Victorian EPA was the For example, the Fringe Benefits Tax elements that have been selected as key first body in Australia (1970) to regulate treatment of leased vehicles in the examples in which a change of direction the discharge of liquid, gaseous and solid private and public sectors is a case of would lead to a refreshed approach to wastes to the environment. At the opposite Commonwealth policy having perverse natural resource management in Victoria. end of the scale, governments protect environmental effects, and runs totally Generally, the first, governance and its large parts of landscapes via reservation counter to the objective of mitigating elements (legislation, regulation and in parks. Between these extremes there greenhouse gas emissions. policy) are needed to support each of the is also a large investment in planning and Victoria has more than 50 Acts and other three. advisory activities, such as by the Victorian nearly 30 strategies that relate to Coastal Council, the Victorian Catchment Notwithstanding the central role of environmental management. Despite Management Council and Catchment governance, it is the creative and sensitive this, this report argues that at best they Management Authorities, which are also use of these tools in combination (see Box can be seen as holding the line on service delivery bodies. There is also LW5) that will be the markers of relief on environmental degradation. At worst a powerful role that conventional local the State’s environmental resources. they have slowed the rate of decline or authority statutory and strategic planning made no difference. While there have plays in environmental management. Natural system governance, been some excellent recent initiatives Nevertheless, a history of multiple environment policy and SEA in holistic governance (for example, the agencies presiding over discrete projects 5 establishment of Regional Management Government and the community need a has made it difficult to develop holistic Forums41 in regional Victoria), the value range of instruments to meet environmental policy for environmental sustainability. In of partnerships between agencies is not objectives. It is critical, therefore, that addition, governments in Australia have widely accepted as standard to the degree environmental management is moved to been historically divided between those that they can sufficiently address the scale the centre of government policy analysis departments responsible for economic and interrelatedness of environmental and consideration. outcomes, those dealing with social problems. issues such as health and education, Traditionally, the phrase ‘natural resource and a group often seen as oppositional management’ was applied only to In the built environment, urban form in purpose, including departments commercially exploitable natural features: has been shown to be responsible for a responsible for environmental interests. fisheries, soil for farming, forests, significant impact and therefore has a role to play in reducing this impact42,43. Part 2: minerals and fossil fuels, and water In fact, the most important ‘environmental’ Driving Forces shows that metropolitan for consumptive use. Consequentially, legislation does not lie within the Melbourne contains the dominant human departments such as Primary Industries administration of the Minister for concentration in Victoria. It is rapidly saw themselves speaking for soil- Environment and Climate Change. It is in growing and expanding into contiguous based economic production and for the hands of the central agencies such as rural areas. Oil and carbon prices stand as conservation that supports this, and Premier & Cabinet, and Treasury, and, for contra-indicators of this process and may other economic departments for that part metropolitan Melbourne, in the disparate lead to significant vulnerabilities. However, of natural resources used in their areas hands of the Ministers for Planning, Public at this point, there is little to indicate of policy responsibility. In this report Transport and Roads & Ports, as well as that these looming crises have had an it is argued that all natural resources, others. Due to the interdependence of their effect on urban growth patterns. When with or without attributed monetary portfolios with the natural environment, they do, the inertia of systems that have value, require stewardship, and, where each of these ministers should consider been optimised around non-renewable relevant, regulation or protection. This him or herself an environment minister and resources (oil and coal) will make is not only for values claimed simply for their decisions should be made with due managing these phenomena extremely ‘the environment’, but because of our regard for natural systems. rapidly emerging understanding of our challenging. Residential housing design Taxation policies also have direct dependence on ecosystem services for and standards also largely fall outside the environmental impacts, and so our way of life (see Figure LW2). influence of ‘environmental’ managers, governance at the Commonwealth level yet dwellings are an important component Governments do regulate certain direct has an important role in enabling or of achieving greater energy and water pressures that potentially threaten diffusely efficiency. Urban planners and architects distributed natural assets (discharges to the air, water and land, and protection

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are therefore amongst the most critical Strategic environmental assessment for purpose. It is under these circumstances groups who will influence environmental major policies and programs that decision-making processes have health in the State, and strategic urban to change. We need new strategic tools Since the late 1960s, environmental governance for sustainability is urgent and and techniques to cope with the new impact assessment (EIA) has played a vital. environmental challenges. major role in dealing with environmental Strategic environmental assessment These examples show the need for impacts. Generally speaking, this tool was natural systems and sustainability (SEA)44 is a tool used in the European the response from government to deal governance to be considered in the Union (see Box LW3, below) to with environmental degradation at the development of policy and integrated better inform decision-makers on the project level. In Victoria, the Environment into government decision-making at the environmental implications of a policy, Effects Statement (EES) plays a similar highest level. Due to our understanding plan or program. In contrast to EIA, which role. EIA has been central to environmental of the interdependencies that exist focuses on the project level (a minor protection and management; however, between the natural systems, and the element on the strategic scale), SEA due to the complexity of current current magnitude of our interactions with targets the sources of environmental them, there is an urgent need for both environmental problems it is out of date. impacts rather than the symptoms. Unlike a horizontal and a vertical alignment of EIA, it is a proactive rather than a reactive national, state and local environmental It has now been realised, if not tool. Under the climate change scenario, governance. always accepted, that due to the interdependencies that exist between this characteristic is central, as it provides economic and environmental systems, for multiple benefits: on one hand it serves today’s environmental problems have as a mitigation measure as it helps to reached a point where they are less local determine, proactively, the best policy, and more regional, or indeed, global; plan or program for the environment; on Recommendations where marginal human influences on the the other hand, the costs for adaptation environment can become crucial; and are less, as these are correlated with the LW14 Commonwealth, State, and local where the Earth’s capacity to recover from selected policy. SEA assesses the impacts governments and their departments and that projects are likely to have on each agencies involved in overlapping and environmental degradation is constantly other to ensure that the objectives of competing funding and policy areas decreasing. Climate change is a prime plans do not conflict. SEA also monitors (such as road provision, public transport example. This environmental problem is plans’ cumulative impacts and significant and metropolitan planning, and primary characterised by its large scale (a global effects over time (impacts which may industry and biodiversity planning) must phenomenon), its cumulative nature, occur beyond the lifetime of a plan) in demonstrate greater coordination to the strong relationship with economic order to reduce the negative impacts and avoid perverse and conflicting policy development, and its relevance to all to enhance the potential environmental outcomes. The creation of strategic sectors of the environment and society. benefits of a policy. The SEA process can statutory bodies that are capable of These characteristics require a strategic therefore help to unveil contradictions holistic and long-term sustainability environmental assessment, but there is between policies, detect environmental decision-making should be thoroughly no conventional site-based environmental impacts that spill over into other sectors explored (cf. the new Department of impact tool available for this high level and point to circularities. Transport). LW15 An examination of current policy should be made by the Victorian Box LW3 European Union SEA for adoption by means of a legislative Government to identify and reconcile Directive procedure; and which are required by subsidies, grants and programs that legislative, regulatory or administrative The Strategic Environmental Assessment provisions. Environmental assessment are perverse to agreed environmental (SEA) Directive supplements the objectives. is automatically required for plans environmental impact assessment system and programs which are prepared for for projects introduced by Directive town and country planning, land use, 85/337/EEC on the assessment of the transport, energy, waste management, effects of certain public and private water management, industry, projects on the environment, which telecommunications, agriculture, forestry, introduced a system for prior assessment, fisheries and tourism and which provide by the Member States, of the possible the framework for subsequent consent for effects of public and private projects specific projects listed in Annexes I and on the environment. Directive 85/337/ II to Directive 85/337/EEC. The same EEC covers construction work and applies to the adoption of plans and other installations or schemes, as well programs liable to affect sites protected as other measures affecting the natural by Directive 92/43/EEC and for which environment or landscape. The new an assessment is required under that Directive introduces a system of prior Directive. Other plans and programs environmental assessment at the planning which set the framework for future stage. development consent of projects will be The Directive applies to plans and subject to environmental assessment programs liable to have significant effects if an examination taking account of on the environment, as well as to their the criteria laid down in Annex II to the modifications, which are prepared and/ Directive shows that they are liable to have or adopted by a competent authority significant effects on the environment45. or prepared by a competent authority

511 | State of the Environment Report - Victoria 2008 The implementation of SEA is of particular relevance for Victoria as the Box LW4 Environmental Recommendation State responds to the pressures of Assessment and Approval LW16 The Victorian Government population growth and climate change. Processes should institute as soon as possible a Major developments sponsored by Council of Australian Governments statutory-based assessment of the full government and private capital investment decision, July 3, 2008: natural resource impacts of all policies, are now capable of creating a far more programs and strategies brought before complex reaction than had ever before COAG has further agreed to the Cabinet. The essential elements of been considered, and certainly well identification of opportunities for broader environmental assessment beyond the spatially-defined scope of strategic assessments under the as used overseas (such as Strategic the development. A case in point is Environment Protection and Biodiversity Environmental Assessment – SEA) the implications of the present channel Conservation Act 1999 to avoid should be used to support its existing deepening program. The impact of unnecessary delays in development ESF integration policy commitment. the dredging itself is outweighed by approval processes. Strategic All pre-Cabinet processes will need the wider and longer-term land-side Assessments are conducted over an to certify that a proper environmental impacts, outside the formal environmental entire region and provide a mechanism assessment of all policies, strategies assessment. The East West Link Needs to approve classes of development and programs has been conducted. Assessment was, in part, an attempt to which have been assessed under manage the land-side impacts of channel this process, rather than conducting individual assessments and approvals. deepening, but the scope of this, too, was Climate legislation limited, with the entire range of options, Strategic assessments provide certainty including improvements to interstate rail for development proponents and The Victorian Government is developing freight, not considered at the outset but reduce duplication, while providing a Green Paper which will outline its incorporated as apparent reactions later greater protection for the environment. proposed approach to dealing with in the process. Taken a step further, the climate change. To ensure that Victoria’s induced material demand created by policy framework is effective a climate SEA therefore provides a basis to which imports made cheaper by more efficient change mitigation and adaptation test existing policy decisions in Victoria can shipping, logistics and transport will have should be built into all Cabinet and budget harness this wider form of environment implications for waste management and decisions relating to policy, infrastructure assessment. The Environmental for Victoria’s materials resource efficiency. and expenditure. Sustainability Framework 2005 led to Another example is the Victorian the Environmental Sustainability Action The existing Victorian Climate Adaptation commitment to cut greenhouse emissions Statement 2006 (ESAS). The ESAS 16.2 Program provides a basis for further by 60% by 2050, decreasing water initiative is a commitment to developing a developing a strong and ongoing availability and the use of expensive, process of environmental assessment of adaptation research program. Key energy-intensive water infrastructure government’s internal, day-to-day decision areas of focus should include long term 5 developments as current government making, but which would also encompass planning for electricity infrastructure, responses to these pressures. When all policies, strategies and programs46. and the resilience of agriculture and assessed strategically, contradictions natural systems. There should be a between the objectives of these programs Through a merger of the well-developed clear commitment to business, local become apparent. SEA can be of great principles contained in the European government and community engagement benefit at this point, as it can assist SEA process and the ESF commitment, and delivery of public good outcomes in determining whether the proposed Victoria would be well on the way to in the protection of natural systems and 47 temporal and sectoral solutions are achieving this objective . Once the SEA resources. ‘strategic gateway’ is passed, if a project the best options or whether there is a Conducting regular risk assessment circularity effect between these responses is approved, conventional EES-style examination would then be applied related to climate change, looking at that will demand even more expensive risks to both the natural environment and repair in the future. to the local impacts of major works associated with that project. By fulfilling all infrastructure, would place the Victorian The principal intergovernmental group environmental obligations from strategic Government in a good position in its in Australia, the Council of Australian to specific in this way, Victoria could and progress towards achieving its stated Governments (COAG), has agreed to should be the leader in government- greenhouse gas emissions reduction and the Commonwealth conducting region- directed environmental assessment in climate change adaptation goals. scale environmental assessments as Australia. a precursor to establishing acceptable classes of development (see Box LW4). Although primarily directed at attempting to minimise the political use of assessment tools in major resource development disputes (for example, in forestry), it is a nascent SEA tool.

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Pollution taxes are another means Recommendation Recommendations of valuing environmental services and LW17 Victoria’s proposed Climate LW18 The Victorian Government mitigating environmental degradation. Change legislation should incorporate should continue and expand at For example, companies that generate the elements of Recommendations the highest level its role of public pollution are required to bear the cost of A1.4, A1.5, A1.6, A1.7 and A1.8 leadership for sustainability by visibly that pollution as part of their production and A1.10 as detailed in Part 3.1: and transparently demonstrating costs – ultimately, this cost is passed on Atmosphere, Climate Change section of commitment to environmental to the consumers through their purchase this Report. sustainability (in each of the areas of products. Fines, which are applied of energy, water and materials) in all through a regulatory process, can also Government operations – purchasing, deter companies from polluting. Government leading by example decision-making, accounting, facilities Market-based instruments are a means The Victorian Government is one of, if and vehicle fleet management. by which governments attempt to address not the biggest, purchaser of goods LW19 Ambitious stretch targets a market failure that may have led to and services in Victoria. Public sector (including zero emissions) should be environmental degradation by putting a expenditure on goods and services set and regularly reported against at price on ecosystem services. Provided was $14.8 billion in 2005-200648. The a whole of government level in State that the price fully reflects the value of Government should use its purchasing budget papers. Detailed entity-by-entity ecosystem services, is applied to all power to drive cleaner production and listing of performance should also be sectors and is carried through all stages improved cost-effectiveness over the publicly provided. of the economy, MBIs have the potential whole lifecycle of goods and services to reduce the environmental pressures as well as the development of low LW20 As part of this process, an associated with consumption of resources. emissions and energy efficient technology, examination of all policy, current MBIs in effect integrate the ecological including sustainable decision-making, and future, should be conducted by footprint, embodied water, embodied sustainability accounting and reporting, the Victorian Government to identify energy, etc. (see Part 3.3: Materials), and the management of built assets and and reconcile subsidies, grants and entirely into the price of consumables, fleets. Robust annual public greenhouse programs that are perverse to agreed creating price-signal disincentives to the gas emissions and water consumption environmental objectives. consumption of environmentally damaging performance reporting is required at products and services and incentives to a whole of Victorian Government and invest in sustainable ones. individual Agency level. Economic solutions In short, each of the above mechanisms Government should thoroughly reconsider As noted in Part 2: Driving Forces, enables ecosystem services provided by its executive vehicle policy to the extent ecosystem services are essential for life natural systems to be valued and priced that eligibility should be seriously but traditionally have been uncosted and allows them to be traded. In doing curtailed, and remove the perversely or underpriced. The challenge is to so, the risk of ‘liquidating environmental (Commonwealth) tax-funded incentive adequately value ecosystem services capital’ must be minimised. Until from salary packages upon which the and to integrate that information into recently, implementation of market-based policy is based. Government should also the economic framework. Economic instruments has been difficult due to lack make it clear to local car manufacturers instruments at the Government’s disposal of clarity regarding property rights over its requirement for small vehicles and include: natural resources49. Following successful alternative fuel systems. Rebates, which are useful in terms of trials, the Victorian Government has now The Government should be signalling encouraging consumer shift towards more implemented a suite of market-based to the community its vision for Victoria sustainable appliances and technologies. instruments that can achieve positive and enacting that vision within its own For example, the Victorian Government environmental outcomes at low cost. operations. To do so will raise public currently provides rebates for installing Economic instruments are used in Victoria confidence in the Government’s ability water tanks in the home. Other examples to achieve environmental outcomes. Price- to take appropriate and well considered include the Commonwealth Government based instruments include incentives, action for sustainability. Similarly, while rebate for installing solar hot water while quantity-based instruments include strong leadership is essential, it must not systems, water tanks, and LPG tanks in auctions and cap and trade systems50. At occur without well controlled community cars (which came about as the result of the Victorian level, ecoMarkets is being consultation and transparent due rising petrol prices). implemented to improve environment processes. Financial incentives, which integrity whilst providing financial reward to encourage the development and use of private land-holders. The use of auctions environmentally sustainable technologies and offsetting mechanisms are the basis and industries. One such incentive is of this approach, which comprises three the provision of ‘green home loans’ market-based systems: BushTender, from selected banks, which offer home EcoTender and BushBroker (see Part 4.2: buyers reduced interest rates on new Land and Biodiversity). This approach is sustainable houses, home renovations proving to be very useful in protecting, or environmentally-friendly household managing and enhancing the Victorian products. environment.

513 | State of the Environment Report - Victoria 2008 At the national level, Australia’s ratification Despite this shared responsibility, some Economic instruments are important for of the Kyoto Protocol in 2008 is being lobby groups have called for a legal mitigating environmental change, but implemented through the development right to compensation for restrictions they have limitations. Economic tools and of a national emissions trading scheme, they perceive on existing property rights. incentives are reliant upon encouraging the Carbon Pollution Reduction Scheme Further, critics challenge the transfer of and directing people into a particular (CPRS), due to be implemented in 2010. financial resources from taxpayers to course of action rather than challenging The scheme establishes a carbon price farmers, saying it would not necessarily people’s basic assumptions and value and allows parties to buy and sell permits result in increased productivity, improved systems. For this reason, a systemic for emissions or credits for reductions. environmental outcomes or more approach using a comprehensive In effect, emissions trading will integrate balanced rural communities52. framework of analysis capable of the cost of the energy embodied (see encompassing economic, political, social Nevertheless, where market failures are Part 3.3: Materials – Embodied energy) and psychological dimensions is also obvious, government should move to into products during their manufacture necessary. This integrated approach is regulate necessary changes (for example, and transport into the retail price of essential if the global community is to in construction standards). In addition, that product, thus providing a financial establish a social structure capable of sectors of the community least able to incentive to reduce consumption of supporting the earth’s ecosystems, both bear the costs and that are vulnerable energy-intensive products. now and into the future. to price shocks brought about by the The CPRS is generally considered to be implementation of MBIs will need to be one of the most efficient ways of reducing supported through the transition period. Recommendations greenhouse gases and is the principal Victoria’s approach to the use of market- LW21 That the Victorian Government policy instrument being implemented to based instruments was initially well continues to investigate and implement enable Australia to achieve its greenhouse received. However, some warn that it is too market-based instruments to achieve gas emissions reduction target. In the crude to be used as the only policy tool. positive environmental outcomes, using European Union this has been a cost- It has been said that MBIs for vegetation prices set to account for the full value of effective tool for cutting emissions. management allow the loss of threatened ecosystem services. Any interventions However, while the CPRS aims to address ecosystems through the gain of common should be by way of budget allocation the climate impact of products, the ecosystems53, effectively a form of asset and not through the creation of market environmental costs of water embodied liquidation. There is therefore a need to distortions. into products and all the other impacts (for proceed with caution, as although there example, non-GHG pollutants) attributable have been some successes with market- LW22 That the Victorian Government to products are still to be fully integrated based instruments, they cannot be relied continues to support development and into the economic framework. Other on in all cases and must be part of a suite implementation of the Carbon Pollution economic solutions (rebates, levies, fines, of policies. Reduction Scheme, in a form that does etc.) address certain stages or impacts not contain major distortions, by no later Just as the term ‘techno-optimism’ of certain products’ value chain but there than 2010. 5 has been used to critique the overly is potential for a full suite of MBIs that optimistic view that technology will solve LW23 That monitoring of the on-ground rationally price all the impacts attributable environmental problems (see The role outcomes of market-based instruments to products to be developed. of technology, below), so too could the is conducted by the Victorian Realising the long-term value of good term ‘econo-optimism’ be applied to the Government to enable a review of the natural resource management and the belief that market-based instruments and effectiveness in terms of both monetary potential to trade in services provided other economic solutions alone will solve cost and environmental outcome. by healthy functioning ecosystems environmental problems. LW24 That recognition should be has been a turning point in how land, As the true scarcity of resources becomes accorded for the continued need for and particularly rural land in Victoria, is clear, the creation of markets for natural strong environmental regulation by the managed51. It has challenged farmers resources is helping in Victoria’s task of Victorian Government where a market- to be clear as to the value of agriculture protecting the environment. The Victorian based approach demonstrably fails to in providing not only food but also Government has been a leader in Australia achieve required outcomes. ecosystem services. The recent trend in in developing, testing and implementing sharing both costs and benefits of good market-based instruments so that now natural resource management has created similar models are being implemented new tradable property rights, providing a across the country. This is generating a new income source for farmers, and has change in behaviour which in turn results improved the natural environment for the in better environmental management. The whole community. Commissioner supports and promotes the use of a comprehensive framework for investigating the feasibility of market- based instruments that provide good value and efficient outcomes to the Victorian community as well as providing long-term environmental solutions.

| 514 Part 5 Living Well Within our Environment

The role of technology Other examples of technological time, improved wind, solar, geothermal, solutions that can assist in abating and wave technologies become more The development of technology designed the negative effects of increasing cost-effective, particularly if volume sales to achieve efficiency, and thereby reduce population and affluence range from begin to fund ever-improving forms of pressure on natural systems, is a major large-scale, government-directed these approaches to generation. imperative of both government and clean coal schemes through to water- The Victorian Government offers feed-in business. As with new developments in saving shower heads and drip irrigation tariffs for small scale solar generation and the health or life sciences, depending systems from private manufacturers. One rebates for water tanks in the home (see upon their application, these can be particular area in which technology can also Economic solutions, above). The seen as either a benefit or a handicap. be of great assistance is in the building installation of solar hot water systems and A new technology can result in either a sector, particularly for decreasing the water tanks is also currently supported reduction in environmental pressure or in consumption of energy and water in both by the State Government’s five-star an increase in pressure, particularly if it commercial and residential buildings rating scheme for environmentally sound enables enhanced exploitation; that is, if it (see Part 3.1 Energy and Part 3.2: Water homes. As stated above, it is important is used to gain increased productivity from Resources). In these areas, technologies to recognise that the efficient use of the efficiency gains achieved – the so- can be used to improve efficiencies in resources can encourage increased called ‘rebound effect’ (See Part 2: Driving terms of resource consumption and peak consumption. For this reason it is Forces and Part 3.3: Materials). energy demand smoothing. For example, important that government support for solar heating systems and energy Technology is fundamental to modern sustainable technology programs is not efficient appliances assist in reducing society and can assist in relieving undertaken in isolation, but in a policy the energy consumption of households. environmental pressures, but it is context where support is clearly linked to These technological solutions can work inherently neutral. It is the way that the long-term, strategic goal of reducing at both the individual level, where home technology is applied, and how we environmental pressures. respond to its availability, that matters. owners choose to retrofit their houses with energy- and water-saving technologies Therefore, the widespread integration In terms of working towards sustainability, or commission architects to create a of sustainable technologies that enable the types of technologies available can sustainable home from scratch, through society to actively change current be classified into two categories: 1) to large-scale developments such as systems will be facilitated by overall Cleaning technologies, which are those greenstar-rated office blocks in central policy frameworks and by the Victorian technologies that are added to existing Melbourne and ‘sustainable’ housing Government supporting the innovation production processes to control and developments in the outer suburbs. and knowledge economy (see Resilience, reduce pollution (end-of-pipe technologies Recent examples of such initiatives in above). The provision of incentive and control devices); and 2) Clean Melbourne include Council House 2 (CH2) schemes for both companies and the end technologies, which attempt to prevent in the City of Melbourne, and the Aurora consumer will also be integral. Economic pollution from occurring in the first place. Development in Epping North. However, support may take the form of tax breaks The Victorian Government is currently the effectiveness of these initiatives for developers and manufacturers of engaged in the development and is highly dependent upon educating sustainable technologies. uptake of a number of energy and waste residents to adopt energy- and water- minimisation systems. These include efficient behaviour. Box LW5 Technology for technologies that provide renewable Technological innovation often faces environmental sustainability in energy, greenhouse gas abatement, significant obstacles. Companies Our Environment, Our Future56 waste minimisation, treatment and developing new technologies are often Action 12.5: Science and technology reuse energies, enviro-consultancy, and unable to capitalise on their efforts 54 for environmental sustainability scientific and monitoring instrumentation . due to the difficulty of finding the funds A major area of innovation in Victoria is the to develop and commercialise, even Victoria’s capabilities and needs in development of clean coal technologies when the benefits flow on to the wider emerging technologies and innovation aimed at helping to mitigate the effects community. Because of historic economic present opportunities to develop of climate change through a reduction in frameworks, sustainable technologies still effective responses to environmental greenhouse gas emissions. For example, have the potential to reduce company challenges that also increase jobs, Victorian scientists are working on drying profitability, which is a strong disincentive private sector investment and brown coal through a process of mild for companies to innovate. While export opportunities. Environmental heating and squeezing. By removing 70% sustainable development is inevitably sustainability will become a key of the water content, the coal is reduced dependent upon a combination of these consideration in science, technology to a state far more suitable as a feed for two broad groups of technologies, it is and innovation across the spectrum efficient power generation. Scientists important for policy planning, legislative of Victoria’s capabilities. For example, believe that drying brown coal could cut measures and economic incentives Victoria will participate in, and promote greenhouse gas emissions within Victoria to reflect a commitment towards an the development and adoption of, 55 by a third (see Part 3.1: Energy). economic framework that supports the exciting technological advances in development of technologies that only use areas such as nanotechnology and renewable resources: ‘clean’ technologies. agricultural biotechnology to secure For example, under the Carbon Pollution the environmental benefits that they are Reduction Scheme, adequately priced expected to yield. carbon should lead to generators substituting new technologies to abate present emissions that become expensive in a permit-based system. At the same

515 | State of the Environment Report - Victoria 2008 Sustainable development requires the Technology can therefore increase Consumers’ ethics, enacted via their resolution of two contradictory dynamics; environmental pressures and mitigate buying power, can bring about product namely, a commitment to ongoing against environmental degradation. substitution,57 thus encouraging greener improvements in short-term wellbeing Technology has improved resource products. Decoupling manufacturing (which currently implies continued productivity in production processes but from environmental pressures can be economic growth) and the need to technological advances have also driven achieved through regulatory mechanisms, protect the natural environment for the increased consumption of resources technology, and through market-based wellbeing of future generations and for through ongoing diversification of product instruments. These are covered in the other species. If development is to be development to grow markets. One respective sub-sections of this chapter. sustainable it is imperative to find ways example is the phenomenal increase in Importantly, reducing environmental to decouple growth from environmental use and consumption of mobile phones pressures can also be achieved through degradation (see Decoupling, above). and other electronic ‘consumables’. consumer demand. This is one of the Technology will be central to achieving two principal mechanisms covered in this this goal. Specifically, there is a role Recommendation section. for technology to improve resource Because modern consumer society is productivity (production processes) LW25 When investing in research and so extremely complex, with numerous while simultaneously reducing the development for innovative technologies products vying for the consumer dollar, consumption of energy, water and and approaches to production, the regulatory mechanisms and market- materials (technological efficiencies). The Victorian Government should ensure based instruments are essential to assist development of these broad areas of that the productivity gains and the the consumer in informing his or her technological innovation will not only assist contribution to the economy do not decisions when making environmentally in reducing the global ecological footprint, come at the cost of absolute increases ethical choices at the retail interface. but will also ensure the continued growth in environmental pressures. Examples of these are eco-labels and the and diversification of the global economy. rational pricing of products respectively. While technology will play a crucial Consumer behaviour Eco-labels interpret and simplify complex role in reducing Victoria’s ecological product lifecycle information so that the footprint, and while optimists may look to Ultimately, when the dust disturbed by consumer can make educated choices technology alone to solve environmental changes to governance by technology according to environmental criteria (see problems (techno-optimism), it is unlikely and by market-based instruments settles, Part 3.3: Materials). Rational pricing, a that single ‘king-hit technologies’, or it is individual behaviour that is the key to market-based instrument, puts a price indeed any combination of ‘technological change. on the environmental damage that a fixes’, will restore ecosystem integrity In Australia today, material consumption product or service incurs and incorporates in the absence of strong environmental is not only a mark of success, but is for that price into the consumer cost of the governance, economic solutions and many a substitute for more traditional product. It works by effectively adjusting 5 individual consumer ethics. In any case, satisfactions and happiness. The market conditions to ensure externalities reliance on single technologies (such as unsustainable pattern of consumption and are priced such that sustainable products carbon capture and storage) also creates production, particularly in industrialised have the same competitive advantages as vulnerabilities (see Resilience, above). countries, is a major cause of the ‘unsustainable’ ones. Both mechanisms Research and development should continued deterioration of the global then enable consumers to convey to continue urgently on such technologies environment. As consumption patterns are manufacturers that sustainability is an but development of a diversity of part of the problem, they therefore have an important criterion for their choices. technologies should also be supported. essential role to play in the solutions to the The environmental potential of each of It is reasonable to conclude that to date in challenges of environmental sustainability. these mechanisms is strengthened when Australia the technological improvements Yet consumption and production are not consumers are supported practically in to resource efficiency have been translated inherently environmental pressures; the shifting their behaviour and when they into increased productivity. However, it is reason that environmental pressures are possess environmental understanding not a simple binary issue – in many cases generated is that current consumption and an ethical framework against which increased efficiency can lead to increased and production patterns, in terms of both to navigate a way through the choices profit through the better use of materials the impact per unit of product and in presented. There is an expanding public without an overall increase in production. absolute amounts, are not sustainable. awareness of the risks associated with In other cases where waste streams have Part 3: Production, Consumption and degrading environmental systems and, been brought towards zero, the capture Waste shows that it is now essential that most particularly, matters concerned in increased production is acceptable. manufacturers decouple production from with water and climate change. However, However, where the efficiency gains are environmental impacts and, if efficiency the task of translating this into changed unable to bring waste production close to alone is insufficient to reduce absolute human behaviour is major, and one too zero, then capturing these improvements pressures, then a reduction in levels of large for government alone. For many in a context of growth and expansion consumption may be necessary. individuals, there will need to be some simply increases absolutes, although at a critical threshold, natural or economic, reduced rate. before change occurs; but, as has been demonstrated in the demand management campaigns for water savings, change can and does happen.

| 516 Part 5 Living Well Within our Environment

The current consumer-focused campaigns In a society infiltrated so fundamentally that encourage Victorians to make Recommendations by messages telling us that consumption decisions to use less water and energy LW26 The Victorian Government itself is a goal that these messages (the Save Water and the Black Balloons should accelerate the provision of themselves can almost cease to be campaigns) are essential. Yet to be programs (such as eco-labelling and noticed, how do we reframe values to help effective they must be visibly supported public education campaigns) that raise reduce levels of absolute consumption? by both strategic government initiatives, awareness of the environmental impacts Scientists have found that consumption sustainable technology and, most of all consumable services, particularly activities such as eating and now importantly, an ethical framework fostered essential services. shopping are rewarded by brain activity by community and government. For that has evolved to enable humans to LW27 The Victorian Government example, a government campaign aimed survive. This reward is felt as happiness should continue to promote and fund at educating inner-city residents about or a sense of satisfaction60. In addition, a variety of community programs the environmental and health benefits of pressure to consume also comes from directed at resource conservation riding a bike to work is most effective if the peers and from the need to ‘compete’ and environmental sustainability. government also ensures the provision within society and is driven by the There should be a thorough analysis of safe bike paths and if potential users dominant growth paradigm. of past and existing programs and possess an ethical framework against the most effective approaches Until recently in human evolution, the which to make the decision to ride. Thus, should be adopted in new programs limited availability of food and material such an example also highlights the as they develop. Continued possessions was the factor that prevented cross-disciplinary approach necessary government investment from income over-consumption. However, due to if public education campaigns are to be streams charged or levied against the technological advances of modern, effective. Further, the relationship between environmentally costly or harmful especially first world, communities, attitude and behaviour is complex, and activities would constitute a suitable there is a plethora of material goods environment campaigns may sometimes source of funds. and food available and therefore no succeed for a short period on a particular natural exogenous limit stopping us from environmental issue of the day but suffer LW28 The Victorian Government should seeking these rewards. This means that from campaign fatigue over time. Long- finalise its Learning to Live Sustainably consumption can get out of hand, and term behaviour change for sustainability education strategy and review this in is characterised by the purchasing of requires more innovative communication five-yearly cycles. items that are not only inessential, but approaches that are fully supported by for which people very often have limited legislation and regulation. As well as choosing the most practical use. Additionally, once essential As described in Part 2: Driving Forces, environmentally sensitive product to material possessions are acquired, human the marketing and delivery of products perform a service, there is also an relations and social interactions are more with a sustainability or green ‘edge’ is on environmental imperative for consuming important for wellbeing. The exceedance the increase. There is no doubt that this less in absolute terms, both as a nation of material desires without fulfilling is in response to consumers’ demand for and as individuals. While growth of the interpersonal relationships, meaningful 58 sustainable products . Nevertheless, most economy and rising consumption is widely work and a hope for the future can leave a 61,62 individuals are rarely aware of the potential assumed (including by governments) person feeling profoundly dissatisfied . influence that consumers as a group to be essential for wellbeing, it is worth For people to modify their levels of can have on the design, manufacture, considering the costs and benefits of consumption for sustainability requires delivery and marketing of products. attempting to decouple wellbeing from a conscious redefinition of this sense of Those who do may engage in ‘product economic growth. To do so is simply to satisfaction, this ‘reward-happiness’. As boycotts’ – deliberate embargos of explore another of the options for breaking described above, ‘product’ substitution63, certain products for environmental–ethical the link between our ever-improving in this case the substitution of excessive reasons. Such boycotts can be effective lifestyle and a degrading environment consumption with other activities that when the specific purposes are clear, and (see Decoupling, above). The reasons perform the same service (that is, creating when there is an alternative, more ethical for this are bound up in the concept of happiness and satisfaction), is seen as product available that can provide the the ‘rebound effect’ in decoupling theory a viable way of decoupling quality of life same service59. While modern technology and are well described above and in Part from consumption. may be an advantage for communication 1: Introduction, Part 2: Driving Forces of boycotts, it is also likely that highly and Part 3: Production, Consumption & Consumers can review their consumption visible action of the kind possible within Waste. Essentially, building the profile of patterns, giving emphasis to holistic closely connected communities can non-material ‘products’ will enable the wellbeing. On a personal level, the enhance the effectiveness of a boycott. services that consumption provides to enjoyment of social interactions, be substituted, thus reducing absolute community, friends and family are all levels of material consumption and its viable alternatives that could replace associated environmental pressures. material goods in the pursuit of happiness. As a society, attractive and realistic alternatives to material consumption that are based on building social cohesion, academic achievement and practical skill- sharing are all important ways to re-focus the pursuit of happiness and should be encouraged by government.

517 | State of the Environment Report - Victoria 2008 In order to make the best of these As well as encouraging government to Mechanisms of change – alternatives, and because education raise the profile of the benefits of family Conclusion plays a key role in influencing and community over materialism, there is individual behaviour over the long a need for every Victorian to think critically The preceding sections show how each term, environmental and philosophical about how he or she can adjust current of governance, economic instruments, education is essential. ‘Sustainability’ personal living and consumption patterns technology and consumer behaviour can is best achieved through a systemic to make them more sustainable. There play a role in mitigating environmental approach that addresses the various are many ways that this can be done pressure. Above all, it is vital that these social and psychological dimensions and many are familiar. From ensuring are implemented in coordination and driving individuals’ behaviour. Research that household food is not wasted, to that they support each other for the best indicates that long-term attitudinal and taking shorter showers, to choosing tap environmental outcomes to be achieved. behavioural change is best achieved water over bottled, to donating money Box LW6 shows how each of these four through community-focused, personalised to charities rather than buying the latest broad approaches can be applied to a education. This may mean that mobile phone, most Victorians have real world problem; in this case, cigarette government funding is best directed into opportunities to reduce consumption in butt litter. education programs organised at the their everyday lives64. As individuals, as a local government level, or within individual State, and as a nation, humans depend schools, as opposed to large-scale ultimately on a healthy environment media campaigns, which, although useful for survival. Critically evaluating our in creating public awareness, are less consumption patterns will benefit not only effective in bringing about attitudinal and us, but future generations of Victorians behavioural change. At a fundamental and the myriad other species with which level, environmental ethics also have an we share the planet. important role to play in empowering people and providing a framework against Box LW6 Applying the Four Levy: The Butt Littering Trust has been which to make more informed consumer Mechanisms of Change to a real established by British American Tobacco decisions that will both improve personal world problem - cigarette litter and other tobacco companies to provide wellbeing and, ultimately, benefit the a fund to which local government and environment. Cigarette butt litter is a high profile community groups can apply for funding environmental problem. Butts are not for anti-cigarette butt litter programs Recommendations biodegradable, they are unsightly, they such as education campaigns, bins and can leach toxins into waterways and locality-specific campaigns66. LW29 The Victorian Government they are harmful to freshwater and expand the teaching of ethics and marine life if ingested. It is estimated Rebate: As part of the Don’t Be a environmental science as integrated that around 7.2 billion cigarette butts are Tosser campaign, rebates were offered 5 curriculum in primary and secondary littered in Australia each year, and that to establishments for the installation of schools. they comprise about 56% of total litter in cigarette bins. Victoria65. There is a range of initiatives LW30 The Victorian Government Technology give due consideration to, and raise available to both industry and individuals, the profile of, community and social supported by government, that have Biodegradable butts made of food grade programs’ in terms of their potential been developed to address this problem. starch that may decompose in as little for reducing environmental pressures, Four are detailed here to illustrate how as two months are being developed particularly in funding schedules. the Mechanisms of Change are applied by Stanelco Pty Ltd. As is the case for to this environmental problem, and the biodegradable plastics, a microorganism- ways that, as a set, they work together. rich environment is required for butt decomposition. Nevertheless, once Governance, regulation, legislation commercially viable, such an initiative has The Environment Protection Act 1970, the potential to reduce cigarette butt litter, sections 45E to 45J stipulate that litter if applied appropriately67. (including cigarette butts) must not be Consumer behaviour and ethics thrown from vehicles. This is enforceable under certain circumstances by the The Don’t Be a Tosser campaign aims Environment Protection Authority. to educate consumers of cigarettes and has been developed to combat the Economic solutions expected increase in butt litter outside Fines: One of the enforcement options pubs and clubs following the introduction available to the EPA, and to ordinary of the smoking ban in Victoria’s licensed citizens, is the ability to report that litter premises from 1 July 2007. The has been thrown from a car. The EPA campaign uses a range of information makes this option available via their (why butts are a problem, how much website, hardcopy forms available from the fines are) delivered via a variety of some local councils and by phone call. media (stickers, fact-sheets, posters Litterers who are found guilty of littering and billboards) to raise awareness of the in this way are fined $227 (as at August problem of cigarette litter and to provide 2008) for depositing a burning cigarette consumers with information to make the butt. best, most ethical decision in disposing of their cigarette waste68.

| 518 Glossary

AAQ NEPM Anthropogenic Biomass National Environment Protection Measure Caused by humans. The total mass, at a given time, of living for ambient air quality. organisms of one or more species per unit Airborne Particle Index area. Acid soils Used as a measure of visibility reduction. Soils with pH less than 7. Plant growth is Bioregion Aquatic usually affected at pH less than 5.5. Broad scale mapping units for biodiversity Describes areas or species dominated by planning. Airshed water or reliant on water. A region (for example a capital city) Biosequestration Aquifer for which a government agency has Storage of atmospheric carbon in living A layer of underground sediments that estimated pollutant emissions to air. biomass, for example in vegetation. holds water and allows water to flow Albedo effect through it. Biota The fraction of solar radiation reflected The total assemblage of living organisms Arboreal by a surface or object, often expressed in an area. Species that inhabits or spends large as a percentage. Snow-covered surfaces amounts of time in trees. Bog have a high albedo, the surface albedo Alpine vegetation community occurring in of soils ranges from high to low, and Asset-based approach permanently wet sites in poorly drained vegetation-covered surfaces and oceans A rational approach to environmental slopes and in the bottom of valleys, have a low albedo. The Earth’s planetary management that rates assets according containing predominantly mosses. albedo varies mainly through varying to values (ecological, social and cloudiness, snow, ice, leaf area and land economic) and assigns management Carbon dioxide fertilisation effect cover changes. programs based on risk to those values. Stimulation of plant growth by elevated concentrations of atmospheric carbon Algal blooms Bankfull dioxide. Algal blooms are dense congregations of Flows that completely fill the channel. Carbon sequestration algae or cyanobacteria (blue-green algae) Base load Capture and long-term storage of that can form over lakes, dams or streams. The minimum constant amount of carbon in forests, soils and the ocean, Alkaline soils electricity required to meet demand at a reducing atmospheric carbon dioxide Soils with pH greater than 7. given time of day. concentrations. Alpine bog Baseflow Catchment Vegetation community at high elevation, The quantity of groundwater contributing An area of land where runoff from rainfall dominated by hummock forming to streamflow. goes into a single river system. sphagnum moss associated with sedges, Benthic Centre-pivot irrigation rushes and wetland heaths. Associated with the sea floor. Irrigation technique whereby water is Ambient Air Quality Bioaccumulation applied from large overhead booms The external air environment. Does Concentration of substances, especially revolving around a central pivot. not include the air environment inside toxins, in the tissue of a plant or animal. buildings or structures. Cetacean Biocapacity Baleen whales and toothed whales Amphibians Refers to the capacity of a given (including dolphins and porpoises). A group of animals that begin life in biologically productive area to generate CFC the water and generally transform to an on-going supply of renewable Chloroflurocarbons. Organic compounds land-dwelling adults; frogs, toads, and resources and to absorb its spillover made up of atoms of chlorine, fluorine salamanders. wastes. Unsustainability occurs if the and carbon. They were commonly used Anabranch area’s ecological footprint exceeds its as refrigerants in refrigerators and air A minor stream that leaves and rejoins the biocapacity. conditioners, as blowing agents in foam main river. Bioclimate plastics, and as cleaners for computer Annual plant species The climatic component of a species’ circuit boards. Plant species that complete their lifecycle ecological niche. Chlorophyll-a (germination, growth, flowering, seed set Biodiversity A green pigment found in plants that is and death) in one year. The variety of all life forms, including the a crucial component of photosynthesis. Anomaly different plants, animals, and micro- Its presence in marine environments is Denotes the departure of an element organisms, the genes which they contain indicative of algal growth. from its long-period average value for the and the ecosystems of which they form a CH4 location concerned. part. Methane. Anoxic Biogenic habitat Clean coal Without oxygen. Habitats that are produced through the A term used to describe a range of new actions of living organisms. Antarctic firn technologies intended to reduce the Compressed snow, generally with a Biomagnification greenhouse emissions from coal-fired density greater than 550 kg per m³. Firn The increase in the concentration of electricity generation to levels below those is formed in the transition of snow to bioaccumulated toxic chemicals in of current coal-fired power stations. compressed ice, such as that found in organisms higher in the food web. glaciers.

519 | State of the Environment Report - Victoria 2008 Climate Conventional tillage/cultivation Dematerialisation Synthesis of weather conditions in a given Cropping technique whereby soil is A decrease in the material content of a area, characterised by long-term statistics cultivated multiple times before crop is service unit of a product. (mean values, variances, probabilities of sown. Demersal extreme values, etc.) of the meteorological Conversion Found at or near the bottom of the sea, yet elements in that area. The processes by which primary energy, capable of active movement. Climate change such as the chemical energy contained Demographic Term used to denote a significant within coal, is transformed into more The study of the characteristics of a change in the long-term statistics of a useable forms of energy such as population; for example: age, gender, meteorological element (in particular electricity. income. temperature or amount of precipitation) Consumer Price Index in the course of a certain period of time, Denitrification A financial index that measures quarterly where the means are taken over periods of The natural removal of nitrogen via changes in the price of a ‘basket’ of typical the order of a decade or longer. biological processes, essential to the household goods and services. health of marine waters. Climate variability Critically Endangered Term used to denote deviations of climate Depleted A taxon is Critically Endangered when the statistics over a given period of time (such Greater than 30% and up to 50% of best available evidence indicates that it as a specific month, season or year) from pre-European extent remains (or a meets any of the criteria A to E for Critically the long-term climate statistics relating to combination of depletion, loss of quality, Endangered (see Species Survival the corresponding calendar period. In this current threats and rarity that gives a Commission 2001), and it is therefore sense, climate variability is measured by comparable status e.g. greater than considered to be facing an extremely high those deviations, which are usually termed 50% pre-European extent remains and risk of extinction in the wild. anomalies. moderately degraded over a majority of Crustaceans this area). Climatic envelope A type of arthropod; an invertebrate that Spatial representation of the climate De-snagging is mainly aquatic, with a segmented body range encompassing the distribution of a The removal of trees and branches that and a chitinous exoskeleton (hard external population or species. have fallen into and lodged in a waterway. shell). Examples include shrimp and CO yabbies. Diadramous fishes Carbon monoxide. Fish species that migrate between fresh Cyanobacteria and sea water as part of their life cycle. CO2 The scientific term for blue-green algae. Carbon dioxide. Diffuse point pollution Dam Non-point sources of pollution such as CO -e The dam is the wall that holds the water in 2 sediment or nutrients from catchment Carbon dioxide equivalent: A standardised and the reservoir is the water. Commonly, runoff, groundwater inputs or atmospheric measure to express the total global the term ‘dam’ includes the reservoir. fall-out. warming potential of greenhouse Data Deficient emissions, based on their different Direct drilling Inadequate information to make a direct, global warming potentials as a factor of Sowing of crop seeds directly into or indirect, assessment of its risk of the global warming potential of carbon uncultivated soil. extinction based on its distribution and/or dioxide. population status. A taxon in this category Dissolved oxygen Conservation farming may be well studied, and its biology Oxygen (from the atmosphere or as a by- Farming techniques that minimise erosion well known, but appropriate data on product of metabolic processes) dissolved and soil structure decline. abundance and/or distribution are lacking. in the water and available for animal and Data Deficient is therefore not a category plant uptake. Consumption of threat. Listing of taxa in this category This section considers only major Distributed generation indicates that more information is required consumer classes of harvested water Where electricity generators are located and acknowledges the possibility that (surface water, groundwater or recycled). near to the energy demand, rather than future research will show that threatened Rainfall that is directly consumed, for centralised within a single district such as classification is appropriate. example by dryland crops and pasture, the Latrobe Valley. or by crops in an irrigation area, is Decapod Distribution excluded. Important uses of water (e.g. A member of the Order Decapoda, Substations convert high-voltage electricity hydro-electricity generation or recreational meaning ’10 feet’. Examples of decapods carried by transmission lines from power pursuits) are excluded as they do not in Victoria include crustaceans such as stations into low-voltage electricity for divert water from its location nor change the yabby and the threatened alpine spiny distribution within local areas. its condition for other uses, although there freshwater crayfish. may be environmental impacts such as Dobson units Demand management cold water pollution. In the case of water A measure of atmospheric ozone. 100 DU In economics, demand management supplied for irrigation, a distinction has is equivalent to a 1 millimetre thick layer of is the art or science of controlling been drawn between water harvested pure ozone at both sea level temperature economic demand to avoid a recession. for consumption (the volume at the and pressure. In the stratosphere, the In natural resources management and commencement of the distribution system) same amount of ozone would occupy a environmental policy more generally, it and consumption (the volume delivered to much larger space. refers to policies to control consumer the farm gate). demand for goods such as water and energy.

| 520 Glossary

Drought refugia El Niño Environmental sustainabilty Areas where animals or plants take refuge Translates from Spanish as ‘the boy- Environmental sustainability is the ability to in time of drought. These areas are often child’. Peruvian fisherman originally used maintain the qualities that are valued in the waterways, wetland or pools. the term - a reference to the Christ child physical environment. - to describe the appearance, around Dryland agriculture Erosion Christmas, of a warm ocean current off Agricultural enterprises utilising only The wearing away of land surface by the South American coast. Nowadays, rainfall, not irrigation. wind or water, intensified by land-clearing the term El Niño refers to the extensive practices related to farming, residential or Dryland salinity warming of the central and eastern Pacific industrial development, road building or Secondary salinity occurring in dryland that leads to a major shift in weather logging. agricultural areas. patterns across the Pacific. In Australia Erythema Ecological vegetation class (EVC) (particularly eastern Australia), El Niño Redness of the skin caused by capillary An ecological vegetation class consists of events are associated with an increased congestion. Exposure to ultraviolet one or a number of floristic communities probability of drier conditions. radiation can cause erythema. that appear to be associated with a Ecologically sustainable development recognisable environmental niche, and Using, conserving and enhancing the Estuarine which can be characterised by a number community’s resources so that ecological The zone where a river meets, influenced of their adaptive responses to ecological processes, on which life depends, are by river flows and tides and characterised processes that operate at the landscape maintained, and the total quality of life, by a gradient from fresh to salt water. scale level. now and in the future, can be increased. Eutrophication Ecosystem Electrical conductivity (EC) The process that occurs when a A dynamic complex of plant, animal, A measure of salinity. The higher the waterbody is subjected to high levels of fungal and micro-organism communities electrical conductivity of a stream, the nutrients. The nutrients cause excessive and the associated non-living environment higher the salinity. plant and algal growth. As the organisms interacting as an ecological community. decay, the waterbody is depleted of Embayment oxygen. Ecosystem services A semi-enclosed coastal water body The processes and conditions by which whose opening to the ocean is restricted. Evapotranspiration natural environments sustain and fulfil Transfer of water as water vapour to Emission Inventory human life. Broadly, ecosystem services the atmosphere from unvegetated A stocktake across Victoria of the mass of include a stable climate, clean air, water (evaporation) and vegetated (transpiration) pollutants emitted into the air environment cycling and purification, nutrient cycling, land surfaces. by different sources. soil formation, biomass production, waste Exogenous pressures disposal, crop pollination, provision of Encrusting species Pressures that originate outside the area food and minerals, and the maintenance Marine species that attach to rocks, itself. of genetic diversity. seaweed and artificial structures. Externalisation EESC Endangered Transfer of the costs of an action to the Effective Equivalent Stratospheric A taxon is Endangered when the best environment without fully accounting for Chlorine values are a measure of the available evidence indicates that it meets the costs of environmental harm. potential for ozone depletion in the any of the criteria A to E for Endangered stratosphere obtained by summing (see Species Survival Commission 2001), Extinct over adjusted amounts of all chlorine and it is therefore considered to be facing A taxon is Extinct when there is no and bromine-containing gases. The a very high risk of extinction in the wild. reasonable doubt that the last individual adjustments account for the different rates has died. A taxon is presumed Extinct Endemic, endemism of decomposition of the gases and the when exhaustive surveys in known and/ Referring to a species which is native to greater per-atom effectiveness of bromine or expected habitat, at appropriate times a single geographic region and is found in destroying ozone compared to chlorine. (diurnal, seasonal, annual), throughout nowhere else. (cf CO2–e in Part 4 Atmosphere: Climate its historic range have failed to record an Change). Enhanced greenhouse effect individual. Surveys should be over a time An increase in the natural process of the frame appropriate to the taxon’s life cycle Efficiency greenhouse effect, brought about by and life form. Two concepts of efficiency are used human activities, whereby greenhouse in this report. Efficiency is the average Extinct in the Wild gases such as carbon dioxide, methane, ratio between water output and input A taxon is Extinct in the Wild when it is chlorofluorocarbons and nitrous oxide where both the input and output are known only to survive in cultivation, in are being released into the atmosphere measured in physical units. In the second captivity or as a naturalised population (or at a far greater rate than would occur context, ‘water use efficiency’ describes populations) well outside the past range. through natural processes and thus their the product (e.g. agricultural produce), A taxon is presumed Extinct in the Wild concentrations are increasing. Also called divided by the water applied. when exhaustive surveys in known and/ anthropogenic greenhouse effect or or expected habitat, at appropriate times climate change. (diurnal, seasonal, annual), throughout Environmental bulk entitlement its historic range have failed to record an A water entitlement held by the Minister individual. Surveys should be over a time for the Environment that permits the use frame appropriate to the taxon’s life cycle of water in a river or storage for a purpose and life form. that benefits the environment.

521 | State of the Environment Report - Victoria 2008 Fallow Full fuel cycle emissions Groundwater recharge Period when no crop is sown on farm land. Emissions which account for the total Movement of water from soil surface In Victoria this is usually over summer and direct and indirect emissions associated through the soil to the water table. autumn, the period between harvesting with the extraction, conversion, distribution Habitat one year’s crop and sowing the next. and combustion of energy attributable to The environment, including physical and the activity. Feldmark biological features, in which an animal or Low alpine vegetation community Gigalitre (GL) plant lives. occurring in exposed, windy, rocky areas One billion litres. Hazardous waste at the highest elevations. Gillnet Waste substances which can pose a Fen A type of passive fishing net, set vertically substantial or potential hazard to human A low, open sedgeland of pools within and often affixed to the sea bed, that health or the environment when improperly bogs, or within some valley floor entangles fish, usually via their gills. managed. See toxic chemicals below. heathlands, in high rainfall alpine areas of Global warming Hectopascal Victoria. Global warming is the increase in the A measure of air pressure. Fire cycle average measured temperature of the Hidden flows Interval between fires at a given site. Earth’s near-surface air and oceans since Displacement of environmental assets the mid-20th century, and its projected Fire regime without absorption into the economic continuation. Sequence and severity of fires over a sphere. prolonged period. Goal House size An air quality target used in the SEPP Floodplain The floor area of a dwelling. (AAQ) and AAQ NEPM. It specifies a Lands adjacent to streams that are subject maximum allowable number of days per Household to flooding. year (exceedences) when the objectives A group of people living together in a Flow regime can be exceeded and a timeframe in house or other dwelling. Each freshwater system has its own which this goal must be met (by 2008). Household size individual flow regime, with its own The goals guide the formulation of The number of people living in a house or pattern of changes in the season, timing, strategies to improve air quality. An other dwelling. frequency, and volume, rates of rise and evaluation of performance against the goal fall, and duration of flows. The flow regime is made for each monitoring station in a Human-induced climate change or hydrology influences the physical nature region. The alteration to the earth’s climate due to of river channels, the biological diversity, human activities. Greenhouse effect and the key processes which sustain The Greenhouse effect refers to the Humus the aquatic ecosystem and ecosystem change in the thermal equilibrium Organic matter in soil which has broken services. temperature of a planet or moon by the down to a point of stability where it is Flow stress ranking presence of an atmosphere containing resistant to further decay. A measure of the difference between the gas that absorbs infrared radiation. Hydrology current flow conditions of a waterway and Greenhouse gases warm the atmosphere The movement, distribution and quality of the flow conditions that would exist if no by efficiently absorbing thermal infrared water through the landscape. water were extracted. radiation emitted by the Earth’s surface, In situ conservation by the atmosphere itself, and by clouds. Food miles The process of protecting an endangered As a result of its warmth, the atmosphere The transport distance travelled by species in its natural habitat by protecting also radiates thermal infrared in all food products between production and or improving the habitat. consumption. directions, including downward to the Earth’s surface. Thus, greenhouse gases Incipiently naturalised Fresh trap heat within the surface-troposphere Where the taxon is known to be not A flow pulse in a river that is higher than system. This mechanism is fundamentally indigenous in Victoria and is replaced by the median flow at that time of the year. different from the mechanism of an actual one or more populations, but the extent It may occur naturally or as a result of a greenhouse, which instead isolates air of naturalisation is uncertain and there decision to release water from a reservoir. inside the structure so that heat is not lost is doubt whether it has become truly A fresh can occur at any time of year. by convection and conduction. naturalised. Freshwater Gross State Product Index of Stream Condition Freshwater systems include rivers, The total value added by production in the An integrated measure of the overall streams, wetlands and groundwater State economy in a year. condition of a stream reach, based on which are not salty- they have electrical the assessment of five components; Groundwater conductivity levels below 800 μS/cm. hydrology, water quality, physical form, Water that infiltrates into the earth and riparian zone and aquatic life. Fugitive emissions is stored in the rock and soil below the The incidental emissions which escape earth’s surface. Index of Wetland Condition during energy related activities. For A method of assessing the quality of Groundwater discharge example, coal seam methane which naturally-occurring wetlands without a Emergence of groundwater at soil surface escapes during mining for brown coal, or marine hydrological influence. gas which leaks out of gas pipelines. or into waterway.

| 522 Glossary

In-stream habitat Megalitre (ML) ODS ‘banks’ A waterway’s physical form and features One million litres. Ozone-depleting substances that exist and the habitat it provides for plants and in containers prior to deployment or after μ/m3 animals. reclamation, in existing equipment (for Micrograms per cubic metre. example, air conditioners) or materials (for Invertebrate Mid-latitudes example, foams), either in use, or buried Any animal lacking a backbone. Regions of the Earth between the Polar in landfills. Joule Circles and the Tropics of Capricorn and Ozone-depleting substances Unit of energy measuring heat, electricity Cancer. ODSs include but are not limited to CFCs, and mechanical work. Minimum tillage halons, carbon tetrachloride, methyl Keystone species Cropping techniques whereby soil bromide, HCFCs methyl chloroform and Species that underpin and play a greater cultivation is kept to a minimum. methyl bromide. role in ecosystem function than their Molluscs Ozone Monitoring Instrument abundance would imply. Animals, such as snails and slugs, with An instrument that can distinguish Kilolitre soft bodies, a muscular foot and a mantle between aerosol types, such as smoke, One thousand litres. (a flap of tissue covering the body). They dust, and sulfates, and measures cloud use gills for breathing. Most molluscs KWH pressure and coverage which provide data have an external shell, but some have an Kilowatt hour. The amount of power to derive tropospheric ozone. internal shell or no shell at all. consumed/generated over a period of one Organochlorines hour. Natural ecosystems Organic compounds that contain chlorine Ecosystems that are predominantly Lagoon and can mimic the hormone oestrogen. unmodified or that contain large areas of Any large pond or holding used to contain Ozone hole native vegetation. wastewater while treatment processes A region of the ozone layer where there is including sedimentation and biological Naturalised plants a pronounced thinning, where where total oxidation occur. Alien plants that sustain self-replacing ozone levels are atypically low, usually populations without direct intervention by La Niña defined as less than 220 Dobson units. people or in spite of human intervention, Translates from Spanish as “the girl-child”. Ozone layer by recruitment or seeds or vegetative The term “La Niña” has recently become A relatively thin layer of ozone found in propagules or by vegetative spread. the conventional meteorological label for the stratosphere that absorbs harmful the opposite of the better known El Niño. Near shore environment ultraviolet radiation. The term La Niña refers to the extensive The part of the marine environment that Pb cooling of the central and eastern Pacific is located close to the shoreline, usually Lead. Ocean. In Australia (particularly eastern within a few hundred metres. Australia), La Niña events are associated Pelagic birds Near Threatened with increased probability of wetter Sea birds. A taxon is Near Threatened when it has conditions. been evaluated against the criteria but Perennial plant species Large woody habitat does not qualify for Critically Endangered, Plant species that persist in vegetative Branches and limbs of vegetation Endangered or Vulnerable now, but is form over a number of years. that have fallen into waterways and close to qualifying for or is likely to qualify Permafrost consequently provide habitat for a range for a threatened category in the near Soil that has remained below zero degrees of species. future. for at least two years, containing large

Least concern N2O amounts of carbon dioxide and methane Greater than 50% or pre-European Nitrous oxide. trapped in frozen vegetation. extent exists and subject to little to no NO Peri-urban degradation over a majority of this area. 2 Nitrogen dioxide. Areas at fringes of urban areas. Levee bank NOx pH Structure to reduce flooding and to protect Oxides of nitrogen. A measure of the acidity or alkalinity of a property from flooding. solution. A pH of less than 7 is considered O Longitudinal continuity 3 acidic, while a pH greater than 7 is Ozone. The degree to which an organism can considered basic (alkaline). move across the landscape through Objective Photosynthesis suitable habitat. Concentrations specified in the SEPP The process by which green plants (AAQ) and AAQ NEPM against which Lost use light, carbon dioxide and water to air quality can be assessed. In general, Lost or unaccounted water. synthesize organic compounds. the objectives have been set to allow for Macroalgae adequate protection of human health and Phytoplankton Large benthic algae, common in coastal well-being. Also known as a standard. Microscopic, free-floating marine plants. marine environments. Known as seaweed. Oceanography Point source pollution Macro-invertebrate The study of the chemical and physical Pollution from a single point of discharge. An invertebrate that can be seen with the parameters of the sea; for example tides, For example, effluent from a sewage naked eye. They include species such as currents and salinity. treatment plant or an industrial wastewater insects, snails and worms. treatment plant.

523 | State of the Environment Report - Victoria 2008 Polar vortex Regionally Extinct Robustness A circumpolar wind that isolates the As for Extinct but within a defined region A related concept to resilience, it is Antarctic continent during the winter. (in this case the State of Victoria) that does the ability to maintain some desire not encompass the entire geographic characteristics in the behaviour of its Polar zone range of the taxon. A taxon is presumed component parts or its environment. The regions of the Earth that are south of Regionally Extinct when exhaustive 60° south latitude and north of 60° north Salinity – primary surveys in known and/or expected habitat, latitude. Presence of salt in soil and watercourses at appropriate times (diurnal, seasonal, as result of natural processes. Polychlorinated biphenyls annual), throughout the region have failed A group of toxic, carcinogenic organic to record an individual. Surveys should Salinity – secondary compounds used in the manufacture be over a time frame appropriate to the Movement of salt from saline groundwater of plastics and as insulating fluids in taxon’s life cycle and life form. to surface soil or watercourses as result electrical transformers and capacitors. of human modification of landscape and Regulated/ unregulated waterway disruption of the hydrological cycle, e.g. Port Phillip Region Regulated rivers are artificially manipulated tree clearing. The area surrounding Port Phillip Bay and using infrastructure such as dams or Western Port, including Melbourne and weirs. Unregulated rivers do not have this Salvage harvesting Geelong. artificial manipulation. Timber harvesting operations conducted in burnt environments to recover timber ppb Reservoir from trees damaged by fire. Part per billion by volume. A major body of water created in a river Scansorial ppm valley by building a dam. Species capable of or adapted to Part per million by volume. Resilience climbing. Presumed extinct The capacity of a system to absorb Seasonality Probably no longer present in the disturbance and re-organise so as to A measure of the shift in maximum and bioregion OR if present, below the retain essentially the same function, minimum flow months between natural resolution of available mapping. structure and feedbacks – to have the same identity. and current conditions. Primary treatment Secondary treatment Wastewater treatment involving Resource efficiency In water treatment: Generally, a level of sedimentation (sometimes preceded by The process of using fewer resources treatment that removes 85% of biological screening and grit removal) to remove (energy, water and / or materials) to oxygen demand and suspended solids large and suspended solids. achieve the same outcome. Increasing resource efficiency equates to a decrease via biological or chemical treatment Pristine estuaries in resource intensity. processes. Estuaries that have not been impacted Sedimentation upon by humans in significant ways and Resource intensity Process where solid particles in water sink are considered to exist in an essentially The rate of use of resources that is to the bottom forming a sediment. natural state. required to achieve an outcome. Decreasing the resource intensity of Scenario B1/ Low emissions Protists a process results in greater resource Global population peaking in mid- Microscopic single cell or simple efficiency. century and declining thereafter. Storyline multicellular organisms that comprise a describing rapid changes in economic component of the larger group known as Rhodolith structures towards a service economy, plankton. Colourful, unattached, branching, benthic marine red algae that resembles coral. less material intensive and with more Rainfall deficit resource efficient technologies. The amount by which rainfall is less than Riffles Scenario A1B/ Medium emissions average rainfall. A reach of stream that is characterised by shallow, fast moving water broken by the Same global population as in the previous Ramsar wetlands presence of rocks and boulders. scenario. Storyline indicating very rapid Wetlands listed as internationally economic growth where technology does Riparian significant under the Ramsar Convention not relies on just one energy sources but Relating to or located on the banks of a on Wetlands 1971. has a more balanced approach. river or stream. Rare Scenario A1F1/ High emissions River basin Rare but not considered otherwise Same global population as in the previous The catchment of a large river or group of threatened - there are relatively few known two cases. Storyline indicating very rapid rivers. populations or the taxon is restricted to a economic growth where technology mainly relatively small area. River bed depends on fossil energy. The bottom of a river channel. Reach Silviculture A length of river that has similar Riverbank Establishment and management of trees hydrological, vegetation and landscape The generally steep part of a stream for wood production. characteristics. channel’s cross-section, generally Snowbank considered as being above the usual Alpine vegetation community occurring water level. in protected areas where the snow lasts Riverine longest. Referring to a waterway, often used synonymously with riparian.

| 524 Glossary

SO2 Thermohaline Circulation Vulnerable Sulfur dioxide. The pattern of global ocean currents, A taxon is Vulnerable when the best driven by differential salinity and available evidence indicates that it meets Sodic soil temperature levels. any of the criteria A to E for Vulnerable Soil containing high levels of sodium, (see Species Survival Commission 2001), prone to erosion. Tillage and it is therefore considered to be facing Cultivation of soil for purpose of sowing Southern Annular Mode (SAM) a high risk of extinction in the wild. a crop. Preferred patterns of change in Water balance atmospheric circulation corresponding Total Ozone Mapping Spectrometer A statement of the water flows in a given to changes in the zonally averaged A satellite instrument used to measure area and time period, in which the sum of mid latitude westerlies in the southern ozone levels. the outflows from the area equals the sum hemisphere. Topographic of the inflows less the water accumulated Spionid worms The geographical features of an area of in the area. A family of small and thin marine worms land. Water entitlement that either burrow or form fine tubes Total nitrogen The volume of water authorised to be composed of sand or mud. Total nitrogen is a measure of all forms of taken and used by an irrigator or water Stratosphere dissolved and particulate nitrogen present authority. The layer of the atmosphere between 10 in a water sample. Water extraction km and 50 km above the Earth, located Total phosphorus The diversion of water from its normal or above the troposphere and below the Total phosphorus is a measure of all forms natural flow path or location in a water mesosphere, where temperature increases of dissolved and particulate phosphorus source, for consumptive purposes. with height. present in a water sample. Water storage Stubble Toxicants Water storage is used in this report as Stem and leaf material (also known as Harmful substances, including heavy a collective term which includes dams, crop residue) remaining after harvest of a metals, chemical compounds and weirs, reservoirs and lakes that are used grain crop. excessive concentrations of nutrients. to collect and store water for consumptive Stubble retention Trophic group or non-consumptive uses (e.g. hydro- Crop residues are left standing or A group of organisms that play a similar electricity generation). incorporated into soil after grain harvest. role in the food web. Waterway Surface water Trophic relationships The Water Act 1989 defines a waterway All bodies of water on the surface of the The relationships that exist between as a river, creek, stream watercourse earth. trophic groups in the food web. and a natural channel where water Sustainability regularly flows, whether or not the flow is Trophodynamic Ensuring that society and its economy continuous. Predator/prey patterns within the food continue to have access to the services web. Weed they value, while maintaining the condition Plants that are growing in places where and function of ecological systems so Turbidity they are not wanted. that they too continue to provide services Cloudiness or haziness of the water Weir valued by society, both now and in the caused by the suspension of individual A structure across a waterway to stop flow future. particles that are too small to be seen without magnification. and raise water levels. Sustainable development Wetlands Sustainable development is a pattern of Unaccounted water Wetlands are areas featuring permanent resource use that aims to meet human This term is used to describe the or temporary shallow open water that needs while preserving the environment difference between the volume of water does not exceed a depth of 6 m at low so that these needs can be met not measured entering the distribution network tide. They include billabongs, marshes, only in the present, but in the indefinite (i.e. harvested for consumption) and swamps and lakes. future. The term was used by the the measured volume delivered. More Brundtland Commission which coined information on the causes of unaccounted Zero tillage what has become the most often-quoted water is provided in Water consumption, Cropping techniques whereby soil is not definition of sustainable development as Unaccounted water. cultivated prior to sowing a crop. development that “meets the needs of the Crown land Zooplankton present without compromising the ability Crown land that has not been reserved Free-floating animals that live in aquatic of future generations to meet their own for a particular purpose (for example, environments. Most zooplankton are needs. conservation, public enjoyment). invertebrates and are very small. Taxon (plural taxa) UV A name designating an organism or group In water treatment: The disinfection of of organisms in biological nomenclature. treated wastewater via ultraviolet radiation. Terrestrial This involves passing a film of wastewater Of the land. close to a UV lamp.

525 | State of the Environment Report - Victoria 2008 | 526 References

Part 1 - Introduction 18 List of University Courses, Victorian Part 2 - Driving Forces Association for Environmental Education: 1 The Convention on Biological Diversity, http://www.vaee.vic.edu.au/envirocareers. 1 Gerald C Nelson, “Drivers of Ecosystem Secretariat of the Convention on Biological html#education (accessed 26 May 2008). Change: Summary Chapter,” in Ecosystems and Diversity http://www.cbd.int/convention/ Human Well-being—Current State and Trends: (accessed 14 January 2008). 19 Intergovernmental Agreement on the Findings of the Condition and Trends Working Environment, (1992), Department of the Group (Millennium Ecosystem Assessment), 2 Office of the Commissioner for the Environment, Water, Heritage and the Arts, edited by Rashid Hassan, Robert Scholes, Dr. Environment, Agriculture & Victoria’s Environment Australian Government: http://www.environment. Neville Ash, Jillian Thonell, and Mampiti Matete Resource, ed. 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593 | State of the Environment Report - Victoria 2008 www.ces.vic.gov.au

Office of the Commissioner for Environmental Sustainability 16/570 Bourke Street Melbourne 3000 Commissioner Victoria, Australia Telephone +61 3 8636 2197 Environmental Sustainability Facsimile +61 3 8636 2099 [email protected] Victoria