GreenBalance: Incentivising a Greener Future

Leveraging Technology and Financial Incentives to Drive Carbon Emission Reductions in NSW

Summary

We have learned that households and organisations are affected by a variety of socio-political, financial and personal factors that are impeding their desire or ability to contribute more effectively toward the goal of carbon emission reduction and that they may need an increased level of tangible incentive to further their engagement.

How might we incentivise households and organisations in NSW to facilitate the reduction of household and organisational CO₂ emissions?

We are proposing a system that monitors the CO₂ emissions of households and organisations using existing technology to provide tailored tax [editors note: or other incentives] breaks for meeting emission targets to help local communities and organisations in NSW transition towards Net Zero with the use of existing technologies and financial rewards in order to incentivise sustainable practices.

This conceptual proposition we have titled ‘GreenBalance’.

Why this is a good idea

• Supports Australia’s Net Zero Goals: GreenBalance directly aligns with Australia's legislative commitment to reduce carbon emissions by 43% by 2030 and reach Net Zero by 2050 (Parliament of Australia, 2024). It introduces an innovative approach to the problem space by offering tax breaks for reducing carbon emissions, a new concept. By rewarding sustainable actions, GreenBalance reinforces the shared responsibility of addressing climate change and fosters collective efforts toward a sustainable future.

• Eliminates Financial Barriers: Rising cost-of-living pressures may deter from adopting renewable technologies. GreenBalance’s tax incentives lower the financial burden associated with implementing and adopting sustainable technologies, making sustainable practices accessible to more Australians (Australian Government Treasury, 2024).

• Drives Economic Growth: The current sustainable market is emerging slowly. With GreenBalance we expect an exponential increase of investments in renewable technologies. The subsequent rising demand for solar panels, wind turbines and other green technologies would drive economic activity and create new jobs. (Ergon Energy, 2023).

Stakeholders we believe need to be directly involved

This opportunity has been prepared to engage a diverse range of stakeholders who can play roles in contributing to or benefiting from its implementation. The key stakeholders include:

1. NSW Government
   The NSW Government would play a vital role in driving this opportunity by implementing progressive Net Zero policies through departments such as the Department of Planning and Environment (DPE), and the Office of Energy and Climate Change (OECC). Government involvement in GreenBalance is highly beneficial as it addresses public concerns about inaction on climate change while demonstrating a proactive approach to achieving the Net Zero 2050 goal. By implementing this structure, the government can financially incentivize widespread societal participation in reducing carbon emissions, improving its public image and reinforcing its commitment to climate leadership. Moreover, GreenBalance has the potential to accelerate progress toward Net Zero targets by adapting outdated laws and creating a framework that drives meaningful environmental impact.

2. Local Communities and Households
   Engaging local communities and households is critical to achieving widespread behavioural change. This opportunity invites them to actively participate by adopting sustainable practices to reduce their carbon footprints. The additional financial motivation that is provided in this concept is a draw card for the widespread implementation of Green Balance. It provokes the individual benefit for change while engaging communities towards a common carbon emission reduction goal. This can be implemented through schools, universities, or workplaces, to name a few.

3. Small and Corporate Businesses
   Businesses, from small enterprises to large corporations, can benefit significantly by engaging with GreenBalance. By adopting sustainable practices supported through this initiative, such as using renewable energy, optimizing resource usage, and reducing waste, businesses can lower their CO₂ emissions while simultaneously accessing the financial incentives that improve cost efficiency for their business operation. Additionally, participation in GreenBalance enhances its reputation among environmentally conscious consumers and investors, positioning it as a leader in sustainability and innovation.

4. Technology, Energy, and Utility Companies
   These industries play a critical role in the large-scale implementation of this initiative by providing cutting-edge technologies and infrastructure solutions. By collaborating with other stakeholders, they can scale these solutions to meet the ambitious goals of the Net Zero initiative. The opportunity to collaborate and advance entrepreneurially in this space must also be acknowledged as beneficial for these stakeholders. The newfound involvement within the space will increase engagement and opportunity for innovation within the marketplace.

Where our idea came from

This concept emerged from a series of highly abstract and initially impractical ideas generated during an extensive ideation process. The implausibility of concepts such as “abolishing bins,” forcing individuals to live amidst their own mess, or building a “rubbish volcano” prompted us to explore how to encourage people to take responsibility for their own waste and unsustainable behaviours. This led to the initial idea of monitoring waste outputs from industrial, residential, and organisational buildings and imposing fines on those who exceeded predetermined limits.

In a subsequent round of ideation using the SCAMPER method¹, we reversed the approach - instead of penalising excessive waste, we shifted focus to rewarding sustainable practices. This revised solution fosters a sense of empowerment rather than resentment by incentivising individuals to reduce their carbon emissions and embrace eco-friendly behaviours. It encourages positive action, aligning personal responsibility with environmental benefits, and replaces disciplinary measures with constructive rewards.

How our team would like to be involved

If anyone wants to implement this, please reach out through Substack, we'd love to be involved! Whether that be through direct implementation processes, technology developed in this field or any general application of similar concepts. We found the creation of this concept to be an exciting proposition, and hopefully, its implementation, to some degree, is something we see in the future.

Disclaimer

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While all due care and attention have been exerted, the publishers and the University of Technology Sydney take no responsibility for the content. All errors or omissions remain the authors. Users are reminded that this information is provided for educational purposes, and that they should seek professional advice before making financial decisions.

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Creative Commons licence

GreenBalance: Incentivising a Greener Future © 2024 by Orchard-Rose Roehrig, Tess Taylor & Zachary Karlsson is licensed under CC BY 4.0. To view a copy of this license, visit https://creativecommons.org/licenses/by/4.0/

1. For some information about the SCAMPER method, see https://thedecisionlab.com/reference-guide/philosophy/scamper