Carbon price 2011: update on establishment key funding bodies

21 Sep 2011Archived News Climate Change Matters

While we await more details about funding, planning for renewable energy, low emissions technology and large scale energy efficiency projects should commence now. Such projects require considerable lead times: typically 2-4 years for a large project.

There are three key steps to assessing the value of large emissions reduction projects:

  • Develop your business’ carbon management strategy
  • Prioritise and understand the relative value of different mitigation project options: the investment required and the emissions’ reductions possible. Read more.
  • Conduct feasibility studies for key, large scale emissions-reductions projects.

Taking these steps will position your business to proactively respond to the carbon legislation and funding opportunities as they become available.

Funding updates:

Clean Technology Innovation Program

The program is focussed on manufacturing and applicants must be from non-Emissions-Intensive Trade-Exposed (EITE) sites. Significantly, it is intended that programs will be operational early 2012. We will keep you informed.

Co-generation projects will be eligible for funding under this program.

Funding will be determined on a competitive basis, structured as continuous funding rather than rounds. We can expect a draft discussion paper to be released shortly.

Clean Technology Food and Foundries Investment Program

The two programs the Department of Innovation, Industry, Science and Research (DIISR) have responsibility for include:

  • Grant funding for food processors, metal forgers and foundries to invest in energy efficient capital equipment and low emissions technologies, processes and products.
  • Grant funding for manufacturing businesses to invest in energy efficient capital equipment and low emissions technologies, processes and products.

Clean Energy Finance Corporation (CEFC)

We understand that financing will not become available before 2014. Most of the corporation's planned funding may only be provided over 2016-18. When it does become available, the CEFC will provide commercial finance, 'non-commercial' finance and will consider applications to take an equity position.

The Government will appoint an independent Chair to report back in the first half of 2012. The Clean Energy Finance Corporation will operate under an independent Board.

The Clean Energy and Other Skills Package

The Clean Energy and Other Skills Package was announced by the Prime Minister on 12 July 2011. The Package will invest up to $32 million over 4 years to enable trades people and professionals in key industries to develop the skills needed to deliver clean energy services and advice to Australian communities and businesses.

Key occupations include builders and workers in:

  • Electrocomms (to promote low-cost energy efficiency design)
  • Facility manager (to support better management of existing buildings to ensure maximum performance)
  • Engineers (to support whole-process redesign of industrial applications)
  • Financial managers (to ensure good understanding of business advantages of energy efficiency investments)

Funding for the package will be drawn from a range of programs administered by the Department of Education, Employment and Workplace Relations (DEEWR).

Other news:

National Energy Savings Initiative

The Department of Climate Change and Energy Efficiency (DCCEE) has established a consultation group with representation from all states and territory governments. We understand that the timing is still being considered. We will keep you informed as we hear more.

Recently, changes have been announced to the Victorian Energy Efficiency Target. Click to read more.

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