Energetics summary of the Federal Budget - New Measures

01 May 2009Archived News Climate Change Matters

Energetics' has prepared a summary of climate change items.

 

1. Clean Energy Initiative - $4.5 billion

Programs in solar energy and carbon capture include:

  • $1.5 billion in large-scale solar power generation projects under the Solar Flagships Program
  • $465 million for a new body, Renewables Australia, to support research, development, and commercialisation
  • $2 billion in industrial-scale carbon capture and storage projects under the Carbon Capture and Storage (CCS) Flagships program

2. Energy Efficiency Initiative - $100 million

In partnership with the energy sector, the development of a new demonstration project will lead to an integrated system of renewable energy, smart grid and smart meter technology and infrastructure in one Australian city, town or region.

3. National Strategy on Energy Efficiency - $64 million

Eight energy efficiency measures as part of the COAG NSEE:

  • Implementing enhanced energy efficiency labelling - $18.3 million over four years
  • Expansion of minimum performance standards for appliances and equipment - $16.6 million over four years
  • Increasing energy efficiency requirements for residential buildings - $8.7 million over four years
  • Disclosure of energy performance of residential buildings - $7.8 million over four years
  • Disclosure of commercial building energy efficiency - $5.3 million over four years
  • Improvements to the Building Code of Australia requirements for commercial buildings - $3.3 million over four years
  • Commercial building rating tools - $2.6 million over four years
  • Improvements in heating, ventilation and air conditioning systems - $2.0 million over three years

4. Climate Change Action Fund - $200 million in 2009—10

  • To support the continuation of the Energy Efficiency Opportunities measure
  • $20 million in 2009‑10 - for a business information package that will provide advice to business on the operation of the CPRS - targeted at businesses that fall below the emissions-intensive, trade-exposed assistance package thresholds
  • Early-Action Energy-Efficiency Strategies for Business $100 million in 2009—10 to support this initiative which will assist business and community sector organisations to identify energy efficiency opportunities
  • $80 million in 2009—10 for capital energy efficiency improvements for business

5. The budget does not indicate any change in the levels of funding for the already-existing business grant programs.

The Green Building Fund (90 million over four years and moving into its 2nd year), Re-tooling industry ($75 million over 4 years) and Climate Ready. Energetics is concerned regarding the lack of information about extending the Green Buildings program funding given the high level of uptake of the first round. As the next round closes June 30, we recommend that you investigate opportunities early before the funds are fully committed.

6. Austrade - Clean Energy Trade and Investment Strategy - $14.9 million over 3 years

Promote Australia as a clean energy investment destination and assist Australian clean energy companies to access international markets through export and investment.

7. Skills for the Carbon Challenge - $26.9 million

The development and trial of qualifications and training resources that incorporate sustainability principles, green skills and responsive educational approaches in a number of key industries.
Old Measures

The Government response to the Wilkins Review of Climate Change policies was also released today - and as part of the response the Government has decided to cease certain programs on 30 June 2009. Follow this link for more information
The programs that will cease are:

  • Coal Mine Methane Reduction
  • Greenhouse Gas Abatement Program
  • Renewable Energy Equity Fund
  • Low Emissions Technology and Abatement
  • Greenhouse Challenge Plus
  • Greenhouse Action in Regional Australia
  • Local Greenhouse Action
  • Small Business and Household Action Initiative
  • Wind Energy Forecasting Capability
  • Low Emissions Technology Demonstration Fund
  • Renewable Energy Development Initiative
  • Advanced Electricity Storage Technologies
  • National Climate Change Adaptation Program

What the budget papers tells us about the Government's expectations of the CPRS

There will be no move to increase the price of petrol in line with the carbon price impact until 2014. The budget shows that the fuel excise adjustment will continue until this time to negate any carbon price signal.

The budget shows the government expects to earn $4.5 billion from the sale of carbon permits in 2011/12 - when the carbon price is capped at $10 a tonne, and $13 billion in 2012/13.

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