Fact sheet: Environment, Climate Change and Water
BUDGET HIGHLIGHTS
ALGA's analysis of key points in the 2009-10 Federal Budget from a local government perspective.
The government continues to place a high priority on Climate Change measures these initiatives of particular interest to local government.
Carbon Pollution Reduction Scheme:
- The Government is committed to reducing Australia's carbon pollution. The Carbon Pollution Reduction Scheme (CPRS) is the main driver to achieve this important environmental goal. When it commences on 1 July 2011, it will guarantee that Australia meets its expanded emissions reductions of as much as 25 per cent of 2000 levels by 2020.
- The budget papers estimate that the sale and allocation of carbon pollution permits valued at around $4.5 billion in 2011-12 and $13 billion in 2012-13.
Climate Change Action Fund:
As announced in the CPRS White paper in December 2008, the Climate Change Action Fund will provide a total of $2.75 billion in targeted assistance to businesses, community sector organisations, workers, regions and communities to smooth the transition to a carbon constrained economy. This encompasses:
- $200 million in 2009–10 of Climate Change Action Fund funding (in advance of the introduction of CPRS) to support business to take early action in identifying energy efficiency opportunities and to invest in energy improvements;
- $20 million allocated in 2009-10 to a business information package that will provide advice to business on the operation of the Scheme and identify potential opportunities and impacts that may arise. The package will be targeted at businesses that fall below the Emission-Intensive Trade-Exposed assistance package thresholds;
- establishment of the $100 million Early Action Energy Efficiency Strategies which will assist business and community sector organisations to identify energy efficiency opportunities; and
- allocation of $80 million in 2009–10 for capital energy efficiency improvements. This will allow Australian businesses to achieve savings on their energy bills and deliver significant low cost carbon pollution abatement.
Clean Energy Initiative:
The stationary energy sector produces approximately 50 per cent of Australia’s greenhouse gas emissions. The Government is expanding the Renewable Energy Target Scheme to increase the use of renewable energy to 20 per cent of the electricity supply by 2020. The 2009-10 Budget allocates $4.5 billion to a Clean Energy Initiative which includes:
- $1.5 billion in the Solar Flagships Program that will support up to four solar power generation projects with a total capacity equal to or greater than a current coal fired power station;
- establishing Renewables Australia, with an overall investment of $465 million, to support leading-edge technology research, development and demonstration projects.
- investing $2 billion through the Clean Energy Initiative in industrial-scale Carbon capture and storage (CCS) projects, which may include a carbon dioxide storage hub.
Energy Efficiency:
From 2009–10, the Government will provide:
- almost $4 billion for the Energy Efficient Homes Program announced in the National Building and Jobs Plan;
- $100 million in 2009-10 for the National Energy Efficiency Initiative to develop an innovative smart-grid energy network; and
- $75.8 million will be allocated to establish the Australian Carbon Trust, and $64.6 million for a suite of streamlined energy efficiency programs that are efficient, effective and complementary to the CPRS. This approach will reduce the burden on business while helping drive sustainable emissions reductions; increase the efficiency of program delivery; and help Australian households and firms save money and adjust to the effects of a carbon price.
National Carbon Accounting Toolbox:
- The Australian Government will invest $16.1 million over four years to develop a National Carbon Accounting Toolbox. The Toolbox will provide a cost-effective, nationally consistent emissions estimation tool for forestry and agriculture.
- Key areas of interest in the environment portfolio include:
- the allocation of $138 million each year for 4 years for the Caring for our Country program:
- a commitment of $200 million is for stormwater harvesting and reuse projects to improve waster security by easing demand on drinking water supplies; and
- a commitment of $200 over 3 years to assist local municipalities in the Murray-Darling Basin to plan their water needs for the future and implement local water savings initiatives.
For information about ALGA's analysis of the Budget regarding Environment please contact:
- John Pritchard
- Executive Director, Policy and Research
Australian Local Government Association - Phone: 02 6122 9414
- john.pritchard@alga.asn.au