TOWARDS A SUSTAINABLE
AUSTRALIA

COMMONWEALTH
ENVIRONMENT
EXPENDITURE

2002-03

THE HONOURABLE DR DAVID KEMP, MP
MINISTER FOR THE ENVIRONMENT AND HERITAGE
14 MAY 2002

© Commonwealth of Australia 2002

ISBN 1740 92704 4

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Contents

Minister's Foreword

Chapter 1: Introduction

Scope of the 2002-03 Environment Budget Statement

Chapter 2: Budget Overview and Strategic Directions

New Measures In The 2002-03 Budget

Chapter 3: Key Environment Activities

The atmosphere

Biodiversity

Coasts and oceans

Human settlements

Inland waters

The land

Natural and cultural heritage

Antarctica

Chapter 4: Cross Portfolio Initiatives

Environmental research, information and training

Incentives for sustainability

Global sustainability-Australia's role

Working with the Indigenous communit

Appendix 1: Environment Activities by Portfolio

Appendix 2: Environment Expenditure

Appendix 3: Contact Details of Departments and Agencies

Index

 

Minister's Foreword

This Budget records the continued expansion of the Government's historic level of commitment to the restoration and protection of the Australian environment and Australia's heritage.

The $1 billion addition to the Natural Heritage Trust, building on the $1.5 billion committed during the first phase, begins in this Budget with expenditure of $250 million.

The $1.4 billion National Action Plan for Salinity and Water Quality, a joint programme of the Commonwealth and the States, begins in earnest with expenditure of $100.7 million in 2002-03.

Taken together, these two programmes represent the greatest commitment by any Commonwealth Government to the environment since Federation.

This is as it should be.

Australians have clearly recognised that the range of threats to the sustainability of our environment has to be addressed as one of our very highest national priorities if we are to achieve a level of economic and environmental certainty capable of preserving our unique lifestyle and heritage.

I am proud to say the Howard Commonwealth Government recognised and accepted this great challenge immediately it came to office in 1996.

Never has the environment had a higher priority in Government. The new Sustainable Environment Committee, which oversees key environment policy and issues, is chaired by the Prime Minister.

The first phase of the Natural Heritage Trust, which began in 1996, stands as one of the most imaginative efforts that has been developed anywhere on our planet to engage the community directly, at all levels, in efforts to restore and protect the environment.

Its foundation was recognition that ever widening community involvement, skills development, and commitment to the processes of environmental restoration and protection was crucial to achieving the change towards a culture of sustainability that is required to achieve our national objective of a sustainable Australia.

Almost 400,000 Australians have now been engaged in environmental projects through the first phase of the Natural Heritage Trust and that number will grow significantly over the second phase. The Government intends to encourage high-level community involvement.

The National Action Plan for Salinity and Water Quality is an equally historic and community based environmental programme.

The Prime Minister has said dryland salinity is our greatest environmental challenge. The reality of the threat it poses to the natural environment, to farming, to communities, to water quality, and to biodiversity in our naturally salinity prone country is with us right now, most notably via damage to the West Australian wheat belt and the Murray-Darling basin.

Without a strong commitment to restorative and preventative works in the National Action Plan, Australians in every State confront a very high likelihood that salinity will impact on many millions of hectares of currently viable farmland over the next 20 to 30 years.

Regional and catchment based plans to combat this, deliberately and crucially, will engage a high level of community commitment and involvement.

These are perhaps the largest elements of a much broader commitment to the environment and heritage reflected in the suite of programmes and initiatives funded through this Budget.

• Australia led the world with the establishment of the Australian Greenhouse Office as a stand-alone unit, within the Environment and Heritage portfolio, to help the Commonwealth develop policy to address the challenges of climate change. The important work of the AGO will continue with an allocation of $113 million in this Budget.
• The Great Barrier Reef Marine Park Authority, established in the 1970s, has become an international benchmark for bodies engaged in the protection of coral reefs, which, worldwide, face massive challenges. Important work will commence in this Budget, through an allocation to the Authority of $31.2 million, on achieving a significant expansion of areas of the reef afforded enhanced protection, under the Representative Areas programme to ensure the preservation of the entire spectrum of the Great Barrier Reef's unique biodiversity.
• Work will continue in this Budget on another world-wide first initiated by this Government, which is the development of an Oceans Policy covering Australia's entire Exclusive Economic Zone - an area four times the size of our land mass.
• This Budget also provides for the historic return of environmental flows to the very hard pressed Murray-Darling river system, in order to restore more of its once rich environment, and protect the livelihoods of the millions of Australians who rely upon it.

These are but some of the largest and most important elements of this Budget. They illustrate that the environment has achieved the Government priority status it needs if we are to achieve a sustainable future.

This document describes the breadth of the work the Commonwealth is undertaking to involve as many Australians as possible in restoring and protecting our environment. I am proud to be associated with this effort.

DAVID KEMP

Chapter 1: Introduction

Scope of the 2002-03 Environment Budget Statement

Protection and conservation of the environment is one of the Commonwealth Government's key priorities. In late 2001 the Prime Minister announced a new whole of government approach to the environment through the establishment of the Sustainable Environment Committee (SEC) of Cabinet. Chaired by the Prime Minister, the SEC will address in an integrated policy framework crucial environmental issues such as salinity, water quality, greenhouse policy, land clearing, biodiversity, and oceans policy.

In 2002-03, the Government will spend a record $1.8 billion on environmental programmes across the Commonwealth Government as a whole - an increase of over $198 million on 2001-02 expenditure.

This statement details the Government's expenditure on the environment and environment-related activities for 2002-03 and subsequent years, identifying new initiatives managed by the Environment and Heritage portfolio and, where appropriate, by the Agriculture, Fisheries, and Forestry portfolio. It also provides an overview of environment programmes across the Commonwealth Government as a whole.

Outline

Chapter 2 of this statement sets out new and additional measures in the 2002-03 Budget, as well as new initiatives arising from the Commonwealth Government's environment-related strategic directions and priorities for 2002-03.

Chapter 3, Key Environment Activities, examines the Government's environment-related programmes in more detail.

Chapter 4, Cross Portfolio Initiatives, describes activities which do not fall under specific themes and which cross thematic boundaries, including Indigenous measures, international initiatives, and environmental research contributing to achieving environmental sustainability.

Expenditure for environment-related activities across the whole of the Commonwealth Government is listed in Appendix 2.

Structure

Activities reported in this statement are grouped thematically. The themes reflect those used in the 2001 State of the Environment (SoE) Report, and are also aligned with the reporting structure of the Environment and Heritage portfolio. The statement can therefore be easily cross-referenced with other budget publications, particularly the 2002-03 Portfolio Budget Statement for Environment and Heritage, and non-budget publications such as the State of the Environment Report. Table 1.1 illustrates the relationship between the Report's themes and the outcomes and outputs of the Environment and Heritage portfolio.

Table 1.1: Mapping Environment and Heritage outputs into SoE themes

2001 State of the Environment Report Themes	Environment and Heritage outputs
Atmosphere	Protecting Australia's atmosphere Greenhouse - meeting the challenge of climate change
Biodiversity	Understanding, protecting, and conserving biodiversity Managing Commonwealth national parks and reserves
Coasts and Oceans	Protecting Australia's coasts and oceans
Human Settlements	Operating a world class assessment and approvals system Improving the environmental performance of industry
Inland Waters	Improving the quality of inland waters and promoting their sustainable use
The Land	Conserving, rehabilitating, and promoting sustainable land use
Natural and Cultural Heritage	Protecting and conserving Australia's heritage places
Antarctica	Advancing Australia's interests in Antarctica
	Cross portfolio initiatives(a) Meteorology - monitoring and prediction in support of sustainability

(a) Cross portfolio initiatives are those not attributable to any one theme.

Financial data and descriptions of programmes are based on information currently available. Identification of environment expenditure depends on the extent to which spending can be ascribed to environmental purposes, and this varies across programmes. Therefore some expenditure with environmental implications may not be recorded in this statement.

Unless otherwise indicated, all financial information presented in this statement represents the net cost to the Commonwealth. The figures do not include any goods and services tax which may be payable by the Commonwealth and is recoverable as an input tax credit.

Chapter 2: Budget Overview and Strategic Directions

Underlining a strong whole of government approach to sustainable environment issues, the Prime Minister established the Sustainable Environment Committee (SEC) of Cabinet in December 2001. Chaired by the Prime Minister, the Committee includes the Deputy Prime Minister, the Minister for the Environment and Heritage, the Ministers for Agriculture, Fisheries and Forestry; Education, Science and Training; Industry, Tourism and Resources; and Forestry and Conservation. The SEC provides for a whole of government focus on achieving environmental sustainability in Australia in co-operation with the Australian community.

The major environmental priorities for the Government for the next year and new initiatives funded in the 2002-03 Budget are outlined in this chapter. The Government is committed to honouring its election promises. Through the Budget it has put in place a comprehensive response to the environmental challenges facing Australia.

The Government will continue Australia's largest ever environmental programme, the Natural Heritage Trust. Through a simplified programme structure, and a more strategic, targeted investment, the Trust will continue to restore our land and protect our rich biodiversity and natural and cultural heritage. It will continue to engage the Australian community in Landcare, Bushcare, Coasts and to achieve a sustainable future for our economy and our environment.

The National Action Plan for Salinity and Water Quality will dovetail with the extension of the Natural Heritage Trust to address the pressing problems arising from dryland salinity.

To enhance the quality of life for all Australians, the Government will continue working towards improving the quality of the air we breathe particularly in urban areas.

The Government through legislative amendment will, for the first time, provide substantive protection of Australia's historic heritage.

The Government will continue to combat greenhouse gases with a total funding commitment of almost $1 billion since 1997, and work with industry to foster a more energy efficient and cleaner Australian economy. It will also work with business to expand opportunities and markets for environmentally friendly products and processes. The Government will also progress the work to ensure the sustainable use of our coasts and oceans.

A summary of Commonwealth Government expenditure on the environment and related activities is also provided with more detailed information outlined in Chapter 3: Key Environment Activities and Chapter 4: Cross Portfolio Initiatives.

New Measures In The 2002-03 Budget

New measures announced since the 2001-02 Budget are outlined below and are included in Budget Paper No. 2 - Budget Measures 2002-03. These measures may be funded from new sources or from existing resources of the Environment and Heritage portfolio.

The Government will provide $14.9 million for new measures in 2002-03.

Table 2.1: New measures

Title of Initiative (a)	2002-03 $m	2003-04 $m	2004-05 $m	2005-06 $m
National Oceans Office	9.1	-	-	-
Boat Harbour and Sisters Beach sustainable sewerage system, Tasmania	1.0	1.0	1.0	-
Sydney Harbour Federation Trust	10.5	-	-	-
Rationalisation of Australian Greenhouse Office Programmes	- 5.7	-	-	-
Expansion of the Market for Biofuels (b)	-	-	-	-
Total	14.9	1.0	1.0	-

(b) All initiatives are funded under the Environment and Heritage portfolio unless stated otherwise

(c) The Government will provide $2.5 million in 2002-03 and 2003-04 from the Greenhouse Gas Abatement Programme to fund a study addressing market barriers to the uptake of biofuels.

Descriptions of Budget Measures

National Oceans Office

The Government is committed to improving the quality of Australia's coasts and oceans while promoting the sustainable use of these precious resources. The National Oceans Office supports the National Oceans Ministerial Board in implementing and further developing Australia's Oceans Policy.

Australia's Oceans Policy sets in place a framework for integrated and ecosystem-based planning and management of Australia's marine jurisdictions. The Policy promotes the ecologically sustainable development of the resources of Australia's oceans and encourages internationally competitive marine industries, whilst ensuring the protection of marine biodiversity.

In 2002-03, the Government will provide $9.1 million to the National Oceans Office for the further development of Regional Marine Plans and related activities as part of Australia's Oceans Policy. In particular, the funding will enable the finalisation of the South-East Regional Marine Plan and initial development of a marine plan for the Gulf of Carpentaria and the Torres Strait region.

The Government aims to achieve maintenance of the long term viability of various industries located in, and dependent on, Australia's coastal environment through the development of a new Commonwealth Coastal Policy. Developed cooperatively with State and Territory Governments, this policy will take into account the fragility of Australia's coastal ecosystems.

In 2002-03 the Government will continue to pursue a permanent global ban on commercial whaling and promote the establishment of a sanctuary for whales in the South Pacific.

Boat Harbour and Sisters Beach sustainable sewerage system

The Government will provide $3 million over three years from 2002-03 on a $ for $ basis to the Waratah-Wynyard Shire Council in Tasmania for development of Sewerage Schemes for Boat Harbour Beach and Sisters Beach. Funding will support the establishment of environmentally sustainable sewerage treatment facilities at these communities. This in turn will contribute to improving the quality of coastal waters in the region and enable sustainable development of coastal communities.

Sydney Harbour Federation Trust

In 2002-03 the Government will invest $10.5 million in the rehabilitation and return of historic Sydney Harbour foreshore lands to the people of Australia. The sites include the former Artillery School at North Head, defence lands at Middle Head-Georges Heights, the former Army Maritime School at Chowder Bay, Woolwich Dock, Cockatoo Island and the former Marine Biological Research Station at Watsons Bay. Ownership of Snapper Island and the Macquarie Lightstation at Vaucluse will be transferred from the Department of Finance and Administration to the Department of the Environment and Heritage in 2002-03 and will subsequently be vested in the Sydney Harbour Federation Trust.

The Sydney Harbour Federation Trust will use the funds to maintain these lands and prepare a plan that will determine their future in close consultation with the community.

Funding will provide for the research, assessment and survey work necessary to carry out site remediation, maintenance, building works and environmental management. This, together with an extensive community consultation programme is required to complete the comprehensive management plan for all the lands to ensure their conservation for future generations to enjoy.

Meeting the challenge of climate change

The Government continues to develop and invest funding in domestic programmes to achieve Australia's Kyoto Protocol target and to contribute to global efforts to reduce greenhouse gas emissions. The Budget confirms the Government's commitment of almost $1 billion since 1997 to implement an effective response, targeting emissions reductions across the entire Australian community through:

• encouraging innovation and development in technological solutions
• implementing sustainable land management practices
• developing a more sustainable mix of energy sources
• using energy efficiently
• enhancing Australia's greenhouse sinks
• providing the tools and mechanisms to measure progress accurately.

The Australian Government is continuing to play a leading role in international efforts to respond to the threat of climate change. An effective global response requires the participation of all major emitters, including the United States and key developing countries. Australia was prominent in negotiations to settle rules for the operation of the 1997 Kyoto Protocol which were finalised in Marrakesh in late 2001. In February 2002, Australia entered into a Climate Action Partnership with the United States. The Partnership will promote activities with practical, measurable outcomes that contribute to the global effort. The Partnership will foster the exchange of scientific expertise, technology and innovation on climate change between our respective businesses and scientists.

Rationalisation of Australian Greenhouse Office Programmes

The Government has identified a number of project grants in the renewable energy programmes administered by the Australian Greenhouse Office, where technical or business issues have impacted on the viability or feasibility of the project, that can be rationalised without impacting on the effectiveness of the Government's greenhouse strategy. The programmes affected include the Renewable Energy Commercialisation Programme and the Renewable Energy Showcase Programme.

Expansion of the Market for Biofuels

The Government will provide $2.5 million in 2002-03 and 2003-04 from the Greenhouse Gas Abatement Programme to fund a study addressing market barriers to the uptake of biofuels. The study will include consideration of options for vehicle testing to determine appropriate standards for ethanol blend fuels. The Government will use this study to inform decisions on options for implementing its election commitment to support increased production of biofuels in Australia.

Initiatives funded from within existing allocations

Table 2.2: Initiatives funded from within existing allocations

Title of Initiative	2002-03 $m	2003-04 $m	2004-05 $m	2005-06 $m
Implementation of Environment Protection and Biodiversity Conservation Act 1999.	9.7	9.4	9.5	10.1
Gene Technology	0.4	0.4	0.4	-
Natural Heritage Trust*	250.0	250.0	310.0	310.0
National Action Plan on Salinity and Water Quality	100.7	138.2	157.2	149.1
Total	360.8	398.0	477.1	469.2

* Natural Heritage Trust figures are estimated expenditure from the Natural Heritage Trust special account rather than appropriations into the account.

Descriptions of new initiatives

A world class assessment and approvals system

In 2002-03 the Government will provide $9.7 million for the ongoing operation of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). The Act provides a framework for Commonwealth approval of development proposals of truly national significance and decision-making about conservation of biodiversity. This funding will enhance the potential of the Act to provide streamlined and user-friendly processes and to build greater community ownership, especially among farmers. Experience over the past two years has highlighted priority areas where more work can be done. These include working towards:

• a greater emphasis on communication and client assistance
• better targeting of education and training and the delivery of accurate data and information to regions (especially about future listing of threatened species and ecological communities)
• a more proactive approach to cooperative compliance, especially for businesses affected by the EPBC Act, to provide greater certainty and ease in complying with requirements of the Act.

Gene Technology assessment advice

To ensure that gene technology is developed in an environmentally safe way, an additional $400,000 per year over three years is being provided to support the statutory role of the Minister for the Environment and Heritage in providing assessment advice to the Gene Technology Regulator under the Gene Technology Act 2000.

Addressing Australia's land, water and biodiversity problems

The Natural Heritage Trust

Achievements to date

The Natural Heritage Trust was established by the Commonwealth Government in 1996 to repair and replenish Australia's natural capital infrastructure.

The Trust has been instrumental in raising the awareness and understanding within the Australian community of environmental issues. Since 1996 more than $1.4 billion of Trust and related programme funding has been approved for over 11,800 projects, involving almost 400,000 Australians. Funding has been targeted at on-ground environmental and natural resource management projects around Australia.

The Department of the Environment and Heritage and Agriculture, Fisheries and Forestry Australia jointly administer the Trust. This partnership has led the way for greater cooperation between the Commonwealth Government and the State, Territory and Local Governments on environmental and natural resource management. The Trust is leading the world in terms of government delivery of integrated environment and sustainable natural resource management outcomes.

July 2002 and beyond

The Government will provide an additional $1 billion to extend the Natural Heritage Trust for a further five years from 2002-03, bringing the total since 1996 to more than $2.7 billion. This represents an 11-year funding commitment for on-ground actions to conserve and repair Australia's unique environment.

Coupled with funds rolled over from previous years and income from interest, the $1 billion new funding will bring budgeted spending to around $250 million per year in 2002-03 and 2003-04 rising to $310 million per year in 2004-05 and 2005-06. The Natural Heritage Trust of Australia Act (1997) requires that a minimum balance of $300 million, in real terms, remain in the Trust Reserve from 2001-02 onwards, with interest generated by this balance maintained for Trust activities.

Unlike the first six years of the Trust, which was funded from the proceeds of the partial sale of Telstra, the $1 billion plus extension of the Trust will be fully funded from consolidated revenue. The Commonwealth is seeking matching funding from the States and Territories for investments it makes under the Trust.

Important lessons learnt during its first six years will enhance the Trust extension with a simplified programme structure and greater strategic, targeted investment and a more regional focus. The programme structure will be simplified, with future investment made through four overarching programmes. The programmes are:

• Landcare - reversing land degradation and promoting sustainable agriculture.
• Bushcare - conserving and restoring habitat for our unique native flora and fauna, which underpin the health of our landscapes.
• Rivercare - improving water quality and environmental condition in our river systems and wetlands.
• Coastcare - protecting our coastal catchments, ecosystems and the marine environment.
• part of the extension to the Natural Heritage Trust, the Government has committed $350 million to improve water quality under the four Trust programmes.

More strategic, targeted investment in integrated outcomes - the regional approach

Under the extension of the Trust funding will be invested at three levels - national, regional and local.

Investment at the local level

At the local level the Trust will continue to fund individuals and small community groups through the Australian Government Envirofund. The Envirofund was launched in early April 2002 and applications close on World Environment Day - 5 June 2002. Through grants of up to $30,000 it will help groups undertake important work at a local scale, as well as increase their capacity to participate more fully in regional planning processes.

Investment at the regional level

Under the Trust, investment will focus on the regional level. With $1 billion in new funding over the next five years, the Trust will have the capacity to invest on a three year rolling basis through regional bodies to assist in implementing their natural resource management plans.

Accredited regional natural resource management plans will guide investment in a wide range of conservation and sustainable resource use projects. This regional focus reflects key recommendations arising from the mid-term review of the Trust, reports by the Australian National Audit Office and the work undertaken to implement the regionally based National Action Plan for Salinity and Water Quality (National Action Plan).

Regional bodies will be responsible for developing and implementing integrated natural resource management plans in consultation with the community. The Commonwealth Government, and the State and Territory Governments will accredit these plans and make investment decisions based on national, state and regional priorities. As these plans may take time to be developed and accredited, 2002-03 will be a transitional year, and funding will be provided to support regions in the development and refinement of their plans. Funding will also be available during this period for urgent on-ground activities.

To help the community move towards regional natural resource management, the Commonwealth will make funds available in 2002-03 for at least 650 `facilitator and coordinator' positions. This funding will help retain skills developed over the first phase of the Trust, and support the community through the Envirofund and work with regional bodies to develop and implement regional plans. This network will complement the natural resource management responsibilities of the States and Territories.

There will be close linkages between the Trust and the National Action Plan. Each will facilitate partnerships between all levels of government, community groups, individual land managers and local businesses, for regional solutions to natural resource management issues. The Trust will continue to invest across Australia, including within National Action Plan areas. Where Trust investment occurs in National Action Plan regions, integrated delivery processes and a single comprehensive regional plan will be used wherever possible.

Investment at the national level

At the national level, the Trust will continue to invest in activities that cross over regional boundaries and in matters of direct Commonwealth responsibility, such as Commonwealth waters.

The Trust will continue to support Australia's commitment to maintain and enhance our World Heritage Areas.

With the Trust's funding support for on-ground works, communities around the country will continue to bring about major improvements to rural and urban environments.

The new arrangements for the Trust will take effect from 1 July 2002.

The Natural Resource Management Ministerial Council is overseeing the development and implementation of a national monitoring and evaluation framework to scrutinise and measure progress against the objectives of both the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality.

Summary of Natural Heritage Trust expenditure

Natural Heritage Trust estimated expenditure from 2002-03 to 2006-07 is summarised in Table 2.3. Natural Heritage Trust estimated expenditure on programmes from 1996 -2002 is summarised in Table 2.4. Programme expenditure figures are also provided in Appendix 2.

The National Action Plan for Salinity and Water Quality

In addition to the funding available under the Natural Heritage Trust, the Commonwealth has committed $700 million over seven years, to address salinity and water quality issues in 21 priority catchments under the National Action Plan for Salinity and Water Quality (National Action Plan). With matching funding from the States and Territories the package will total $1.4 billion. The National Action Plan will be implemented through bilateral agreements negotiated by the Commonwealth with each State and Territory.

Analogous to the recommendations of the mid-term review of the Natural Heritage Trust, integrated catchment/regional management plans will form the basis of the National Action Plan. These plans will set targets for the maintenance and improvement of the natural resources within catchments, particularly in relation to salinity, water quality and biodiversity. In 2002-03, the Commonwealth has committed $100.7 million to implementing the National Action Plan. This money will be used to progress:

• approvals and payments of foundation funding and priority action projects in all jurisdictions
• implementation of regional, integrated natural resource management plans in all jurisdictions
• accreditation of resource management plans in New South Wales, South Australia and Victoria
• approval of detailed investment strategies to support implementation of accredited regional plans
• development of multilaterally agreed strategic plans for non-regional elements of the National Action Plan.

Table 2.3: Natural Heritage Trust Expenditure 2002-03 to 2006-07(a)

	2002-03 $m(b)	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
Bushcare	70.2	85.0	105.4	105.4	102.0
Coastcare	38.0	32.5	40.3	40.3	39.0
Landcare (c)	70.4	65.0	80.6	80.6	78.0
Rivercare	65.5	67.5	83.7	83.7	81.0
Air Pollution in Major Cities	4.4	-	-	-	-
Waste Management Awareness	1.5	-	-	-	-
Total	250.0	250.0	310.0	310.0	300.0

- denotes nil

(a) This table shows estimates approved for expenditure. Due to rounding, some columns may not add exactly to totals. The Natural Heritage Trust estimates may vary in the future within overall totals.

(b) Allocations for 2002-03 have been made to allow investment in priority activities while broader aspects of the Trust's new regional arrangements are being implemented. Programme allocations for future years will be made on the basis of the regional arrangements, once these are established.

(c) Natural Heritage Trust funding only. In 2002-03 Landcare will also receive $39.2m via appropriations under the Natural Resources Management (Financial Assistance) Act 1992.

Summary of Natural Heritage Trust expenditure 1996-2002

Natural Heritage Trust estimated expenditure on programmes from 1996-2002 is summarised in Table 2.4. Programme expenditure figures are also provided in Appendix 2.

Table 2.4: Natural Heritage Trust expenditure(a)

Description of Programme	1996-97 $m	1997-98 $m	1998-99 $m	1999-00 $m	2000-01 $m	2001-02 $m
Air Pollution in Major Cities	1.3	1.5	2.4	2.9	1.9	4.1
Australia's Oceans Policy	-	-	-	1.5	2.8	8.5
Bushcare	3.7	22.2	50.2	81.6	81.5	83.8
Coasts and Clean Seas	-	8.6	20.2	28.1	21.7	24.4
Endangered Species	2.0	2.1	6.9	5.8	4.9	5.5
Farm Forestry Programme	-	2.8	6.5	11.9	10.6	9.2
FarmBis: Advanced Property Management Planning	0.4	0.3	2.6	5.6	5.7	-
Fisheries Action	-	1.7	2.2	3.2	2.9	2.8
Landcare Tax Credits	-	-	0.5	0.4	1.2	1.2
Murray-Darling Basin 2001	3.8	27.5	35.0	43.0	44.0	35.0
National Feral Animal Control	3.7	3.1	1.6	2.0	2.8	3.2
National Land and Water Resources Audit	1.3	2.4	11.8	9.8	9.0	5.4
National Landcare(b)	10.2	30.1	48.5	48.8	42.1	32.2
National Reserve System	0.4	2.9	11.2	11.4	13.7	20.0
National River Health	0.1	1.6	1.7	2.6	2.1	1.4
National Rivercare	-	5.9	14.3	19.1	19.4	16.9
National Weeds	2.1	1.3	1.6	0.9	2.2	4.8
National Wetlands	0.5	1.6	1.6	3.8	3.7	3.8
Riverworks Tasmania	1.8	2.6	0.3	4.2	-	-
Waste Management Awareness	0.2	0.6	0.7	1.0	0.9	1.1
Waterwatch Australia	0.2	2.2	2.4	3.1	3.0	2.6
World Heritage	4.7	10.7	10.0	8.6	8.1	8.9
Total	36.3	131.4	232.1	299.4	284.3	274.7

- denotes nil

(a) This table shows expenditure against estimates approved by the Natural Heritage Trust Ministerial Board. Due to rounding, some columns may not add exactly to totals.

(b) Natural Heritage Trust funding only. The National Landcare Programme also receives appropriations under the Natural Resources Management (Financial Assistance) Act 1992. In 2001-02 this will be $40.3 million.

Environment Expenditure by the Environment and Heritage and Agriculture, Fisheries and Forestry Australia portfolios

Table 2.5 outlines environmental expenditure by the Environment and Heritage and Agriculture, Fisheries and Forestry portfolios for 2001-02 to 2005-06.

Table 2.5: Environment expenditure by the Environment and Heritage and

Agriculture, Fisheries and Forestry Australia portfolios

Description	2001-02 $m	2002-03 $m	2003-04 $m	2004-05 $m	2005-06 $m
Environment and Heritage portfolio(a)
Outcome 1: The environment, especially those aspects that are matters of national environmental significance, is protected and conserved	376.3	372.5	352.0	345.8	322.8
Outcome 2: Australia benefits from meteorological and related science and services (Bureau of Meteorology)	8.8	9.0	9.0	9.1	9.2
Outcome 3: Australia's interests in Antarctica are advanced (Australian Antarctic Division)	107.9	102.3	104.2	106.2	107.6
Agriculture, Fisheries and Forestry portfolio	136.5	125.2	94.2	88.6	81.2
Natural Heritage Trust - joint EA/AFFA initiative(b)	274.7	250.0	250.0	310.0	310.0
National Action Plan for Salinity and Water Quality - joint EA/AFFA initiative	30.6	100.7	138.2	157.2	149.1
Total	934.8	959.7	947.6	1016.9	979.9

(a) Figures in Table 2.5 present estimated expenditure for environment outcomes on an accrual basis with outyear estimates in outturn prices (the prices expected in future years). The figures include corporate overheads, which have been allocated across outputs and outcomes.

(b) Represents approved estimates of expenditure from the Natural Heritage Trust rather than appropriations into the Trust (which have been shown in previous Commonwealth Environment Expenditure Statements).

Environment Expenditure (all portfolios by theme)

The Commonwealth's environment expenditure for all portfolios by environmental theme is summarised in Table 2.6. The expenditure listed in Table 2.6 is also included in the totals in Table 2.5. The breakdown of these figures is provided in more detail in Appendix 2.

Table 2.6: Environment expenditure (all portfolios) by theme

Description	2001-02 $m	2002-03 $m	2003-04 $m	2004-05 $m	2005-06 $m
The Atmosphere
Atmosphere	31.5	36.8	23.7	19.9	16.4
Greenhouse	119.2	140.4	143.6	116.0	108.5
Biodiversity	83.1	70.8	61.1	38.9	38.6
Parks and reserves	56.2	55.4	54.1	55.5	59.2
Coasts and Oceans(a)	324.3	373.4	117.6	94.5	94.9
Human Settlements
Environmental Assessments and Approvals	14.2	13.2	12.8	12.9	13.6
Industry	124.8	123.2	94.5	57.1	41.8
Inland Waters	27.4	38.5	39.0	18.3	18.8
The Land	164.1	239.2	268.4	237.4	228.8
Natural and Cultural Heritage	57.6	43.3	22.2	22.4	21.5
Antarctica	107.9	102.3	104.2	106.2	107.6
Cross Portfolio Initiatives	291.4 (b)	388.3 (c)	127.2	120.3	89.1
Meteorology	10.9	11.1	11.1	9.1	9.2
Natural Heritage Trust - Joint EA/AFFA Initiative(d)	274.7	250.0	250.0	310.0	310.0
Total	1687.3	1885.9	1329.5	1218.5	1158.0

(a) This figure reduces in 2003-04 as no estimates are available for Australian Customs Service.

(b) This figure includes approximately $188 million for Australia's overseas aid programme.

(c) This figure includes approximately $195 million for Australia's overseas aid programme.

(d) Represents approved estimates of expenditure from the Natural Heritage Trust rather than appropriations into the Trust (which have been shown in previous Commonwealth Environment Expenditure Statements).

 

Chapter 3: Key Environment Activities

This chapter describes environmental initiatives that the Commonwealth will implement over the coming years. Activities are organised into the main environmental sectors identified in State of the Environment Report - atmosphere, biodiversity, coasts and oceans, human settlements, inland waters, land, natural and cultural heritage and Antarctica.

The atmosphere

Protecting and improving our atmosphere has been an ongoing priority for the Australian Government. As well as taking significant steps to improve air quality, Australia has become a world leader in phasing out ozone depleting chemicals, and in encouraging the community and industry to reduce greenhouse emissions. Protection of our atmosphere continues to be a priority in 2002-03.

Improving our air quality

In 2002-03, the Government will continue to develop and implement programmes that improve urban air quality.

Air quality programmes will target the main sources of urban air pollution such as motor vehicles and woodheaters, support the development and implementation of national air quality standards, and promote increased awareness of air quality issues.

Specific projects focus on improving fuel quality standards; decreasing vehicle emissions; transport options that reduce pollution without impacting on access and mobility; management of woodheater emissions; and the monitoring and management of fine particle pollution.

Initiatives to tackle urban air pollution

The Government is developing and implementing national initiatives to minimise the adverse impacts of air pollution from the six major air pollutants: oxides of nitrogen, particles, ozone (photochemical smog), carbon monoxide, oxides of sulfur, and airborne lead.

Key projects include:

• Ambient Air Quality - this National Environment Protection Measure (NEPM) promotes a consistent approach towards managing air quality around Australia. The Government will work towards developing a new standard for fine particles under the NEPM and commence a review of the sulphur dioxide and ozone standards.
• Launceston Woodheater Replacement programme is a financial incentive programme that has been well received by the Launceston community. Last financial year the programme targeted the replacement of 1,000 woodheaters. The Government expects to spend approximately $1 million on rebates in 2002-03. This will make a significant contribution to improving air quality in Launceston.
• Air Toxics - the Government will develop an NEPM for priority air toxic pollutants, initially targeting five pollutants (including benzene and formaldehyde). A further 12 priority air toxics will be considered at a later date as more data are collected.

Curbing motor vehicle pollution

In 2002-03 the Australian Government will continue to implement programmes to enforce existing motor vehicle emission standards and to develop further standards as required.

Through projects, such as the development of an Australian `Green Vehicles' guide, a review of motor vehicle emission standards, and in-service vehicle emissions testing, the Government aims to limit the impact of motor vehicles on urban air pollution and public health.

Implementing and enforcing national standards under the Fuel Quality Standards Act 2000 and the Fuel Quality Standards Regulations 2001 will be a major focus for the Government in 2002-03. The Act and Regulations provide a framework for enforcing national fuel quality standards, which will have a major impact on decreasing the amount of toxic pollutants in vehicle emissions, such as benzene and particles. Studies estimate that reductions for some pollutants of up to 50 per cent over 20 years will be achieved.

The Fuel Quality Standards Act 2000 complements evolving fuel efficiency and emissions control technologies, allowing modern cars to operate at peak performance. Pollutants will be reduced nationally as a result leading to associated health benefits for the community.

The Government will also work towards establishing diesel vehicle testing facilities to support the implementation of the Diesel Vehicles Emissions National Environment Protection Measure in 2002-03.

The Government will provide additional Commonwealth support to the biofuels industry including considering the setting of a voluntary objective that biofuels contribute 350 million litres to the total fuel supply by 2010.

Australia - a world leader in ozone protection

The Government's Ozone Protection programme represents world's best practice in phasing out and managing ozone depleting substances. The Ozone Protection Reserve, funded through the ozone depleting substances licensing system, facilitates the phase-out of hydrochlorofluorocarbons and methyl bromide. The Reserve provides funding for research and other activities associated with phase-out.

The Government will actively participate in international ozone protection efforts through the implementation of a Regional Strategy to assist South Pacific countries meet the requirements of the Montreal Protocol on Substances that Deplete the Ozone Layer.

Greenhouse - meeting the challenge of climate change

Since 1997, the Government has committed almost $1 billion towards an effective greenhouse response. Overall, current Australian greenhouse mitigation actions are expected to reduce growth in greenhouse gas emissions by about 60 million tonnes of carbon dioxide equivalents annually by the end of this decade. This positions Australia well to meet its international commitments and to contribute to the global effort to reduce greenhouse gas emissions.

The Australian Greenhouse Office (AGO) is the world's first national agency dedicated to tackling greenhouse gas emissions. The AGO administers a broad range of world-leading programmes supporting the uptake of cost-effective greenhouse gas abatement across industry and community, including the growth of the renewable energy industry.

A major greenhouse initiative is the development of carbon sinks, which will aid work to meet the Kyoto target of 108 per cent of 1990 emissions by 2008-12. The AGO has developed a groundbreaking approach to carbon accounting in the context of land clearing and is seeking to increase Australia's greenhouse sink capacity through promoting increased reforestation, farm forestry and revegetation.

Australia's international role

The Australian Government intends to continue the leading role it has played in international efforts to respond to the threat of climate change. For example, Australia was prominent in negotiations to settle rules for the operation of the 1997 Kyoto Protocol, which were finalised in Marrakesh in late 2001.

The Climate Action Partnership with the United States announced in February 2002 will support the implementation of cooperative activities with practical and measurable outcomes that contribute to the global effort to address climate change. The Partnership will produce mutual benefits for Australia and the United States, particularly by fostering the exchange of scientific expertise, technology and innovation on climate change.

Australia's position is supported in international negotiations by bodies such as CSIRO, which carries out extensive research and technology development relevant to greenhouse gas mitigation in areas such as mining, energy production and use, transport and agriculture.

Strategic investment pays off

The Australian Government continues to invest in strategic large-scale, cost effective and sustained abatement opportunities and in new technologies.

• The $400 million Greenhouse Gas Abatement programme is projected to deliver total savings of 10.8 million tonnes of carbon dioxide equivalents per annum by 2010. More than $150 million, almost 40 per cent of the total programme expenditure, has been invested in 16 projects to date across a broad range of sectors. This funding is expected to secure a further $900 million investment in abatement action by industry.
• Over $300 million has been committed to programmes that encourage innovation and development in Australia's growing renewable energy industry, especially in the replacement of diesel-powered electricity generators in rural Australia.
• The $12.5 million National Carbon Accounting System has allowed Australia to develop robust emission estimates for land-based sectors for the period 1990-2000. This places Australia at the leading edge of land based carbon accounting.
• The Bush for Greenhouse programme has developed innovative tools to stimulate private investment in revegetation and secure multiple environmental outcomes. It is facilitating the development of a new international carbon sequestration industry in Australia by addressing key issues such as legal recognition of carbon rights and carbon measurement.

Building partnerships with industry and the community

The Government will continue to work with Australian industry to encourage significant greenhouse gas abatement and improve energy efficiency in key areas such as power generation, buildings and appliances.

Industry takes up the challenge

More than 700 businesses from many industries have joined the Greenhouse Challenge programme, which aims to reduce net greenhouse gas emissions. Participants have already reported combined emission savings of more than 30 million tonnes to date.

While it is a voluntary partnership between the Government and Australian industry, it has attracted excellent industry support in some key areas - 100 per cent of aluminium and cement producers, 98 per cent of the oil and gas industry, and 91 per cent of the coal mining industry are involved. Almost 50 per cent of total emissions from non-agriculture industries are covered by the programme.

Greenhouse Challenge members develop an inventory of their emissions and identify practicable abatement actions. Regular progress reports are independently verified by technical experts to ensure the credibility of the programme's data.

In 2002-03, the Government will increase participation by industry in the Greenhouse Challenge to include more than 800 members, expanding coverage of more than 50 per cent of industry related greenhouse gas emissions.

In 2001-02, 13 leading electricity generators representing almost 65 per cent of the national electricity market capacity signed up to the Governments Generator Efficiency Standards Programme. This will see an investment by industry in the order of $240 million in new plant and equipment. This investment will be recovered over time through improved operational efficiencies. The Government expects to achieve over 85 per cent coverage of total market capacity in the near future, which will move all major electricity generators toward best practice operating efficiency. By 2010 the programme is expected to save the equivalent emissions of around one million cars.

Community supports Greenhouse action

Programmes administered by the AGO provide a platform for local communities to contribute to reducing Australia's greenhouse gas emissions.

• More than 140 local councils, representing 60 per cent of Australia's population, have now joined the $13 million Cities for Climate Protection^TM programme - making Australia the fastest growing participant of this international programme.
• In less than a year of operation, the Cool Communities programme has built partnerships with 24 organisations as diverse as a football club, a remote Indigenous community, an academic institution, and a regional archdiocese. The programme provides information, support and financial assistance to enable communities to undertake practical actions to reduce household greenhouse gas emissions.

Regulatory and market based approaches drive change

The Government is committed to the use of innovative regulatory and market-based approaches to reduce greenhouse gas emissions.

In April 2001 the Mandatory Renewable Energy Target came into force under the key provisions of the Renewable Energy (Electricity) Act 2000.

Administered by the Office of the Renewable Energy Regulator, the Mandatory Target requires electricity generators to source an additional 9,500 gigawatt hours (GWh) of renewable electricity per year by the year 2010. This is enough power to meet the residential electricity needs of four million people.

After nine months of operation more than 600 GWh of eligible additional renewable energy has been generated from 130 accredited renewable energy generators.

In late 2001, the Government launched the Greenhouse Friendly programme to enable companies to obtain certification by the AGO for products or services whose greenhouse emissions have been fully offset by other greenhouse abatement activities.

For example:

• In November 2001, a leading automotive fuel became the first product to receive the AGO's Greenhouse Friendly certification; already the company is experiencing higher than anticipated sales of their greenhouse friendly product.
• A major Australian financial institution is adopting a key strategic position in the new emissions offset market by establishing a pool of pre-approved greenhouse abatement projects that meet the programme requirements.

Biodiversity

The protection and conservation of Australia's biodiversity continues to be one of the Government's highest environmental priorities.

As one of only 17 mega-diverse countries, Australia is home to 10 per cent of the world's known species of flora and fauna, 80 per cent of which exist no where else in the world. This gives Australia a special responsibility to understand, protect and conserve our biodiversity and this is reflected in our commitment to meeting our obligations to the Convention on Biological Diversity.

Programmes funded under the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality (National Action Plan) seek to conserve and protect biodiversity in Australia by protecting our bush, land, and coastal areas.

The Government continues to support key biodiversity activities including: identifying and protecting endangered and threatened species; removing threats such as feral animals and weeds; conserving our marine biodiversity by funding of marine protected areas and protecting marine species; and providing specific areas for the protection of biodiversity by maintaining a National Parks and Reserves system.

Conserving our Biodiversity - the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality

The Government has provided funds to biodiversity conservation through the extension of the Natural Heritage Trust and the National Action Plan, both of which will reflect the interdependency between sustainable natural resource use and biodiversity conservation. These major programmes will make increasing contributions to the goal of conserving Australia's native biodiversity.

The National Action Plan objective to improve water quality and to arrest salinity will have substantial biodiversity outcomes. Wetlands are frequently among the low-lying areas first affected by salinity and many species of remnant vegetation are at risk. Improvements in water quality and flow will have substantial benefits for native fish and water birds and the overall ecological health of our rivers and lakes.

Bushcare is the terrestrial biodiversity conservation programme in the Trust. It aims to reverse the long-term decline in the quality and extent of Australia's native vegetation cover in rural and urban areas, both on privately owned and community property, and on land used for production, conservation and recreation.

Bushcare assists the recovery of our threatened species and ecological communities, improves the management of World Heritage areas, addresses the threats to biodiversity from feral animals and weeds, and increases the size and representativeness of the National Reserve System. For example, in 2001-02, protection of remnant native vegetation and revegetation works has covered 32,603 square kilometres with 640 projects, totalling $35.7 million, approved. More than 10,000 people have participated in native vegetation management and restoration training activities, delivered regionally. Only through the cooperative efforts of all levels of government, industry and community can the biodiversity conservation objectives of Bushcare be achieved.

In 2002-03, the Natural Heritage Trust will undertake work to identify biodiversity hot spots - areas with high nature conservation value at risk from threatening processes. This will ensure the most cost-effective use of joint government and community investments.

The Trust's Coastcare and Rivercare programmes will also achieve substantial biodiversity outcomes. Coastcare will protect and restore significant marine, coastal and estuarine ecosystems; protect and restore the coastal, estuarine and marine habitats of threatened species, threatened ecological communities, and migratory shorebirds and waterbirds; prevent or control the introduction and spread of introduced marine pests, coastal weeds and other biological threats to biodiversity; and establish and effectively manage a comprehensive, adequate and representative system of marine protected areas.

Rivercare will protect and restore significant freshwater ecosystems in rivers and wetlands; prevent or control the introduction and spread of aquatic pests, weeds and other biological threats to biodiversity and productivity; and protect and restore the riverine and wetland habitat of threatened species, threatened ecological communities and migratory birds.

Investing Trust funds through strategic landscape scale projects delivered on the basis of integrated regional plans will be one of the principal mechanisms to achieve these outcomes. This regional focus reflects key recommendations arising from the mid-term review of the Trust, reviews of Trust investment by the Australian National Audit Office and the work undertaken to implement the regionally based National Action Plan.

Regional bodies will be responsible for developing and implementing the integrated natural resource management plans in consultation with the community. These plans will need to look at the interaction between biodiversity and resource use needs, to seek integrated outcomes from the Trust and National Action Plan investments and to set regional targets for a core set of natural resource matters. This core set - to be agreed nationally through the Natural Resource Management Ministerial Council - will address issues such as salinity, water quality and biodiversity.

The investment through the Trust and the National Action Plan will be supported by statewide reforms in biodiversity conservation, institutions and policies.

Another key biodiversity initiative is the development of ten national priority actions for biodiversity conservation. These priority actions:

• cover areas critical for biodiversity conservation such as freshwater ecosystems and dryland salinity
• have been endorsed by most States and Territories as a basis for future planning and programme activities
• will be used in the development of integrated regional plans for the purposes of the Trust and the National Action Plan.

Knowledge promotes Biodiversity Protection

Our understanding of Australia's biodiversity is continually being improved through the implementation of a number of research programmes and initiatives.

• The Australian Biological Resources Study supports research on Australia's organisms by providing grants and training schemes, publishing several series of books on flora and fauna, and providing a range of electronic databases and identification tools.
• The Australian Biodiversity Information Facility makes available, free of charge via the World Wide Web, taxonomic and biological information on plant, animal, and other species known to occur in Australia.