OUR CLIMATE
The Australian Government recognises climate change as a real and serious global challenge – the evidence is overwhelming. Australia is already experiencing the impacts of climate change, although it is difficult to discern these precisely in a climate that is subject to extreme variability. They are almost certainly showing in changes to rainfall patterns and storm intensity, water temperature, sea levels and other natural phenomena. Features of our environment on which economic activity depends, such as vegetation and reefs, are vulnerable to these impacts. Our agriculture and tourism industries could be adversely affected.
Australia needs and continues to work for an effective global response to climate change in which Australia intends to play a full part. This Government has responded strongly to the challenge – investing in measures across the economy to reduce our domestic greenhouse gas emissions, and engaging internationally to build an effective, inclusive global response to this complex issue.
Australia’s domestic greenhouse programmes are pioneering in their approach, and are projected to achieve major reductions in greenhouse gas emissions of 67 million tonnes a year by 2008-12.
This action has Australia on track to meet its internationally agreed target of 108 per cent of 1990 emissions by 2008-12.
This Government is interested in practical environmental outcomes – not symbolic international gestures that would disadvantage Australia.
Internationally, the Government is pursuing a multi-pronged strategy including action at the multilateral, regional and bilateral levels. Our approach is both influencing the broader global policy agenda, and supporting practical action to address climate change.
Our knowledge of climate change has evolved greatly since the Government’s first climate change package Safeguarding the Future which was released in 1997 (followed by Measures for a Better Environment in 1999). Through the 2004-05 Budget, the Australian Government is delivering a strategy that will build on this strong foundation – supporting new abatement opportunities and technologies, better focusing climate change programmes, and investing in measures to help Australia identify, assess and adapt to the unavoidable consequences of climate change. Recent exploratory work provides good reason for believing that adapting established practices, such as sowing cycles and water management, have the potential to substantially reduce costs resulting from the impacts of climate change.
This Budget ensures the Australian Government will continue to play a leading and responsible role in the global response to climate change. Australia will participate actively and creatively in international forums as well as investing domestically in measures that will reduce Australia’s greenhouse gas emissions while maintaining a strong and competitive economy. The Government will allocate $463.6 million over four years for climate change initiatives including $260.0 million for eleven new measures. This increases the Australian Government investment by $70.3 million taking the total commitment to more than $1 billion to enable work in the following areas.
International engagement
The international community accepts the need for a long-term response to climate. The Australian Government will continue to work towards a global response that is environmentally effective and economically efficient and equitable; involves all major emitters, including the United States and developing countries; and takes into account different national circumstances.
In 2004-05, the Government is committing $22.6 million over four years to underpin Australian climate change action at the international level. This funding will support multilateral climate change negotiations and processes; help build the capacity of developing countries to take effective climate change action and expand bilateral partnerships with key strategic countries such as the United States, China, New Zealand, Japan and the European Union.
Emissions management
Energy efficiency is currently the most cost effective approach to abatement and delivers real economic benefits. Through the Action on Energy Efficiency measure, the Government is committing $27.4 million over four years to work with industry, business, the community and all levels of government to increase the uptake of cost-effective energy efficiency opportunities that will reduce greenhouse emissions, reduce energy demand, and improve Australia’s competitiveness.
The energy intensive nature of Australia’s economy means that we must seek out cost-effective ways to improve the efficiency of existing generation technologies while also enabling new low emission technologies to be part of the longer-term solution to climate change. The Government is committing $26.9 million over four years to encourage technologies that reduce energy demand and emission intensity of supply at a local community level as well as in business and the electricity sector.
The Australian Government is continuing to work in partnership with industry to reduce our national greenhouse gas emissions. Through the 2004-05 Budget, the Government is committing $31.6 million over four years to build on the success of the Greenhouse Challenge and deliver an expanded industry partnership programme that integrates greenhouse issues into business decision making, will reduce greenhouse emissions, and accelerate the uptake of energy efficiency measures.
There are seven million households in Australia that collectively produce one-fifth of Australia’s total greenhouse emissions. Through the Local Greenhouse Action measure the Government is committing $13.8 million over four years to support local government, communities and individual households to reduce their emissions, particularly in the areas of energy use, transport and waste.
Agricultural and other land based sectors make a substantial contribution to Australia’s emissions – around one-third of Australia’s total. They are also vulnerable to the potential impacts of climate change. The Government is committing $20.5 million over four years to work with rural communities to reduce emission from land based sectors by helping land managers to measure and report on their greenhouse emissions and encouraging new abatement technologies. In addition to greenhouse benefits, the activities are likely to result in additional environmental and productivity benefits for land mangers such as reducing salinity and improving natural resource management.
Greenhouse technology projects will continue to be supported through existing renewable energy programmes, including the Mandatory Renewable Energy Target and the Remote Renewable Power Generation Programme, and the broader based Greenhouse Gas Abatement Programme with commitments of $203.6 million over the next 4 years for the Australian Greenhouse Office, and new funding of $10.6 million over four years for the Office of the Renewable Energy Regulator.
Climate science, adaptation and policy
Australia has developed world-class expertise in climate science and has contributed significantly to international understanding of the causes, nature, timing and consequences of climate change.
In 2004-05, the Government is committing $30.7 million over four years to continue to build our understanding of the science of climate change and to inform government and industry decision making. Initiatives will enhance our understanding of the key drivers of climate change in Australia; improve modelling of climate variability and climate change; develop regional climate change projections; and foster collaboration in international climate change research.
Early and effective adaptation to potential climate change impacts can help minimise risks, generate economic benefits, and reduce the costs associated with the effects of climate change that are already occurring. The Australian Government is committing $14.2 million over four years through the 2004-05 Budget for its new National Climate Change Adaptation measure. Detailed assessments of the economic and social implications of climate change will be undertaken in the following six areas: water use and water infrastructure development; agriculture practices; settlements and the costal zone; tourism; infrastructure (including buildings, major transport links and electricity distribution); and biodiversity. Each assessment will identify and evaluate adaptation options for vulnerable industry and regional communities, leading to recommendations for specific actions.
Australia’s ability to report domestically and internationally on emissions levels and trends is underpinned by robust emissions measurement and analysis. The Government is committing $33.1 million over four years to continue to fulfil our international reporting commitments through the National Greenhouse Gas Inventory, greenhouse projections and emissions analysis and world class National Carbon Accounting System.
The Australian Government is also committing $28.5 million over four years for the continued provision of whole-of-government advice on domestic greenhouse policy issues, and to provide information and education programmes to promote awareness of climate change.