Australian Government, 2008‑09 Budget
Budget

Climate Change (continued)

Election Commitments

Tackling Climate Change — adaptation to climate change

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
AusAID - 20.3 49.4 65.0 -
AusAID - 0.4 - - -

The Government will provide $150.0 million over three years (including $0.4 million in capital funding in 2008‑09) to strengthen climate change adaptation efforts, focusing on countries in Australia's region where communities are at risk from the impacts of climate change. This measure will help increase the scientific information base to improve planning and response, build the institutions implementing adaptation programs and contribute to major multilateral adaptation funds. This measure will also provide Australian skills and expertise to help our neighbours, particularly in the Pacific, to adapt to climate change.

Funding of $15.0 million in 2008‑09 will be met from within the existing resourcing of AusAID.

This measure delivers on the Government's election commitment and is part of the Government's commitment to increase Australia's overseas development assistance over the long term.

Tackling Climate Change — Australia's Farming Future — Climate Change Adaptation Partnerships Program

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Agriculture, Fisheries and Forestry - 15.0 15.0 15.0 15.0

The Government will provide $60.0 million over four years to assist farmers in responding and adapting to the impacts of climate change, and preparing for an emissions trading scheme. This funding provides for investment in climate change partnerships to improve understanding and awareness of climate change impacts, promote education and training, and improve planning and on‑farm management tools.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Australia's Farming Future — Climate Change Adjustment Program

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Agriculture, Fisheries and Forestry - 15.0 15.0 15.0 10.0

The Government will provide $55.0 million over four years to assist farmers in responding to climate change through the provision of professional advice and training grants. Re‑establishment grants will also be available to eligible farmers who choose to leave their farm. The funding also includes $10.0 million for the Rural Financial Counselling Service.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Climate change adaptation strategies for the Serpentine Jarrahdale Shire and the City of Mandurah (Peel‑Kwinana Growth Corridor), Western Australia — contribution

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Climate Change - 0.2 - - -

The Government will provide $0.2 million in 2008‑09 to fund the application of climate change adaptation strategies in the Serpentine Jarrahdale Shire and the City of Mandurah, Western Australia. This project will act as a pilot for other local government areas across Australia looking for ways to deal with the impact of climate change.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Climate Change and Productivity Research Program

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Agriculture, Fisheries and Forestry - 6.0 5.0 4.0 -

The Government will provide $15.0 million over three years for a coordinated research program to assist farmers to improve productivity and respond to climate change. Program funding will be coordinated across rural research and development corporations and companies, public and private research providers, and Australian and state government agencies.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Clean Business Australia — Climate Ready Program

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Innovation, Industry, Science and Research - 13.1 22.6 23.8 15.5

The Government will provide $75.0 million over four years to establish the Climate Ready program. The new competitive grants program will assist small and medium enterprises to develop and bring to the market new products that save energy and water and reduce pollution.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Clean Business Australia — Green Building Fund

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Innovation, Industry, Science and Research - 22.5 37.5 15.0 15.0

The Government will provide $90.0 million over four years to establish a Green Building Fund to assist Australian business to implement energy efficient measures. The Fund will subsidise 50 per cent of the cost of retro‑fitting and retro‑commissioning existing commercial office buildings, up to a maximum of $200,000 per building. Funds will be awarded to organisations on a competitive basis, with priority given to large buildings (over 5000m2).

This measure delivers on the Government's election commitment.

Tackling Climate Change — Clean Business Australia — Retooling for Climate Change

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Innovation, Industry, Science and Research - 10.9 21.8 24.5 17.8

The Government will provide $75.0 million over four years to assist Australian manufacturers to improve their production processes, energy and water efficiency and to reduce their carbon emissions. Grants of between $10,000 and $500,000, up to a third of the cost of each project, will be provided to small and medium sized companies. Advice will also be provided to small and medium enterprises on how to improve water efficiency through the National Manufacturing Network.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Deception Bay Pool — contribution

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts - - - - -

The Government will provide $250,000 in 2008‑09 for the installation of solar water heating panels for the Deception Bay Pool in Caboolture Shire, Queensland.

The cost of this measure will be met from within the existing resourcing of the Department of the Environment, Water, Heritage and the Arts.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Department of Climate Change — establishment

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Climate Change - 5.5 5.4 5.4 5.5

The Government will provide $21.8 million over four years to establish the Department of Climate Change.

The Department will coordinate the Government's response to climate change including development of an Emissions Trading Scheme and increased initial activity following the ratification of the Kyoto Protocol and participation in ongoing international climate change negotiations.

This funding supplements resources transferred to the new department under the machinery of government changes.

See also the related expense measure titled Tackling Climate Change Emissions Trading Scheme — design and implementation in the Prime Minister and Cabinet portfolio.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Emissions Trading Scheme — design and implementation

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Climate Change 6.3 9.3 9.3 9.3 9.4
Department of the Treasury 3.2 3.3 3.4 3.2 -
Australian Bureau of Statistics 0.7 2.2 2.7 2.8 -
Department of Agriculture, Fisheries and Forestry 0.8 0.8 - - -
Department of the Prime Minister and Cabinet 1.0 - - - -
Total 11.9 15.5 15.3 15.3 9.4
Australian Bureau of Statistics - 0.3 0.2 0.2 -
Department of the Treasury .. 0.2 .. - -
Department of Climate Change 0.5 - - - -
Total 0.5 0.5 0.3 0.2 -

The Government will provide $68.8 million over five years to design and implement a domestic emissions trading scheme in Australia.

This measure will provide $44.0 million over five years (including $0.5 million in capital) to the Department of Climate Change to lead this activity and to coordinate climate change policy.

The Department of the Treasury will receive $13.3 million over four years (including $0.3 million in capital) to undertake modelling and analysis of the sectoral and distributional impacts of different emission reduction goals and trajectories.

The Australian Bureau of Statistics will receive $9.0 million over four years (including $0.7 million in capital) and the Department of Agriculture, Fisheries and Forestry will receive $1.5 million over two years, for the Australian Bureau of Agricultural and Resource Economics, to assist with the modelling and analysis.

The Department of the Prime Minister and Cabinet received $1.0 million in 2007‑08 as reimbursement for the emissions trading scheme design activity that it undertook prior to the establishment of the Department of Climate Change.

See also the related expense measure titled Tackling Climate Change — Department of Climate Change — establishment in the Prime Minister and Cabinet portfolio.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Energy Efficiency of Electrical Appliances

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts - 2.0 4.1 4.0 3.9

The Government will provide $14.0 million over four years to help improve the energy efficiency of electrical appliances. This measure includes funding to:

  • expand the current 6‑star Energy Rating Label to a 10‑star system across a wider list of products;
  • introduce Greenhouse and Energy Minimum Standards that ensure greenhouse benefits and energy savings are factored into standard appliance settings;
  • review existing Minimum Energy Performance Standards every three years for all major appliances; and
  • accelerate the introduction of the 1‑watt standard for appliances with a standby mode function.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Energy Innovation Fund

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Resources, Energy and Tourism - 40.9 51.2 36.3 21.7

The Government will provide $150.0 million over four years to support the development of clean energy technologies in Australia as part of the Government's climate change strategy through an Energy Innovation Fund.

Initiatives to be supported through the Fund include: $50.0 million for the Australian Solar Institute to expand Australia's solar thermal research capacity and to build on the existing CSIRO centre in Newcastle, $50.0 million for photovoltaic research and development, and $50.0 million for general clean energy research and development, including energy efficiency, energy storage technologies and hydrogen transport fuels.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Green Car Innovation Fund

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Innovation, Industry, Science and Research - - - - 100.0

The Government will provide $500.0 million over five years from 2011‑12 to establish a Green Car Innovation Fund. The fund will assist the Australian automotive industry to develop and manufacture low emission vehicles. Industry will be expected to match the Government's contribution on a one to three dollar basis, generating a total of $2 billion in investment.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Green Loans

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts - 17.4 60.2 88.1 87.9

The Government will provide $300.0 million over five years (including $46.3 million in 2012‑13) to subsidise the provision of low‑interest loans, of up to $10,000 per home, for the installation of green technologies to improve water and energy efficiency. These include solar hot water, insulation, rainwater tanks and grey water recycling. The loans are intended to be provided by accredited financial institutions, selected by competitive tender, with the interest rate subsidised by the Government. Delivery arrangements will be finalised following consultation with the financial industry.

The funding will also provide for refunds for home energy and water audits and free 'green renovation packs'.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Hot water system phase out — development and implementation

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts - - - - -

The Government will provide $7.9 million over four years for a gradual phase‑out of inefficient hot water systems used in Australian homes.

The Government will work with State and Territory governments and industry to develop nationally‑consistent greenhouse performance standards for domestic hot water products to meet new performance requirements and introduce check testing for hot water products to ensure suppliers are providing products that meet the new performance requirements.

The cost of this measure ($2.0 million in 2008‑09, $2.1 million in 2009‑10 and $1.9 million per annum in 2010‑11 and 2011‑12) will be met from within the existing resourcing of the Department of the Environment, Water, Heritage and the Arts.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Low Emission Plan for Renters — establishment

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts - 10.5 37.5 50.0 50.0

The Government will provide $150.0 million over five years (including $2.0 million in 2012‑13) to provide 30 per cent rebates to owners of private sector rental homes towards the cost of installing insulation. The rebates, capped at $500 per property, will be available for up to 300,000 rental properties helping renters to reduce their power bills and greenhouse gas emissions.

This measure delivers on the Government's election commitment.

Tackling Climate Change — National Clean Coal Fund

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Resources, Energy and Tourism 15.0 34.8 108.6 124.5 97.8

The Government will provide $500.0 million over eight years (including $119.4 million from 2012‑13 to 2014‑15) to support clean coal and advanced fossil fuel technology development through a National Clean Coal Fund. Initiatives to be supported through the fund include:

  • $50.0 million for a national carbon mapping and infrastructure plan;
  • $75.0 million for a National Clean Coal Research Program;
  • $50.0 million for a pilot coal gasification plant in Queensland;
  • $50.0 million to demonstrate carbon capture and storage;
  • $50.0 million for a large scale post combustion capture plant in the Latrobe Valley in Victoria;
  • $15.0 million to fund Australia's involvement in the FutureGen Alliance; and
  • $20.0 million for the Australia‑China Clean Coal Co‑ordination Group.

This measure delivers on the Government's election commitment.

Tackling Climate Change — National Solar Schools Plan

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts 9.0 74.6 119.7 107.2 50.8

The Government will provide $480.6 million over eight years (including $46.8 million in 2012‑13, $40.3 million in 2013‑14 and $32.2 million in 2014‑15) to provide grants of up to $50,000 to all Australian schools to install solar panels and for energy and water efficiency improvements.

Funding for this measure will be provided in part from the redirection of funds from the Green Vouchers for Schools program.

See also the related savings measure titled Green Vouchers for Schools in the Responsible Economic Management package of measures.

This measure delivers on the Government's election commitment.

Tackling Climate Change — One Stop Green Shop — establishment

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts - 1.0 1.0 1.0 -

The Government will provide $3.0 million over three years to establish a user friendly government portal to link schools, businesses and families to all Commonwealth, State and local government household energy, water and other resource efficiency programs. This will assist Australians in implementing practical actions to save water and reduce greenhouse emissions.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Renewable Energy Fund

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Resources, Energy and Tourism - - 55.5 71.0 101.0

The Government will provide $499.7 million over seven years (including $101.0 million in 2012‑13, $100.9 million in 2013‑14 and $70.3 million in 2014‑15) to establish a Renewable Energy Fund. The Fund will provide grants, on a competitive basis, of between $10.0 million and $75.0 million to develop, commercialise and deploy renewable energy in Australia. The private sector will be encouraged to contribute $2 for every $1 provided by the Government to generate $1.5 billion worth of investment in renewable energy technologies.

This measure includes $15.0 million over four years for the Second Generation (Gen 2) Biofuels Technology Research and Development program. This program will assist in developing next generation ethanol technology by providing grants to Australian companies to commercialise new technology using sugar cane waste and other woody material as alternative fuel sources.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Renewable Energy Target — expansion

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Office of the Renewable Energy Regulator 0.3 2.2 4.1 5.3 6.1
Office of the Renewable Energy Regulator 1.0 2.4 3.2 3.4 3.9
Office of the Renewable Energy Regulator - 1.1 1.1 - -

The Government will provide $15.5 million over five years (including $0.3 million in 2007‑08) for the Office of the Renewable Energy Regulator to administer the expanded Renewable Energy Target of 45,000 gigawatt hours of electricity a year to be generated from renewable energy sources by 2020. The target is in addition to a baseline level of renewable energy generation estimated to be around 16,000 gigawatt hours annually. The target will assist in the transition towards an Emissions Trading Scheme and will be phased out between 2020 and 2030 as the Emissions Trading Scheme matures.

The Office of the Renewable Energy Regulator will also work with the states and territories in order to introduce a national approach to feed‑in tariffs.

This measure includes $2.2 million over two years in capital funding to modify and expand the capacity of the renewable energy certificate online register and $14.0 million over five years (including $1.0 million in 2007‑08) in administered revenue from the increased trade in Renewable Energy Certificates. Estimated refunds for participants who have overpaid the Office of the Renewable Energy Regulator in the course of trading will partly offset the increased revenue ($4.8 million over three years from 2009‑10).

This measure delivers on the Government's election commitment.

See also the related measure Responsible Economic Management — Clean Energy Target in the Government's Savings Initiatives package of measures.

Tackling Climate Change — Solar Cities and Green Precincts

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts 1.0 8.0 8.0 8.0 -

The Government will provide an additional $25.0 million over four years to extend the Solar Cities program by three years.

This measure will provide $13.9 million for a new solar city in Perth, $4.9 million for a new solar city in Coburg, Victoria, and $6.2 million as a contribution to a new $15.0 million Green Precincts program that will establish high profile green precincts around Australia.

This measure delivers on the Government's election commitment.

Tackling Climate Change — Solar Homes and Communities Plan

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts - 25.6 19.4 -27.4 -17.7

The Government will bring forward funding of $45.0 million from 2010‑11 ($27.4 million) and 2011‑12 ($17.7 million) to 2008‑09 ($25.6 million) and 2009‑10 ($19.4 million) to meet the increased demand for household rebates under the Solar Homes and Communities Plan, formerly known as the Photovoltaic Rebate Program.

The measure will provide rebates for up to 6,000 households each year under the program, and introduce a means test to target households with taxable incomes of less than $100,000 per annum.

The program provides rebates of up to $8,000 for the installation of solar power panels in homes and grants for up to half the cost of a 2 kilowatt system for up to 400 community buildings a year.

This measure delivers on the Government's election commitment.

Other measures

Tackling Climate Change — Garnaut Climate Change Review — contribution

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Climate Change 1.6 0.7 - - -

The Government will provide $2.3 million over two years towards the costs of establishing a secretariat for the Garnaut Climate Change Review and for the Commonwealth's contribution to the review. The cost of the review will be shared with state and territory governments.

The Garnaut Climate Change Review is an independent review that will examine the impacts of climate change on the Australian economy. The review is due to report to governments by 30 September 2008.

This measure delivers on the Government's election commitment.

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