Australian Government, 2010‑11 Budget
Budget

Part 2: Expense Measures (Continued)

Climate Change and Energy Efficiency

Climate change — Foundation Campaign

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Climate Change and Energy Efficiency - - - - -

The Government will provide $30.0 million over two years ($17.0 million in 2009‑10 and $13.0 million in 2010‑11) for a national campaign to educate the community on climate change, including on climate change science. Information will be provided through print, radio and television and a website.

The cost of this measure will be met from within the existing resourcing of the Climate Change and Energy Efficiency portfolio.

Energy Efficient Homes program — modifications

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Climate Change and Energy Efficiency - - - - -

The Government has introduced a number of changes to its Energy Efficiency Homes programs. These changes are aimed at improving household safety, supporting the insulation industry and continuing to provide households with opportunities to save money on energy bills and reduce greenhouse gas emissions.

The Home Insulation Program was closed from 19 February 2010 and the Solar Hot Water Rebate was reduced to $1,000 for solar hot water systems and $600 for heat pumps under the Renewable Energy Bonus Scheme for systems ordered and purchased from 20 February 2010. The remaining funding for the Home Insulation Program and Solar Hot Water Rebate has been redirected to the Renewable Energy Bonus Scheme.

The Home Insulation Safety Program has been established to carry out safety inspections of at least 150,000 homes that had non‑foil insulation installed under the Home Insulation Program, targeted at homes that are most likely to have safety issues. The inspectors will also be able to carry out simple remediation work where required.

The Foil Insulation Safety Program has been established to inspect approximately 50,000 homes that had foil insulation installed under the Home Insulation Program. The program will also fund either the removal of the foil insulation or the installation of safety switches.

The Insulation Industry Assistance Package has been established to assist firms that participated in the Home Insulation Program to meet the cost of insulation stock‑holdings, through the deferral of GST payment obligations and a $15.0 million grants program administered by AusIndustry.

Costs associated with the Home Insulation Safety Program, the Foil Insulation Safety Program and the Insulation Industry Assistance Package will be met from funding for the Renewable Energy Bonus Scheme. Any residual funding will be returned to the Budget.

Further information can be found in various press releases issued by the Minister for the Environment, Heritage and the Arts and the Minister Assisting the Minister for Climate Change and Energy Efficiency between 10 February 2010 and 22 April 2010.

Green Loans program — redesign

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Climate Change and Energy Efficiency -6.3 109.0 - - -

The Government will provide an additional $102.7 million to deliver over 600,000 home sustainability assessments, in addition to the 360,000 already available, under the redesigned and extended Green Loans program. The less popular loans component of the program was discontinued from 22 March 2010 due to the low take—up, and the Green Rewards Card will no longer be available to households receiving assessments after 11 May 2010. The home sustainability assessments provide advice to households on ways to improve energy and water efficiency and reduce greenhouse gas emissions. In order to better manage demand for the home assessments, caps of 5,000 assessors and 15,000 assessment bookings per week have been introduced. These new arrangements will apply until the end of 2010.

Further information can be found in the press release of 19 February 2010 issued by the Minister for the Environment, Heritage and the Arts.

Overseas development assistance — climate change — International Climate Change Adaptation Initiative

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
AusAID - - 78.6 99.6 -

The Government will provide $178.2 million over two years in additional funding for the International Climate Change Adaptation Initiative. This funding will build on the $150.0 million over three years for the Tackling Climate Change — adaptation to climate change measure announced in the 2008‑09 Budget. The initiative will focus on countries in the Pacific and the Caribbean, and small island states. These programs will enable partner countries to better adapt to the impacts of climate change through improved scientific information, planning and assessment and financing of adaptation measures.

This measure will be fully offset from the provision for expanded aid funding held in the Contingency Reserve.

This measure is part of the Government's commitment to increase Australia's overseas development assistance over the long term and forms part of the Government's international climate change financing commitment to 2012 under the Copenhagen Accord.

Overseas development assistance — climate change — International Forest Carbon Initiative

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
AusAID - - 28.0 28.0 -

The Government will provide $56.0 million over two years in additional funding for the International Forest Carbon Initiative. The initiative is working to help build the capacity of developing countries to reduce emissions from deforestation and forest degradation. This takes the total funding for this program to $273.0 million over six years to 2012‑13.

The International Forest Carbon Initiative includes partnerships with Indonesia and Papua New Guinea to support the development of national strategies and forest carbon measurement.

This measure will be fully offset from the provision for expanded aid funding held in the Contingency Reserve.

This measure is part of the Government's commitment to increase Australia's overseas development assistance over the long term and forms part of the Government's international climate change financing commitment to 2012 under the Copenhagen Accord.

Further information can be found in the Prime Minister's speech of 17 December 2009.

Overseas development assistance — climate change — multilateral climate change financing

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
AusAID 5.0 - 40.6 60.6 -

The Government will provide $106.2 million over four years (including $5.0 million in 2009‑10 for the Least Developed Countries Fund) for partnerships with multilateral agencies to help partner countries transition to lower carbon growth and prepare for the impacts of climate change. This measure will build on Australia's involvement in the Climate Investment Funds, two trust funds created by the World Bank.

This measure will be fully offset from the provision for expanded aid funding held in the Contingency Reserve.

This measure is part of the Government's commitment to increase Australia's overseas development assistance over the long term and forms part of the Government's international climate change financing commitment to 2012 under the Copenhagen Accord.

Renewable Energy Target — enhancement

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Office of the Renewable Energy Regulator - 1.5 - - -
Department of Climate Change and Energy Efficiency - -1.5 - - -
Total - - - - -
Office of the Renewable Energy Regulator - * * * *
Office of the Renewable Energy Regulator - 4.5 - - -
Department of Climate Change and Energy Efficiency - -4.5 - - -
Total - - - - -

The Government will provide $6.0 million in 2010‑11 for the Office of the Renewable Energy Regulator to implement enhancements to the Renewable Energy Target from 1 January 2011. This includes $4.5 million in capital funding to modify and expand the existing information technology system to facilitate the settlement of Renewable Energy Certificates under the enhanced scheme.

The enhancements to the Renewable Energy Target will provide more certainty within the renewable energy industry by separating the target into two parts: the Large‑scale Renewable Energy Target and the Small‑scale Renewable Energy Scheme. The Large‑scale Renewable Energy Target will cover significant renewable energy projects, such as wind farms, and commercial solar and geothermal projects, and deliver most of the Renewable Energy Target. The Small‑scale Renewable Energy Scheme will cover small‑scale technologies, such as solar panels and solar hot water systems, and provide a fixed price for Renewable Energy Certificates of $40 per megawatt hour of electricity produced.

These changes are expected to deliver more renewable energy than the original 20 per cent target. The impact on Government revenues will depend on any change in the trade of Renewable Energy Certificates. Revenue is received from a number of statutory fees, including the Renewable Energy Shortfall Charge and fees for the creation and surrender of Renewable Energy Certificates.

The cost of this measure will be met from the existing resourcing of the Climate Change and Energy Efficiency portfolio.

Further information can be found in the joint press release of 26 February 2010 issued by the Minister for Climate Change and Water and the Minister Assisting the Minister for Climate Change.

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