clean energy future overview
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8/6/2019 Clean Energy Future Overview
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Securing a cleanenergy futureThe AusTrAliAn GovernmenTs
climATe chAnGe plAn in summAry
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8/6/2019 Clean Energy Future Overview
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To build our Clean Energy Future theGovernment is...
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Australias Clean Energy FutureScientists advise that the world is warming and high levels o carbon pollution
risk environmental and economic damage. No responsible government can ignore
this advice.
The Australian Government has developed a comprehensive plan to move to a clean
energy uture.
Central to that plan is the introduction o a carbon price that will cut pollution in the
cheapest and most eective way and drive investment in new clean energy sources
such as solar, gas and wind.
A carbon price is not a tax on households around 500 o the biggest polluters in
Australia will be required to pay or their pollution under the carbon pricing mechanism.
To assist households with price impacts, there will be tax cuts and increases in
pensions, allowances and benets. A signicant tax reorm will mean that over
1 million individuals will no longer need to le a tax return.
The Government is committed to supporting jobs and competitiveness as Australia
moves to a clean energy uture and has designed a range o measures or this purpose.
The Government will seek to negotiate the closure o around 2000 megawatts o highly
polluting electricity generation capacity by 2020, while at the same time saeguarding
our energy security.
There will be a dramatic expansion in support or renewable energy including through a
new commercially oriented Clean Energy Finance Corporation that will invest $10 billion
in renewable energy, low pollution and energy eciency technologies.
Around $1 billion will be spent over the next our years to help armers and land
managers pursue climate change action on the land and promote biodiversity.
Improvements in energy eciency will help households save money on their bills andcontribute to our e orts to cut pollution.
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Commonwealth o Australia 2011
ISBN 978-0-642-74720-4
Ownership of intellectual property rights in this publication
Unless otherwise noted, copyright (and any other intellectual property r ights, i any) in this publication is owned by the
Commonwealth o Australia (reerred to below as the Commonwealth).
Creative Commons licence
With the exception o the Coat o Arms, the Clean Energy Future logo and all photos and graphics, this publication is
licensed under a Creative Commons Attr ibution 3.0 Australia Licence.
Creative Commons Attribution 3.0 Australia Licence is a standard orm license agreement that allows you to copy,
distribute, transmit and adapt this publication provided that you attribute the work. A summary o the licence terms is
available rom http://creativecommons.org/licenses/by/3.0/au/deed.en. The ull licence terms are available rom
http://creativecommons.org/licenses/by/3.0/au/legalcode.
The Commonwealths preerence is that you attribute this publication (and any material sourced rom it) using the
ollowing wording:
Source: Licensed from the Commonwealth of Australia under a Creative Commons Attribution 3.0 Australia Licence.
The Commonwealth of Australia does not necessarily endorse the content of this publication.
Use of the Coat of Arms
The terms under which the Coat o Arms can be used are set out on the Its an Honour website (see
www.itsanhonour.gov.au)
Printed by CanPrint Communications Pty Ltd
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ContentsAustralia needs to cut pollution 2
... and move to a clean energy uture 3
A carbon price will cut pollution 4
... in the cheapest and most eective way 5
Helping households 6
... through tax reorm and increases in payments 7
Jobs and competitiveness 8
...in a clean energy uture 9
Investing in renewable energy and clean technologies 10
...to transorm our energy sector 11
Moving towards a clean energy uture 12
Cutting pollution in our transport sector 13
Creating opportunities in the land sector 14
...to improve productivity, sustainability and resilience 15
Encouraging energy eciency 16
...means saving money and reducing pollution 17
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Australias carbonpollution
Australia generates more
pollution per person than any
developed country, including
the United States. We produce
signicantly more pollution
per person than India and China.
Australias carbon pollution
is high because our electricityis mainly generated by burning
coal. Transport, mining, industry,
arming and deorestation
also contribute.
Our carbon pollution is continuing
to grow at a rapid rate. Without
action, it is expected to continue
to grow by almost 2 per cent ayear to 2020.
Reducing our carbon pollution
means we have to produce
and use energy in a cleaner,
smarter way.
Our climate is changing
The CSIRO, the Bureau o Meteorology, and Academies o Science rom around the
world have all advised that the world is warming and high levels o carbon pollution
risk environmental and economic damage.
In Australia and across the globe, 2001 to 2010 was the warmest decade on record.Each decade in Australia since the 1940s has been warmer than the last.
Climate change risks damaging our environment and wayo lie
Australia aces signicant environmental and economic costs in a warmer, more
unstable climate. Climate scientists advise that extreme weather events, such as
droughts, heatwaves and bushres, are likely to become more requent and severe.
This threatens our homes, businesses and communities, and vital industries such
as agriculture.
Scientists agree that the worst e ects o climate change can largely be avoided i we
reduce carbon pollution to an acceptable level.
The world is moving to a clean energy uture
Countries around the world are already taking action on climate change. 89 countries
representing 80 per cent o global emissions and 90 per cent o the worlds
economy have already pledged to take action on climate change.
Globally, more money is now invested in new renewable power than in conventional
high-pollution energy generation. China is now the worlds largest manuacturer o
both solar panels and wind turbines.
Acting now is cheaper than acting later
Australia has an opportunity to move to a clean energy uture and cut pollution beore
the task becomes more dicult and costly.
Australia needs to cut
pollution
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A better Australia orour children
The Governments Plan or a
clean energy uture will cut
pollution and drive investment in
new clean energy sources, such
as solar, gas and wind.
By acting now, Australians
can look orward to long term
prosperity, while protecting ourenvironment or ourselves and or
uture generations.
The Australian Government is building a cleanenergy uture
The Government has a comprehensive plan to move to a clean energy uture.
This includes:
introducing a carbon price promoting innovation and investment in renewable energy
encouraging energy eciency
creating opportunities in the land sector to cut pollution.
The Governments plan to move to a clean energy uture will:
dramatically cut pollution
our clean energy plan will cut pollution by at least 5 per cent compared with
2000 levels by 2020, which will require cutting net expected pollution by at
least 23 per cent in 2020
this is equivalent to taking over 45 million cars o the road by 2020
by 2050 we are committing to cut pollution to 80 per cent below 2000 levels
unleash innovation and investment worth billions o dollars in renewable energy
large scale renewable electr icity generation, excluding hydro, is projected to be
18 times its current size by 2050. Total renewable generation (including hydro)
will comprise around 40 per cent o electr icity generation in 2050
transorm our energy sec tor away rom high polluting sources, like brown coal
the Government will negotiate to close down around 2000 megawatts o
high-polluting coal-red power generation, creating space or new cleanenergy supplies
store millions o tonnes o carbon in the land through better land and
waste management
between now and 2050, around 460 million tonnes o carbon pollution will
be reduced or stored instead o entering our atmosphere under the Carbon
Farming Initiative.
... and move to a clean
energy uture
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A carbon price meansa strong and growing
economy
The economy will continue to
grow as Australia embraces a
clean energy uture.
Treasury modelling estimates that
under a carbon price average
incomes grow strongly. Average
incomes are expected to increaseby about 16 per cent rom current
levels by 2020, an increase o
around $9000 in todays dollars.
By 2050, the increase is expected
to be more than $30,000.
National employment is projected
to increase by 1.6 million jobs
by 2020.
An environmental problem with an economic solution
Putting a price on carbon is the most environmentally eective and cheapest way to
cut pollution.
This is a act that is well recognised by economists rom around the world, and
respected institutions such as the OECD and the Productivity Commission.
Currently, releasing carbon pollution is ree despite the act that it is harming our
environment.
A carbon price changes this. It puts a price on the carbon pollution that Australias
largest polluters produce. This creates a powerul incentive or all businesses to
cut their pollution, by investing in clean technology or nding more ecient ways
o operating.
It encourages businesses across all industries to nd the cheapest and most eective
way o reducing carbon pollution, rather than relying on more costly approaches such
as government regulation and direct action.
Breaking the link between emissions and economic growth
0
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2010 2020 2030 2040 2050
2010 $ '000 2010 $ '000
0
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1,000
1,200
0
200
400
600
800
1,000
1,200
2010 2020 2030 2040 2050
Mt CO2-e Mt CO
2-e
GNI per person Emissions
Without carbon pricing
With carbon pricing domestic abatement only
With carbon pricing including abatement sourced overseas as well
A carbon price will cut
pollution
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Key eatures o thecarbon price Around 60 per cent o Australias
carbon pollution will be covered by
the carbon price, including pollution
rom electricity generation,
stationary energy, some business
transport, waste, industrial
processes, and ugitive emissions.
A carbon price will not apply to
agricultural emissions or emissions
rom light on-road vehicles.
Households, smaller businesses
and armers will have no direct
obligations under the carbon price.
The carbon price will be xed or
the rst three years, starting at $23.
Ater that it will be determined by
the market.
For the rst three years o the
fexible price period, a price ceiling
and a price foor will apply.
Scope or linking to international
carbon markets and land
abatement programs will help
ensure we are nding the lowest
cost way to cut pollution.
A carbon price will kick start our clean energy uture
The Government is introducing a carbon price, which will commence on 1 July 2012.
For the rst three years the carbon price will be xed like a tax, beore moving to an
emissions trading scheme in 2015.
A carbon price is not a tax on households around 500 o the biggest polluters
in Australia will be required to pay or their pollution under the carbon pricing
mechanism.
Liable businesses will need to buy and surrender to the Government a permit or every
tonne o pollution they produce.
In the xed price stage, that runs rom 1 July 2012 to 30 June 2015, the carbon
price will start at $23 per tonne and rise by 2.5 per cent a year in real terms.
From 1 July 2015 onwards, the price will be set by the market and the number o
permits issued by the Government each year will be capped.
I businesses can lower their pollution, the price they pay will be less. This is how the
carbon price drives innovation and energy eciency.
All revenue rom the carbon price will be used by the Government to:
assist households with price impacts they ace by cutting taxes and
increasing payments
support jobs and competitiveness
build our new clean energy uture.
A new Climate Change AuthorityThe Government will create an independent body, the Climate Change Authority,
which will track Australias pollution levels and provide independent advice to the
Government on the perormance o the carbon price and other initiatives.
... in the cheapest and
most eective way
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Over 4 millionhouseholds get
assistance worth120 per cent o theirexpected averageprice impact
A typical couple with no children,
with one person earning just under
$60,000 and their partner earning
around $25,000 will get assistance
that is $288 per year more than
their expected average price
impact.
A sel-unded retiree couple with
a single taxable private income
o $50,000 will get assistance
that provides $524 per year more
than their expected average
price impact.
A low income single person
earning $30,000 will receive
$94 per year more than their
expected average price impact.
A couple, both earning
$35,000, with two children, will
get $247 per year more than theirexpected average price impact.
The Government will ensure that those Australians that need help the most,
particularly pensioners and low and middle income households, will get assistance or
the cost o living impact o the carbon price.
On average, households will see cost increases o $9.90 per week, while the average
assistance will be $10.10 per week.
Over 4 million households will be better o compared totheir average price impact
This means they will receive assistance that provides a bu er o at least 20 per cent
over and above their average price impact.
Almost 6 million households will be assisted to meet theiraverage price impact
This means they will receive assistance that covers at least the average price impact o
the carbon price on their cost o living.
Around 8 million households will get some assistance
This means they will receive some assistance through payment increases and/or
tax cuts.
Households that improve their energy eciency can help the environment and save
money. Because households that do use less energy will still get to keep all o their tax
cuts and payment increases, the carbon price will still provide them with a nancial
incentive to do their bit or the environment.
Helping households
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Price impacts ointroducing a carbon
price
The impact o the carbon price
will be modest compared to
other price increases.
The carbon price will increase
prices by 0.7 per cent over
2012-13, as measured by the
consumer price index (CPI).
This is much smaller than the:
2.5 per cent increase
rom the GST and related
tax changes
2.9 per cent average annual
infation between 2001-02
and 2009-10.
More than hal o the revenue raised rom polluters will goto households to help meet price impacts and help them dotheir bit or climate change.
There are two ways that households will receive assistance:
increases in pensions, allowances and amily payments that they may receive
income tax cuts on top o these increases.
The assistance will mean:
Pensioners and sel-unded retirees will get up to $338 extra per year i they are
single and up to $510 per year or couples, combined
Families with two children will get up to $220 in extra Family Tax Benet Part A,
and other amilies will get up to $110 per child
Families will get up to an extra $69 in Family Tax Benet Par t B
Allowance recipients will get up to $218 extra per year or singles, $234 per yearor single parents and $390 per year or couples, combined
On top o this, taxpayers with annual income o under $80,000 will all get a tax
cut, with most receiving at least $300 per year.
On average, households will see cost increases of $9.90 per week, but receive
assistance of $10.10 per week.
Price impact from the introduction of a carbon price compared to history
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Average annual CPI growth
2001-02 to 2009-10
CPI impact of the GST
and related tax changes(2000-01)
Expected CPI impact of the
carbon price(2012-13)
Per centPer cent
... through tax reorm and
increases in payments
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Jobs in a Clean EnergyFuture
Moving to a clean energy
uture will provide new
economic opportunities or
Australian workers.
Opportunities will open up in
existing businesses as they move
to operating in a clean energy
uture. Many businesses will investin new technology to generate
less pollution and become
more ecient.
Jobs will also be created in new
clean industries such as renewable
energy generation, carbon arming
and sustainable design, to name
just a ew.
Strong jobs growth as pollution is cut
The Government has careully designed a number o measures to support jobs and
competitiveness as we move to a clean energy uture.
All o these measures have been designed to ensure that Australia continues to
experience strong jobs growth while at the same time providing incentives to cutpollution in our economy.
The Jobs and Competitiveness Program
The Jobs and Competitiveness Program will support local jobs and production, and
encourage industry to invest in cleaner technologies.
The ongoing program will provide $9.2 billion o assistance over the rst three
years o the carbon pricing mechanism, targeted at companies that produce a lot o
carbon pollution but are constrained in their capacity to pass through costs in global
markets. Assistance will be provided to around 40-50 o these emissions-intensive
trade-exposed industrial activities, such as steel, aluminium, cement and zinc
manuacturing. Businesses producing over 80 per cent o the manuacturing sectors
emissions are expected to be eligible or assistance under this program.
The most emissions-intensive trade-exposed activities will receive assistance to
cover 94.5 per cent o industry average carbon costs in the rst year o the carbon
price, with less emissions-intensive trade-exposed activities to receive assistance to
cover 66 per cent o industry average carbon costs. Assistance will be reduced by
1.3 per cent each year to encourage industry to cut pollution.
Regular reviews will ensure that the Jobs and Competitiveness Program remains in
step with international action on climate change and continues to support jobs andcompetitiveness.
Additional measures or manuacturing
The Government is delivering a $1.2 billion Clean Technology Program, over and above
the Jobs and Competitiveness Program, to help directly improve energy eciency in
manuacturing industries and support research and development in low pollution
technologies.
Jobs and
competitiveness
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Small business
The carbon pricing mechanismwill impose no red tape on
small businesses they will
have no reporting or compliance
obligations. The Government
is delivering new measures to
help small business improve
their energy eciency and lower
their costs.
The instant asset write-o or
small businesses with turnover o
less than $2 million per year will
be increased to $6,500.
The $40 million Energy Eciency
Inormation Grants program
will empower small to medium
businesses and community
organisations to improve their
energy eciency through
targeted, industry specic advice
on actions to reduce energy use.
Food processing, metal oundries, steel manuacturing andcoal mining
$200 million o the Clean Technology Program supports jobs in ood processing,
metal orging and oundry industries. This program recognises the energy costs these
businesses ace and targets assistance at important energy eciency opportunities.
The $300 million Steel Transformation Plan will support and assist the industry
transition to a clean energy uture, and recognises the pressures currently acing this
important industry.
The $1.3 billion Coal Sector Jobs Package will provide transitional assistance to help
the coal industry to implement carbon abatement technologies or the mines that
produce the most carbon pollution. The amount o carbon pollution produced by coal
mines varies greatly, so the airest way to deliver assistance is to target assistance at
those mines that are most impacted by the introduction o the carbon price.
...in a clean energy
uture
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Record Support orRenewables
Together with the carbon price
and Renewable Energy Target, the
Clean Energy Finance Corporation
and the Australian Renewable
Energy Agency will drive the
biggest expansion in the clean
energy sector in Australias
history, building a critical mass
o renewable energy, energyeciency and low-emissions
generation projects.
Over $13 billion will be invested in clean energy projects
The carbon price will provide a very signicant incentive or the development o clean
technologies, especially renewable energy. The Government will complement this
market signal with targeted investments to bring orward new technologies at as low
a cost as possible.
A Clean Energy Finance Corporation
A $10 billion new commercially oriented Clean Energy Finance Corporation (CEFC) will
be established to drive innovation through commercial investments in clean energy
through loans, loan guarantees and equity investments.
The CEFC will leverage private sector nancing or renewable energy and clean
technology projects, investments critical to the transormation o the Australian
economy. It will identiy projects and remove barriers that would otherwise prevent
the nancing o large scale renewable energy projects.
Investments will ocus on renewable energy, energy eciency and low emissions
technologies and the transormation o existing manuacturing businesses to re-ocus
on meeting demand or inputs or these sectors.
The CEFC will be run by an independent Board made up o experts in banking,
investment management and clean energy and low emissions technologies.
The Australian Renewable Energy Agency
A new, independent statutory body, the Australian Renewable Energy Agency
(ARENA), will be created to coordinate around $3.2 billion in existing grant unding
programs supporting research, development and demonstration o new renewableenergy technologies.
The establishment o ARENA as an independent statutory body presents a unique
opportunity to adopt a holistic approach to nancing the research, development,
commercialisation and demonstration o renewable energy technologies.
Investing in renewable
energy and cleantechnologies
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Growing our SolarPower Capacity
The Government is bringing
orward a new era in large-scale
solar generation. Grid-connected
solar power stations will be
built and will supply up to
1000 megawatts o clean
energy generation to Australias
electricity market.
The Government has recently
announced that $464 million has
been awarded to Solar Dawn, a
thermal solar power station to be
built in Chinchilla, Queensland
and $307 million has been
awarded to Photovoltaic Moree
Solar Farm in New South Wales.
These two power stations areexpected to be in operation
rom 2015, and will be two o
the largest solar installations in
the world, supplying enough
electricity or 115,000 Australian
homes per year.
...to transorm our
energy sector
Australias Renewable Energy Target
The Governments Renewable Energy Target will ensure that 20 per cent o Australias
electricity comes rom renewable sources by 2020.
The Renewable Energy Target (RET) is accelerating the widespread commercial
availability o renewable energy technologies, and helping to smooth the transitionto a clean energy economy. The Governments plan is expected to drive around
$20 billion o investment in renewable energy by 2020, in todays dollars. The RET is
supporting both large scale renewable energy projects, such as wind arms and solar
plants, and small scale installations or households, small business and community
groups.
The RET will mean that by the early 2020s the amount o electricity coming rom
sources like solar, wind and geothermal be will almost as large as all o Australias
current household electricity use.
Working with industry to power Australias energy utureThe Government will provide grants o up to $200 million over ve years through
the Clean Technology Innovation Program to support business investment in
renewable energy, low emissions technology and energy eciency. This could support
manuacturers to develop new clean technology products.
This unding will be in addition to the broader research and development tax credit.
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Transorming the waywe generate power
Coal-red electricity generation
accounts or 75 per cent o
Australias electricity, and
a substantial proportion o
Australias carbon pollution. In
act, Australia has the highest
polluting electricity sector o all
OECD countries due to our reliance
on coal, and our pollution is set toincrease signicantly with rising
demand or electricity.
Australias electricity generation
technologies will undergo a
comprehensive transormation as a
result o the carbon price. This will
drive a shit rom coal to gas and
renewable generation.
We will saeguard our energy security while moving toclean energy
The Government will implement measures to underpin a successul energy market
transition and maintain secure energy supplies.
An Energy Security Fund to promote security andtransormation
An Energy Security Fund will be established to ensure there is a smooth transition in
our energy sector as we move to a clean energy uture.
The Government will seek to negotiate the closure o around 2000 megawatts o
highly polluting generation capacity by 2020. Closing down some o our high polluting
coal-red capacity makes room or investment in low pollution plant, and kick starts
the transormation o our energy sector in a responsible way.
Electricity generators that are strongly aected by a carbon price will be supportedwith cash assistance and ree permits in return or adopting clean energy investment
plans showing how they will reduce their pollution.
In addition to the Energy Security Fund, the Government will also provide the ollowing
measures to saeguard energy security and encourage transormation o the sector:
Short-term loans to generators to help nance purchases o carbon permits.
An Energy Security Council will advise the Government on emerging energy
supply risks.
The Government will work with the Australian Energy Market Operator to ensure
its transmission planning role prepares us or the clean energy transormation andgreater integration o renewable energy to the electricity grid.
Moving towards a clean
energy uture
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Supporting new uelefcient vehicles
A new wave o vehicles will soon
become available that are cleaner
and cheaper to run. Under new
standards being introduced rom
2015, all car manuacturers will
be required to reduce emissions
levels rom vehicles they sell by
introducing better technologies.
The Government is working with
the automotive industry to set
the emissions levels that will
apply under the new standards.
On top o reducing carbon
pollution rom transport, this
initiative will deliver real cost
savings or motorists through
improved uel eciency innew vehicles.
The Government will reduce transport pollution at lowestcost to households
The Governments Clean Energy Future Plan will deliver reductions in pollution rom
the transport sector while also keeping the cost to households down.
Households will pay no extra at the bowser due to thecarbon price
The Government understands that uel costs are a signicant share o many household
budgets and that households and most small businesses already pay excise on the uel
they use.
For these reasons, the Government has decided that household and small business use
o light on-road vehicles will not ace a carbon price on their uel.
Encouraging lower pollution in business transport
Unlike households, many businesses are eligible or a uel tax credit to o set their
uel excise.
From 2012-13, some businesses will ace an eective carbon price on their use o
transport uels through reduced uel tax credits. Combined with new emissions
standards or vehicles, this will help to reduce carbon pollution in the transport sector.
Businesses in the agriculture, sheries and orestry industries will be exempt rom the
reduction in uel tax credits and will thereore be shielded rom the eective carbon
price on their transport uel costs. This will help keep ood costs down or households.
As aviation uels do not receive uel tax credits, domestic aviation uel excise will beincreased by an amount equivalent to the carbon price.
It is the Governments intention to apply the uel tax credit arrangements to the heavy
on-road vehicle industry rom 2014-15.
Cutting pollution in our
transport sector
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A signifcant boost orbiodiversity
The new Biodiversity Fund
will support projects that
deliver biodiversity and related
environmental benets.
Australia has highly diverse
native ecosystems. Biodiversity
plays a crucial role in maintaining
the productive capacity o ourlandscape. Restoring native
vegetation and soil carbon can
build and protect our biodiversity.
Over the period to 2014-15,
$1 billion will be provided
through the Biodiversity Fund
and other land-based measures
to landholders to establishnew native vegetation and
habitats in targeted areas o
high conservation value and to
maintain or enhance existing
native vegetation or its carbon
and biodiversity benets.
These measures will help protect
Australias ecosystems, building
resilience to the impacts o
climate change.
Carbon Farming Initiative: bringing new opportunities tothe regions
The Governments Carbon Farming Initiative (CFI) is a key program that will provide
economic rewards or armers and landholders who take steps to reduce carbon
pollution. It will do this by creating credits or each tonne o carbon pollution which
can be stored or reduced on the land.
The CFI will create a new income stream or armers, new jobs or rural and regional
Australia and provide strong incentives to identiy and implement low-cost methods o
pollution reduction.
Driving participation in the Carbon Farming Initiative
Through the new Carbon Farming Futures program, unding will be provided to the
land sector or research, measurement and to take action on the ground including
support or new conservation tillage equipment. Farmers will be provided with the
tools to understand how to generate carbon credits and benet rom carbon arming.
Building job skills or the uture
The CFI will increase the demand or service providers such as carbon brokers,
auditors, natural resource management bodies and authorities, arm ex tension
ocers and advisors, and agronomists. The Carbon Farming Skills program will
ensure that there are people in regional Australia with the necessary skills to support
implementation o the CFI. It will urther drive the development o the carbon
jobs sector by setting up a training and accreditation system, boosting rural and
regional employment.
Guaranteed purchase o carbon credits
The Government will purchase carbon credits through the CFI non-Kyoto Carbon Fund.
This program will create incentives to undertake land-based action such as the storing
o soil carbon, revegetation and orest conservation.
Creating opportunities in
the land sector
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Carbon Farmingwill beneft arm
productivity and theenvironment
Carbon arming projects can
increase resilience to the impacts
o climate change, protect our
natural environment, and increase
arm protability and ood
production. Increasing carbon
storage in agricultural soils improvessoil health and productivity.
Revegetation will help restore
degraded landscapes, provide
biodiversity habitats and corridors,
and help to address salinity, protect
livestock and reduce erosion.
For example, armer Elsie could take
up a new tax oset to buy no-till
arming equipment to improve
her soil productivity and water
retention. She could also plant
mixed species on an area o her
property to connect an important
wildlie corridor. Elise would have
income rom government purchased
soil carbon credits, biodiversity
unding and tree planting credits
which could be sold to pollutersunder the carbon price.
...to improve productivity,
sustainability andresilience
Regional planning or climate change
National Resource Management (NRM) organisations will receive additional unding
to incorporate the impact o climate change in their regional NRM plans and detail
scenarios o climate change impacts on a regional level. The plans will provide a guide
or nding the most appropriate locations or new projects to store carbon as part o
the CFI.
Support or Indigenous participation
The Indigenous Carbon Farming Fund will help Indigenous Australians to take ull
advantage o the CFI. This will make it easier or indigenous groups to participate
in the CFI by addressing barriers associated with communal and non-exclusive
land tenure.
Governance
The Land Sector Carbon and Biodiversity Advisory Board will be created to provideadvice to Government on administering these measures.
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How can I save moneyand reduce my own
pollution?
Energy eciency improvements
around the home require the right
know-how. The Governments
LivingGreener website
(www.livinggreener.gov.au)
provides inormation on living
sustainably and will connect to all
Commonwealth, state and territoryenergy eciency and climate
change programs.
The website will include
inormation on how households
can improve energy eciency
to save dollars and cut
carbon pollution.
A household inormation and
telephone advice line will
assist those who cant access
inormation online. Inormation
will also be provided via social
media channels.
Energy efciency involves conserving energy use, avoidingwaste and working smarter it makes sense
Australia can reduce carbon pollution by improving energy eciency across
Government, business and households. Small actions can mean a big dierence
overall, and simple improvements to the way we do things also enable us to save
money. Thats why energy eciency is a key part o the Governments plan or a clean
energy uture.
The Government will be urther developing a national energy savings scheme that
could reward energy eciency actions across households and businesses.
Helping households save money on their energy bills
The Government will be supporting households to use energy more wisely by
providing advice, including through the Living Greener website, which provides
inormation on how households can save money by improving their energy eciency.
Low Carbon Communities is being expanded to $330 million to und projects to help
low income households, local governments and community organisations save energy.
The Remote Indigenous Energy Program will provide around 55 remote indigenous
communities with unding to install renewable energy systems, reducing reliance on
diesel or electricity generation.
Helping businesses become more energy efcient
The carbon price will provide strong incentives or businesses to improve their energy
eciency. The Government will help businesses in this process through a range o
measures, including the $1.2 billion Clean Technology Program.
In addition, the Government is establishing a program or industry associations and
non-government organisations to deliver tailored inormation to small businesses and
community organisations on ways to manage carbon price impacts.
Encouraging energy
efciency
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Every little bit helps
The average Australianhousehold produces around
14 tonnes o carbon pollution
each year. Small changes at
home can reduce energy use and
provide signicant savings. For
example, it is estimated that or a
amily o our in just one year:
Washing clothes in cold rather
than hot water can savearound $90
A solar hot water system
(replacing an electric system)
could save over $400
Getting rid o the second
ridge could save around $180
Using a clothesline instead o
an electric dryer once a week
could save around $55
Switching o appliances at
the power point could save up
to $100
We are already making a dierence through a range osuccessul Government initiatives
Energy eciency labelling on appliances and Minimum Energy Perormance Standards
help consumers make inormed energy choices and remove the most inecient
appliances rom the market.
Assistance is being provided to support installation o solar hot water systems and
small renewable energy generation units, such as roo top solar panels, and small scale
wind and hydro electricity systems, through the Renewable Energy Bonus Scheme
Solar Hot Water Rebate (REBS) and Solar Credits.
Incandescent light bulbs and electric hot water systems are being phased out.
Energy eciency in buildings is being improved by setting minimum standards or new
buildings and driving energy eciency targets in Australian Government operations.
Sources of household emissions in Australia:
0
5
10
15
20
25
30
35
40
45
CookingLightingWasteAppliancesTransportWater
heatingSpaceheating
Spacecooling
Standbypower
Percentageofaveragehouseholdemissions
private vehicles
domestic flights
public transport
...means saving money
and reducing pollution
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Key components o the Governments
plan or a Clean Energy Future
Household assistance
Income tax cuts, increased family payments and pension rises 3 $14.9 billion over the forward estimates1
Support or jobs
Jobs and Competitiveness Program $9.2 billion over the forward estimates1
Clean Technology Program $1.2 billion over 7 years from 2011-12Coal Sector Jobs Package2 $1.3 billion over 6 years from 2011-12
Support or energy markets
Energy Security Fund $5.5 billion over 6 years from 2011-12
Clean energy
Clean Energy Finance Corporation4 $10.0 billion over 5 years from 2013-14
Australian Renewable Energy Agency5 $3.2 billion over 9 years from 2011-12
Energy efciency
Low Carbon Communities6 $330 million over 6 years f rom 2010-11
Small business support $240 million over the forward estimates1
Land sector
Biodiversity Fund and other land-based measures $1.0 billion over the forward estimates1
1. The orward estimates are the period rom 2011-12 to 2014-15.
2. Government-only measure.
3. Also includes residential aged care assistance and the Essential Medical Equipment Payment.
4. The Clean Energy Finance Corporation will make investments by purchasing nancial assets. The headline investments o $2 billion per year do not directly impact on theGovernments underlying cash balance.
5. Includes existing unding as well as unds held in the Australian Centre or Renewable Energy special account.
6. Includes existing unding o $80 million over our years rom 2010-11.
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