Federal Government Clean Energy Package:
The Clean Energy Package was negotiated with the Federal Government by the Greens with Senator Christine Milne as the chief negotiator. She has been on the government climate change panels since 1990 and has held the Greens Climate Change portfolio in the Senate since 2004.
Under the current government climate change policies of accepting 550 parts per million of carbon dioxide there will be a rise in temperature of 3-5 degrees which is catastrophic to all species on the planet.
The most vulnerable people will be the poor and marginalised, who will be forced to cope with increased temperatures and the impact on crops and biodiversity; increases in extreme weather events; loss of homelands with rising sea levels and loss of drinking water with the disappearance of glaciers. The Clean Energy package has the potential to reduceAustralia’s greenhouse emissions, protect biodiversity, provide an income to farmers and provide employment for Indigenous people in the outback. The package is accompanied by compensation for rising prices, for which most Australians and small businesses will be eligible.
The Bali climate change response plan was designed to reduce emissions by 20-40% by 2020, but many nations includingAustraliareneged on this on returning home. The Rudd Carbon Trading Scheme did not include renewable energy targets and only aimed at a 5% reduction of CO2 emissions by 2020. It also capped action on reducing emissions at 25% rather than what is needed.
In 2010 a multi-party parliamentary committee was set up for those members of parliament who accepted that climate change was anthropogenic in origin. No climate deniers or sceptics were welcome as action was required. The committee included experts such as Ross Garnaut, Rod Sims an economist, Patricia Faulkner a social justice advocate and experts in renewable energy and biodiversity.
The package can be improved and an expert panel has been set up to drive this. Senator Milne argued against any compensation to the coal industry, but was unsuccessful. However she was able to ensure a review in 2015 of the current compensation package to the coal industry and as this is reduced the funds will go to renewable energy.
The proposed Emissions Trading Scheme for 2015 will be based on a price on carbon which will be fixed for 3 years and then become flexible and responsive to world trading. The fixed price will start at $23 per tonne, though this needs to be in line with European pricing. Emissions trading inEuropehas collapsed due to the financial chaos and it is hoped it will be revived once the financial problems are sorted out.Chinais having a trial of a pilot trading scheme in 4 regions and the whole country by 2015. Senator Milne believes that Opposition Leader, Tony Abbot will not be able to dismantle the scheme because of the integration with world trading systems.
The package includes compensation for rising energy costs, encouragement of renewable energy development, financial incentives for farmers and graziers to use their land for carbon sequestration, and funds to improve the chances ofAustralia’s flora and fauna biodiversity surviving climate change.
Compensation
The package recognises that coal, aluminium and zinc industries in paying for carbon emissions will pass these costs on to the consumer and this is the reason for the compensation to households.
These include:-
- A tax free threshold of $18,000 pa
- A low-carbon communities initiative of $250 million to improve efficiencies in homes and buildings. There will be no increased rents in social housing.
- Additional funding for people needing more energy for medical reasons eg dialysis.
- $750 million for small business energy efficiencies and they can write off costs up to $6,500.00
Renewable energy
$23 per tonne is not enough to drive renewable energy and will only result in a transition to gas. There will be no new coal fired power stations. There will be $10 billion for clean energy consisting on $5 billion to Australian renewable energy agency and $5 billion to low emission technology implementation including research and development and investment. These funds cannot be raided for other purposes. There is an issue with the electricity grid management as the energy companies are at present refusing to cooperate. The community based Hepburn wind farm has been told by the energy company that they will only take 50% of the power generated not the 100% expected and negotiated by the community when they set about building their own wind generator.
Land Sector
If CO2 emissions exceed 450 ppm there will be massive loss of biodiversity and it is the tipping point for ocean acidification which will destroy the food chain. The CO2 levels are currently at 385ppm. Carbon farming will enable farmers to make money by increasing carbon uptake in the landscape by buying carbon credits and not just tree planting. The Land Sector includes:-
- Savannahburning regimes to restore original landscapes and provide employment, particularly to indigenous people.
- Collection of methane from landfill to generate electricity.
- Improving connectivity in the landscape for Local Governments through acquisition and nature refuge schemes on private land.
Biodiversity fund
$1.6 billion to enhance carbon in the landscape, for example on-ground restoration of wetlands, replanting mangroves, improvements in connectivity, regeneration of riparian vegetation. Of this $37 million must be allocated by June 2012. It can include buying land and restoring it to improve biodiversity and increase carbon carrying capacity. Community organizations are encouraged to develop potential projects and be ready to apply for the funds. The bill is due in the Senate in November and will set up an Interim Board to oversee the package. The package will be advertised in January and then money allocated by June 2012. These funds are over and above existing funding for Caring for Country projects.
The package has many good features and if carefully managed will setAustraliaon the right path to reducing our greenhouse gas emissions and perhaps encourage other countries to engage in similar activities.
