Reducing Australia's emissions
The Government is strongly committed to reducing Australia's carbon pollution. The Carbon Pollution Reduction Scheme (CPRS) is the main driver to achieve this important environmental goal. When it commences on 1 July 2011, it will guarantee that Australia meets its National Emissions Target of reducing emissions by as much as 25 per cent below 2000 levels by 2020.
For the first time, the Government is putting a price on carbon. The sale and allocation of carbon pollution permits valued at around $4.5 billion in 2011-12 and $13 billion in 2012-2013 will directly stimulate investment and jobs in low emissions industries. The Government have committed that every cent will be used to transition Australian households and businesses to a low pollution future.
If Australia takes no action by 2020 our carbon pollution could be 20 per cent higher than in 2000, not 5 to 25 per cent lower as the Government intends. The Government’s targets is equivalent to a reduction in every Australian’s carbon footprint of nearly one third to one half. To help achieve our ambitious target of lowering these emissions to up to 25 per cent below 2000 levels, the Australian Government is developing and putting in place the policies we need: to support Australian businesses and households reduce their carbon pollution, to create the new green-collar jobs of the future and to transform our economy.
Investing in clean energy
The Australian Government is investing more than $5 billion in developing and commercialising clean energy technologies because we know these technologies will be crucial for Australia’s efforts to reduce its carbon pollution emissions. These technologies will also be important to the rest of the world as they also need to reduce their carbon pollution.
Australia has set a Renewable Energy Target of 20 per cent by 2020. This means that by 2020, one-fifth of Australia’s electricity will come from renewable sources such as wind, solar and geothermal power.
Through our Clean Energy Initiative we are investing $4.5 billion to help Australia use our abundance of natural resources to create a cleaner energy supply and to reduce our carbon pollution emissions. The Initiative will create more jobs in clean industries by giving investors the confidence to back low emissions technologies such as solar power, energy from ‘hot rocks’ in the earth’s crust, and carbon capture and storage.
The Government is also supporting Australia’s car manufacturing industry through the Green Car Innovation Fund. The $1.3 billion Fund will provide assistance over ten years to Australian companies to enhance the research, development and commercialisation of Australian technologies that significantly reduce the carbon pollution emissions of passenger motor vehicles. It will also help create green collar jobs in the car industry.
Supporting business to take action
The Australian Government is helping Australian businesses take action to reduce their emissions. For example, through the Clean Business Australia program the Government is helping to increase the energy efficiency of Australia’s buildings and the manufacturing process of our industries, while also helping businesses commercialise products and services that address climate change.
To help businesses pay for energy efficiency improvements that will save time and money the Government is establishing the Australian Carbon Trust. The trust will bring together public and private funding, innovative business approaches and technical knowledge to help business and community groups invest in energy efficiency and reduce emissions.
The Australian Government has also created the Climate Change Action Fund to provide assistance to businesses, community sector organisations, workers, regions and communities to help them as Australia moves to a low-carbon economy. The fund will help businesses and community organisations identify and adopt energy efficiency opportunities, to reduce both energy bills and their emissions.
The Government also recognises the importance of training Australians so they are ready to join the new clean industries and take up the new green-collar jobs of the future. Skills for the Carbon Challenge will help develop and trial training resources and qualifications that teach green skills and sustainability principles across a number of industries.
Supporting households to take action
Australian households are directly responsible for about a fifth of Australia’s carbon pollution. Households and individuals have an important role to play in combating climate change. The Government is investing in helping Australians change the way we act – in our homes and offices – to help reduce carbon pollution.
For example, the Government has supported the installation of ceiling insulation in over 1.1 million Australian homes under the now discontinued Energy Efficient Homes Package. This Package is being replaced by the household Renewable Energy Bonus Scheme. The new scheme will offer eligible Australian households three ways to lower energy bills and reduce carbon pollution:
- A $1,000 rebate for ceiling insulation (available by 1 June 2010); or
- A $1,000 rebate for a solar hot water system (available immediately); or
- A $600 rebate for a heat pump system (available immediately).
Details on the new Renewable Energy Bonus Scheme will be available shortly at.
The Green Loans Program is also helping households to ‘go green’ by providing home sustainability assessments that will help thousands of Australians to improve the energy and water efficiency of their homes, and reduce greenhouse gas emissions.
Through the Australian Carbon Trust, the Government will provide information and tools for households and businesses to participate in Australia’s climate change response. This will help Australian households calculate their energy use and make savings through the Energy Efficiency Savings Pledge Fund. Households will have the option of using some of the money they save to buy and retire carbon pollution permits, which means they will be directly contributing to reducing Australia’s greenhouse emissions.
The National Strategy on Energy Efficiency will also help Australians choose energy efficient appliances, homes and buildings, and make residential and commercial buildings more energy efficient.