Ministers

Minister for Climate Change and Water

 

Senator the Hon. Penny Wong
Minister for Climate Change and Water

Government response to recommendations of the strategic review of Australian Government climate change programs

12 May 2009

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The Australian Government established the Strategic Review of Australian Government Climate Change Programs (‘the Wilkins Review’) in February 2008 to determine whether existing climate change programs are efficient, effective and complementary to the Carbon Pollution Reduction Scheme (CPRS) - so that climate change can be addressed at least cost to the economy. 

The Australian Government’s response to the policy recommendations of the Wilkins Review is provided in Attachment 1.

The Wilkins Review considered 62 climate change programs and made recommendations with respect to whether or not they were complementary, transitional or non-complementary to the CPRS.

A summary of the Australian Government’s response to the climate change program-specific recommendations of the Wilkins Review is available in Attachment 2.

The Australian Government has rationalised the delivery of some existing climate change programs in response to the Wilkins Review, to ensure that programs are more effective in combating climate change.

The list of programs should be read in conjunction with the Wilkins Review Final Report which can be found on the Department of Finance and Deregulation website: www.finance.gov.au

The list at Attachment 2 consists of 58 programs. While the Wilkins Review analysed 62 programs in all, four programs (Cooperative Research Centre for Coal in Sustainable Development, National Average Fuel Consumption Target, Alternative Fuels Conversion Program, and Renewable Energy Commercialisation Program) had already ceased by conclusion of the Review in July 2008.

Attachment 1 
Response to policy recommendations

Recommendations from Wilkins ReviewGovernment Response

Recommendation 1
The Government should adopt the ‘principles for complementary policies’ as its framework for deciding whether its policies (either existing or proposed in the future) will help or hinder the work of [the Carbon Pollution Reduction Scheme (CPRS)].

Principle 1: The Government should rely on the [CPRS] to achieve least cost abatement and only take action in addition to the scheme where there is a demonstrable and compelling case that the market is not working efficiently and that government action will not distort or undermine the scheme.

Principle 2: The Government’s key role in adaptation should be to facilitate informed decision making across the economy.

Principle 3: The Government should take into account the potential for its non-climate change policies to compromise or enhance the ability of the [CPRS] to achieve least cost abatement.

Principle 4: The Commonwealth should be primarily responsible for mitigation policy and all jurisdictions should contribute to a nationally coordinated approach to adaptation.

Principle 5: As in all areas of policy, climate change measures should conform to best practice policy design, including the need for an evidence-based assessment of options and rigorous evaluation.

The Australian Government recognises the need to establish principles for complementary measures to guide climate change policy making.

The Council of Australian Governments (COAG) Working Group on Climate Change and Water developed Principles of Complementarity to determine whether measures to reduce emissions complement the Carbon Pollution Reduction Scheme (CPRS).  These principles are consistent with those developed by the Wilkins Review and were endorsed by COAG on 29 November 2008.

The CPRS White Paper, released in December 2008, states that the COAG Complementarity Principles will be used to guide assessment of emission reduction measures.

Recommendation 2.1
The Government should use the 2009–10 Budget process (or earlier if inclined) to begin to rationalise and streamline its existing suite of climate change programs, including its recent government commitments, by adopting the Review’s findings and recommendations as outlined at Appendix 4 to the Report. 

These findings and actions can be summarised as requiring the Government to:

  • terminate or phase out programs assessed as not complementary to [the CPRS] (16 programs);
  • continue (including amend) transitional programs until [the CPRS] is fully functional (15 programs);
  • amend programs that could be redesigned to be complementary to [the CPRS] (22 programs); and
  • continue programs that are considered complementary to [the CPRS] (9 programs).

With the planned introduction of the CPRS, there is an opportunity to streamline and better target Government policies and measures.

The Government has considered the Wilkins Review recommendations on the 62 programs (of which 58 were active) assessed as a key input into a number of relevant policy review and development processes.

These program recommendations were considered as part of the 2009-10 Budget process and details can be found in the Climate Change Ministerial Budget Statement.  A summary of the Government’s decisions in this regard is provided in Attachment 2.

Recommendation 2.2
In rationalising and streamlining its existing suite of climate change programs in accordance with the Review’s findings and recommendations, the Government should also seek to:

  • consolidate its expenditure to focus on fewer, better targeted, programs; and 
  • ensure that all programs and sub-programs have clear and measureable performance management information and risk management strategies.

The Wilkins Review proposed eight overarching programs, including four ongoing and four transitional programs which are consistent with the Government’s three policy pillars.  The Government recognises the need for a more streamlined approach to climate change programs and the importance of program evaluation. 

Recommendation 2.3
The Government should commit to a further Review of its climate change programs in 2011 with its recommendations to be considered in the 2012–13 Budget process.

The Government supports ongoing review of climate change policies and measures to ensure they remain relevant and effective.  The CPRS White Paper, released in December 2008, states that the Complementarity Principles will be used to guide the assessment of emission reduction measures.  The timing of reviews may differ between programs based on the individual requirements of each.

Recommendation 3.1
The Commonwealth Government should seek the agreement of State and Territory governments to a National Climate Change Compact to clarify roles and responsibilities that would include:

  • a statement acknowledging the challenge that climate change represents for Australia and the world and the importance of a nationally coordinated approach;
  • agreement that the Commonwealth will be responsible for:
    • establishing and maintaining the CPRS and any associated schemes, including the national expanded Renewable Energy Target;
    • establishing any complementary mitigation measures and ensuring such measures conform, in general terms, with the principles for complementary policies; and
    • a single, national scheme for the reporting of emissions.
  • a commitment by States and Territories to withdraw from policies or programs with the potential to undermine the CPRS.
  • a renewed commitment by all jurisdictions to progress the Council of Australian Government (COAG) National Adaptation Framework and develop a national science agenda.
  • a national approach to energy efficiency and low emissions technology development.
  • a commitment to expedite progress on national reform priorities which are necessary to underpin the effectiveness of the CPRS, such as the reform of national energy, transport and water markets.

Cooperative action on climate change is essential between governments to ensure that Australia meets its emission reduction targets at least cost. 

The COAG Working Group on Climate Change and Water was established to ensure an effective national response to climate change. It has to date:

  • Embraced a national approach to addressing climate change through a national CPRS that incorporates State and Territory schemes to achieve least cost emissions reductions;
  • Endorsed a set of principles (COAG Complementarity Principles) and a process for jurisdictions to review and streamline existing climate change mitigation measures with the aim of achieving a coherent and streamlined set of climate change measures in 2009;
  • Agreed to a plan of actions to be undertaken by jurisdictions to streamline reporting of greenhouse and energy data into the National Greenhouse and Energy Reporting System;
  • Agreed to develop a national cooperative approach to long-term adaptation to climate change;
  • Agreed to an expanded national Renewable Energy Target;
  • Endorsed the Commonwealth’s Energy Efficient Homes program to modernise Australian homes, resulting, with the inclusion of the Commonwealth’s earlier commitment made under the Low Emissions Plan for Renters, in the installation of ceiling insulation in up to 2.9 million uninsulated Australian homes;
  • Agreed to a set of national principles to apply to new feed-in-tariffs schemes and to inform the reviews of existing schemes with the aim of promoting national consistency of schemes across Australia.

Agreement was also reached to examine and resolve to build on the Energy Efficient Homes program and further improve the energy efficiency of residential and commercial buildings across Australia.
COAG, through the Senior Officials Group on Energy Efficiency, is developing a National Strategy on Energy Efficiencythat is expected to be finalised mid-2009.

Recommendation 3.2
The Government should consider centralising responsibility for developing, coordinating and implementing its climate change policies and programs and advising the Government on the climate change implications of other policy decisions in one department – the Department of Climate Change.

The Department of Climate Change will continue as a coordinating and lead policy agency, with climate change programs and policy development delivered by appropriate line agencies.

Recommendation 3.3
The Departments of PrimeMinister and Cabinet and Climate Change should develop a mechanism for ensuring that Cabinet is informed of the potential for policy proposals to impact on the CPRS, and that any such impacts are sufficiently taken into account in the policy development and decision making process.

The Government is considering mechanisms to ensure that Cabinet is informed of the potential for policy proposals to impact on the CPRS.

Recommendation 3.4
The Department of Climate Change should develop a methodology for estimating the carbon price implicit in new climate change policy proposals, to inform consideration of their relative merits.

The Government supports the assessment of costs and benefits of new policy proposals, including the cost of abatement achieved. The Department of Climate Change is responsible for abatement estimates and is developing methods and guidelines for estimating abatement costs.

Recommendation 3.5
The Commonwealth should apply the Energy Efficiency Opportunities framework to its own operations, and encourage State and Territory governments to adopt a similar approach.

COAG, through the Senior Officials Group on Energy Efficiency, is developing a National Strategy on Energy Efficiency that is expected to be finalised mid-2009. The States also agreed with the Commonwealth on 5 February 2009 that a key part of the COAG National Strategy on Energy Efficiency be a commitment from Commonwealth and State governments to improve the energy efficiency of their own operations.

Recommendation 4.1
The Government should undertake a range of strategic actions to inform different sections of the public and the markets about climate change and the CPRS.  This would support:

  • managing expectations about the nature of the challenge which climate change represents for Australia, and about the impact of an CPRS on the economy and community;
  • build greater understanding of the roles and responsibilities of different levels of government;
  • explain what individuals can do to meet the challenge; and
  • ensure information is provided to CPRS participants and others on what to expect from it.

The Australian Government recognises the importance of community understanding of the CPRS and climate change more broadly.  The Government has undertaken a range of public consultation on the CPRS Green and White Papers.

The Government has established a $2.75 billion Climate Change Action Fund, which will commence in 2009-10.  A key element of this fund will be the provision of information to a range of business and community organisations on the operation of the CPRS and how they can manage the expected financial impacts.

Recommendation 4.2
The Government should ensure that existing consumer protection infrastructure is ready to manage any issues that may arise from the CPRS, such as false or misleading advertising or price gouging.

The existing powers of the Australian Competition and Consumer Commission (ACCC) under theTrade Practices Act 1974 (TPA) will assist in ensuring that increases in prices following the introduction of the CPRS can be examined and dealt with appropriately.

The ACCC has developed a guide, Carbon Claims and the Trade Practices Act, to inform businesses about their obligations under the TPA and to improve the accuracy of information provided to consumers about carbon-related claims.  The Government is also preparing an offsets and carbon neutrality standard which is expected to be in place by mid-2009.

Recommendation 4.3
The Government will continue to have a role in setting and disclosing performance standards in relation to:

  • buildings(outcome standards);
  • fuel and vehicle standards (minimum performance);
  • energy use in appliances and other products (minimum performance);
  • but, should only do so where a robust cost benefit analysis indicates that there is a net benefit to the economy from doing so. The presumption should be to adopt international standards unless there are compelling reasons not to do so.

New regulations of any kind should only be implemented where a robust cost benefit analysis demonstrates that the benefits would clearly outweigh the costs and the proposed changes adhere to the regulatory impact analysis (RIA) framework. Any new or change to an existing performance standard should adhere to the RIA framework.

The Commonwealth in co-operation with the States and Territories has worked through COAG to make significant progress on developing a National Strategy on Energy Efficiency. COAG agreed at its 30 April 2009 meeting to five key measures to improve the energy efficiency of residential and commercial buildings across Australia. A suite of measures has been funded in the 2009–10 Budget that, subject to satisfactory RIAs, will help implement COAG’s commitments to increase energy efficiency requirements for new residential and commercial buildings, phase in mandatory disclosure of the energy efficiency of commercial and residential buildings at the time of sale or lease, as well as measures to enhance the development of minimum energy performance standards and energy star labelling for appliances and equipment.

Potential measures related to vehicles will be considered in the development of policies and measures to encourage the adoption of cost effective energy efficiency opportunities.

Recommendation 5.1
The Commonwealth Government must take a leadership role through COAG to develop and implement a national approach to energy efficiency.  This would include cooperation and agreement to:

  • coordinate Commonwealth, State and Territory payments to low income households;
  • improve the energy efficiency of existing and new public housing and community buildings; and
  • energy market reforms as outlined in Recommendation 7.1.

As stated above, the Government in co-operation with the States and Territories has worked through COAG to make significant progress on developing a National Strategy on Energy Efficiency.

At its 5 February 2009 meeting COAG endorsed the Commonwealth’s Energy Efficient Homes program to modernise Australian homes, resulting, with the inclusion of the Commonwealth’s earlier commitment made under the Low Emissions Plan for Renters, in the installation of ceiling insulation in up to 2.9 million uninsulated homes.  COAG agreed at its 30 April 2009 meeting to five key measures to improve the energy efficiency of residential and commercial buildings and to consider signing an Intergovernmental Agreement on energy efficiency at its next meeting.

In relation to energy market reforms, please refer to the Government Response to Recommendation 7.1.

Recommendation 5.2
The Commonwealth Government should:

  • continue to require business to comply with the requirements of the Energy Efficiency Opportunities program; and
  • develop a voluntary energy efficiency program targeted at small and medium size businesses that combines relevant elements of Energy Efficiency Opportunities and Greenhouse Challenge Plus to assist these businesses to improve their energy efficiency.

The Energy Efficiency Opportunities Program is to continue as a transitional measure.

The Government recognises the importance of assisting businesses – particularly small businesses – to adjust to the impact of the introduction of the CPRS. 

The Government has established the $2.75 billion Climate Change Action Fund (CCAF) to help business, industry and community organisations prepare for the impacts of a carbon price by providing information and capital grants to reduce energy use.  This includes an Early Action Energy Efficiency Strategies for Business measure to drive knowledge and investment in energy efficiency opportunities.  The Government will continue to look at enhancing policies and measures to encourage the adoption of cost effective energy efficiency opportunities in the industrial sector.

Recommendation 5.3
To improve the ability of energy users to better manage their energy consumption following the introduction of the CPRS, the Government should consider measures that include:

  • broad-based assistance to facilitate investments by households, in particular low income households, and businesses in energy efficiency improvements;
  • provision of information and tools to assist households and businesses in identifying energy efficiency opportunities which may include support for widespread energy audits and customised consultations in-situ; and
  • incorporating and expanding the consideration of energy efficiency into the training and development of professionals in engineering and industrial design as well as ensuring that there is sufficient investment in the training of auditors and professional standards (in partnership with industry associations).

However, it is important that any such measures would need to be subject to a rigorous cost-benefit analysis of the merits of different approaches and would be instead of, rather than in addition to, existing programs.

These issues are being addressed through the development of the CCAF and CPRS Household Assistance Measures.

The Government has a range of measures to improve energy efficiency and energy performance throughout the community including;
the $3.9 billion Australian Government's Energy Efficient Homes package to improve the energy rating of Australian homes - cutting their energy waste, making them more comfortable and helping households save up to 40 per cent on their electricity bills; 
the $174.3 million Green Loans Program;
the $25.8 million Energy Efficiency Pledge fund element of the Australian Carbon Trust; and
The energy efficiency measures included in the 2009-10 Budget will look to improve energy efficiency and energy performance throughout the community by providing $64.6 million for measures that will assist households, businesses and the community in lowering their energy use, saving money and preparing for a low carbon future.

 Recommendation 6.1
The Government should continue to provide support for early stage research and development into low emissions technologies as part of its general support for a well functioning national innovation system.

The Government’s $4.5 billion Clean Energy Initiative will help give investors the confidence they require to back low-emissions technologies and industries to assist Australia’s transition to a lower emissions path. Through this initiative the Government will: invest $1.5 billion in large-scale solar power generation projects under the Solar Flagships Program; provide $465 million for a new body, Renewables Australia, to support research, development, and commercialisation   of leading edge renewable energy technologies; and invest $2 billion in industrial-scale carbon capture and storage projects under the Carbon Capture and Storage (CCS) Flagships program;

Recommendation 6.2
The Government should consider establishing an independent investment vehicle – to be called the Carbon Technology Trust – with an overarching mandate to accelerate Australia’s transition to a low carbon economy, by investing in the development and demonstration of a portfolio of technologies across the economy. 

The Government recognises the importance of low emissions technology in moving Australia to a low carbon future and is putting in place a Clean Energy Initiative that will help give investors the confidence they require to back low emissions technologies and industries to assist Australia’s transition to a lower emissions path (see response to Recommendation 6.1)

The Government will support the establishment of the Australian Carbon Trust, which will incorporate:
an Energy Efficiency Trust – the Government will contribute seed funding of $50.0 million over two years; and 
an Energy Efficiency Savings Pledge Fund – the Government will provide $25.8 million to support the fund.

Recommendation 6.3
To facilitate the deployment of carbon capture and storage technology, the Commonwealth Government should work through COAG to establish a nationally consistent regulatory system to govern the transport and geological storage of carbon dioxide which should cover, among other things:

  • access and property rights;
  • arrangements for assigning long-term liability for geological storage of carbon dioxide; and
  • arrangements to cover the allocation of risk.

The Government has enacted the world’s most comprehensive carbon capture and storage legislation – the Offshore Petroleum and Greenhouse Gas Storage Act.  Through the provision of access and property rights for greenhouse gas injection and storage activities in Commonwealth offshore waters, the legislation provides a management system for ensuring that storage is safe and secure, while balancing the rights of this new industry with the petroleum industry in a manner that encourages investment in both industries.

Recommendation 6.4
Given the strategic importance of Australian coal exports, the Government should ensure that commercial scale carbon capture and storage demonstration projects are in operation as soon as possible.  This may require a significant increase in funding and work to streamline regulatory approvals.

On 16 April 2009 the Government launched the Global Carbon Capture and Storage Institute (GCCSI) to drive the rapid international deployment of commercial scale carbon capture and storage projects.  
The Carbon Capture and Storage Flagships Program under the Clean Energy Initiative will invest $2 billion in industrial scale carbon capture and storage projects. This will complement the Government’s National Low Emissions Coal Initiative and the GCCSI by supporting the demonstration of two to four large industrial scale projects in Australia.

Recommendation 7.1
The Commonwealth Government, through COAG, should seek the agreement of all States and Territories, as soon as possible, to:

  • transfer all regulatory responsibilities for Australia’s energy markets to the Australian Energy Regulator;
  • accelerate the deregulation of retail electricity pricing to ensure that the price signal provided by the CPRS is passed through to electricity consumers;
  • begin the full rollout of smart meters to electricity consumers in all jurisdictions;
  • accelerate the reform of electricity network connection and transmission pricing to ensure that they do not form a barrier to the entry into the market of new electricity generation; and
  • accelerate the reform of the planning and pricing arrangements for distributed generation to recognise the benefits of distributed and embedded generation as an alternative to network augmentation.

The Ministerial Council on Energy (MCE) is already considering a number of these matters. Those not already being addressed by MCE will be referred to the MCE for timely consideration.

An Australian Energy Market Commission (AEMC) review into the implications of climate change policy for the energy market will report in September, aiming to ensure that the energy market effectively transitions to a low carbon economy. The issues examined include the convergence of gas and electricity markets, generation capacity investment, system operation with increased intermittent generation, investment to meet reliability standards, connection of generators to transmission networks, augmenting networks and managing congestion, retail price regulation, and financing new investment. This review is also working with the AEMC's review of demand-side participation which addresses distributed and embedded generation.

At its 30 April 2009 meeting COAG agreed to amend the Australian Energy Market Agreement to ensure that where retail prices are regulated, energy cost increases associated with the CPRS shall be passed through to end-use customers.

The MCE in consultation with stakeholders is developing the regulatory, technical and operational framework to facilitate a national roll-out of smart meters, which will begin in Victoria this year.

Recommendation 7.2
In proceeding with the implementation of an expanded national Renewable Energy Target, the Government should phase out superseded subsidy and rebate measures that support the renewables industry.

The Government supports the development of a vibrant renewable energy industry. Current commitments and industry support needs will be taken into account in ensuring appropriate and effective Government policies and measures. Rebates under the Solar Homes and Communities Plan will be phased out with the proposed introduction of Solar Credits under the expanded national Renewable Energy Target.

Recommendation 8.1
The Government should recognise that pricing distortions in other markets may prevent least cost mitigation (that is, impede the effective operation of the CPRS).  Continued pursuit of structural reform and improved efficiency in the economy (including in energy, transport and water markets) will support the achievement of least cost emissions reductions.

The Government recognises the importance of continuing to pursue reforms that enhance productivity (including those that improve the efficiency of energy, transport and water markets) and remove impediments that undermine the CPRS.

Recommendation 8.2
The Government’s Australia’s Future Tax System Review should consider:

  • options for reforming those aspects of the tax system that act as disincentives for individuals and companies to reduce their greenhouse gas emissions; and
  • the potential merit of using the tax system to support the investment in new capital, by both businesses and households, that will be incurred over an extended period of time as Australia transitions to a low carbon economy.

Under its terms of reference, Australia’s Future Tax System Review (the Henry Review) will examine and make recommendations to create a tax structure that will position Australia to deal with, among other things, the environmental challenges of the 21st century. 

The terms of reference also ask the Review to consider the interrelationship between the tax and transfer payments systems and the CPRS.  The Review released a consultation paper at the end of 2008 and will provide the Treasurer its final report by the end of 2009.

Recommendation 8.3
The Government should recognise that pricing distortions in transport markets may prevent least cost mitigation.  Continued pursuit of improved efficiency in the transport sector will assist to achieve least cost emissions reductions.

  • The Commonwealth should continue to work with the States and Territories through COAG to establish a national approach to regulation, planning and public investment in:
    • freight transport –  which should include reforms to road user charges, to facilitate clearer price signals between different modes of transport, and to infrastructure planning and investment to better integrate different modes of transport; and
    • passenger transport – focussing particularly on the need for investment in public transport infrastructure in urban areas and integrated transport planning.

The Government will refer this recommendation to the Australian Transport Council (ATC) noting that the ATC continues to pursue COAG's road reform plan.

Recommendation 8.4
In the lead up to the agriculture sector being covered by the CPRS, the Commonwealth should, in cooperation with States and Territories:

  • develop and improve techniques for the measurement and analysis of greenhouse gas emissions; and
  • undertake a stocktake of rural assistance measures that support greenhouse gas mitigation and adaptation (the National Review of Drought Policy may assist in this regard).

Agriculture is important in the national emissions profile and the Government recognises the need to ensure that the agriculture sector has the necessary tools and capacity to contribute to meeting Australia’s emission targets. 

In the CPRS White Paper the Government announced its disposition to include agriculture emissions in the Scheme by 2015. The Government has commenced a work program, in consultation with the agriculture industry, to enable a final decision to be taken in 2013, on whether agriculture emissions will be covered from 2015 or whether alternative measures should be applied.

To assist decision making around new sectors entering the CPRS in the coming years, the Government will develop the National Carbon Accounting Toolbox (NCAT). NCAT will be a cost-effective, nationally consistent emissions estimation tool for forestry and agriculture.

In addition, the Australian Government’s Climate Change Research Program, funded under the Australia’s Farming Future program, has committed $46.2 million to help the agriculture sector to develop commercial solutions to manage emissions and adapt to climate change.

Rural assistance has been reviewed by the Productivity Commission as part of its inquiry into drought support arrangements, in the context of a changing climate.  The Commission’s Final Drought Review Report was provided to the Australian Government in February 2009.

 Recommendation 8.5
Governments should continue the development of a national building code that encompasses nationally consistent standards to improve energy efficiency of buildings, supplemented by rating tools.  Building energy efficiency ratings should include disclosure at point of sale or commercial lease.

COAG agreed at its 30 April 2009 meeting to reforms to improve the energy efficiency of residential and commercial buildings.  COAG also agreed to reform current processes to achieve consistency in the application of building energy efficiency standards across all States. The National Strategy on Energy Efficiency is expected to be finalised by COAG in mid-2009.

Measures have been introduced in the 2009–10 Budget that support the COAG agreement to increase the energy efficiency requirements for new residential and commercial buildings, subject to satisfactory RIAs.

Recommendation 8.6
Environmental protection and planning laws across all jurisdictions should not require anything more than compliance with the CPRS in respect of the emissions associated with projects in sectors covered by the scheme.  However, such requirements may be appropriate in respect of uncovered sectors or where entities receive free permits under the scheme.

The COAG Working Group on Climate Change and Water is working towards a nationally consistent set of climate change policies and measures that complement the CPRS.  This recommendation will be considered in that process.

Recommendation 9.1
The Commonwealth Government should continue to support climate change science and consider developing and implementing, through COAG, a comprehensive national climate change science agenda.

The Australian Climate Change Science Program is building our scientific understanding of climate change in our region, and contributing to international understanding of climate drivers of the Southern Hemisphere. The program will help meet increasing demands from decision makers for greater insights into the impacts of climate change and the effort needed both to reduce emissions and adapt to unavoidable climate change impacts.

The Government has adopted a new Australian Climate Change Science Framework which sets national climate change science priorities for the next decade; identifies the science capabilities, human capital and infrastructure investment needed to deliver on these priorities; and sets out ways to harness our full science capacity to address those priorities.

A high-level coordination group, chaired by Australia’s Chief Scientist, will develop an implementation plan to ensure that all organisations with a significant climate change research capacity are contributing to this nationally coordinated effort to meet Australia’s priority climate change science information needs.

Recommendation 9.2
To ensure that there is sufficient risk analysis and costing of risks when considering adaptation action, the Commonwealth Government should work through COAG to establish a National Adaptation Advisory Board, to advise COAG on:

  • priorities for adaptation in Australia;
  • what types of adaptive measures might be cost effective; and
  • what role, if any, governments need to play in relation to adaptation.

The COAG Working Group on Climate Change and Water is developing a policy framework to inform a nationally coordinated approach to adaptation.

Recommendation 10.1
The Government must have strong and effective international engagement, which is appropriately resourced, to influence and support international least cost abatement of greenhouse gas emissions.

The initiatives to transform Australia to a low-carbon economy are central to our contribution to global efforts to avert dangerous climate change.  Australia is not acting alone.  Australia is working to settle a framework for global action on climate change to take effect once the first commitment period under the Kyoto Protocol expires in 2012.

The Government’s efforts will be supported through the ‘Shaping an International Solution to Climate Change’ measure, funded through the 2009-10 Budget.


Attachment 2
Response to program recommendations

Programs agreed as complementary1 to the CPRS and to continue (15)

ProgramAdditional Comment

Action on Energy Efficiency

Superseded by the National Strategy on Energy Efficiency measures included in the 2009-10 Budget.

Asia Pacific Partnership on Clean Development and Climate (APP)

-

Climate Change Adaptation Program (previously the Australian Centre for Climate Change Adaptation)

-

Climate Change Research Program

-

Energy Efficiency of Electrical Appliances

Superseded by the Expansion of Minimum Performance Standards for Appliances and Equipment and Enhanced Energy Efficiency Labelling measures. These measures will invest $16.6 million over four years to significantly expand the current minimum energy performance standards.

Green Vehicle Guide

-

Hot Water System Phase Out

Superseded by the National Strategy on Energy Efficiency measures included in the 2009-10 Budget.

International Adaptation to Climate Change Initiative

-

International Forest Carbon Initiative

-

Low Emissions Plan for Renters – Insulation Rebate

Superseded by the Energy Efficient Homes package which will provide ceiling insulation for up to 2.9 million Australian homes.

National Solar Schools Plan

Program focus has been modified in line with the Wilkins Review recommendation.

One Stop Green Shop

-

Phase out inefficient light globes

Superseded by the National Strategy on Energy Efficiency measures included in the 2009-10 Budget.

Renewable Energy Target (RET) – funding for Office of the Renewable Energy Regulator

-

Solar Hot Water Rebates

Energy Efficient Homes Package increased rebate from $1,000 to $1,600 per home.

1 The Government considers these programs are transitional also as they will assist in Australia’s transition towards a low emissions economy over the medium term.

Programs agreed as complementary and to continue as Government core business (7)

ProgramAdditional Comment

Carbon Dioxide Capture and Geological Storage – Offshore Regulatory Framework

Legislation was agreed in November 2008. Funding has been fully expended and ongoing work is being delivered as core business.

Climate Change Science Program

The Departmental element of these programs will continue as Government core business. Administration funding arrangements for these programs will continue unchanged.

Emissions Measurement and Analysis

-

Geothermal and Hydrogen Technology Roadmaps

Roadmaps were launched in 2008 and funding fully expended.  The policy objectives are now core business of the Government.

International Climate Change Strategy (Influencing International Climate Change)

The Departmental element of these programs will continue as Government core business. Administration funding arrangements for these programs will continue unchanged.

National Greenhouse and Energy Reporting Scheme

-

Strategic National Response

-

Programs agreed as transitional to the CPRS and to continue (14)

ProgramAdditional Comment

Carbon Sink Forests

The tax deductibility arrangements for carbon sink establishment costs to revert to less accelerated write off arrangements from 2011–12 as reflected in existing tax legislation.

Clean Business Australia – Climate Ready

-

Clean Business Australia - Green Building Fund

Program objectives have been modified in line with Wilkins Review recommendation.

Clean Business Australia - Retooling for Climate Change

-

Clean Energy Innovation Centre

Continue as planned and be reviewed as part of the evaluation of Enterprise Connect in 2009–10.

Energy Efficiency Opportunities

This program will continue to 2012 with the verification and data analysis elements of this measure to be enhanced.

Energy Innovation Fund

-

Green Loans

This program has been refocussed and the number of subsidised low-interest loans has been reduced from 200,000 to 75,000 over five years

Green Precincts

-

National Clean Coal Fund (renamed the National Low Emissions Coal Fund)

-

Renewable Energy Fund

Subsumed within Renewables Australia and the Solar Flagships Program under the Clean Energy Initiative.

Renewable Remote Power Generation Program

Program objectives have been modified in line with Wilkins Review recommendation.

Solar Cities

-

Solar Homes and Communities Plan (formerly known as the Photovoltaic Rebate Programme)

Program to terminate on commencement of expanded RET legislation and the introduction of ‘Solar Credits’ for small generation units.

Programs referred to other processes (9)

ProgramRelevant Process

ARC Centre of Excellence for Advanced Silicon Photovoltaics and Photonics

The Review of Australia's National Innovation System

Australian Research Council (ARC) Centre of Excellence for Solar Energy Systems

The Review of Australia's National Innovation System

Climate Change Adaptation Partnerships Program

The National Review of Drought Policy

Climate Change Adjustment Program

The National Review of Drought Policy

Cooperative Research Centre for Greenhouse Gas Technologies 

The Review of Australia's National Innovation System

CSIRO Climate Adaptation Flagship

The Review of Australia's National Innovation System

CSIRO Energy Transformed National Research Flagship

The Review of Australia's National Innovation System

Green Car Innovation Fund

The Review of Australia’s Automotive Industry

Managing Climate Variability

The National Review of Drought Policy and no longer designated as a climate change measure

Programs to cease (13)

ProgramAdditional Comment

Advanced Electricity Storage Technologies

To cease June 2010. Program now closed and funding fully committed. All contractual obligations to be honoured. Superseded by other renewable energy support programs.

Coal Mine Methane Reduction

To cease June 2009. All contractual obligations to be honoured.

Greenhouse Action in Regional Australia

To cease June 2009. Superseded by the Climate Change Adaptation program.

Greenhouse Challenge Plus (including Generator Efficiency Standards and Greenhouse Friendly)

To cease June 2009. Key business, local government and community engagement elements of the program are being incorporated into the Climate Change Action Fund (CCAF). The Greenhouse Friendly program in its current form will cease in 2010.  New arrangements to support the offset market and carbon neutrality will be developed as part of the national carbon offset standard.

Greenhouse Gas Abatement Program

To cease June 2009. All contractual obligations to be honoured.

Local Greenhouse Action

To cease June 2009. Key business, local government and community engagement elements of the program are being incorporated into CCAF.

Low Emissions Technology and Abatement

To cease June 2009.

Low Emissions Technology Demonstration Fund

To cease June 2015. Program now closed and funding fully committed. All contractual obligations to be honoured.

National Climate Change Adaptation Program

To cease June 2009. Superseded by the Climate Change Adaptation program.

Renewable Energy Development Initiative

To cease June 2011. Program now closed and funding fully committed. All contractual obligations to be honoured.

Renewable Energy Equity Fund

To cease June 2010. Program now closed and funding fully committed. All contractual obligations to be honoured.

Small Business and Household Action Initiative

To cease June 2009. Objectives met through the energy efficiency measures included in the 2009-10 Budget and other programs.

Wind Energy Forecasting Capability

To cease June 2009 as planned.


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