Investing in Australia's clean energy future

Clean Energy Initiative

A $4.5 billion investment in a Clean Energy Initiative (including $1.0 billion in existing funding) will strengthen Australia's climate change response by encouraging further innovation in clean energy generation and low‑emissions technologies, helping us build the low‑pollution economy and jobs of the future.

The Initiative comprises three new elements:

• a $2.0 billion investment in carbon capture and storage (CCS) projects under a CCS Flagships program
• a $1.5 billion Solar Flagships program to demonstrate large‑scale solar technologies

• a new independent body, Renewables Australia, with $465 million seed funding, to support leading‑edge renewable technology research and development

CCS Flagships

The Government will invest $2.0 billion over nine years to support first‑of‑a‑kind industrial‑scale demonstration projects for CCS technology in Australia.

The projects are expected to comprise the development of a carbon dioxide storage hub as well as demonstrating a range of technologies to capture carbon dioxide from coal‑fired power stations.

Together with the $400 million National Low Emissions Coal Initiative and the Cooperative Research Centre for Greenhouse Gas Technologies, the new CCS Flagships program will complement the recently launched Global CCS Institute, and will ensure that Australia continues to be a world leader in the development of this technology.

National Energy Efficiency Initiative

In addition to the Clean Energy Initiative, the Government will provide a $100 million grant in 2009‑10, which will create an energy network in one demonstration project that integrates a smart grid with smart meters in homes.