Statement 1:
Budget Overview
(Continued)
Investing in renewable energy and energy efficiency
Renewable Energy Future Fund
The Australian Government will provide further support for Australia's transition to a low pollution economy through the establishment of the Renewable Energy Future Fund with an investment of $652.5 million over four years.
The Fund will form part of the Government's expanded $5.1 billion Clean Energy Initiative.
Funding will be used to provide support for the development and deployment of renewable energy projects, including wind, solar and biomass. Through partnerships between the Government and the private sector, it will leverage private funds in critical early stage investments to support the commercialisation of renewable technologies.
The Fund will also be used to engage with households, businesses and communities to support the wider adoption of energy efficiency, helping business and households to reduce their energy consumption.
The Fund will complement existing support through the Government's expanded Renewable Energy Target. It brings the Government's total investments in renewable and clean energy and energy efficiency to over $10 billion.
Complementary policies, such as the Renewable Energy Future Fund, will go some way to supporting the necessary transition to a low pollution economy. But they cannot alone deliver the emissions reductions that are needed to meet our medium and longer term targets. A market‑based approach will be required over time to help Australia meet its emissions reductions targets at the lowest possible cost to the community.
Carbon Pollution Reduction Scheme
The Australian Government remains committed to tackling the challenge of climate change through a Carbon Pollution Reduction Scheme (CPRS). The economic and environmental risks posed by climate change remain undiminished, and governments around the world recognise that market‑based approaches are the most effective and least‑cost way to reduce emissions.
The Australian Government recognises that, in light of the continued absence of parliamentary support for the CPRS, it will not be possible to commence the CPRS on 1 July 2011.
The Government will continue its efforts to build support for global and domestic carbon markets. However, the Government will not introduce the CPRS until after the end of the current commitment period of the Kyoto Protocol and only when there is greater clarity on the actions of major economies including the US, China and India.
This means that the Government will not move to legislate the CPRS before the end of 2012, and will only do so after this time if there is sufficient international action.
The modest improvement to the Budget estimates from deferring the CPRS package in underlying cash terms over the forward estimates will be fully deployed in enhancing the Clean Energy Initiative.
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