Home > Mid-Year Economic and Fiscal Outlook > Appendix A: Policy Decisions Taken Since the 2011‑12 Budget > Expense Measures > Climate Change and Energy Efficiency

Appendix A: Expense Measures (Continued)

Climate Change and Energy Efficiency

Clean Energy Future — Creating Opportunities on the Land — Carbon Farming Initiative

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Climate Change and Energy Efficiency	-	0.1	2.3	50.7	47.4
Clean Energy Regulator	-	-	135.3	118.6	130.9
Total - Expense	-	0.1	137.6	169.2	178.3

The Government will provide $254.2 million over seven years (including $61.4 million in 2015‑16, $77.7 million in 2016‑17 and $14.6 million in 2017‑18) to facilitate the operation of the Carbon Farming Initiative (CFI). This measure includes:

$250.0 million over six years from 2012‑13 to establish the Carbon Farming Initiative non‑Kyoto Carbon Fund, which will fund the purchase by the Government of CFI credits that are not counted towards meeting Australia's commitments under the Kyoto Protocol, in order to provide incentives for land sector abatement activities such as revegetation and soil carbon projects; and
$4.2 million over five years from 2011‑12 to establish the Carbon Farming Skills initiative, which will facilitate access by landholders to credible, high quality advice and carbon services, through the development of a new nationally accredited qualification for carbon service providers, the accreditation of carbon brokers and aggregators, and the provision of information workshops.

The Government will also link the CFI with the carbon price, allowing eligible Australian carbon credit units issued under the CFI to be used by businesses that are covered by the carbon pricing mechanism to meet their liabilities. This is expected to reduce permit revenue by $384.7 million across the forward estimates. This measure has been updated to reflect the inclusion of abatement activities that are eligible to generate credits to meet businesses' liabilities under the carbon price mechanism.

This measure delivers on the Government's plan for a clean energy future.

See also the related revenue measure titled Clean Energy Future — Putting a Price on Pollution — revenue from sale of carbon units.

Clean Energy Future — Governance — Clean Energy Regulator

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Clean Energy Regulator	-	38.0	50.1	54.0	57.6
Department of Finance and Deregulation	-	0.1	0.1	0.1	0.1
Total - Expense	-	38.1	50.2	54.1	57.7
Related capital ($m)
Clean Energy Regulator	-	30.0	17.7	7.2	0.8

The Government will provide $255.4 million over four years (including $55.7 million in capital funding) to establish a Clean Energy Regulator to administer the carbon pricing mechanism. The regulatory functions under the National Greenhouse and Energy Reporting System, the Renewable Energy Target and the Carbon Farming Initiative will also be brought under the Clean Energy Regulator.

The responsibilities of the regulator will include: assessing emissions data to determine each entity's liability; operating the Australian National Registry of Emissions Units; monitoring, facilitating and enforcing compliance with the carbon pricing mechanism; allocating fixed price and auctioned permits; applying legislative rules to determine eligibility for assistance in the form of freely allocated permits; and providing education on the carbon pricing mechanism.

A provision for $37.0 million of this funding has been made in the Contingency Reserve pending finalisation of a detailed business case for the regulator's information and communications technology requirements.

The Government will provide a further $0.4 million over four years for the Department of Finance and Deregulation to conduct Gateway reviews of the establishment and operation of the regulator.

This measure delivers on the Government's plan for a clean energy future.

Clean Energy Future — Governance — Climate Change Authority

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Climate Change Authority	-	-	6.4	9.1	9.2

The Government will provide $24.6 million over three years to establish the Climate Change Authority as an independent body to conduct reviews and provide advice to the Government on key aspects of the carbon pricing mechanism and other climate change mitigation initiatives.

The Authority will support nine experts with a particular focus on climate science, economics, climate change mitigation, emissions trading, investment and business.

This measure delivers on the Government's plan for a clean energy future.

Clean Energy Future — implementation

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Climate Change and Energy Efficiency	-	31.6	0.6	-	-
Department of Agriculture, Fisheries and Forestry	-	-0.2	-0.1	-	-
Department of Human Services	-	-0.2	-0.1	-	-
Department of Innovation, Industry, Science and Research	-	-0.2	-0.1	-	-
Department of Resources, Energy and Tourism	-	-0.2	-0.1	-	-
Department of Sustainability, Environment, Water, Population and Communities	-	-0.3	-	-	-
Total - Expense	-	30.6	0.1	-	-

The Government will provide $32.6 million over two years to assist with the implementation of its plan for a clean energy future. This funding includes the establishment of a Clean Energy Future Program Office within the Department of Climate Change and Energy Efficiency to review, assess and support the implementation of the plan, and funding to provide information to Australian households, businesses and communities about the plan.

The cost of this measure will be partially met from within the existing resourcing of various agencies.

Further information relating to the communications campaign can be found in the press release of 16 July 2011 issued by the Minister for Climate Change and Energy Efficiency.

Clean Energy Future — Improving Energy Efficiency

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Australian Bureau of Statistics	-	2.8	6.3	1.1	-
Department of Climate Change and Energy Efficiency	-	1.8	0.8	-	-
Department of Resources, Energy and Tourism	-	0.9	0.7	-	-
Total - Expense	-	5.6	7.8	1.1	-

The Government will provide $14.4 million over three years for further work on improving Australia's energy efficiency performance, consistent with the report of the Prime Minister's Task Group on Energy Efficiency. This measure includes:

$4.2 million over two years for further work and consultation on a national energy savings initiative — or 'white certificate' scheme — which would place obligations on energy retailers to help households and businesses find and implement energy savings. The Government will make a final decision on whether to proceed with a national energy saving initiative after considering economic modelling and a regulatory impact analysis. A national energy savings initiative would also be conditional on the agreement of the Council of Australian Governments and the abolition of existing and planned state schemes; and
$10.2 million over three years for the Australian Bureau of Statistics to conduct a survey to collect and communicate data on household energy consumption and expenditure. The survey will assist in the design of new energy efficiency policies, including the national energy savings initiative.

This measure delivers on the Government's plan for a clean energy future.

Clean Energy Future — Improving Energy Efficiency — household advice

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Climate Change and Energy Efficiency	-	1.4	1.4	1.4	1.4

The Government will provide $5.8 million over four years to deliver information to households on the impact of the carbon price on electricity bills and on how to improve their energy efficiency in order to manage the impacts of increasing energy costs.

The cost of this measure will be met, in part, from within the existing resourcing of the Department of Climate Change and Energy Efficiency.

This measure delivers on the Government's plan for a clean energy future.

Clean Energy Future — Improving Energy Efficiency — Low Carbon Communities

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Families, Housing, Community Services and Indigenous Affairs	-	4.9	8.2	7.7	9.1
Department of Climate Change and Energy Efficiency	-	0.3	30.4	75.4	80.7
Total - Expense	-	5.3	38.6	83.2	89.8

The Government will provide $272.9 million over five years (including $56.1 million in 2015‑16) to expand and redesign the Low Carbon Communities program, bringing the total funding for the program to $352.9 million over six years from 2010‑11. The expanded program will provide an additional $120.0 million to assist local councils and community organisations to improve energy efficiency in council and community‑use buildings and facilities. The measure also includes three new initiatives:

$100.0 million to establish the Low Income Energy Efficiency Program, to provide funding for consortia of state and local governments, community organisations, energy retailers and energy service companies to trial approaches to improve the energy efficiency of low‑income households;
$29.9 million to establish the Household Energy and Financial Sustainability Scheme, to help around 100,000 low‑income households manage their energy consumption. The package of assistance will include energy and financial sustainability assessments and advice, financial education and money management, and access to the existing community‑based No Interest Loans Scheme to assist with the purchase of more energy efficient appliances; and
$23.0 million over five years (including $6.1 million in 2015‑16) to establish the Charities Maritime and Aviation Support Program, to assist charitable organisations with Deductible Gift Recipient status to meet increased aviation and maritime fuel costs as a result of the carbon price.

This measure delivers on the Government's plan for a clean energy future.

Further information can be found in the joint press release of 10 July 2011 issued by the Prime Minister, the Deputy Prime Minister and Treasurer and the Minister for Climate Change and Energy Efficiency, and the press release of 13 September 2011 issued by the Minister fo Climate Change and Energy Efficiency

Clean Energy Future — Supporting Energy Markets — Energy Security Fund

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Climate Change and Energy Efficiency	-	1,000.0	-	-	-
Department of the Treasury	-	1.2	0.8	2.0	2.0
Clean Energy Regulator	-	-	-	1,007.2	1,059.3
Total - Expense	-	1,001.2	0.8	1,009.1	1,061.3
Related revenue ($m)
Department of the Treasury	-	-	-	6.1	19.4

The Government will provide $5.5 billion over six years (including $1.2 billion in 2015‑16 and $1.3 billion in 2016‑17) for transitional assistance to highly emissions‑intensive coal‑fired power stations in the form of cash assistance in 2011‑12 and a limited allocation of free permits thereafter until 2016‑17.

The Government will also provide loans to emissions‑intensive coal‑fired power stations to provide additional working capital for the purchase of future vintage carbon permits at advance auctions, which is estimated to result in interest revenue for the Commonwealth of $25.5 million over two years. Funding of $7.9 million over five years (including $2.0 million in 2015‑16) will be provided to the Department of the Treasury to implement and administer the program.

The Government may also provide, on the advice of the Energy Security Council, loans to emissions‑intensive coal‑fired power stations for the refinancing of existing debt where finance is unable to be obtained from the market on reasonable terms.

Loans will be offered on terms that encourage the use of private finance in the first instance.

This measure delivers on the Government's plan for a clean energy future.

See also the related expense measure titled Clean Energy Future — Supporting Energy Markets — Energy Security Council.

Clean Energy Future — Supporting Jobs — Energy Efficiency Information Grants

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Climate Change and Energy Efficiency	-	6.3	12.4	11.9	9.5

The Government will provide $40.0 million over four years to assist industry associations and non‑government organisations to deliver information about the implications of a carbon price for small businesses and community organisations, including practical advice on how to reduce energy costs.

This measure delivers on the Government's plan for a clean energy future.

Clean Energy Future — Supporting Jobs — Jobs and Competitiveness Program

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Clean Energy Regulator	-	-	2,654.6	2,849.7	3,088.4

The Government will provide assistance to the most emissions‑intensive activities in the economy that are highly exposed to international competition. The assistance will be in the form of an administrative allocation of free permits based on production levels and historic emissions intensities. The rate of assistance will be reduced gradually over time, with the program subject to regular review by the Productivity Commission. The structure of the assistance will maintain the incentive for assisted firms to reduce emissions.

This measure is estimated to cost $8.6 billion over the forward estimates period. The cost over the forward estimates reflects updated estimates of historic production levels for emissions‑intensive industries.

This measure delivers on the Government's plan for a clean energy future.

See also the related expense measure titled Clean Energy Future — Governance — Productivity Commission Reviews.

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