Climate Change and Energy Efficiency
The Climate Change and Energy Efficiency portfolio has a number of initiatives for Australia's regions that will play an important role in the response to climate change and assist in Australia's transition to a Clean Energy Future. Primary among these are programs to create opportunities in the land sector to reduce pollution, while maintaining productivity and improving sustainability and resilience.
The carbon price will not apply to agricultural and land sector emissions. This means that farmers will not have carbon price liabilities for agricultural activities, or for the fuel they use for farm equipment. Fuel used in light motor vehicles (such as personal cars) will not be covered by the carbon price.
Over $1.7 billion of carbon price revenue will be invested in the land sector in regional Australia, through new funding programs to help farmers and land managers reduce pollution and enhance biodiversity. Components of the land sector package are being delivered by the Climate Change and Energy Efficiency portfolio, as well as the Department of Agriculture, Fisheries and Forestry and the Department of Sustainability, Environment, Water, Population and Communities.
Current Initiatives
National Climate Change Adaptation Program
Climate change will have significant effects on regional economies and our way of life. Decisions we take now are crucial to our economic prospects and living standards over coming decades. Climate risks will vary from region to region and communities are at the frontline in dealing with the impacts. Over the past five years the Australian Government has worked with over 90 local councils to build capacity for effective local adaptation. The Australian Government will provide $3.0 million in 2012‑13 to: support further analysis of how well placed Australia is to deal with the unavoidable impacts of climate change; and develop policy to enable business and communities to build resilience and adapt to a changing climate.
Carbon Farming Initiative
The Carbon Farming Initiative (CFI) is a key measure that provides economic rewards for farmers and landholders who take steps to reduce carbon pollution or store carbon on the land. Participation in the CFI is voluntary; farmers and landholders can choose whether or not to be involved. Those that do participate in the CFI can receive carbon credits for the carbon pollution saved or stored by their activities.
The CFI is a legislated scheme with an independent Administrator. The CFI Administrator commenced operations in December 2011 and is now part of the Clean Energy Regulator, which administers the carbon price mechanism.
The Government allocated $45.6 million between 2010‑11 and 2013‑14 to implement the CFI. This includes funding for the CFI Administrator and $4.0 million for the Department of Agriculture, Fisheries and Forestry to support Regional Landcare Facilitators and other groups working with farmers, Indigenous groups and other landholders to identify how they can participate in and benefit from the scheme.
The CFI creates a new income stream for farmers, new jobs for rural and regional Australia and provides incentives to identify and implement low-cost methods of pollution reduction. Credits earned by farmers and land managers under the CFI can be sold to people and businesses to offset their emissions. The CFI also helps the environment by encouraging sustainable farming and providing a source of funding for landscape restoration projects.
Carbon Farming Initiative non-Kyoto Fund
Under the non-Kyoto Fund, the Government will purchase non-Kyoto compliant CFI credits that cannot be purchased by companies to offset liabilities they may have under the carbon pricing mechanism. This program will increase incentives for activities that are not counted towards Australia's emissions target under current international carbon accounting rules. Such activities include the storing of soil carbon, revegetation and forest conservation projects.
The Fund will commence on 1 July 2013, with funding of $250.0 million over its first six years.
Carbon Farming Skills
The Carbon Farming Skills program ($4.2 million over five years from 2011‑12) will ensure that landholders have access to credible, high quality advice and carbon services. This measure will support employment opportunities in regional Australia through development of:
- a new nationally accredited qualification for carbon service providers; and
- an accreditation scheme for carbon service providers operating under the CFI.
Carbon Farming Futures — Methodology Development
The $20.0 million Methodology Development program ― a component of the Carbon Farming Futures measure ― will convert research, including outcomes from other research programs funded by the Government, into estimation methodologies to use in the CFI.
To ensure the integrity of the CFI and the ongoing value of credits generated, abatement projects need to meet scheme eligibility criteria and use an approved methodology. This program will expand abatement opportunities under the CFI by facilitating the development of methodologies that comply with CFI requirements, meet the needs of agricultural industries and rural and Indigenous communities, and are supported by scientific evidence.
The Domestic Offsets Integrity Committee is responsible for assessing and providing advice to the Government on methodology proposals for use under the CFI.
Regional Natural Resource Management Planning for Climate Change Fund
The Government is providing $44.0 million over five years from 2011‑12 to help regional Natural Resource Management (NRM) organisations incorporate the impact of climate change on the land in their regional NRM plans and develop scenarios of climate change impacts at a regional level.
The updated regional plans will provide a guide for finding the most appropriate locations for new projects to store carbon or to build connectivity in the landscape. This will help to maximise the benefits from carbon farming and biodiversity projects. The fund is divided into two streams:
- Stream 1, delivered by the Department of Sustainability, Environment, Water, Population and Communities, will provide $29.0 million over five years to support the 56 regional NRM organisations revise existing regional NRM plans to help identify where, in the landscape, carbon plantings, revegetation, restoration and other CFI mitigation activities should be undertaken; and
- Stream 2, delivered by the Department of Climate Change and Energy Efficiency, will provide $15.0 million over four years to support information delivery, research and analysis to develop scenarios on regional climate change impacts which can be used for natural resource management and land use planning.
Indigenous Carbon Farming Fund
The Indigenous Carbon Farming Fund ($22.3 million over five years from 2012‑13) will provide support to Indigenous Australians to participate in the CFI. The Indigenous Carbon Farming Fund comprises two streams:
- A research and development stream ($5.2 million over five years from 2012‑13, delivered by the Department of Climate Change and Energy Efficiency) will provide funding for research to support and develop methodologies and reporting tools for CFI methodologies. This funding will support low-cost methodologies likely to have high Indigenous participation to help create real and lasting opportunities for Indigenous Australians; and
- A capacity building and business support stream ($17.1 million over five years from 2012‑13, delivered by the Department of Sustainability, Environment, Water, Population and Communities) will help Indigenous communities establish or participate in carbon farming projects.
National Solar Schools Program
The National Solar Schools Program (NSSP) offers primary and secondary schools the opportunity to apply for grants of up to $50,000 to install solar and other renewable power systems, solar hot water systems, rainwater tanks and a range of energy efficiency measures. The NSSP commenced on 1 July 2008 and closes on 30 June 2013.
Applications are assessed using merit-based criteria, meaning schools have to demonstrate value for money, environmental and educational benefits in their applications. Additionally, applications from schools located in remote or low socio-economic areas receive additional assessment weighting.
The program has been very popular, with more than 8,000 schools (85 per cent of all eligible schools) having already registered to participate. Since the NSSP commenced, over 4,500 schools have been awarded a grant, totalling more than $190.0 million in funding. By the end of the program it is expected that approximately 60 per cent of all primary and secondary schools in Australia will have received an NSSP grant.
Each year's total funding budget is allocated between government and non-government school sectors based on the proportion of eligible schools in each sector and funding already received under the program. Funding for State and Territory Government schools is paid to each jurisdiction through a National Partnership Agreement. In 2012‑13, the final year for the program, $45.7 million of funding is available.
Community Energy Efficiency Program
The Government has established the $200 million Community Energy Efficiency Program to work with councils and community organisations to implement energy efficiency measures across diverse local communities. The program will demonstrate and encourage smarter energy use by supporting local councils and community organisations to improve the energy efficiency of non-residential council and community buildings, facilities and lighting. Special assistance will be made available for regional and rural councils to ensure they are not disadvantaged during the application and assessment processes. Funding for projects under the program will commence from 2012. All successful projects will need to be completed by June 2016.
Energy Efficiency Information Grants Program
The Government has allocated $40.0 million to the Energy Efficiency Information Grants (EEIG) program covering the 2011‑12 to 2014-15 financial years. The program is intended to improve awareness about energy efficiency amongst small to medium enterprises (SMEs) and community organisations. Under the program, funding will be provided to industry associations and not-for-profit organisations to deliver practical, tailored energy efficiency information to SMEs and community organisations.
Funding under Round One of the EEIG program is scheduled to commence in 2012.
Further Information
Further information about these and other climate change and energy efficiency initiatives relating to rural and regional Australia is available at www.climatechange.gov.au.
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