clean energy future overview

8/6/2019 Clean Energy Future Overview

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Securing a cleanenergy futureThe AusTrAliAn GovernmenTs

climATe chAnGe plAn in summAry


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To build our Clean Energy Future theGovernment is...


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Australias Clean Energy FutureScientists advise that the world is warming and high levels o carbon pollution

risk environmental and economic damage. No responsible government can ignore

this advice.

The Australian Government has developed a comprehensive plan to move to a clean

energy uture.

Central to that plan is the introduction o a carbon price that will cut pollution in the

cheapest and most eective way and drive investment in new clean energy sources

such as solar, gas and wind.

A carbon price is not a tax on households around 500 o the biggest polluters in

Australia will be required to pay or their pollution under the carbon pricing mechanism.

To assist households with price impacts, there will be tax cuts and increases in

pensions, allowances and benets. A signicant tax reorm will mean that over

1 million individuals will no longer need to le a tax return.

The Government is committed to supporting jobs and competitiveness as Australia

moves to a clean energy uture and has designed a range o measures or this purpose.

The Government will seek to negotiate the closure o around 2000 megawatts o highly

polluting electricity generation capacity by 2020, while at the same time saeguarding

our energy security.

There will be a dramatic expansion in support or renewable energy including through a

new commercially oriented Clean Energy Finance Corporation that will invest $10 billion

in renewable energy, low pollution and energy eciency technologies.

Around $1 billion will be spent over the next our years to help armers and land

managers pursue climate change action on the land and promote biodiversity.

Improvements in energy eciency will help households save money on their bills andcontribute to our e orts to cut pollution.


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Commonwealth o Australia 2011

ISBN 978-0-642-74720-4

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The Commonwealths preerence is that you attribute this publication (and any material sourced rom it) using the

ollowing wording:

Source: Licensed from the Commonwealth of Australia under a Creative Commons Attribution 3.0 Australia Licence.

The Commonwealth of Australia does not necessarily endorse the content of this publication.

Use of the Coat of Arms

The terms under which the Coat o Arms can be used are set out on the Its an Honour website (see

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Printed by CanPrint Communications Pty Ltd


5/24Securing a clean energy uture: The Australian Governments climate change plan in summary 1

ContentsAustralia needs to cut pollution 2

... and move to a clean energy uture 3

A carbon price will cut pollution 4

... in the cheapest and most eective way 5

Helping households 6

... through tax reorm and increases in payments 7

Jobs and competitiveness 8

...in a clean energy uture 9

Investing in renewable energy and clean technologies 10

...to transorm our energy sector 11

Moving towards a clean energy uture 12

Cutting pollution in our transport sector 13

Creating opportunities in the land sector 14

...to improve productivity, sustainability and resilience 15

Encouraging energy eciency 16

...means saving money and reducing pollution 17


6/242 For further information go to www.cleanenergyuture.gov.au

Australias carbonpollution

Australia generates more

pollution per person than any

developed country, including

the United States. We produce

signicantly more pollution

per person than India and China.

Australias carbon pollution

is high because our electricityis mainly generated by burning

coal. Transport, mining, industry,

arming and deorestation

also contribute.

Our carbon pollution is continuing

to grow at a rapid rate. Without

action, it is expected to continue

to grow by almost 2 per cent ayear to 2020.

Reducing our carbon pollution

means we have to produce

and use energy in a cleaner,

smarter way.

Our climate is changing

The CSIRO, the Bureau o Meteorology, and Academies o Science rom around the

world have all advised that the world is warming and high levels o carbon pollution

risk environmental and economic damage.

In Australia and across the globe, 2001 to 2010 was the warmest decade on record.Each decade in Australia since the 1940s has been warmer than the last.

Climate change risks damaging our environment and wayo lie

Australia aces signicant environmental and economic costs in a warmer, more

unstable climate. Climate scientists advise that extreme weather events, such as

droughts, heatwaves and bushres, are likely to become more requent and severe.

This threatens our homes, businesses and communities, and vital industries such

as agriculture.

Scientists agree that the worst e ects o climate change can largely be avoided i we

reduce carbon pollution to an acceptable level.

The world is moving to a clean energy uture

Countries around the world are already taking action on climate change. 89 countries

representing 80 per cent o global emissions and 90 per cent o the worlds

economy have already pledged to take action on climate change.

Globally, more money is now invested in new renewable power than in conventional

high-pollution energy generation. China is now the worlds largest manuacturer o

both solar panels and wind turbines.

Acting now is cheaper than acting later

Australia has an opportunity to move to a clean energy uture and cut pollution beore

the task becomes more dicult and costly.

Australia needs to cut

pollution



A better Australia orour children

The Governments Plan or a

clean energy uture will cut

pollution and drive investment in

new clean energy sources, such

as solar, gas and wind.

By acting now, Australians

can look orward to long term

prosperity, while protecting ourenvironment or ourselves and or

uture generations.

The Australian Government is building a cleanenergy uture

The Government has a comprehensive plan to move to a clean energy uture.

This includes:

introducing a carbon price promoting innovation and investment in renewable energy

encouraging energy eciency

creating opportunities in the land sector to cut pollution.

The Governments plan to move to a clean energy uture will:

dramatically cut pollution

our clean energy plan will cut pollution by at least 5 per cent compared with

2000 levels by 2020, which will require cutting net expected pollution by at

least 23 per cent in 2020

this is equivalent to taking over 45 million cars o the road by 2020

by 2050 we are committing to cut pollution to 80 per cent below 2000 levels

unleash innovation and investment worth billions o dollars in renewable energy

large scale renewable electr icity generation, excluding hydro, is projected to be

18 times its current size by 2050. Total renewable generation (including hydro)

will comprise around 40 per cent o electr icity generation in 2050

transorm our energy sec tor away rom high polluting sources, like brown coal

the Government will negotiate to close down around 2000 megawatts o

high-polluting coal-red power generation, creating space or new cleanenergy supplies

store millions o tonnes o carbon in the land through better land and

waste management

between now and 2050, around 460 million tonnes o carbon pollution will

be reduced or stored instead o entering our atmosphere under the Carbon

Farming Initiative.

... and move to a clean

energy uture



A carbon price meansa strong and growing

economy

The economy will continue to

grow as Australia embraces a

clean energy uture.

Treasury modelling estimates that

under a carbon price average

incomes grow strongly. Average

incomes are expected to increaseby about 16 per cent rom current

levels by 2020, an increase o

around $9000 in todays dollars.

By 2050, the increase is expected

to be more than $30,000.

National employment is projected

to increase by 1.6 million jobs

by 2020.

An environmental problem with an economic solution

Putting a price on carbon is the most environmentally eective and cheapest way to

cut pollution.

This is a act that is well recognised by economists rom around the world, and

respected institutions such as the OECD and the Productivity Commission.

Currently, releasing carbon pollution is ree despite the act that it is harming our

environment.

A carbon price changes this. It puts a price on the carbon pollution that Australias

largest polluters produce. This creates a powerul incentive or all businesses to

cut their pollution, by investing in clean technology or nding more ecient ways

o operating.

It encourages businesses across all industries to nd the cheapest and most eective

way o reducing carbon pollution, rather than relying on more costly approaches such

as government regulation and direct action.

Breaking the link between emissions and economic growth

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

2010 2020 2030 2040 2050

2010 $ '000 2010 $ '000

0

200

400

600

800

1,000

1,200

0

200

400

600

800

1,000

1,200

2010 2020 2030 2040 2050

Mt CO2-e Mt CO

2-e

GNI per person Emissions

Without carbon pricing

With carbon pricing domestic abatement only

With carbon pricing including abatement sourced overseas as well

A carbon price will cut

pollution



Key eatures o thecarbon price Around 60 per cent o Australias

carbon pollution will be covered by

the carbon price, including pollution

rom electricity generation,

stationary energy, some business

transport, waste, industrial

processes, and ugitive emissions.

A carbon price will not apply to

agricultural emissions or emissions

rom light on-road vehicles.

Households, smaller businesses

and armers will have no direct

obligations under the carbon price.

The carbon price will be xed or

the rst three years, starting at $23.

Ater that it will be determined by

the market.

For the rst three years o the

fexible price period, a price ceiling

and a price foor will apply.

Scope or linking to international

carbon markets and land

abatement programs will help

ensure we are nding the lowest

cost way to cut pollution.

A carbon price will kick start our clean energy uture

The Government is introducing a carbon price, which will commence on 1 July 2012.

For the rst three years the carbon price will be xed like a tax, beore moving to an

emissions trading scheme in 2015.

A carbon price is not a tax on households around 500 o the biggest polluters

in Australia will be required to pay or their pollution under the carbon pricing

mechanism.

Liable businesses will need to buy and surrender to the Government a permit or every

tonne o pollution they produce.

In the xed price stage, that runs rom 1 July 2012 to 30 June 2015, the carbon

price will start at $23 per tonne and rise by 2.5 per cent a year in real terms.

From 1 July 2015 onwards, the price will be set by the market and the number o

permits issued by the Government each year will be capped.

I businesses can lower their pollution, the price they pay will be less. This is how the

carbon price drives innovation and energy eciency.

All revenue rom the carbon price will be used by the Government to:

assist households with price impacts they ace by cutting taxes and

increasing payments

support jobs and competitiveness

build our new clean energy uture.

A new Climate Change AuthorityThe Government will create an independent body, the Climate Change Authority,

which will track Australias pollution levels and provide independent advice to the

Government on the perormance o the carbon price and other initiatives.

... in the cheapest and

most eective way



Over 4 millionhouseholds get

assistance worth120 per cent o theirexpected averageprice impact

A typical couple with no children,

with one person earning just under

$60,000 and their partner earning

around $25,000 will get assistance

that is $288 per year more than

their expected average price

impact.

A sel-unded retiree couple with

a single taxable private income

o $50,000 will get assistance

that provides $524 per year more

than their expected average

price impact.

A low income single person

earning $30,000 will receive

$94 per year more than their

expected average price impact.

A couple, both earning

$35,000, with two children, will

get $247 per year more than theirexpected average price impact.

The Government will ensure that those Australians that need help the most,

particularly pensioners and low and middle income households, will get assistance or

the cost o living impact o the carbon price.

On average, households will see cost increases o $9.90 per week, while the average

assistance will be $10.10 per week.

Over 4 million households will be better o compared totheir average price impact

This means they will receive assistance that provides a bu er o at least 20 per cent

over and above their average price impact.

Almost 6 million households will be assisted to meet theiraverage price impact

This means they will receive assistance that covers at least the average price impact o

the carbon price on their cost o living.

Around 8 million households will get some assistance

This means they will receive some assistance through payment increases and/or

tax cuts.

Households that improve their energy eciency can help the environment and save

money. Because households that do use less energy will still get to keep all o their tax

cuts and payment increases, the carbon price will still provide them with a nancial

incentive to do their bit or the environment.

Helping households



Price impacts ointroducing a carbon

price

The impact o the carbon price

will be modest compared to

other price increases.

The carbon price will increase

prices by 0.7 per cent over

2012-13, as measured by the

consumer price index (CPI).

This is much smaller than the:

2.5 per cent increase

rom the GST and related

tax changes

2.9 per cent average annual

infation between 2001-02

and 2009-10.

More than hal o the revenue raised rom polluters will goto households to help meet price impacts and help them dotheir bit or climate change.

There are two ways that households will receive assistance:

increases in pensions, allowances and amily payments that they may receive

income tax cuts on top o these increases.

The assistance will mean:

Pensioners and sel-unded retirees will get up to $338 extra per year i they are

single and up to $510 per year or couples, combined

Families with two children will get up to $220 in extra Family Tax Benet Part A,

and other amilies will get up to $110 per child

Families will get up to an extra $69 in Family Tax Benet Par t B

Allowance recipients will get up to $218 extra per year or singles, $234 per yearor single parents and $390 per year or couples, combined

On top o this, taxpayers with annual income o under $80,000 will all get a tax

cut, with most receiving at least $300 per year.

On average, households will see cost increases of $9.90 per week, but receive

assistance of $10.10 per week.

Price impact from the introduction of a carbon price compared to history

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Average annual CPI growth

2001-02 to 2009-10

CPI impact of the GST

and related tax changes(2000-01)

Expected CPI impact of the

carbon price(2012-13)

Per centPer cent

... through tax reorm and

increases in payments



Jobs in a Clean EnergyFuture

Moving to a clean energy

uture will provide new

economic opportunities or

Australian workers.

Opportunities will open up in

existing businesses as they move

to operating in a clean energy

uture. Many businesses will investin new technology to generate

less pollution and become

more ecient.

Jobs will also be created in new

clean industries such as renewable

energy generation, carbon arming

and sustainable design, to name

just a ew.

Strong jobs growth as pollution is cut

The Government has careully designed a number o measures to support jobs and

competitiveness as we move to a clean energy uture.

All o these measures have been designed to ensure that Australia continues to

experience strong jobs growth while at the same time providing incentives to cutpollution in our economy.

The Jobs and Competitiveness Program

The Jobs and Competitiveness Program will support local jobs and production, and

encourage industry to invest in cleaner technologies.

The ongoing program will provide $9.2 billion o assistance over the rst three

years o the carbon pricing mechanism, targeted at companies that produce a lot o

carbon pollution but are constrained in their capacity to pass through costs in global

markets. Assistance will be provided to around 40-50 o these emissions-intensive

trade-exposed industrial activities, such as steel, aluminium, cement and zinc

manuacturing. Businesses producing over 80 per cent o the manuacturing sectors

emissions are expected to be eligible or assistance under this program.

The most emissions-intensive trade-exposed activities will receive assistance to

cover 94.5 per cent o industry average carbon costs in the rst year o the carbon

price, with less emissions-intensive trade-exposed activities to receive assistance to

cover 66 per cent o industry average carbon costs. Assistance will be reduced by

1.3 per cent each year to encourage industry to cut pollution.

Regular reviews will ensure that the Jobs and Competitiveness Program remains in

step with international action on climate change and continues to support jobs andcompetitiveness.

Additional measures or manuacturing

The Government is delivering a $1.2 billion Clean Technology Program, over and above

the Jobs and Competitiveness Program, to help directly improve energy eciency in

manuacturing industries and support research and development in low pollution

technologies.

Jobs and

competitiveness



Small business

The carbon pricing mechanismwill impose no red tape on

small businesses they will

have no reporting or compliance

obligations. The Government

is delivering new measures to

help small business improve

their energy eciency and lower

their costs.

The instant asset write-o or

small businesses with turnover o

less than $2 million per year will

be increased to $6,500.

The $40 million Energy Eciency

Inormation Grants program

will empower small to medium

businesses and community

organisations to improve their

energy eciency through

targeted, industry specic advice

on actions to reduce energy use.

Food processing, metal oundries, steel manuacturing andcoal mining

$200 million o the Clean Technology Program supports jobs in ood processing,

metal orging and oundry industries. This program recognises the energy costs these

businesses ace and targets assistance at important energy eciency opportunities.

The $300 million Steel Transformation Plan will support and assist the industry

transition to a clean energy uture, and recognises the pressures currently acing this

important industry.

The $1.3 billion Coal Sector Jobs Package will provide transitional assistance to help

the coal industry to implement carbon abatement technologies or the mines that

produce the most carbon pollution. The amount o carbon pollution produced by coal

mines varies greatly, so the airest way to deliver assistance is to target assistance at

those mines that are most impacted by the introduction o the carbon price.

...in a clean energy

uture



Record Support orRenewables

Together with the carbon price

and Renewable Energy Target, the

Clean Energy Finance Corporation

and the Australian Renewable

Energy Agency will drive the

biggest expansion in the clean

energy sector in Australias

history, building a critical mass

o renewable energy, energyeciency and low-emissions

generation projects.

Over $13 billion will be invested in clean energy projects

The carbon price will provide a very signicant incentive or the development o clean

technologies, especially renewable energy. The Government will complement this

market signal with targeted investments to bring orward new technologies at as low

a cost as possible.

A Clean Energy Finance Corporation

A $10 billion new commercially oriented Clean Energy Finance Corporation (CEFC) will

be established to drive innovation through commercial investments in clean energy

through loans, loan guarantees and equity investments.

The CEFC will leverage private sector nancing or renewable energy and clean

technology projects, investments critical to the transormation o the Australian

economy. It will identiy projects and remove barriers that would otherwise prevent

the nancing o large scale renewable energy projects.

Investments will ocus on renewable energy, energy eciency and low emissions

technologies and the transormation o existing manuacturing businesses to re-ocus

on meeting demand or inputs or these sectors.

The CEFC will be run by an independent Board made up o experts in banking,

investment management and clean energy and low emissions technologies.

The Australian Renewable Energy Agency

A new, independent statutory body, the Australian Renewable Energy Agency

(ARENA), will be created to coordinate around $3.2 billion in existing grant unding

programs supporting research, development and demonstration o new renewableenergy technologies.

The establishment o ARENA as an independent statutory body presents a unique

opportunity to adopt a holistic approach to nancing the research, development,

commercialisation and demonstration o renewable energy technologies.

Investing in renewable

energy and cleantechnologies



Growing our SolarPower Capacity

The Government is bringing

orward a new era in large-scale

solar generation. Grid-connected

solar power stations will be

built and will supply up to

1000 megawatts o clean

energy generation to Australias

electricity market.

The Government has recently

announced that $464 million has

been awarded to Solar Dawn, a

thermal solar power station to be

built in Chinchilla, Queensland

and $307 million has been

awarded to Photovoltaic Moree

Solar Farm in New South Wales.

These two power stations areexpected to be in operation

rom 2015, and will be two o

the largest solar installations in

the world, supplying enough

electricity or 115,000 Australian

homes per year.

...to transorm our

energy sector

Australias Renewable Energy Target

The Governments Renewable Energy Target will ensure that 20 per cent o Australias

electricity comes rom renewable sources by 2020.

The Renewable Energy Target (RET) is accelerating the widespread commercial

availability o renewable energy technologies, and helping to smooth the transitionto a clean energy economy. The Governments plan is expected to drive around

$20 billion o investment in renewable energy by 2020, in todays dollars. The RET is

supporting both large scale renewable energy projects, such as wind arms and solar

plants, and small scale installations or households, small business and community

groups.

The RET will mean that by the early 2020s the amount o electricity coming rom

sources like solar, wind and geothermal be will almost as large as all o Australias

current household electricity use.

Working with industry to power Australias energy utureThe Government will provide grants o up to $200 million over ve years through

the Clean Technology Innovation Program to support business investment in

renewable energy, low emissions technology and energy eciency. This could support

manuacturers to develop new clean technology products.

This unding will be in addition to the broader research and development tax credit.



Transorming the waywe generate power

Coal-red electricity generation

accounts or 75 per cent o

Australias electricity, and

a substantial proportion o

Australias carbon pollution. In

act, Australia has the highest

polluting electricity sector o all

OECD countries due to our reliance

on coal, and our pollution is set toincrease signicantly with rising

demand or electricity.

Australias electricity generation

technologies will undergo a

comprehensive transormation as a

result o the carbon price. This will

drive a shit rom coal to gas and

renewable generation.

We will saeguard our energy security while moving toclean energy

The Government will implement measures to underpin a successul energy market

transition and maintain secure energy supplies.

An Energy Security Fund to promote security andtransormation

An Energy Security Fund will be established to ensure there is a smooth transition in

our energy sector as we move to a clean energy uture.

The Government will seek to negotiate the closure o around 2000 megawatts o

highly polluting generation capacity by 2020. Closing down some o our high polluting

coal-red capacity makes room or investment in low pollution plant, and kick starts

the transormation o our energy sector in a responsible way.

Electricity generators that are strongly aected by a carbon price will be supportedwith cash assistance and ree permits in return or adopting clean energy investment

plans showing how they will reduce their pollution.

In addition to the Energy Security Fund, the Government will also provide the ollowing

measures to saeguard energy security and encourage transormation o the sector:

Short-term loans to generators to help nance purchases o carbon permits.

An Energy Security Council will advise the Government on emerging energy

supply risks.

The Government will work with the Australian Energy Market Operator to ensure

its transmission planning role prepares us or the clean energy transormation andgreater integration o renewable energy to the electricity grid.

Moving towards a clean

energy uture



Supporting new uelefcient vehicles

A new wave o vehicles will soon

become available that are cleaner

and cheaper to run. Under new

standards being introduced rom

2015, all car manuacturers will

be required to reduce emissions

levels rom vehicles they sell by

introducing better technologies.

The Government is working with

the automotive industry to set

the emissions levels that will

apply under the new standards.

On top o reducing carbon

pollution rom transport, this

initiative will deliver real cost

savings or motorists through

improved uel eciency innew vehicles.

The Government will reduce transport pollution at lowestcost to households

The Governments Clean Energy Future Plan will deliver reductions in pollution rom

the transport sector while also keeping the cost to households down.

Households will pay no extra at the bowser due to thecarbon price

The Government understands that uel costs are a signicant share o many household

budgets and that households and most small businesses already pay excise on the uel

they use.

For these reasons, the Government has decided that household and small business use

o light on-road vehicles will not ace a carbon price on their uel.

Encouraging lower pollution in business transport

Unlike households, many businesses are eligible or a uel tax credit to o set their

uel excise.

From 2012-13, some businesses will ace an eective carbon price on their use o

transport uels through reduced uel tax credits. Combined with new emissions

standards or vehicles, this will help to reduce carbon pollution in the transport sector.

Businesses in the agriculture, sheries and orestry industries will be exempt rom the

reduction in uel tax credits and will thereore be shielded rom the eective carbon

price on their transport uel costs. This will help keep ood costs down or households.

As aviation uels do not receive uel tax credits, domestic aviation uel excise will beincreased by an amount equivalent to the carbon price.

It is the Governments intention to apply the uel tax credit arrangements to the heavy

on-road vehicle industry rom 2014-15.

Cutting pollution in our

transport sector



A signifcant boost orbiodiversity

The new Biodiversity Fund

will support projects that

deliver biodiversity and related

environmental benets.

Australia has highly diverse

native ecosystems. Biodiversity

plays a crucial role in maintaining

the productive capacity o ourlandscape. Restoring native

vegetation and soil carbon can

build and protect our biodiversity.

Over the period to 2014-15,

$1 billion will be provided

through the Biodiversity Fund

and other land-based measures

to landholders to establishnew native vegetation and

habitats in targeted areas o

high conservation value and to

maintain or enhance existing

native vegetation or its carbon

and biodiversity benets.

These measures will help protect

Australias ecosystems, building

resilience to the impacts o

climate change.

Carbon Farming Initiative: bringing new opportunities tothe regions

The Governments Carbon Farming Initiative (CFI) is a key program that will provide

economic rewards or armers and landholders who take steps to reduce carbon

pollution. It will do this by creating credits or each tonne o carbon pollution which

can be stored or reduced on the land.

The CFI will create a new income stream or armers, new jobs or rural and regional

Australia and provide strong incentives to identiy and implement low-cost methods o

pollution reduction.

Driving participation in the Carbon Farming Initiative

Through the new Carbon Farming Futures program, unding will be provided to the

land sector or research, measurement and to take action on the ground including

support or new conservation tillage equipment. Farmers will be provided with the

tools to understand how to generate carbon credits and benet rom carbon arming.

Building job skills or the uture

The CFI will increase the demand or service providers such as carbon brokers,

auditors, natural resource management bodies and authorities, arm ex tension

ocers and advisors, and agronomists. The Carbon Farming Skills program will

ensure that there are people in regional Australia with the necessary skills to support

implementation o the CFI. It will urther drive the development o the carbon

jobs sector by setting up a training and accreditation system, boosting rural and

regional employment.

Guaranteed purchase o carbon credits

The Government will purchase carbon credits through the CFI non-Kyoto Carbon Fund.

This program will create incentives to undertake land-based action such as the storing

o soil carbon, revegetation and orest conservation.

Creating opportunities in

the land sector



Carbon Farmingwill beneft arm

productivity and theenvironment

Carbon arming projects can

increase resilience to the impacts

o climate change, protect our

natural environment, and increase

arm protability and ood

production. Increasing carbon

storage in agricultural soils improvessoil health and productivity.

Revegetation will help restore

degraded landscapes, provide

biodiversity habitats and corridors,

and help to address salinity, protect

livestock and reduce erosion.

For example, armer Elsie could take

up a new tax oset to buy no-till

arming equipment to improve

her soil productivity and water

retention. She could also plant

mixed species on an area o her

property to connect an important

wildlie corridor. Elise would have

income rom government purchased

soil carbon credits, biodiversity

unding and tree planting credits

which could be sold to pollutersunder the carbon price.

...to improve productivity,

sustainability andresilience

Regional planning or climate change

National Resource Management (NRM) organisations will receive additional unding

to incorporate the impact o climate change in their regional NRM plans and detail

scenarios o climate change impacts on a regional level. The plans will provide a guide

or nding the most appropriate locations or new projects to store carbon as part o

the CFI.

Support or Indigenous participation

The Indigenous Carbon Farming Fund will help Indigenous Australians to take ull

advantage o the CFI. This will make it easier or indigenous groups to participate

in the CFI by addressing barriers associated with communal and non-exclusive

land tenure.

Governance

The Land Sector Carbon and Biodiversity Advisory Board will be created to provideadvice to Government on administering these measures.



How can I save moneyand reduce my own

pollution?

Energy eciency improvements

around the home require the right

know-how. The Governments

LivingGreener website

(www.livinggreener.gov.au)

provides inormation on living

sustainably and will connect to all

Commonwealth, state and territoryenergy eciency and climate

change programs.

The website will include

inormation on how households

can improve energy eciency

to save dollars and cut

carbon pollution.

A household inormation and

telephone advice line will

assist those who cant access

inormation online. Inormation

will also be provided via social

media channels.

Energy efciency involves conserving energy use, avoidingwaste and working smarter it makes sense

Australia can reduce carbon pollution by improving energy eciency across

Government, business and households. Small actions can mean a big dierence

overall, and simple improvements to the way we do things also enable us to save

money. Thats why energy eciency is a key part o the Governments plan or a clean

energy uture.

The Government will be urther developing a national energy savings scheme that

could reward energy eciency actions across households and businesses.

Helping households save money on their energy bills

The Government will be supporting households to use energy more wisely by

providing advice, including through the Living Greener website, which provides

inormation on how households can save money by improving their energy eciency.

Low Carbon Communities is being expanded to $330 million to und projects to help

low income households, local governments and community organisations save energy.

The Remote Indigenous Energy Program will provide around 55 remote indigenous

communities with unding to install renewable energy systems, reducing reliance on

diesel or electricity generation.

Helping businesses become more energy efcient

The carbon price will provide strong incentives or businesses to improve their energy

eciency. The Government will help businesses in this process through a range o

measures, including the $1.2 billion Clean Technology Program.

In addition, the Government is establishing a program or industry associations and

non-government organisations to deliver tailored inormation to small businesses and

community organisations on ways to manage carbon price impacts.

Encouraging energy

efciency



Every little bit helps

The average Australianhousehold produces around

14 tonnes o carbon pollution

each year. Small changes at

home can reduce energy use and

provide signicant savings. For

example, it is estimated that or a

amily o our in just one year:

Washing clothes in cold rather

than hot water can savearound $90

A solar hot water system

(replacing an electric system)

could save over $400

Getting rid o the second

ridge could save around $180

Using a clothesline instead o

an electric dryer once a week

could save around $55

Switching o appliances at

the power point could save up

to $100

We are already making a dierence through a range osuccessul Government initiatives

Energy eciency labelling on appliances and Minimum Energy Perormance Standards

help consumers make inormed energy choices and remove the most inecient

appliances rom the market.

Assistance is being provided to support installation o solar hot water systems and

small renewable energy generation units, such as roo top solar panels, and small scale

wind and hydro electricity systems, through the Renewable Energy Bonus Scheme

Solar Hot Water Rebate (REBS) and Solar Credits.

Incandescent light bulbs and electric hot water systems are being phased out.

Energy eciency in buildings is being improved by setting minimum standards or new

buildings and driving energy eciency targets in Australian Government operations.

Sources of household emissions in Australia:

0

5

10

15

20

25

30

35

40

45

CookingLightingWasteAppliancesTransportWater

heatingSpaceheating

Spacecooling

Standbypower

Percentageofaveragehouseholdemissions

private vehicles

domestic flights

public transport

...means saving money

and reducing pollution



Key components o the Governments

plan or a Clean Energy Future

Household assistance

Income tax cuts, increased family payments and pension rises 3 $14.9 billion over the forward estimates1

Support or jobs

Jobs and Competitiveness Program $9.2 billion over the forward estimates1

Clean Technology Program $1.2 billion over 7 years from 2011-12Coal Sector Jobs Package2 $1.3 billion over 6 years from 2011-12

Support or energy markets

Energy Security Fund $5.5 billion over 6 years from 2011-12

Clean energy

Clean Energy Finance Corporation4 $10.0 billion over 5 years from 2013-14

Australian Renewable Energy Agency5 $3.2 billion over 9 years from 2011-12

Energy efciency

Low Carbon Communities6 $330 million over 6 years f rom 2010-11

Small business support $240 million over the forward estimates1

Land sector

Biodiversity Fund and other land-based measures $1.0 billion over the forward estimates1

1. The orward estimates are the period rom 2011-12 to 2014-15.

2. Government-only measure.

3. Also includes residential aged care assistance and the Essential Medical Equipment Payment.

4. The Clean Energy Finance Corporation will make investments by purchasing nancial assets. The headline investments o $2 billion per year do not directly impact on theGovernments underlying cash balance.

5. Includes existing unding as well as unds held in the Australian Centre or Renewable Energy special account.

6. Includes existing unding o $80 million over our years rom 2010-11.


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clean energy future overview

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