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Wednesday, November 20, 2013

Emissions Reduction Handouts

The Coalition Government has a plan.

It is full of hope.

No facts are available.

The Coalition Government intends to repeal the Clean Energy Future legislation BEFORE any details of its replacement legislation have been written.

Update, 18 December 2013 - Direct Action Plan in tatters
Today Tony Abbott said "We've got to accept though that in the changed circumstances of today the renewable energy target is causing pretty significant price pressure in the system."

Not too long ago Tony Abbott proclaimed that the carbon tax was THE cause of energy price pressures. When pressed at an interview he could not think any other policy measure to limit rising energy prices. (See his interview with Lisa Wilkinson on 14 November 2012: Abbott: The Man without a Plan )

Just 100 days ago Tony Abbott went to an election with his Direct Action Plan.
In that plan he said: "Our goal is for one million additional solar energy roofs on homes by 2020, including either solar power or solar water heating systems.

To achieve the goal of one million additional solar energy roofs by 2020, the Coalition will provide an extra $1000 rebate for either solar panels or solar hot water systems. The program would be capped at 100,000 rebates per year and would therefore be capped at a total cost of $100 million per year."

Key Dates  
Release of Emissions Reduction Fund Terms of Reference 16 October 2013
Submissions due in response to Terms of Reference 18 November 2013
Release of Green Paper December 2013
Release of White Paper and Exposure Draft legislation Early 2014
Commencement of Emissions Reduction Fund 1 July 2014

The Coalition Government claims it is committed to reducing Australia’s emissions by 5 per cent from 2000 levels by the year 2020.

Legislation to repeal the carbon tax [sic, Clean Energy Future legislation] is the first Bill it has brought before the new parliament. 

In place of the carbon tax, the Government will give handouts (institute incentives) for businesses, farmers, households and other entities to invest in technologies that it hopes will reduce our emissions at lowest cost.

Direct Action handouts - socialism disguised as environmentalism
Direct Action handouts - socialism disguised as environmentalism

The Government is hoping this Direct Action Plan will efficiently and effectively source low cost emissions reductions that will contribute towards our 2020 target.

The Government has on 18 November 2013 completed receipt of submissions on the design of the Emissions Reduction Fund, the centrepiece of the Direct Action Plan. 

Emissions Reduction Fund 

The Emissions Reduction Fund will commence operations on 1 July 2014, after the repeal of the carbon tax, and will be designed to purchase low cost abatement. 

The Government sought business and community views from 16 October to 18 November 2013 on the design of the Emissions Reduction Fund including:
  • the likely sources of low cost, large scale abatement to come forward under the Emissions Reduction Fund;
  • how the Emissions Reduction Fund can facilitate the development of abatement projects, including through expanding the Carbon Farming Initiative and drawing on the National Greenhouse and Energy Reporting Scheme;
  • the details of auction arrangements to deliver cost effective outcomes;
  • the governance arrangements that will support the Emissions Reduction Fund, including the role of key institutions such as the Clean Energy Regulator; 
  • the details of the monitoring, verification, compliance and payments arrangements for successful bidders at auction;
  • transitional issues relating to the existing Carbon Farming Initiative; and
  • the design and operation of a mechanism applying to emissions above the business as usual baseline.