13 September 2016, Renew Economy, Coalition, Labor agree to slash $500m from ARENA budget. The Australian Renewable Energy Agency will have its funding slashed by $500 million after Labor and the Coalition agreed on Tuesday to a compromise deal on the government’s omnibus budget repair package. As RenewEconomy flagged last week, the compromise came after ARENA sought to strike a last-minute compromise on its funding position, in an effort to continue its support of critical research and early stage development in new renewable energy and storage technologies. Several scenarios were reportedly outlined by the Agency’s board, including that the cuts be reduced to $300 million or $500 million. The Agency has been awaiting news of its fate since March, when the Turnbull-led Coalition proposed to essentially de-fund it and replace it with a new “Clean Energy Innovation Fund.” The two mainstream parties finally agreed on stripping $500 million from the remaining $1.3 billion legislated budget in the agency that was created by Labor in 2012, but which the Coalition has spent three years trying to dismantle, along with the Climate Council, the Climate Change Authority, the carbon price, and originally the renewable energy target and the Clean Energy Finance Corporation. There has also been a furious public and industry-based campaign to save ARENA, both from state governments, the renewable energy industry, NGOs, and researchers, who warn that Australia will face an exodus of R&D capabilities and new technologies if the cuts go ahead. Just last week, ARENA announced the 12 large-scale PV projects that won grants in what many thought might be the agency’s last major funding round. The tender was credited for reducing solar PV costs by 40 per cent, and a similar program is being sought for large-scale solar thermal with storage. Labor says it will seek talks with the Coalition over the funding priorities for ARENA. Both parties had expressed interest in solar thermal with storage, which is considered a critical new technology for a high renewables grid. In the meantime, the party is taking credit for “saving” ARENA. But others are not so complimentary, like the Greens, who described Labor as “clean energy charlatans” because of the move. “Labor had absolutely no reason to cut half a billion dollars out of ARENA,” climate change spokesman Adam Bandt said. “If Bill Shorten had joined with the Greens and the crossbench, we could have stared the Coalition down and found fairer places to raise revenue.” Read more here
Tag Archives: Emissions
13 September 2016, Renew Economy, Interminable climate argument is costing us solutions for our future. It is fair to say that people are getting fairly tired of the climate change debate in Australia. Whenever the issue emerges, all you see and hear is heated disagreement. Usually name calling then ensues – “environment evangelists”, “big polluters” and political “sell outs” become all too common catch phrases. These are points that avoid addressing the fundamentals of what we are trying to achieve.That is, to make effective, pragmatic decisions and to take action now that will address the economic and safety challenges climate change is confronting us with. It’s not a difficult concept. And we have to play a credible part in assisting the rest of the world to do this.Yet, over the last week or so, we have seen tiresome name calling return after the Climate Change Authority – the Parliament’s climate change advisory group – released a report that suggested a fresh approach to these decisions and actions. It was asked to outline a pathway for the current Parliament to agree on a policy framework that would actually stop Australia’s emissions from continuing to increase, so they would start to fall, in line with the international commitments Australia has made under the Paris climate agreement last year. This is an agreement around 180 countries of the world have entered into in an historic attempt to deliver economic prosperity and safety to all of us. This report was quickly followed by a dissenting report from two of the Authority’s own members, which stated that the Climate Change Authority had not gone far enough and had made compromises for political expediency. They said it had failed in its own mandate to provide rigorous independent science-based advice to the Australian community. The merry go round continued. Once again we fell into discussing the merits of “emissions intensity schemes” and other arcane policy solutions. Read More here
7 September 2016, Climate Home, EU-sized coal fleet shelved since Paris climate deal. China and India are cracking down on excess projects, but remaining pipeline will still blow the 2C carbon budget, say analysts. The volume of coal plants in planning worldwide fell dramatically in the first half of 2016, as China and India tightened up their policies. That is according to data meticulously gathered by researchers at Coal Swarm from company, media and NGO reporting. Between January and July, more projects were shelved or cancelled than added, shrinking the pre-construction pipeline by 158GW – a change of 14%, equivalent to the EU’s entire coal power fleet. The cooling off follows a landmark climate summit in Paris, where 195 countries agreed last December to phase out greenhouse gas emissions. Coal is the biggest source of emissions from energy worldwide and a prime target for climate policy. “It is very significant,” Coal Swarm director Ted Nace told Climate Home, although he added the remaining 932GW in the works would still blow the 1.5C and 2C carbon budgets. Read More here
6 September 2016, Renew Economy, G20 baulks at ending fossil fuel subsidies, “dumbest” policy of all. The G20 meeting in China may have been notable for the decision by both China and the US – the two biggest carbon emitters on the planet – to ratify the Paris climate treaty, an initiative that will almost certainly see the deal come into force by 2017, three years earlier than anticipated. But the grouping of the world’s most powerful nations is still taking little action on ending fossil fuel subsidies, despite agreeing to the move in 2009 to end what has been described as the “dumbest policy” in the world. The International Energy Agency estimates that countries spent $US493 billion on consumption subsidies for fossil fuels in 2014, while the UK’s Overseas Development Institute suggests G20 countries alone devoted an additional $US450 billion to producer supports that year. Throw in the unpaid environmental and climate impacts, and the International Monetary Fund puts total annual subsidies for fossil fuels at more than $5 trillion. Last week, the Bloomberg Editorial Board said fossil fuel subsidies were the dumbest policy they could find in the world, saying that the “ridiculous” outlays would be economically wasteful even if they didn’t also harm the environment. “They fuel corruption, discourage efficient use of energy and promote needlessly capital-intensive industries,” the Bloomberg team wrote. “They sustain unviable fossil-fuel producers, hold back innovation, and encourage countries to build uneconomic pipelines and coal-fired power plants. “Last and most important, if governments are to have any hope of meeting their ambitious climate targets, they need to stop paying people to use and produce fossil fuels.” The Bloomberg team said the G20’s pledge in 2009 is “no use” and “too vague”, and called on the governments to first agree on a standard measure to report various subsidies (Australia, for instance, rejects the claims by NGOs and others that it has $7 billion a year in fossil fuel subsidies) and to set strict timelines for eliminating them. They didn’t; despite the call being echoed by 200 civil society groups, and multi-national insurers with $1.2 trillion in assets, led by Aviva, who called on the G20 leaders to “kick away the carbon crutches” and end fossil fuel subsidies by 2020. Read More here