01.02.2014 Views

Copy of december 2011.pub - Lazyfish Technology

Copy of december 2011.pub - Lazyfish Technology

Copy of december 2011.pub - Lazyfish Technology

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

December 2011 Kangaroo Valley Voice www.kangaroovalley.nsw.au Page 32<br />

CEF is not just one big<br />

tax on everything<br />

There are four key elements to the<br />

Government’s Clean Energy Future (CEF)<br />

package: a carbon price, renewable energy,<br />

energy efficiency and action on the land.<br />

This article summarises the package.<br />

Carbon Price<br />

After studying more than 1000 policies to<br />

reduce carbon emissions, the Productivity<br />

Commission identified carbon pricing as the<br />

most cost-effective way to achieve this. This is<br />

a market-based approach in that it uses price to<br />

correct market failures.<br />

To date, the market has failed to provide a<br />

clean environment because until now<br />

businesses have been able to freely emit carbon<br />

pollution; unless they are held accountable<br />

there’s no incentive for them to consider<br />

different ways to conduct their business. Now,<br />

500 <strong>of</strong> Australia’s biggest polluters will have<br />

to pay $23 for each tonne <strong>of</strong> carbon pollution<br />

released into the atmosphere. This provides an<br />

incentive to reduce pollution and use energy<br />

efficiently; it makes clean energy more<br />

competitive and encourages investment in its<br />

development; and, importantly, it provides<br />

funding to assist affected households, support<br />

jobs and implement the other elements <strong>of</strong> the<br />

CEF package.<br />

Nine in 10 households will receive some<br />

combination <strong>of</strong> tax cuts and increased<br />

pensions, allowances or family payments to<br />

help them with the cost <strong>of</strong> living impact <strong>of</strong> the<br />

carbon price. This will be permanent and will<br />

increase in line with the cost <strong>of</strong> living. Details <strong>of</strong><br />

the CEF package, family assistance and how to<br />

reduce energy consumption can be found at<br />

www.cleanenergyfuture.gov.au.<br />

Around 40 per cent <strong>of</strong> the carbon price revenue<br />

will be used to help businesses adjust to change<br />

and support jobs, particularly in energy-intensive<br />

trade-exposed industries (EITE); that is,<br />

industries that require a large amount <strong>of</strong> energy<br />

and compete in the global market against<br />

businesses from countries that don’t yet have a<br />

carbon price. The aim is to assist business and<br />

prevent ‘carbon leakage’ that occurs when<br />

companies move overseas, taking pollution and<br />

jobs with them.<br />

The carbon price, mixed with other economic<br />

incentives and regulations, is intended to<br />

transform the type <strong>of</strong> energy we use and how we<br />

use it. A good example <strong>of</strong> the transformation<br />

process is the electric car. With subsidies, tax<br />

credit, stricter vehicle emission standards and<br />

government investment, the cost <strong>of</strong> electric cars<br />

is coming down (estimated to be down 80<br />

percent by 2020). As it does, the demand for<br />

these products increases. The US aims for 1<br />

million electric cars on the road by 2015; and<br />

major economies aim for 20 million by 2020.<br />

The total cost <strong>of</strong> the CEF package is $3.8 billion<br />

over four years; $2.7 million <strong>of</strong> this will assist<br />

households and businesses adjust. Past<br />

experience in Australia and overseas suggests<br />

that governments underestimate the rate <strong>of</strong><br />

commercial innovation. Once adequate<br />

incentives for innovation are in place, the cost <strong>of</strong><br />

schemes such as this is less than expected.<br />

Renewable energy<br />

More than 85 countries have renewable energy<br />

targets; either legislated or planned. Australia’s<br />

renewable energy target is 20 per cent <strong>of</strong><br />

electricity by 2020. To achieve this, funding is<br />

available to commercialise and deploy clean<br />

energy proposals such as geothermal, wave,<br />

large scale solar and low-emission cogeneration.<br />

The funds will be managed by the<br />

Clean Energy Finance Corporation which will<br />

be independent <strong>of</strong> government with a Chair<br />

from the field <strong>of</strong> banking/investment and board<br />

members with expertise in renewable energy,<br />

low pollution technologies and investment.<br />

An indication <strong>of</strong> the potential for green energy<br />

is the average annual growth rate <strong>of</strong> the<br />

photovoltaic market over the last decade,<br />

which has been 40 per cent/year globally; with<br />

capital cost falling 22 percent for each<br />

doubling <strong>of</strong> capacity.<br />

Energy efficiency<br />

Building codes have been revised for minimum<br />

energy efficiency standards. The CEF package<br />

will provide grants to improve energy<br />

efficiency in local government and community<br />

-use facilities and to assist energy efficiency in<br />

low-income households and remote Indigenous<br />

communities.<br />

Grants and tax breaks will be available for<br />

eligible businesses that invest in energy<br />

efficiency and low-polluting technologies.<br />

Funds will be available to assist educational<br />

institutions and industry to develop training<br />

materials and new skills to adjust to the<br />

changes.<br />

(Continued on page 42)

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!