Australia Has No Climate-change Policy  Again
Emily Hanna, Science, Engineering science, Environs and Resources
Key Result
Climate policy continues to be controversial. Following the repeal of the carbon price in the last parliament, the Emissions Reduction Fund (ERF) is at present Australia's main mechanism to reduce greenhouse gas emissions. However, two-thirds of the ERF's allocated $2.5 billion funding has now been spent. The ERF, and other policies, will demand further funding to achieve our climate targets.
Under international climate agreements, Commonwealth of australia has two targets to reduce our greenhouse gas emissions:
- 5% below 2000 levels past 2022 (under the Kyoto Protocol) and
- 26-28% below 2005 levels past 2030 (under the Paris Understanding).
While Commonwealth of australia appears to be on track to meet its 2022 target, achieving the 2030 target may prove challenging. To reach this target we need to know where our emissions are coming from and have constructive policies to reduce those emissions.
Where exercise our emissions come from?
The Australian Government tracks our emissions of greenhouse gases (such as carbon dioxide and methane) through National Greenhouse Gas Accounts. The Department of the Environment and Energy publishes regular Quarterly Updates on Australia's greenhouse gas emissions.
Co-ordinate to the most recent Quarterly Update, issued in May this year, Australia produced 535.7 million tonnes of carbon dioxide equivalent (Mt CO2-e) emissions. These emissions came from diverse sectors:
- Energy (Electricity)—187.v Mt CO2-e (or 35% of the full emissions) were produced past fuel combustion to make electricity (on- and off-grid).
- Energy (Directly combustion)—94.v Mt CO2-e (eighteen%) were produced by fuel combustion straight used in energy, mining, manufacturing, buildings and primary industries. Direct combustion excludes electricity use and send.
- Transport—93 Mt CO2-east (17%) came from fuel combustion used in route, rail, domestic shipping and aviation, off-route recreational vehicles and pipeline transport.
- Agronomics—68.5 Mt COii-e (13%) were produced from livestock (approximately 70% of agricultural emissions), awarding of fertilisers and soil additives, soil emissions and burning of agricultural residues.
- Avoiding emissions—39.6 Mt COii-e (7%) were produced from fugitive gas emissions from coal, natural gas and oil extraction, processing and supply. Fugitive emissions can be unintentional (for example, a leak) or intentional (such as the burning of waste gases). The primary source is coal mines (66%), with hugger-mugger coal mines producing more surface mines.
- Industrial processes—33.vii Mt COii-e (6%) were produced from industrial and product processes that do non create free energy. This includes metal production, chemic industry processes and synthetic gas production and utilise (for example, hydrofluorocarbons).
- Waste matter—12 Mt COii-e (two%) were produced from waste decomposition, treatment and combustion. This includes solid waste in landfill (the major source in this category), waste in wastewater and compost.
- Land use, land use change and forestry —6.5 Mt CO2-eastward (1%) were produced from deforestation (such as state clearing), reforestation, revegetation and wood, crop and grazing lands management. At that place is a greater level of uncertainty in calculating emissions for this sector.
Australia's climate policies
To meet our international climate targets we will need to reduce emissions across all the sectors outlined above. Withal, finding bipartisan agreement on the near advisable policies to accomplish these reductions has been challenging. Climate policy has been a polarising and highly political issue in Australia. Several proposals to institute an emissions trading scheme accept come up unstuck, with the former ALP Government finally establishing a carbon pricing mechanism in 2012. However, the 'carbon tax' was repealed by the Abbott Government in 2014. Instead, the Emissions Reduction Fund (ERF) is now the centrepiece of the Australian Government'due south electric current policies to limit greenhouse gas emissions.
The Authorities is relying on the ERF, as well as a number of other policies, to reduce our greenhouse gas emissions, and meet our 2030 climate target (see Effigy 1). These policies are designed to reduce emissions, increase energy productivity, and boost the uptake of renewable energy.
However, questions have been raised every bit to whether these policies, specially the ERF, are sufficient to achieve our 2030 target, item given that many do non currently announced to take sufficient funding.
The Climate Alter Authority (discussed below) is currently reviewing whether Australia should accept an emissions trading scheme, as well considering the policies that Commonwealth of australia should implement to meet the Paris climate agreement. The Authority's study on these bug will be released by the end of August 2016.
Effigy 1: Australia's climate policies
Source: Department of the Environment
Emissions Reduction Fund
The ERF is a voluntary scheme designed to provide fiscal incentives for businesses, landholders and communities to reduce emissions. Under the ERF, the Government purchases greenhouse gas abatement, quantified by Australian Carbon Credit Units through an auction process administered past the Clean Free energy Regulator. Before a project can participate (or bid) in an ERF sale, information technology must be eligible and registered with the Clean Energy Regulator.
So far, iii auctions have been held under the ERF, resulting in the buy of 143 1000000 tonnes COtwo-e in emissions reductions at an average cost of $12.10 per tonne. Of the $two.55 billion allocated to the ERF, over $1.7 one thousand thousand, or around two-thirds, has now been spent, leaving $816 million remaining. Further funding for the ERF will apparently 'be considered in hereafter budgets'.
A range of projects to reduce emissions accept been funded under the ERF so far. These include, for example, projects to supercede Melbourne street lights with more energy efficient low-cal bulbs, native forest and vegetation regrowth projects and the apply of gas from waste matter to create energy.
However, the ERF has been criticised as an inefficient way of reducing our emissions, among suggestions that the Government is paying polluters for emissions reductions that would accept happened anyway even without the scheme. The Climate change Authority concluded in a 2022 report that 'past itself, and every bit currently funded, the [ERF] scheme is unlikely to deliver sufficient emissions reductions to reach even Australia'due south minimum 2022 target'.
The ERF likewise includes a 'safeguard machinery', which aims to ensure that emissions reductions achieved by the ERF are not first by rises in emissions elsewhere. The safeguard mechanism came into outcome on 1 July 2016, and encourages big businesses not to increase their emissions to a higher place historical levels. The mechanism applies to emitters with annual emissions of over 100,000 tonnes CO2-eastward. While the machinery has been criticised equally weak, some commentators have suggested information technology could provide the footing for an emissions trading scheme. The mechanism will be reviewed in 2017.
Energy productivity
To encounter our 2030 emissions reduction target, the Regime is too relying on the National Free energy Productivity Program (NEPP), which aims to heighten free energy productivity by 40% between 2022 and 2030. Energy productivity combines traditional energy efficiency measures (such every bit more efficient appliances) with new technology and services (such every bit smart appliances and solar power). The main aims of NEPP are to encourage more productive consumer choices and promote more productive energy services.
Measures listed in the NEPP include, for example, improved vehicle efficiency; and improved residential building energy ratings and disclosure. The NEPP could issue in reduced greenhouse gas emissions in numerous sectors including send, agriculture, industry, and electricity.
The Authorities expects the NEPP to contribute over ane quarter of the emissions reductions required to encounter our 2030 target. Nonetheless, as of July 2016, at that place does not announced to be whatsoever boosted funding specifically allocated to implement this programme.
Other policies and measures
Renewable energy is an important method of reducing emissions in the free energy sectors, which produce over half of Australia'south emissions (see above). Policies to increase uptake of renewable energy are discussed separately in the brief on renewable energy policy.
The Government has also appear measures to further reduce emissions of hydrofluorocarbons (HFCs) by 85% by 2036, with measures planned to kickoff by 2018. These potent greenhouse gases are unremarkably used in refrigeration and air conditioning. The Government has said it will implement measures to reduce HFC emissions by up to eighty Mt CO2-due east by 2030. These measures include banning imports of HFC containing equipment and working with business to encourage proper installation and maintenance of HFC-containing equipment to reduce gas leakage and free energy utilize.
The Government is also exploring options for improving the fuel efficiency of Australia's vehicle fleet, through the Vehicle Emissions Ministerial Forum, established in October 2015. The Forum released a Word Paper in February 2022 to seek views on measures to reduce emissions from the road transport sector. This includes consideration of Euro six vehicle emissions standards, improved fuel quality standards and measures to increase the fuel efficiency of light vehicles.
Climate informational bodies
Equally part of a package of measures forth with the 'carbon tax', the onetime ALP Government created government agencies to review climate alter policies and conspicuously communicate climate scientific discipline to the public.
The Climate Alter Authority is an independent statutory authorization which came into effect in 2012. Information technology provides the government and parliament with 'rigorous, independent advice on climate modify policies to improve the quality of life for all Australians'. It does this by carrying out reviews on climate change policies and initiatives such as the Renewable Energy Target.
The Abbott Government introduced legislation in the final parliament in an try to abolish the Climate Change Authority as part of its effort to dismantle the former ALP Government's climate policy construction. However, the first abolition Bill was rejected by the Senate, while the second Bill eventually lapsed. Although the attempted abolitionism was non successful, one one-half (four) of the Authorization'southward Board member positions were left vacant for over a year from 2014. This occurred subsequently the members quit because, co-ordinate to some commentators, the and so-Government:
... made it articulate that it would non heed to its [the Climate change Authority's] communication (although it does seem to have been influenced by its recommendations on vehicle emissions standards and international permits).
These actions resulted in the Climate Modify Say-so's future being questioned by commentators. Although new Board members were appointed in belatedly 2015, the Authority's time to come is still unclear, given that information technology is currently not funded beyond 2017.
In contrast, the Abbott Government successfully abolished the Climate Commission in 2013. The Climate Committee had been fix past the Gillard Government to communicate climate science to the Australian public in an understandable manner. Such was the public outcry afterward the Climate Committee's dismantling, that a social media campaign to crowd-fund a replacement body raised nearly $1 million in under i week. The resultant independent Climate Council aims to:
... provide independent, authoritative climate alter data to the Australian public. Why? Because our response to climate change should be based on the best scientific discipline available.
As well as providing information on climate-related scientific discipline and climatic change impacts (for example, health), the Climate Council provides reports on policies related to climate change such as renewable energy. The not-for-turn a profit Climate Commission continues to rely on public donations to support its piece of work.
Further reading
A Talberg, S Hui and K Loynes, Australian climatic change policy to 2015: a chronology, Inquiry paper series, 2015-16, Parliamentary Library, Canberra, 5 May 2016.
Climatic change Authority, Australia's climate policy options, Climate Modify Authority, 2015.
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