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Clean Energy Australia Fact Sheet

Clean Energy Australia Fact Sheet

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Clean energy Australia

InvestIng In the clean energy sources of the future

The Government’s plan to move to a clean energy future will:

Unleash innovAtion And investment worth billions of dollars in renewable energy

Help Australians improve energy efficiency at home and work Will reward fArmers, forest groWers and lAndHolders that take steps to reduce carbon pollution and help protect Australia’s biodiversity

For more information visit w w w.cleanenergyfuture.gov.au r o om o i c a n r f r g a

© Commonwealth of Australia 2011 ISBN 978-0-642-74721-1 Ownership of intellectual property rights in this publication Unless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is owned by the Commonwealth of Australia (referred to below as the Commonwealth). Creative Commons licence With the exception of the Coat of Arms, the Clean Energy Future logo and all photos and graphics, this publication is licensed under a Creative Commons Attribution 3.0 Australia Licence.

Creative Commons Attribution 3.0 Australia Licence is a standard form license agreement that allows you to copy, distribute, transmit and adapt this publication provided that you attribute the work. A summary of the licence terms is available from http://creativecommons.org/licenses/by/3.0/au/deed.en. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode. The Commonwealth’s preference is that you attribute this publication (and any material sourced from it) using the following 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 of Arms can be used are set out on the It’s an Honour website (see www.itsanhonour.gov.au)

Printed by CanPrint Communications Pty Ltd

Contents
Overview Financing clean technologies ... will support the transformation of our energy sector Creating and deploying clean energy ... from renewable resources Helping communities and regions ... become more energy efficient Boosting support for farmers and landholders ... to improve productivity, sustainability and resilience Supporting skills in land management ... and unlocking the benefits of biodiversity Helping business ... move to a clean energy future Improving our energy efficiency Helping small business Helping households save energy On the move to more efficient transport 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Overview

Pricing carbon will shift demand towards cleaner energy
New technologies to provide e e clean and affordable alternatiive g s n energy sources have the potential t s to siignificantly reduce the costs g g of tackling climate change. A r r g w carbon price will encourage new investment in renewable energy, v e u n d e such as solar and wind, and more f t ef ficient use of electriicity. Treasur y modelling shows that r d o h with a carbon price, energy from o n h b the renewables sector is projjected o o o e to account for around 40 per cent of our electricity generation c r y 0 g t a by 2050, a significant increase o t o from its current level of around 10 per cent. 0 e

The Government has developed a comprehensive plan to move to a clean energy future. The plan will cut pollution and drive investment in new clean energy sources, such as solar, gas and wind. This transformation is vital if Australia is to meet the environmental and economic challenges of competing in a low-pollution world. The Government’s plan includes: • introducing a carbon price • promoting innovation and investment in renewable energy • encouraging energy efficiency • creating opportunities in the land sector to cut pollution. The countries that develop the technologies and products that allow the world to decouple production from pollution will prosper in the 21st century. The carbon price is fundamental to transforming the Australian economy, in order to allow us to grow industries and jobs with less pollution. The Government will complement this market signal with targeted investments to bring forward new technologies at as low a cost as possible. For those investing in emerging technologies there are ‘knowledge spillovers’. This means that investments in emerging technologies will be lower than desirable because investors cannot capture the full benefit of their investment to the community. By researching and trialling new ideas, the whole country learns more about our clean energy future. The Government is establishing the Australian Renewable Energy Agency (ARENA) to more effectively coordinate support for renewable energy research and development. Technologies that are more developed can still face a range of obstacles in attracting financing. Large scale renewable energy projects often have large up-front costs. Financial institutions may treat these new technologies with caution as they do not have the information required to properly assess the risk of investing in them.

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For more information vist www.cleanenergyfuture.gov.au

The Government is establishing a commercially oriented Clean Energy Finance Corporation (CEFC) to boost private sector investment in renewable energy and clean energy projects. These initiatives will work together with the Government’s Renewable Energy Target (RET) and complement the carbon price. The Government’s plan for a clean energy future represents a historic move to increase Australia’s investment in clean technologies, in particular renewable and clean energy technologies and generation. Energy efficiency measures allow households, businesses and communities to lower energy costs while at the same time contributing to cutting carbon pollution. The plan includes a number of new measures that will create jobs and allow all Australians to benefit from improved energy efficiency. Current barriers to cutting pollution in the land sector limit farmers and landholders’ ability to contribute to and benefit from tackling climate change. Around $1 billion will be spent over the next four years to overcome barriers to participation, reward emissions reductions and recognise important biodiversity co-benefits. This document highlights the most significant measures that will complement the carbon price and help transform the Australian economy.

Record support for renewables
The transformation of our r g n energy sector will drive around 0 $100 billion in investment w e in the renewables sec tor v e 0 over the period to 2050. The Government’s plan to support o e u h s this investment includes: • commercialisation and m p t deployment of clean h u e technologiies through the m n commerciially oriented 0 o n $10 billion Clean Energy n n Finance Corporation • research, development s , d t f and commercialisation of renewablle energy at an early n g o stage through the $3.2 billion s w n Australian Renewable Energy n Agency • research and development a m a of clean technologies h through the $200 miillion c n Clean Technology Innovation Program n • increased use of renewablle e o energy through the carbon e price and the Renewablle y Energy Target.

Clean energy Australia: Investing in the clean energy sources of the future

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Financing clean technologies
Clean Energy Finance Corporation

Mechanisms overseas
Other nations are embracing o a o the oppor tunities to transiition e h to a clean energy future. The e m Conservative United Kingdom (UK) e s o Government has committed to establishing a Green Investment a n n d s Bank to address barriers which are n n constraining the flow of finance to e c clean technologies. The bank will open in April 2012, h n making the UK the first country K s n n in the world to create a bank exclusively dedicated to green v o e n m . investments. There willl be an n n m m initial Government commitment of £3 billion (A$4.5 billlion) n a o s anticipated to mobilise £15 billion in private investment by 2014-15. n t s n 0 The United States Department of h e m f Energy Loan Programs Of fice has e a f s m 5 committed nearly $US35 billion 3 o p (A$32.7 billion) to support e 37 clean energy projects.

The Government will invest $10 billion in a new commercially oriented Clean Energy Finance Corporation (CFEC). The CEFC will leverage private sector financing for renewable energy and clean technology projects, investments critical to the transformation of the Australian economy. It will identify projects and remove barriers that would otherwise prevent the financing of large scale renewable energy projects. The necessary transformation of our energy sector will require the investment of $100 billion in renewable energy over the period to 2050. Additional investments will be required in energy efficiency and in new manufacturing technologies. The Government can play an important role in facilitating and coordinating investment in technologies that financial institutions may not be familiar with. Accordingly, the Government will invest $10 billion in the CEFC, with its mandate including: • the commercialisation and deployment of renewable energy and enabling technologies • the commercialisation and deployment of energy efficiency and low emissions technologies • the transformation of existing manufacturing businesses to re-focus on making the inputs for these sectors. The CEFC will play a vital role in unlocking significant new private investment into clean energy projects and the supply chain that feeds into these projects. It will be independent from Government and be run by a Board of experts in banking, investment management and clean energy and low emissions technologies. Investment decisions will be based on rigorous case-by-case analysis of candidate projects at arm’s length from Government. The fund once mature is expected to be self sustaining.

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For more information vist www.cleanenergyfuture.gov.au

... will support the transformation of our energy sector
The commercially oriented CEFC will support projects using a variety of funding tools such as loans, loan guarantees or equity investments. There will be two funding streams. A $5 billion stream will be exclusively dedicated to investments in renewable energy projects. The other $5 billion stream will fund investments in renewable energy, energy efficiency and clean technology. This may include assistance for businesses manufacturing components for clean energy projects. Renewable energy projects meeting the appropriate criteria will be able to be funded from both funding streams, maximising potential investment in renewable energy. The Government’s approach will be informed by its experience with bodies such as the Export Finance and Insurance Corporation (EFIC). EFIC assists exporters by providing financial services and encouraging the private sector to finance exporting companies.

Energy powered by the ocean
Emerging wave energy g n technology currently being e n trialed off the coast of Scotland is planned to be deployed in u Australia. The ocean trials will test the h n t operation and function of Ocean n f Power Technologies’ (OPT) ) 150 kilowatt PowerBuoy® wave o o ® energy conver ter. y r The PowerBuoy® sits below o u s w a the water’s surface. Inside, a n piston-like structure moves as o s the PowerBuoy® bobs with the n v h rise and fall of the waves. This m e o movement drives a generator, c producing ellectricity, which is sent to the shore by an underwater cable. w b OPT is part of a consortium m w d awarded a grant of $66 million o n from the Government under the e e m o Renewable Energy Demonstration o program. Subjject to the trial meeting a b number of pre-conditions, a e ® 19 megawatt PowerBuoy® will be deplloyed off the coast of Portland in Victoria.

Next steps
The Prime Minister will appoint a Chair of the CEFC who will report back to the Government by early 2012 on a detailed investment mandate for the CEFC, risk management policies and governance arrangements.

Clean energy Australia: Investing in the clean energy sources of the future

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Creating and deploying clean energy
The Australian Renewable Energy Agency

Renewables investment enters new ARENA
The Government will establish a e b n new, independent statutory body e that will incorporate initiatives a previiously admiinistered separately, u y a n including by the Australian Centre a n for Renewable Energy and the u n Australian Solar Institute. ARENA will fund the following R w r m programs: • Renewable Energy Venture e e u u Capital Fund • Emerging Renewablles Program. e o m ARENA will oversee existing A x Government support for programs o s u : such as: • Solar Flagships Program s m • Renewable Energy w s a Demonstration Program and Solar Projects o u h • Australian Biofuels Research s Institute • Geothermal Drilling Program t g c • Connec ting Renewablles Initiative.

The Australian Government is funding around $3.2 billion in renewable energy investment to promote the research and development of renewable energy technologies to fast-track our clean energy future. These programs will be managed by a new, independent statutory body – the Australian Renewable Energy Agency (ARENA). ARENA presents a unique opportunity to adopt a holistic approach to supporting the research, development, commercialisation and demonstration of renewable energy technologies through grants and financing assistance. ARENA will also receive future funding from: • dividends paid by the Clean Energy Finance Corporation (CEFC) • future carbon price revenue should the Jobs and Competitiveness Program be modified following Productivity Commission reviews. It will complement the CEFC which targets the financial barriers to large scale commercialisation and deployment of renewable energy technologies. ARENA’s board will include members with experience in the technology streams that are likely to be considered. The board will also include expertise in commercialisation generally, and business experience specifically. Roughly equal representation between technology skills and commercialisation and business experience will provide balanced recommendations in terms of project viability and the technology ‘fit’.

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For more information vist www.cleanenergyfuture.gov.au

... from renewable resources
Australia has a wealth of untapped renewable resources.
We have some of the world’s best wind resources, and the highest average solar radiation per square metre of any continent in the world. The Government has a range of existing initiatives to support widespread renewable energy in Australia. The Government’s Renewable Energy Target (RET) will ensure that 20 per cent of Australia’s electricity comes from renewable sources by 2020. The RET is speeding up the introduction of commercial renewable energy technologies, and is helping to smooth the transition to a clean energy economy right across Australia. The Government’s plan is expected to drive around $20 billion of investment in renewable energy by 2020, in today’s dollars. The RET is supporting large scale renewable energy projects, such as wind farms and solar plants as well as small scale installations for households, small business and community groups. The RET will mean that by the early 2020s the amount of electricity coming from sources like solar, wind and geothermal will be almost as large as all of Australia’s current household electricity use.

Wind energy boom
Wind energy is the fastest e s g w growing large-scale renewable g energy source in Australia. Wind energy supplied around d p d 0 w r 5,000 gigawatt hours of e c electricity in 2010, which is around two per cent of Australia’s overall electriciity a needs. This clean, renewablle source e n c provided energy equivalent to the e e v e electricity used in a year by over c s e 700,000 homes. 0 o In mid-2011 the Clean Energy d g Council indicated there was an c e s additional 9,000 megawatts of o 0 g t a c m e large-scale wiind farm projects proposed for development e e t around the country. Around r n 0 e w 1,000 megawatts of new p s d capacity is currently under n n construction.

Solar
The Government is bringing forward a new era in large-scale solar generation. The Government recently announced that $464 million has been awarded to Solar Dawn, a solar thermal power station to be built in Chinchilla in Queensland and $307 million has been awarded to the photovoltaic Moree Solar Farm in New South Wales. These two power stations are expected to be in operation from 2015, and will be two of the largest installations in the world, supplying enough electricity for 115,000 Australian homes per year.

Clean energy Australia: Investing in the clean energy sources of the future

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Helping communities and regions
Expanding Low Carbon Communities

Energy efficient communities
The Solar Cities and Smart a r Grid, Smart City initiatives are c g showcasing sustainable energy d p d models to help consumers and retailers to monitor their energy a e y use and use energy more wisely. e s r y So far, Australia’s seven Solar o u o a Ciities have assisted over o m 9,300 households with home energy assessments, installed over s e r 4,600 kilowatts of photovoltaic a o t panels and over 20,000 smart 0 a meters. The Smart Grid, Smart City m r n v t initiative will demonstrate Australiia’s first commercial-scale t m s m r a smart grid. Smar t grids use advanced telecommunicatiions and d d n f o o information technology to allow e o n d energy providers to manage and r y k maiintain our electricity network e 0 c better. This $100 million projec t is c w expec ted to lead to Australia-wide c m advances in energy management u by encouraging a smarter and more efficient energy network. t

The Low Carbon Communities program helps communities and councils improve energy efficiency. Funding for the program will be increased from $80 million to $330 million. The program will be expanded to include two new initiatives aimed at improving the energy efficiency of low income households. The Low Income Energy Efficiency program will provide grants to pilot approaches that assist low income households to reduce their energy costs. The second initiative will fund a new Household Energy and Financial Sustainability Scheme to support low income households to improve their energy and financial sustainability. Grants will also be available for local councils and community organisations to retrofit or upgrade community-use facilities. This will cut their energy costs and serve as demonstration projects to promote energy efficiency in the community.

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For more information vist www.cleanenergyfuture.gov.au

... become more energy efficient
Delivering clean energy to remote communities
The Remote Indigenous Energy Program will help Indigenous communities access clean, affordable and reliable 24-hour power supplies. It will help communities to manage their energy efficiently and use it to contribute to improvements in health, education and long-term economic viability. Over four years, the $40 million program will build on the success of the former Renewable Remote Power Generation Program. It will provide additional financial support to install renewable energy generation systems like solar panels and wind turbines in around 55 remote Indigenous communities. This new program will also include training in power system maintenance and information to support households and communities manage their energy. This program ensures remote communities will also be part of the transformation to a clean energy future.

The future of social housing
Over 16,400 newly constructed 6 u s n homes, built under the Economic u g Stimulus Plan’s Social Housing a p Initiative will incorporate a 6 star t e Nationwide Housing Energy a h Rating Scheme rating. These o e g homes will include greater energy f c ef ficiency measures such as: • energy efficient lighting r • solar or heat pump hot water a e p systems t • heat retaining ventilation a a n • water tanks. t n This wiill assiist tenants to save t a money on future energy billls and t e u u cut pollution.

Clean energy Australia: Investing in the clean energy sources of the future

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Boosting support for farmers and landholders
Farmers and landholders have an important a role to play in reducing carbon pollution as governments, households and the wider business community.

Boosting wider land action
The Government will purchase e h carbon credits through the Carbon n Farming Initiative non-Kyoto o n Carbon Fund. This $250 million g e s a program over six years will create e s incentives to undertake land-based t c g action such as the storing of soil a carbon, revegetation and forest o a conservation. Credits from these projects can o also be sold to companies wanting e n g o e o to offset theiir carbon pollution to meet voluntary commitments to a t t r carbon neutrality. Australiia will continue working to e k e p n a develop new international rules h o g that recognise a wider range of t e action to reduce pollution on the n u land. In future, this may allow d s landholders to sell crediits from t o a wiider variety of projects to p b n companies with obligations under r the carbon price.

Carbon Farming Initiative
The Carbon Farming Initiative will provide new economic rewards for farmers and landholders that take steps to reduce carbon pollution. It will do this by creating credits for each tonne of carbon pollution which can be stored or reduced on the land. These credits can then be sold to other businesses wanting to offset their own carbon pollution. The Carbon Farming Initiative will create a new income stream for farmers, new jobs for rural and regional Australia and provide strong incentives to identify and implement low-cost methods of pollution reduction. Carbon farming projects can increase resilience to the impacts of climate change, protect our natural environment, and increase farm profitability and food production. Increasing carbon storage in agricultural soils improves soil health and productivity. Revegetation will help restore degraded landscapes, provide biodiversity habitats and corridors, and help to address salinity, protect livestock and reduce erosion.

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For more information vist www.cleanenergyfuture.gov.au

... to improve productivity, sustainability and resilience
Carbon Farming Futures
The Carbon Farming Futures program will deliver $429 million over six years to help farmers and other landholders benefit from financial opportunities under the Carbon Farming Initiative: • support will be provided for research to investigate new ways of storing carbon and reducing emissions in the land sector, including biochar and biofuels • this ongoing program will support landholders to take action such as testing new ways to increase soil carbon and reduce emissions • new funding will be made available to test more effective methods for measuring carbon stored in soils and to integrate carbon farming into everyday farm business • extension officers and outreach activities will give landholders access to information to help them benefit from carbon farming. These measures will improve the sustainability and profitability of Australian farmers and landholders.

Conservation Tillage
The Carbon Farming Futures o t m program will include speciific o a suppor t for conservation tillage p e equipment. This will be delivered e e a by a 15 per cent refundable tax s offset for eliigible equiipment. n m Thiis will incentivise farmers to move to zero till and miniimum o a s h tilllage farming techniques which can enhance soil carbon, water a h o retention and produc tivity. e o d c Farmers will be required to r r participate in research and p methodology development to o g m assist efforts to settle methods s o for crediting soil carbon under d o d the Carbon Farming Initiative. r v

Clean energy Australia: Investing in the clean energy sources of the future

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Supporting skills in land management
Carbon Farming Skills

Indigenous Carbon Farming Fund
The Indigenous Carbon Farming g r Fund will help Indigenous a t Australians to take full advantage e v of the Carbon Farming Initiative. d d Funding will be provided s for specialists to work with d u Indigenous communities on a a n carbon farming projects. The Fund will support the development p e e n t f n and uptake of Carbon Farming n v v e Initiative activities whiich are o e g u likely to have high Indigenous participation such as savanna fire p n a n management. t Further support for research, o s o n e s tools and low cost methods for s n d p n estimating and reporting on m s emissions abatement will be a available. This Fund will make it s n o easier for Indigenous groups to t n b n participate in the Carbon Farming a d r Initiative by addressing barriers n associiated with communal and native title land tenure.

The Carbon Farming Initiative will increase demand for carbon services and provide new career opportunities in rural and regional Australia. A new nationally accredited qualification will be developed for carbon service providers (such as carbon brokers and aggregators), who will connect farmers and landholders to the carbon market. This initiative will support high standards in an important and emerging industry. The Carbon Farming Skills program will ensure that there are people in regional Australia with the necessary skills to support implementation of the Carbon Farming Initiative. It will further drive the development of the carbon jobs sector by setting up a training and accreditation system, boosting rural and regional employment. Information and training workshops will be provided for farm extension officers, catchment management authorities, agronomists and other rural service providers. This will ensure that landholders have access to credible, high quality advice about carbon farming opportunities.

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For more information vist www.cleanenergyfuture.gov.au

... and unlocking the benefits of biodiversity
Biodiversity Fund
Australia has highly diverse native ecosystems. Biodiversity plays a crucial role in maintaining the productive capacity of our landscape. Restoring native vegetation and soil carbon can build and protect our biodiversity and store carbon pollution. The ongoing Biodiversity Fund has been allocated $946 million over the first six years of the program and will support projects that establish, restore, protect or manage biodiverse carbon stores. Funding will be provided for establishing mixed species plantings in targeted areas, such as areas of high conservation value including wildlife corridors, riparian zones and wetlands. The Fund will also support action to prevent the spread of invasive species across connected landscapes and the management of existing biodiverse carbon stores. This includes land already under conservation covenants, subject to land clearing restrictions, and publicly owned native forests. These measures will help protect Australia’s ecosystems, building resilience to the impacts of climate change.

Regional Planning for Climate Change
Regional Natural Resource n a Management (NRM) a organisations are well placed a e to help plan for climate change n x o and to maximise the social and n e n environmental benefits of carbon a farming projects. Around $44 million over five years will go to make regional k o e NRM plans cllimate-ready. This c o will include funding to develop e e e detailed scenarios on climate g p a change impacts on a regional level. The pllans will guide where q a e h biosequestration projects should be located in the landscape. a n e This whole of regiion approach h o will help to maximise the benefits p s o v d for biodiversity, water and g a agricultural production. e d The plans wiill provide an e a assessment of how projects can c maxiimise landscape resilience, v improving each region’s abillity s to tacklle and adapt to Australia’s g changing climate.

Clean energy Australia: Investing in the clean energy sources of the future

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Helping business

Clean Energy Skills
Clean Energy Skills will provide r d the foundation for a new type k of workplace skill set that will m become increasingly more valluable e n o as we transition to a low carbon n p economy. Up to $32 million willl o go to help educational institutions d s and industry to develop the a s e o materials and expertise needed to r e s promote clean energy skills. Tradespersons and professionals r p s r o alike will develop the skills needed v d o v e e to deliver energy efficiency a c services, clean energy projec ts, and low pollution products w d o t to Australian househollds, o n s s communities and businesses. h e This willl help workers of w alll types transition to a low r c d carbon economy by providing e them with the skills that will o r m become increasingly important u p as businesses adapt to a clean g energy future.

The carbon price will provide strong incentives for businesses to improve their energy efficiency. Improving energy efficiency will be one of the main ways many businesses will be able to manage the impact of a carbon price. The Government will help businesses in this process through a range of measures. These include the Jobs and Competiveness Program, which will provide $9.2 billion over the first three years of the carbon price mechanism, and the $1.2 billion Clean Technology Program. In addition, the Government is providing support for industry associations and non- government organisations to deliver tailored information to small businesses and community organisations to manage carbon price impacts.

Jobs and Competitiveness Program
The Jobs and Competitiveness Program will support local jobs and production, and encourage industry to invest in cleaner technologies. This program is targeted at companies that produce a lot of carbon pollution but are constrained in their capacity to pass through costs in global markets. It has been carefully designed to assist these industries in a way that maintains strong incentives for them to improve their energy efficiency and reduce the pollution intensity of their products

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For more information vist www.cleanenergyfuture.gov.au

... move to a clean energy future
The Government is delivering the Clean Technology Program to help directly improve energy efficiency in manufacturing industries and support research and development in low pollution technologies.

Clean Technology Investment Program
The Clean Technology Investment program will support manufacturers by providing $800 million in grants to upgrade to less polluting equipment and cleaner technologies. It will boost their international competitiveness and help keep manufacturing strong. Funding will be provided on a co-contribution basis, with industry providing three dollars for every dollar provided by the Government.

Jobs in a Clean Energy Future
Moving to a clean energy future g r will provide new economic o opportunities for Australian r workers. Opportunities will open up in p t n x h existing businesses as they move to operating in a clean e n energy future. Many businesses will invest in new technology e e o to generate less pollution and e e u become more efficient. m r t Jobs will also be created in s e new cllean industries such as n renewable energy generation, a n o carbon farmiing and sustainable n n design, to name just a few. m t

Clean Technology Food and Foundries Investment Program
Food processors, metal forgers and foundries face particular challenges in reducing their carbon pollution and embracing the clean energy economy. That is why the Government will provide $200 million in grants to help companies in these industries upgrade to less polluting equipment and cleaner technologies. These industries are important to specific rural and regional areas and the Government wants to see these industries prosper in a low carbon world. Funding will be provided on a co-contribution basis, with industry providing three dollars for every dollar provided by the Government. This means that the program will drive around $700 million in investment to help Australian food processors and foundries embrace the clean energy economy.

Clean Technology Innovation Program
The Government will provide grants of up to $200 million through the Clean Technology Innovation Program over five years to support business investment in renewable energy, low emissions technology and energy efficiency. This could support manufacturers to develop new clean technology products. This funding will be in addition to the broader research and development tax credit.

Clean energy Australia: Investing in the clean energy sources of the future

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Improving our energy efficiency
The Government has a range of existing energy efficiency measure for households, businesses and communities. These include:

Report of the Prime Minister’s Task Group on Energy Efficiency
In 2010, a Task Group on Energy 0 n e Efficiency was established to r repor t on the most economicallly m f and environmentally ef fective e m mechanisms to deliver a step a n r change in Australia’s energy fi y d efficiency performance and place Australia at the forefront of OECD u a e e f D improvement in energy efficiency m e g performance by 2020. m In response to the Task Group’s n o k u Report (published in Oc tober c 2010), the Government will o t undertake fur ther work on a a r r a g n national energy savings initiiative, x e c expand the Energy Efficiency p n d Opportunities program and p n n improve governance arrangements o e y around energy efficiency.

• the $1 billion Tax Breaks for Green Buildings program • $100 million in seed funding for Low Carbon Australia to finance innovative approaches to financing energy efficiency improvements for businesses • mandatory minimum energy performance standards for a range of household and commercial appliances and equipment, including fridges, washing machines, televisions, lighting and electric motors • the National Building Framework which works with the building and construction industry to set out a pathway to improve the efficiency of Australia’s building stock over time. The Government will build on this body of energy efficiency measures with its response to the Prime Minister’s Task Group on Energy Efficiency. Two of the key responses are:

Further work on a national Energy Savings Initiative
A national energy saving initiative would place obligations on energy retailers to help households, businesses and industry install energy efficient goods and technologies. This initiative could save consumers and households money by encouraging the takeup of more energy efficient appliances in the home or in businesses. The Government will undertake further work on the costs and benefits of a national scheme to replace existing State schemes.

Energy Efficiency Opportunities Program
The Energy Efficiency Opportunities (EEO) program has been running since 2006. In 2010 alone, participating businesses identified energy savings valued at $1.2 billion per year. On 1 July 2011, EEO was extended to electricity generators. The Government will expand the EEO program further to include medium energy users on a voluntary basis, and energy networks so that these businesses can identify and benefit from energy saving opportunities.

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For more information vist www.cleanenergyfuture.gov.au

Helping small business

Improving access to energy efficient equipment
Small businesses will benefit from being able to claim an immediate tax deduction for assets costing up to $6,500 under changes to business tax deductions. This will help business invest in more energy efficient equipment and help small businesses to respond to the carbon price. The small business instant asset write-off threshold will be increased to $6,500. This applies to businesses with a turnover of less than $2 million a year. The instant asset write-off improves business cash flow by providing an immediate income tax deduction for the cost of depreciating assets. Increasing the amount businesses can write off to $6,500 will free up more cash flow to invest in equipment that reduces energy use. This will provide an incentive for continued investment and business growth. An example of how this might work is: • A cafe purchases a freezer for $6,000. Under the new rules, the cafe owner could claim the entire $6,000 due to the increase in the asset write-off limit. This could provide a tax benefit of $1,800 (assuming a marginal tax rate of 30 per cent) in the income year the cafe owner first uses the freezer or has it installed.

Better information for business on energy efficiency
Clear and easily accessible r r information from trusted sources a n will help small businesses t m cut energy costs and improve o n productiviity. The Government will establish a $40 million b o n t Energy Efficiency Information Grants program to provide m e grants over four years to o r r o industr y associations and non-government organisations o m o that work with small to medium o d businesses and community e organisations. These groups will s n s deliver tailored information about e m t h p f r the impacts of a carbon priice on m u s m y small businesses and community r a a s organisations and practical steps to manage these impacts. g t

Clean Technology Focus for Supply Chain Programs
The Government is committed to giving Australian companies the best chance to win work in projects funded by the Australian Government and other large scale projects occurring in Australia. To help Australian firms win work in the clean technology aspects of these projects, the Government will provide additional funding to industry sector Supplier Advocates in selected sectors and employ additional Enterprise Connect Business Advisers. Additional funding will allow for enhanced delivery of these programs to small and medium businesses. The funding will also help develop an action plan for Australian industry involvement in the supply of goods and services for energy efficiency solutions.

Clean energy Australia: Investing in the clean energy sources of the future

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Helping households save energy
The Government is helping households to use energy more efficiently through a range of existing and new measures.

Support to become energy efficient
The average Australian household r u c produces around 14 tonnes of n carbon pollution each year. Figure 1 shows the major sources r w c s of householld emissions. By improving energy efficiency v m families can reduce their bills. Thiis a n e s u has been made easier through e r v a range Government initiatives n n including: • the Renewable Energy Bonus w r o e o Scheme to help repllace electric r hot water systems with clean r s energy systems • phasing out inefficient lighting s u g o e y • improving the ef ficiency p of appliances through the m fi Equipment Energy Efficiency program m • minimum energy efficiency g a standards for new houses and a apar tments under the Buiilding Code. e

Better information to support households move to a clean energy future
Energy efficiency improvements around the home require the right know-how. The Government’s LivingGreener website (www.livinggreener.gov.au) provides information on living sustainably and will connect all Commonwealth, state and territory energy efficiency and climate change programs. The website will be expanded to include more information on how households can improve energy efficiency to save dollars and cut carbon pollution. It will also feature new content for schools and local governments. Tailored advice to householders will be delivered through a household telephone advice line, supplemented by social media channels.

Figure 1 Sources of household emissions in Australia g r u o e s t l
Percentage of average household emissions

45 40 35 30 25 20 15 10 5 0 Transport Appliances Water heating Space heating Waste Lighting Standby power Space cooling Cooking
public transport domestic flights private vehicles

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For more information vist www.cleanenergyfuture.gov.au

On the move to more efficient transport
Supporting new fuel efficient vehicles
A new wave of vehicles are becoming available that are cleaner and cheaper to run. Under new standards being introduced from 2015, all car companies will be required to reduce emission levels from vehicles they sell by introducing better technologies and adjusting the range of models they sell in Australia. The Government is working with the automotive industry to set the emission levels that will apply under the new standards. In addition to helping make a reduction to Australia’s carbon pollution from transport, this initiative will deliver real cost savings for motorists through improved fuel efficiency in new vehicles. The Green Vehicle Guide and the Fuel Consumption Label are two other initiatives supporting Australians to make better informed decisions and help consumers choose vehicles that use less fuel and have lower emissions.

Cutting transport emissions
The Government is working o u g to cut pollution by improving our transport systems. Since e e r s late 2007, the Government has committed over $7.3 billion to o modernise and extend urban e passenger rail infrastructure to e u provide genuine alternatives to v private car travel. e Around $60 million for national d o smart managed motor ways trial g r e p g n will help improve congestion, t x lower pollution, and expand a y g d the capacity of existing road infrastructure network s. t r k g e Managed motorways use new o e o technologies to create a more consistent level of motorway t e a performance, resulting in lower m s o greenhouse gas emissions. o s h e The Government is also u g n supporting the aviation d e s s industry to reduce its emissions o through improviing air space a management in Australia.

Clean energy Australia: Investing in the clean energy sources of the future

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For more information visit w w w.cleanenergyfuture.gov.au r o om o i c a n r f r g a

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