Labor s top 20 climate change bungles

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1 1. Carbon Tax Broken promise driving up electricity prices Domestic emissions up from 578 to 621 million tonnes per annum by 2020, $9b annual cost, at least $3.5b in overseas credits a year by 2020, 8 major changes in first 100 days. 2. Home Insulation Scrapped Linked to four deaths, 224 home fires and 70,000 repairs. Cost more than $2.1 billion. 3. Green Loans Bungled Extensive mismanagement found in 3 independent reports on low-interest loan program for household installation of energy efficient products. 4. Citizens Assembly Scrapped before commencement Key 2010 election promise to assemble 150 citizens to discuss ways to tackle climate change was dumped weeks after the election. Labor s top 20 climate change bungles 11. Clean Technology Grants Frozen $1 billion grants program for manufacturers and key facet of the carbon price scheme on hold. 12. Connecting Renewables Initiative Folded Julia Gillard s $1 billion election promise to connect renewable energy projects to the electricity grid has vanished. 13. Renewable Energy Future Fund Squandered Labor s $650 million fund to support the commercialisation of renewable energy became a 2010 election slush fund. 14. Global Carbon Capture & Storage Institute Millions wasted Delivered more in lavish dinners and conferences than progress on carbon capture. 5. Solar Homes and Communities Plan Scrapped $500 million cost overrun and concerns about faulty solar PV power system installations in homes, schools and community facilities. 6. Solar Flagships Stalled Botched tender process has stalled Government s program. t one project delivered. 7. Cash for Clunkers Scrapped before commencement Julia Gillard s 2010 election promise never saw the light of day. 8. Green Car Innovation Fund Scrapped The 10-year plan to produce more fuel efficient cars that was scrapped after 2 years and used just 38% of its budget. 9. Low Emission Plan for Renters Scrapped Labor s plan to insulate rental properties was cancelled with just 2.4% of its budget spent. 10. Solar Hot Water Rebate Scrapped Rebate for installing solar hot water systems was increased, cut a year later, then scrapped without notice. used less than half its budget. 15. Carbon Capture & Storage Flagships Stalled Clean coal technology program has had funding cuts and remains largely uncommitted, with no projects even close to operational. 16. Green Buildings Tax Breaks Scrapped before commencement $1 billion program to improve the energy efficiency of older building was scrapped two months before it was due to begin. Scrapped before commencement. 17. Phantom Credits Bungled The program that replaced the Solar Homes and Communities Plan created an oversupply of renewable energy certificates and a spike in electricity prices. Bungled. 18. Carbon Tax Advertising Millions wasted A $70 million carbon tax advertising campaign dressed up as an education initiative. 19. Green Start Scrapped before commencement The Green Loans replacement scheme was abandoned as the Government couldn t guarantee satisfactory mitigation of risk. 20. Contract for Closure Scrapped before commencement $2 billion program to close brown coal fired power stations completely failed, with funds returned to consolidated revenue. 1

2 Under Kevin Rudd Labor s top 20 climate change bungles Home Insulation Green Loans Solar Homes and Communities Plan Low Emission Plan for Renters Global Carbon Capture and Storage Institute Carbon Capture and Storage Flagships Under both Under Julia Gillard Solar Flagships Green Car Innovation Fund Solar Hot Water Rebate Phantom Credits Carbon Tax Citizens Assembly Cash for Clunkers Clean Technology Grants Connecting Renewables Renewable Energy Future Fund Tax Breaks for Green Buildings Carbon Tax Advertising Green Start Contract for Closure 2

3 A snapshot of Labor s climate change mismanagement At least 37 failed climate change programs. of programs % of programs 8 Never established 22% 14 Scrapped early, replaced, reduced or frozen 38% 15 Failed to deliver on stated objectives 40% In addition, 22 programs or 58 per cent had funding diverted to other initiatives 3

4 Outright program failures Never established Citizens Assembly Tax Breaks for Green Buildings Contract for Closure Cash for Clunkers Green Start Clean Energy Australian Biofuels Research Institute One Stop Green Shop Scrapped early, replaced, reduced or frozen Clean Technology Grants Home Insulation Solar Hot Water Rebate Connecting Renewables Initiative National Low Emissions Coal Council Green Car Innovation Fund National Solar Schools Solar Homes and Communities Plan Green Loans Retooling for Climate Change Low Emission Plan for Renters Australian Solar Institute Energy Efficiency of Electrical Appliances Australian Centre for Renewable Energy Failed or only partially delivered on stated objectives Carbon Tax Carbon Tax Advertising Global Carbon Capture and Storage Institute Carbon Capture and Storage Flagships Solar Flagships Renewable Energy Future Fund Renewable Energy Bonus Scheme Renewable Energy Demonstration Geothermal Drilling Community Coastcare Energy Efficiency of Electrical Appliances Phantom Credits National Carbon Accounting Toolbox Climate Change Adaptation Partnerships National Clean Coal Fund 4

5 Funding diversions Had funding diverted to other programs Amount Diverted to: National Low Emissions Coal Initiative $100 million Global Carbon Capture and Storage Institute Renewable Energy Demonstration $135 million $65 million Solar Flagships ACRE Solar Projects Geothermal Drilling t specified Emerging Renewables Green Car Innovation Fund $401 million $400 million Queensland flood recovery effort Other Government priorities National Solar Schools $156.4 million Other Government priorities Global Carbon Capture and Storage Institute $45 million $55 million Other Government priorities Queensland flood recovery effort Green Loans $125 million Other Government priorities Retooling for Climate Change $37.6 million Other Government priorities Clean Energy $50 million Australian Centre for Renewable Energy Climate Change Adaptation Partnerships $31 million Climate Change Research Carbon Capture and Storage Flagships Solar Flagships Home Insulation ) Solar Hot Water Rebate ) $420.9 million $60.9 million (See separate entry) $150 million (See separate entry) Remaining funds Queensland flood recovery effort National CO₂ Infrastructure Plan Cleaner Car Rebate Queensland flood recovery effort Cleaner Car Rebate Renewable Energy Bonus Scheme 5

6 Funding diversions (cont d) Had funding diverted to other programs Amount Diverted to: Renewable Energy Bonus Scheme Solar Hot Water Rebate $160 million (See separate entry) $24.5 million Queensland flood recovery effort Cleaner Car Rebate Local Government Energy Efficiency Connecting Renewables t specified ARENA (where program no longer exists) Renewable Energy Future Fund $180 million $140 million $100 million $100 million $80 million $46 million $40 million $5.6 million $5.2 million ~ $4 million Energy efficiency tax breaks for businesses and landlords Extended ethanol industry import protection Renewable Energy Venture Capital Fund Connecting Renewables Low Carbon Communities Plan Carbon Farming Initiative Emerging Renewables Climate Change Commission Multi-Party Climate Change Committee Citizens Assembly on climate change Cash for Clunkers $430 million Queensland flood recovery effort Renewable Energy Bonus Scheme ) Solar Flagships ) Carbon Capture and Storage Flagships ) Australian Biofuels Research Institute $520 million Cleaner Car Rebate $15 million $5 million Advanced Biofuels Investment Readiness James Cook University Climate Change Foundation Campaign $3 million Climate Change Grant Tax Breaks for Green Buildings $1 billion Consolidated revenue Contract for Closure $2 billion Consolidated revenue 6

7 Labor s chop and change on climate change: some examples of funding diversions $125m $156.4m Green Loans National Solar Schools National Low Emissions Coal Initiative $100m Cleaner Car Rebate Home Insulation $520m Remaining funds Renewable Energy Bonus Scheme Solar Flagships Solar Hot Water Rebate $160m $150m $24m Renewable Energy Demonstration $135m Local Government Energy Efficiency $65m $37.6m $400m Retooling for Climate Change Green Car Innovation Fund $430m Carbon Capture and Storage Flagships $60.9m $420.9m ACRE Solar Projects $45m Global Carbon Capture and Storage Institute $401m National CO₂ Infrastructure Plan ARENA Other Government priorities $55m Queensland flood recovery 7

8 Renewable Energy ALP Future Fund Renewable Energy Future Fund $652.5 million to support development and deployment of renewable energy projects and commercialisation of renewable technologies Instead, the money was committed to these 2010 election promises, many of which had nothing to do with commercialising renewable technology $180m energy efficiency tax breaks for businesses and landlords $80m local council street lighting $140m ethanol industry import protection $100m Connecting Renewables Initiative $40m Emerging Renewables ~$4m Citizens Assembly $5.2m Multi-party Climate Change Committee $100m Renewable Energy Venture Capital Fund $5.6m Climate Change Commission $46m Carbon Farming Initiative 8

9 2008 Labor s new climate change initiatives Result Explanation Cont. National Clean Coal Fund (now National Low Emissions Coal Initiative) ~ Funding cut by 26% and diverted to Global Carbon Capture and Storage Institute. Majority of revised funding delivered. National Low Emissions Coal Council ~ Superseded after just 2 years by National Carbon Capture and Storage Council Renewable Energy Fund Renewable Energy Demonstration X Delivered $235 million of $425 million budget just over half of its original funding, with these allocations still largely unspent 2015 ARENA Geothermal Drilling X 4 out of 7 projects did not progress ARENA Second Generation Biofuels Research and Development 6 projects worth $12.6 million funded out of $15 million budget ARENA Green Car Innovation Fund X 10-year program axed after less than 2 years Delivered 38% of its budget after funding cuts and early axing National Solar Schools X 40% of schools missed out on promise to make all schools solar Cost of cutting carbon calculated at $284 a tonne Solar Homes and Communities Plan (rebranded Coalition initiative) X Axed 3 years early after $500 million cost overrun Global Carbon Capture and Storage Institute X Concerns over high spending and lack of progress 2017 Green Loans X Budget cut more than 40% in first year closed 2 years early due to mismanagement Clean Business Australia Green Building Fund Funding complete Retooling for Climate Change X Funding cut in half, program suspended 2 years early Climate Ready Fully committed 2 years ahead of schedule Low Emission Plan for Renters X Spent $18 million of $787.4 million budget just 2.4% of funds allocated. Closed after a year

10 2008 Labor s new climate change initiatives (cont d) Result Explanation Cont. Caring for our Country climate change initiatives Great Barrier Reef Rescue ~ Hanging in the balance with no funding committed beyond June 2013 ~ Community Coastcare X Folded into Caring for our Country after 1 funding round 2013 Energy Innovation Fund Australian Solar Institute ~ Wound up after 3 years, replaced by ARENA ARENA Clean Energy X Never established International Climate Change Adaptation Initiative Ongoing program helping vulnerable Asia-Pacific countries Part of Australia s commitment to Copenhagen Accord International Forest Carbon Initiative Working with developing countries to reduce emissions from deforestation and forest degradation Australia s Farming Future Climate Change Research ~ Required 200% funding boost $31 million taken from other Australia s Farming Future initiatives to fund program Climate Change Adaptation Partnerships ~ Funding cut by a third Climate Change Adjustment Funding provided for farmers in financial difficulty complete Clean Energy Innovation Centre Centre established at Newcastle Yes Green Precincts 13 projects funded Energy Efficiency of Electrical Appliances X Terminated after 1 year One Stop Green Shop X Where s the website?

11 2009 Labor s new climate change initiatives Result Explanation Cont. Clean Energy Initiative Carbon Capture and Storage Flagships X 16% funding cut, budget largely unspent, 2 out of 4 projects progressed to feasibility, no industrial CCS plant operating Solar Flagships X Tender process botched, only $130 million committed Funds rolled into ARENA, program name has disappeared Australian Centre for Renewable Energy Energy Efficient Homes ~ Wound up and replaced by ARENA within 3 years of establishment Home Insulation X Resulted in 4 deaths and 224 house fires. Closed within a year Solar Hot Water Rebate (expansion of Coalition initiative) Increased Low Emissions Plan for Renters X Increased rebate reduced 2 years early. 58% underspent and scrapped without notice (See 2008 new initiatives) Solar Credits X Surplus certificates blamed for rising electricity prices 2013 Marine and Climate Super Science Initiative Funding due to complete in June National Energy Efficiency Initiative Newcastle Smart Grid, Smart City project progressing 2013 National Strategy on Energy Efficiency Ongoing COAG initiative 2019 Low Carbon Australia Supporting wide range of business and community initiatives Yes Skills for the Carbon Challenge Funded research on skills required in a low carbon economy 2013 National Carbon Accounting Toolbox X Overdue. New Toolbox was due in Clean Energy Trade and Investment Strategy Successful delivery of program by Austrade 2018 ARENA 11

12 2010 Labor s new climate change initiatives Result Explanation Cont. Citizens Assembly X Key 2010 election promise for Citizens Assembly on climate change never eventuated Tax Breaks for Green Buildings X $1 billion program to improve the energy efficiency of older building was scrapped two months before it was due to begin Renewable Energy Bonus Scheme X The Home Insulation clean up we should never have had Connecting Renewables Initiative X Funding outsourced to ARENA after 2 years, program name has disappeared, funds not required to be spent on grid connections ARENA Renewable Energy Future Fund X 2010 election slush fund Cleaner Car Rebate X Cash-for-clunkers scheme never established Green Start X Green Loans replacement never established ACRE Solar Projects ~ Work in progress. 2 projects due for completion in 2016 ARENA Multilateral Climate Change Financing Part of Copenhagen Accord commitment 2013 Climate Change Foundation Campaign X Carbon tax advertising campaign Australian Biofuels Research Institute X Institute never established National Carbon Capture and Storage Council ~ Work in progress. Why did National Low Emissions Coal Council need replacing? National Carbon Offset Standard Ongoing effort to provide national consistency in voluntary carbon market Yes Yes 12

13 2011 & 2012 Labor s new climate change initiatives* Result Explanation Cont. Carbon Tax X Broken promise, doesn t reduce domestic emissions, $9 billion annual cost, at least $3.5 billion in overseas credits per year by 2020, 8 major changes in first 100 days, driving up electricity prices Contract for Closure X $2 billion program to close brown coal fired power stations was terminated after negotiations failed Clean Technology Investment X $1 billion grants program for manufacturers and key facet of the carbon price scheme frozen Yes Hold Emerging Renewables ~ Work in progress. Under ARENA s management ARENA Renewable Energy Venture Capital Fund ~ Work in progress ARENA National CO₂ Infrastructure Plan ~ Work in progress to identify long-term CO₂ storage sites 2015 Select Council on Climate Change ~ COAG initiative. Work in progress Yes Advanced Biofuels Investment Readiness ~ Used funding intended for Australian Biofuels Research Institute ARENA Climate Change Grant ~ Recycled money from Climate Change Foundation Campaign Coastal Adaptation Decision Pathways 13 coastal projects funded * Does not include 30+ Clean Energy Future package initiatives considered too early to assess 13