The release of the Rudd Government’s first budget saw a commitment to invest $500 million over a seven year period, to support the commercial availability and development of clean coal technologies. Research programs, demonstration projects and infrastructure and carbon dioxide storage sites needed to accelerate the development and implementation of these technologies will be supported by the funding.

"This is a very good budget for the environment but we do need to accelerate the development of carbon capture and storage technology so we can know immediately if this will play a role in the fight against climate change," said WWF-Australia CEO Greg Bourne.

The federal government’s Climate Change Advisor, Professor Ross Garnaut believes that clean coal technologies can be commercially available by 2020, and in a recent speech to a clean coal summit in Sydney he said that if effective emission-control technology can be developed, that coal was set to play a big role in Australian prosperity. 

Also included in the budget is a renewable energy fund costing $500 million over six years. Fifty million dollars of this is committed to a low emission “hot rocks” drilling program, which is hoped to provide an alternative to the base load energy supply of remote mining industry projects, which currently utilise the combustion of fossil fuels for this purpose.

There has been widespread backlash however, over the Government’s decision to introduce a means test on the solar panel rebate scheme, previously introduced by the Howard Government. With households that earn over $100K annually now ineligible to receive the government rebate for installation of solar panels, the solar power industry predicts a dramatic decline in the number of household installations. 

“It’s about the environment, it’s not about reducing the cost of electricity on poor people’s homes. Their approach is totally misguided,” said Adrian Ferraretto, Managing Director of national retailer Solar Shop Australia. With home solar systems costing between $13,000 and $22,000 before the rebate, Mr Ferraretto suggests that the rebate should be reduced to $5000 and applied to everyone, rather than being means tested. Monash senior lecturer Jeff McLean, coordinator of a management climate change course said that the means test was a retrograde public policy step.

A brief summary of the Rudd Government’s climate change related budget commitments:

• $500 million over eight years for projects that accelerate the development and deployment of clean coal and low emissions technologies
• $500 million over six years to support the new Renewable Energy Target and accelerate the development and commercialisation of renewable technologies in Australia
• $150 million over four years to support the development of clean energy technologies in Australia

References

• Morton, A. 'Anger as shadow falls on solar rebate,' Brisbane times, May 16 2008
• 'Dark clouds over the sun come over the sun power industry,' http://abccarbon.com
• Hammer, C. 'Climate expert sees bright future for coal,' The Age, May 8, 2008