$294.6 million climate change package to preserve the environment and create jobs

A more sustainable environment, jobs and new opportunities will be driven by the Brumby Labor Government’s $294.6 million record climate change commitment announced today in the 2008-09 State Budget.

Environment and Climate Change Minister Gavin Jennings said the Brumby Labor Government’s Climate Change package focused on: supporting renewable energy, such as solar and wind energy; developing clean coal technologies and carbon capture and storage; and research on climate change and adaptation.

“The Brumby Labor Government is taking action now to address the challenges of the future, such as climate change,” Mr Jennings said.

“This $294.6 million State Budget package is the single biggest investment made by the Victorian Government to tackle climate change.

“This record investment reinforces that Victoria is the best placed of all states to make a difference to our environment and create a climate of opportunities in a new climate change economy.”

Key climate change initiatives announced in the 2008-09 State Budget are:

• $5 million to establish a world-class Research Centre for Climate Change Adaptation in partnership with major universities and institutions, with research to focus on key sectors of Victoria’s economy and environment and strategies to adapt to climate change;
• $9.9 million over four years for coastal projects, including $8 million to complete the critical Future Coasts Project, which uses laser imaging and digital modelling to develop a high-resolution 3D representation of the coast to better understand the possible impact of climate change on coastal communities;
• $4.1 million to audit and retrofit homes for around 2600 low-income families and 500 office of housing tenants with energy efficient light globes, low-flow showerheads, insulation and draught-stoppers, which will cut greenhouse emissions and bills by up to $118 a year;
• $16.2 million over 10 years to extend the Home Wise Program, to assist households in financial hardship to repair or replace essential appliances;
• a $72 million fund to help finance large scale, renewable energy projects across the State, as announced at the Premier’s Climate Change Summit on April 4;
• $33 million for the Solar Hot Water rebate scheme in regional Victoria, announced earlier this year and due to start on July 1. Households in regional and rural Victoria will be able to claim a rebate of up to $2500 back from the Brumby Labor Government for the installation of a solar hot water unit;
• $110 million towards a large-scale pre-commercial Carbon Capture and Storage (CCS) demonstration program under the Brumby Labor Government’s Energy Technology Innovation Strategy (ETIS). The demonstration program will build on the $6 million Brumby Labor Government allocation to the Otway Basin trial carbon dioxide storage project, launched in April. A further $2 million has been allocated to the Department of Primary Industries for assistance with the commercialisation of these projects;
• $5 million to continue the Brumby Labor Government’s highly successful You have the Power, Save Energy (Black Balloons) campaign, to encourage more Victorians to save energy in their homes;
• $3.6 million towards the Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) to extend our membership of the CO2CRC for another seven-year term, subject to a successful re-bid for Commonwealth and industry funding;
• $2 million to boost Victoria’s transport energy security via a sustainable transport policy;
• $14.4 million to support the operation of the Victorian Renewable Energy Target and the Victorian Energy Efficiency Target schemes;
• $5.2 million over four years for fluid dynamic modelling of the Gippsland Basin and modelling of CO2 storage; and
• $12.2 million over four years to establish Clean Coal Victoria, a new organisation to be based in the Latrobe Valley, which will focus on identifying future coal resources and planning for long-term use and rehabilitation.

Energy and Resources Minister Peter Batchelor also announced that for the first time Victorian households will qualify for a bonus for installing solar power systems and providing excess electricity into the State electricity grid.

The new Feed-in Tariff Scheme will offer householders a premium rate for excess power and is designed to increase the number of private households in Victoria generating renewable energy.

Households will be paid 60 cents for every unused kilowatt hour of power fed back into the State electricity grid, which is almost four times the current retail price for electricity and the highest feed-in tariff offered in Australia.

“The system will encourage more households to install solar photovoltaic systems and encourage solar powered households to be energy efficient and maximise the amount of power fed into the State’s electricity grid for other customers to use,” he said.

This premium tariff means that the average Victorian household taking up the Federal Government’s solar panel rebate will pay off the cost of installation in under 10 years.

The scheme will be introduced in 2009 and will apply to all household systems of up to two kilowatts capacity.