'Disappointing' environment budget lacks new funding for Australian renewables
The Morrison government’s environment and energy budgets consist largely of pre-announced items, including funding for its technology roadmap for reducing Australia’s emissions and $52m for the expansion of Australia’s gas industry.
In the year of Australia’s worst bushfire crisis, there is little in the way of new funding for environmental protection.
Tuesday’s budget reiterated the government’s plan to fund the Australian Renewable Energy Agency (Arena) for a further 10 years from 2022 at a total cost of $1.4bn. Over the next four years, the agency will receive $223.9m.
The energy minister, Angus Taylor, announced in September the government would overhaul the investment mandate of Australia’s clean energy agencies to decrease investment in solar and wind and increase investment in hydrogen, carbon capture and storage, microgrids and energy efficiency.
The budget includes already announced funding of $95.4m for a technology co-investment fund recommended by the King review of the Coalition’s climate policies.
There is $52.9m for investments in gas - announced in September - including $10.9m for planning gas infrastructure.
The government is spending $50m on carbon capture and storage to fund pilot projects it claims will “dramatically cut” emissions from industrial facilities and there is $70.4m over five years for a regional hydrogen export hub.
The government will also spend taxpayers’ money upgrading the Vales Point coal-fired power station in the Lake Macquarie region of NSW.
Richie Merzian, of the Australia Institute, said the budget “confirms the government’s commitment to fossil fuels with token support for renewables on the side”.
“It’s disappointing to see the renewable energy agencies and the CEFC (Clean Energy Finance Corporation) not coming out with significant increases. In the case of Arena it’s a decrease,” he said.
The environment minister, Sussan Ley, said the government would spend $67.4m on oceans and marine ecosystems, including $14.8 million to tackle the marine impacts of ghost nets and plastic litter and $28.3 million for compliance, enforcement and monitoring activities across Australia’s marine parks.
A further $20m in already announced funding will go towards reestablishing native oyster reefs at eleven sites around the country.
The government will spend $249.6 million over four years on waste and recycling policies, including $190 million for a recycling modernisation fund for new infrastructure to sort plastic, paper, tyres and glass waste. There is also $233.4 million to upgrade facilities at national parks.
Ley announced in September the government would extend its threatened species strategy by a further 10 years, but Tuesday’s budget does not include detail on how that will be funded.
It contains some measures in response to the interim report of the review of Australia’s environment laws, but the department said there would be more information on the government’s response when the review’s chair, Graeme Samuel, delivers his final report later this month.
The money budgeted in response to the report is largely focused on the Morrison government’s deregulation agenda. There is $10.6m over two years for negotiations with the state and territories to move to a “single touch” system for environmental approvals. Legislation that will clear the way for bilateral approval agreements is currently before the parliament.
Earlier this year, the government announced $25m to reduce the timeframes for approvals of major projects. Tuesday night’s budget adds an extra $12m in funding over the next two years.
There is also $8.8m over two years for expedited approvals of 15 major projects on the government’s “fasttrack” list. The government has budgeted $2.5m over two years for policy work relating to environmental markets in response to Samuel’s interim report.
Greenpeace Australia’s Pacific program director, Kate Smolski, said: “Reading this budget, you would never know that Australia very recently suffered the worst bushfires in its history that killed more than 30 people, billions of animals and burned more than 17 million hectares of land including homes and businesses.”
The Australian Conservation Foundation, which was denied access to this year’s budget lock-up, said the gas industry, mining companies and polluters were the “winners” in the budget while climate action was “the clear loser”.
“We know the best way to cut the pollution driving global warming is to move away from burning coal and gas, yet this budget provides funding that locks in new fossil fuel projects,” the foundation’s chief executive, Kelly O’Shanassy, said.
There was some welcome investment in environmentally-friendly initiatives but more was needed, she said. “Despite Australia’s outstanding natural beauty, not enough is being invested in the protection of our unique wildlife and special places.”
The ACF estimates $1bn a year is needed to restore Australia’s landscapes and stop species from becoming extinct.