Mark Arbib (NSW, Australian Labor Party) Share this | Hansard source

Thank you, Senator, for raising that. I have to say that China is doing some outstanding work in renewable energy. They should be congratulated. I am very glad that you raised this. The Chinese government have taken on board the issue of climate change. They are actually now putting billions of dollars into renewable energy and into cleaning up their environment. They are doing their bit. Australia has to do its bit. Thankfully—to respond further to the good senator—with the election of Barack Obama as President, we are going to see global action on climate change. Those of you who actually followed the US election will know that President-elect Obama is committed to introducing a national cap and trade scheme to reduce carbon pollution by 80 per cent by 2050. Rather than our somehow leading, it just shows that other countries are moving ahead and that we are starting to lag.

The Rudd government is doing its bit. The Rudd government has a detailed plan and a major commitment to reducing Australia’s greenhouse gas emissions. We are also working to adapt to the impacts of climate change that we cannot avoid. Most importantly, the Rudd government is working to shape a global solution to this global problem. We have all seen the work that Ministers Penny Wong, Peter Garrett and Martin Ferguson are doing in this field. The government has committed to a target of reducing Australia’s greenhouse gas emissions by 60 per cent of 2000 levels by 2050. The CPRS is at the heart of our efforts to reduce greenhouse gas emissions. As everyone in this chamber will know, it will place a limit on the emissions we will allow to be produced.

The key commitments of the Rudd government are these: to set a target of a 60 per cent cut to 2000 emissions levels by 2050; to set a medium-term target by the end of 2008; to expand the renewable energy target to 20 per cent; and to drive a clean energy revolution with policies such as establishing the $500 million Renewable Energy Fund, the $150 million Energy Innovation Fund and the $500 million National Clean Coal Initiative. We are also going to help Australian families green their homes with policies such as green loans, a one-stop green shop and rebates for energy-efficient rental homes. We are investing in green cars, in cleaner transport through measures like the Green Car Challenge and the $1.3 billion Green Car Innovation Fund.

I am very happy to report on the work we are doing in solar energy. In 2008-09, there will be more installations of solar power systems and more Commonwealth funding for solar power than in any year of Australia’s history. That, of course, is in line with the ongoing record demand. This has really been a revolution in Australia. We are seeing families and businesses flock towards solar power. It is happening not just at the government level but also at the business level and the community level. That is extremely pleasing for the government to see. Government spending and government support for the solar industry is at record levels. In the budget, the government brought forward an additional $25.6 million in funding, doubling the number of rebates available this year under the Solar Homes and Communities Plan from 3,000 to 6,000. Funding has been further increased in light of this record public support.

Here is where we bring in the work that is being done in terms of feed-in tariffs and the great work that is being done in COAG. The government is working with the states and territories through COAG to consider options for a harmonised approach to renewable energy feed-in tariffs. In March, COAG agreed to consider options and is expected to consider the issue by the end of the year. Many Australian states and territories have in place, or are planning to implement, feed-in tariffs, which will provide owners of small renewable energy systems with guaranteed fixed rates for the sale of electricity fed back into the grid. As other senators today have pointed out, Victoria, Queensland, Western Australia, South Australia and the ACT have feed-in tariff legislation in place, and New South Wales is considering it. To deliver on the 2020 target, the government is designing a national legislative renewable energy target scheme—also in cooperation with the states and COAG. And this is where the feed-in tariff fits in. The government believes that, with the CPRS, the renewable energy target and other policies, we will be heading in the right direction in terms of reducing greenhouse gases. At present, though, I am not in a position to support this bill and believe that the right way forward is through COAG.

On solar, I note that Senator Birmingham earlier criticised the government on the solar rebate and the means testing that was put in place at the May budget. Contrary to Senator Birmingham’s claims and the claims from the opposition that the means test would cause the collapse of the industry, what we have seen is an industry that is booming. There is extremely strong demand for the rebate currently, with over 750 applications per week. This is the highest level ever seen and vindicates the government’s decision to more carefully target the rebate. In the 12 months leading up to the last coalition budget, there was an average of 30 rebate applications per week. In the six weeks leading up to the introduction of the means test, the department was receiving an average of 365 rebate applications per week—365 per week. That has increased to an average of 750 applications per week now, and this figure continues to rise. Overall, in the first year of the Rudd Labor government, there will be more Commonwealth funding for solar power and more installations of solar power systems than in any year in Australia’s history. We are continuing to meet the demand of those Australians who need assistance to put in place solar panels on their roof. This is something that the government is committed to.

Minister Garrett has undertaken a series of roundtables with key stakeholders around the country, including the solar industry, on practical action households can take to save on their energy bills and reduce their environmental impact. These discussions will help inform the community of household assistance measures the government details in the transition to the CPRS. The Solar Homes and Communities Plan is one element in the government’s comprehensive suite of programs for household and community renewable energy and water efficiency, which also includes a $300 million commitment for subsidised low-interest green loans of up to $10,000 to help up to 200,000 existing householders. A further $480 million for the National Solar Schools Program, through which every one of our schools can install at least a two-kilowatt solar system and a range of energy and water efficiency measures; and the Renewable Remote Power Generation program, which provides up to 50 per cent of the cost of installing renewable energy systems, including solar power, to people who are not connected to a mains electricity supply. Renewable energy certificates generated by solar power systems will also continue to reduce the upfront cost of installing solar photovoltaic panels for all households.

Critically, as I have said, the government has committed to a target of 20 per cent of our electricity supply being powered by renewable energy by 2020 through an almost fivefold increase in the legislated national renewable energy target. This is not a small policy. This is going to require an additional 45,000 gigawatt hours of electricity generation from renewable sources. In terms of the Renewable Energy Fund, $500 million has been put forward. Australia’s renewable energy target is 20 per cent by 2020. The EU target is 20 per cent by 2020. Even China, Senator Bushby, has a target of 15 per cent by 2020. Britain’s target is 15 per cent by 2020 and the United States is also aiming for 15 per cent by 2020.

But that is not all we are doing in terms of renewables. We have a National Clean Coal Initiative, with another $500 million over eight years to accelerate the development and deployment of technologies that will reduce emissions from coal use. Let us look at the initiatives that were announced in the budget: $75 million for the National Coal Research Program; $50 million for the National Carbon Mapping and Infrastructure Plan; $50 million for a pilot coal gasification research plan in Queensland—and the list goes on and on. This is the work that the Rudd government is doing.

One area where it is very exciting to see progress is geothermal. I am happy to report that the government is making progress on this exciting new energy source. The potential for geothermal is just staggering. Geoscience Australia estimates that if just one per cent of Australia’s geothermal energy were extracted it would equate to 26,000 times Australia’s total energy consumption—26,000 times our total energy consumption. That is amazing. The government is taking action on it. The Minister for Resources and Energy, the Hon. Martin Ferguson, has launched the $50 million Geothermal Drilling Program to help get the industry over the short-term costs of drilling. The Geothermal Drilling Program will provide grants of up to $7 million on a matching funding basis to support the high cost of drilling deep geothermal wells to assist getting projects off the ground financially. The Geothermal Drilling Program is the first program to be launched under the government’s $500 million Renewable Energy Fund.

Many people are wondering how geothermal works. It is quite unbelievable. Geothermal energy producers pump water below ground, where it is heated by hot rocks and circulated through a closed system, with the heat energy used to generate electricity. I have heard the minister and the member for Kingsford Smith talk about this on numerous occasions. It is a good news story.