Emissions from big polluters will 'fully erode' the benefits of Coalition's climate policy

Energy analysts Reputex say Morrison government rules that allow polluting companies to increase their greenhouse gas emissions will wipe out all environmental benefits claimed under its centrepiece climate change policy, the Emissions Reduction Fund.

Analysis by Reputex suggests emission increases from
big polluters will wipe out the benefits of the Coalition's
 investment in emissions reduction.

A so-called safeguard mechanism attached to the $2.55 billion fund is supposed to ensure that pollution reductions are not offset by emissions increases elsewhere. But Reputex says exemptions granted to industrial polluters will lead to huge emissions increases to 2030, effectively cancelling out carbon savings made under the fund.

Read the story from The Age by Nicole Hasham - “Emissions from big polluters will 'fully erode' the benefits of Coalition's climate policy.”

Emissions reduction fund to pay for fossil fuel plant that would be built anyway

The Morrison government’s emissions reduction fund – rebadged as a “climate solutions” policy and to be boosted with an extra $2bn – is being used to help one of the world’s biggest gold miners pay for a fossil fuel power plant the company concedes it would have built anyway.

Gold Fields built a gas plant to replace diesel. It
qualified for ERF as gas has fewer emissions.

Fund opponents say it is the latest evidence that design flaws in the scheme are leading to taxpayers’ money being wasted on projects that are commercially viable even without public support. In some cases, the climate funding is going to new fossil fuel projects on the grounds that they are cleaner than the dirty projects they replace.

Read the story from The Guardian by Adam Morton - “Emissions reduction fund to pay for fossil fuel plant that would be built anyway.”

Coalition wants to boost emissions reduction fund – but what did voters get for $2.3bn?

With Scott Morrison’s new environment minister, Melissa Price, flagging a boost in support for the emissions reduction fund – the centrepiece of the Coalition’s much-derided Direct Action climate policy – it is worth revisiting just what taxpayers have pocketed for the $2.3bn that has been spent on their behalf.

The new environment minister, Melissa Price, wants to push
 for increased funding for the emissions reduction fund.

The summarised view among those who have looked into the scheme ranges from “difficult to know” to “not much we wouldn’t have had anyway”.

Designed by the then environment minister, Greg Hunt, to fit the needs of the former prime minister Tony Abbott, the emissions reduction fund pays farmers and businesses to cut carbon dioxide pollution to below what it would otherwise be. It works as a reverse auction: bidders nominate how cheaply they think they can deliver reductions and what are assessed as the cheapest viable projects win contracts. The government buys carbon credits from the successful projects once the cuts are verified.

Read the story from The Guardian by Adam Morton - “Coalition wants to boost emissions reduction fund – but what did voters get for $2.3bn?”

Doubt about funding for keystone climate policy

Finance Minister Mathias Cormann - future
funding will need to be considered.

Long-term funding of the Turnbull government's keystone climate policy remains in doubt as mixed messages emerged from the government about whether further funds will be allocated beyond the current $2.55billion.

Finance Minister Mathias Cormann was reported on Monday as saying that there was no funding for the Emissions Reduction Fund beyond the 10-year period out to 2024 covered by the first phase of the fund.

"Future funding for the Emissions Reduction Fund beyond 2024 will need to be considered through a future budget process," a spokeswoman for Mr Cormann told Fairfax Media on Monday.

The budget for 2016-17, due to be released in May, is yet to be finalised, she said.

Read Peter Hannam’s story in today’s Melbourne Age - “Turnbull government plans to top up Direct Action funds before review.”

Fraser declares it unlikely Australia will reach emissions target

Bernie Fraser.

A review by the Climate Change Authority (CCA) has found the Government's Emissions Reduction Fund (ERF) alone is unlikely to lead to an emissions cut of 5 per cent by 2020.

An ABC report headed: “Emissions Reduction Fund unlikely to reach targets, Climate Change Authority report says” explains that with the earlier repeal of the carbon pricing mechanism, the ERF has become the spearhead of the Government's climate change policy.

CCA chairman Bernie Fraser said the program had a modest budget of $2.5 billion but modelling still suggested it was unlikely the scheme would reach its target.

"There haven't been any auctions yet and there's still some details to be worked out so it's a preliminary judgment, but the amount of money and the way that it's configured suggests that on its own it's not going to deliver that target," he said.