Australia’s drought relief package hits the political spot but misses the bigger point

There are two basic components to the Morrison government’s latest A$1 billion package response to the drought affecting large parts eastern Australia. One part involves extra subsidies to farmers and farm-related business. The other involves measures to create or upgrade infrastructure in rural areas.

All the indicators from climate science is that rain
 in many areas will be even more unreliable in the future.

Unfortunately, most funds will be misdirected and the response is unlikely to secure the long-term prosperity of regional and rural communities. This is a quick fix to a political problem, appealing to an important constituency. But it misses the point, again, about the emerging economics of drought.

The bulk of the A$1 billion package is allocated to a loan fund. The terms of the ten-year loans are more generous than what has been offered in the past. They are now interest-free for two years, with no requirement to start paying back the principal till the sixth year. 

Farmers will be able to borrow up to A$2 million. In addition, loans of up to A$500,000 will also be available to small businesses in drought-affected towns. 

Read the story from The Conversation by the Professor of Economics and Head of School from the University of South Australia, Lin Crase - “Australia’s drought relief package hits the political spot but misses the bigger point.”

Renewables will give more people access to electricity than coal, says IEA

Around the world, more than a billion people still lack access to electricity.

This number is shrinking, down by one third since 2000, despite rising population levels, according to an International Energy Agency (IEA) special report on energy access, published today.

The report says that while coal has supplied nearly half of the progress from 2000 to date, its role is set to decline “dramatically”. This is because renewables are becoming cheaper and because the hardest-to-reach people are in remote, rural areas where off-grid solutions offer the lowest cost.

The report shows the number of people without access to electricity will shrink by another third by 2030, with 60% of these gains supplied by renewables. Furthermore, if the world commits to providing universal access by 2030, then renewables would bridge 90% of the remaining gap, the IEA says.

Read the CarbonBrief story - “Renewables will give more people access to electricity than coal, says IEA.”