Horizon Power :: Australian Climate Change Measures

The Greenhouse Challenge Plus

The Greenhouse Challenge Plus is a key element of the Commonwealth Government's national greenhouse response. The major focus of the Greenhouse Challenge Plus Implementation Plan is a program of voluntary cooperative agreements between industry and government, in which industries detail and report on action plans to reduce greenhouse gas emissions. This program provides for industry and government to work together in meeting Australia's obligations under the United Nations Framework Convention on Climate Change (FCCC). It recognises Australian industry's commitment to take all practicable action to reduce greenhouse gas emissions consistent with growth and competitiveness.

The Prime Minister's Measures

To demonstrate a responsible Australian approach to greenhouse management in the lead up to the Kyoto negotiations, Prime Minister Howard announced a package of measures for greenhouse gas abatement in November 1997. Supported by $180 million of funding, the package of some 24 measures covered the general industry, energy, agriculture and forestry and transport sectors, and also saw the establishment of the Australian Greenhouse Office (AGO) as the primary agency for the carriage of government policy on greenhouse.

From an energy industry standpoint, the most salient measures were:

the extra 2% renewable energy measure, whereby electricity retailers are required to source an extra 2% of their electricity from new renewable energy sources by 2010;
the introduction of electricity generation efficiency standards;
accelerated energy market reform to improve the economic efficiency of energy supply;
funding support of renewable energy projects through a series of showcase and commercialisation grants;
end user energy efficiency measures; and
support for reforestation and carbon sequestration activities.

The National Greenhouse Strategy

In November 1998, the Commonwealth Government launched the National Greenhouse Strategy (NGS). This document, endorsed by State jurisdictions through COAG (Council of Australian Governments), outlines the mechanisms through which Australia's international greenhouse commitments will be met. It provides a "framework for effective implementation" and in a series of modules, identifies measures to:

foster knowledge and understanding of greenhouse issues;
limit greenhouse gas emissions; and
lay the foundations for adaptation to climate change.

Module 4 of the NGS, Efficient and Sustainable Energy Use and Supply, identifies the energy sector as a national priority for action to limit greenhouse gas emissions. The Prime Minister's measures, outlined above, are incorporated into the National Greenhouse Strategy.

Greenhouse Abatement Funding

In addition to the $180 million underpinning the Prime Minister's measures announced in 1997, the Commonwealth Government allocated a further $590 million of proceeds from the part sale of Telstra in 1999, to greenhouse gas abatement programs. Two areas of funding of specific relevance to Horizon Power are:

$100 million per year over three years to "greenhouse gas abatement" projects that achieve substantial (greater than 250,000 tonnes) CO2 savings.
About $60 million per year over three years (funded by recycling light fuel excise) for projects in regional areas that displace diesel fuel use.