Government – Clean Energy Future Package

Coalition – Direct Action Plan

Cost to Households

Approximately $9.90 per week.

Without international linking Mr Abbott's plan will cost $13 billion in 2020 – that's a new tax of $1300 per household.

Assistance

Assistance will be provided to households e.g. people earning up to $80,000 will receive an average tax cut of $300. Nine out of ten families will receive some form of tax cuts and other assistance.

No assistance for households.

Who pays?

The biggest polluters pay for their pollution, not households.

Taxpayers pay polluters to reduce pollution. Budget deficits will soar.

Resource allocation

The market allocates capital to the most efficient abatement.

The government picks winners.

Investments

Long term investment certainty.

No investment certainty.

Economic Reform

Long term structural reform of the economy.

Stop gap political solution designed to be abandoned when expedient.

Bipartisan emissions targets

Achieves targets – will cut 159 million tonnes a year of carbon pollution by 2020.

Does not achieve targets.

Product or service

Price impact 2012-13 (%)

Milk, cheese and other dairy products

0.4

Breads, cakes and cereal products

0.4

Fruit and vegetables

0.4

Meat and seafood

0.4

Restaurant meals and takeaway food

0.4

Clothing, footwear

0.2

Electricity, gas, utilities

7.9

Beer, wine and alcohol

0.2

Travel and accommodation

0.5

Rent

0.6

Hospital and medical services

0.3

Pharmaceuticals

0.3

Audio-visual equipment, computers

0.4

Furniture and furnishings

0.4

Household appliances, utensils and tools

0.8

Education

0.3

Sport and recreation

0.3

Summary of findings and recommendations

The National Energy Management Program (NEMP) is one of the approaches the Commonwealth Government is taking to achieve its targeted reduction in greenhouse gas emissions. The diverse range of activities which make up the program are likely, at best, to bring about a reduction in carbon dioxide emissions equivalent to only ten per cent of the required target. Although the program consists entirely of 'no-regrets' measures, it is central to the National Greenhouse Response Strategy. It needs to be pursued with as much vigour and commitment as the Department of Primary Industries and Energy can muster.

The NEMP should be significantly expanded and there is a need for the Government to commit more resources to it. However, to establish a more effective program the Department first needs to implement the recommendations of the auditors and the consultants.

The Committee has made several recommendations which reinforce the findings of the auditors and the consultants and which, if implemented along with their recommendations ;will provide the basis for the expansion of the program. Resources need to be committed which allow the program to expand to a level that will do more towards attaining the Government's greenhouse gas emissions reduction target. The Committee recommends that:

(1)  the Commonwealth Government make a genuine commitment to the National Energy Management Program and demonstrate its commitment by; providing substantially increased financial and personnel support for the program; and ensuring that the scale of financial and personnel support is commensurate with the objectives of the program and the Government's greenhouse gas emission reduction targets. (Paragraph 2.23)

(2)  the Government's commitment to the success of the National Energy Management Program be matched by the Executive of the Department of Primary Industries and Energy taking an active leadership role in promoting the program and ensuring that sufficient staff are made available. (Paragraph 2.24)

(3)  as part of its restructuring of the National Energy Management Program, the Department of Primary Industries and Energy closely examines and scrutinises the program activities currently operating and reduces the number of activities to a level consistent with effective operations and managerial resources. The Department should identify, for continuation, those activities that are the most useful in achieving the objectives of the program. (Paragraph 3.33)

(4)  as part of the restructuring of the National Energy Management Program, the Department of Primary Industries and Energy should develop and initiate new program activities that will be more effective in achieving targeted reductions in greenhouse gas emissions. (Paragraph 3.34)

(5)  to facilitate public input to the National Energy Management Program and to generate greater public awareness and interest, a comprehensive report on all programs relating to greenhouse gas emissions be presented to the Parliament annually, shortly after the budget is presented, (Paragraph 3.55)

(6)  before the end of 1996, the Australian National Audit Office completes a follow-up efficiency audit on the continuing implementation and administration of the National Energy Management Program. (Paragraph 4.7)[36]

Recommendation (1)

The Committee recommends that emissions permits be licences to emit, which are issued on terms that are clear, understandable, and known. Permits should not confer property rights.

Recommendation (2)

The Committee recommends the early trialling of emissions trading in Australia under the following conditions: voluntary participation; based on emissions levels at the start-up date of the trial; without prejudice to the eventual design of the compulsory emissions trading scheme, except for a guarantee of recognition in the compulsory scheme for emissions reductions made during the trial; consideration to be given to preferentially allocating permits in the compulsory scheme to participants in the trial; and continuing consultation about the design of the compulsory scheme.[37]

Recommendation 1

The Committee recommends that non-plantation native forest wood products and wood wastes be specifically excluded from the list of eligible renewable energy sources.

Recommendation 2

The Committee recommends that the Renewable Energy (Electricity) Bill 2000 be amended to include the list of eligible renewable energy sources, with the provision for more detailed rules and definitions to be included in the regulations.

Recommendation 3

The Committee recommends that future reviews of the 2 per cent measure give consideration to mandating a portfolio of sources, a cap on the contribution of any one source and/or a measure, which recognises the greenhouse intensities of particular sources.

Recommendation 4

The Committee recommends that the legislation be amended to ensure that the shortfall charge is recognised as being a penalty, that it should clearly not be tax deductible and that it be indexed for CPI increases.

Recommendation 5

The Committee recognises that the penalty may not be adequate to encourage liable entities to purchase Renewable Energy Certificates rather than pay the penalty, and/or that it may not deliver a diverse range of technologies, and recommends that the Government consider increasing the penalty. Failing that, the Committee recommends that the behaviour of wholesalers be closely monitored to assess whether they are choosing to pay the charge in lieu of buying available certificates (i.e. for which generation capacity exists). Should this be the case, the level of the charge should be increased to a level at which higher cost renewables, such as wind, will be competitive.

Recommendation 6

The Committee recommends that the time available to liable parties to make up a certificate shortfall and have the charge refunded be reduced from 3 years to 1 year, and that the refund be discounted by 50 per cent for that year.

Recommendation 7

The Committee recommends a regular linear phase-in path of at least 950 GWh each year.

Recommendation 8

The Committee recommends consideration of possible upward revision of the target be included in future reviews of the 2 per cent renewables measure, with a view to establishing a world-class renewable energy industry and increasing the proportion of renewable generation in the years after 2010.

Recommendation 9

The Committee recommends that the Government consult with the Western Australian Government about the circumstances of small remote communities in the Pilbara.

Recommendation 10

The Committee recommends the exclusion of legitimate cogeneration projects from liability under the measure.

Recommendation 11

The Committee recommends that the Bills be amended to provide that the renewable energy liability cannot be incurred twice for the same block of energy.

Recommendation 12

The Committee recommends that the Government take steps to ensure that the renewable electricity generation funded by voluntary contributions to Greenpower schemes in most states is additional to the annual targets and that agreement be reached with the states as soon as possible on a process to ensure that this is the case.

Recommendation 13

The Committee recommends that the Government commences discussions with the States as soon as possible to develop uniform national codes governing interconnections to power grids and uniform arrangements for net metering, which would guarantee a fair price for independent generators.

Recommendation 14

The Committee recommends that the legislation be amended to provide for a wide-ranging review of the measure to be completed within 3 years. The review should be carried out by an independent person or body and receive public input to both its inquiry and conclusions.[38]

Committee observations

2.28 Even the harshest critics of the IPCC do not deny that global warming has occurred.

2.29 The major points of disagreement revolve around: the balance of causes – the extent to which global warming has been influenced by natural phenomena as opposed to human activities; and projections of future temperatures and sea levels – with critics claiming that the IPCC estimates are exaggerated.

2.30 There are validly held differences of opinion within the scientific community on the weight to be attached to various possible causes of global warming and on the likely range of consequences of global warming.

2.31 It is conceivable that as the scientific debate continues, new dimensions and disciplines will be considered, some of which will influence the predicted outcomes of global warming. The continuing refinement of computer-based climate modelling techniques to include new elements is one such example.

2.32 Nevertheless, the balance of scientific opinion is clearly and substantially in favour of the assessments made by the IPCC.

2.33 We note that the Australian Government is prepared to accept the IPCC’s opinion that the world’s climate has changed over the last 100 years and that human activity has had a discernible impact on that change.

2.34 Moreover, the Australian Government has judged that it is reasonable to be involved in coordinated international action on climate change, as foreshadowed in the UNFCCC and provided for by the Kyoto Protocol, to help mitigate the future risks associated with climate change...

3.43 Debate about the potential social, economic and environmental impacts of the Kyoto Protocol is passionate, often contradictory and, in many respects, likely to continue until the impacts are, one way or another, actually realised.

3.44 If Australia were to ratify the Protocol, some sectors of the economy will be under great pressure to reduce greenhouse gas emissions – by changing operational practices, finding greater efficiencies and implementing new technologies. It is not yet clear whether those industries with high rates of fossil fuel use will be able to adapt sufficiently to create sustainable futures. Some members of the Committee are concerned that such industries might collapse: paying the ultimate price for Australia’s compliance with the Kyoto Protocol.

3.45 On the other hand, it is possible also that new business opportunities will emerge for energy efficient industries or through the development of a national emissions trading market.

3.46 Those who argue that the costs of mitigation are greater than the benefits of new opportunities have, at present, more support from the economic modelling that has been done to date. But the models are not without their critics and even those who have conducted the modelling acknowledge that it is not possible to complete an accurate analysis until the final design of the Protocol is agreed upon.

3.47 As suggested in our observations at the conclusion of Chapter 2, issues such as the treatment of carbon sinks and the extent of flexibility mechanisms may significantly influence the domestic cost of implementing the Protocol. These issues need to be resolved before a final best estimate of the economic, social and environmental impact of the Protocol can be calculated.

3.48 In any event, continuing investment in the development of technologies that promote the cleaner combustion of fossil fuels and the development of alternative sources of energy is a wise focus for the national research effort.[39]

Background – the Mandatory Renewable Energy Target

1.3 The bill amends the Renewable Energy (Electricity) Act 2000 and the Renewable Energy (Electricity) (Charge) Act 2000, which established the Mandatory Renewable Energy Target (MRET) scheme.

1.4 The original bills establishing the MRET were the subject of a Senate Environment, Communications, Information Technology and the Arts Legislation Committee inquiry, which reported in August 2000. The scheme also took place in the wider context of a References Committee inquiry into the progress and adequacy of Australia’s policies to reduce global warming, resulting in the report titled The Heat is On: Australia’s Greenhouse Future, tabled in November 2000.

1.5 The Government's renewable energy target places a legal liability on wholesale purchasers of electricity to proportionately contribute towards the generation of an additional 9,500 GWh of renewable energy per year by 2010.

1.6 The measure applies nationally, with all electricity retailers and wholesale electricity buyers on liable grids in all States and Territories contributing proportionately to the achievement of the measure.

...

Conclusions and recommendations

2.35 The Committee supports the changes to the definitions contained in S.17, and in particular, both the focus on sources rather than technologies and the flexibility granted to the Renewable Energy Regulator under proposed subsections 3-5.

2.36 The MRET scheme is intended to encompass and encourage the development of a diverse range of renewable energy sources, and the amendments recommended would assist some of these to reach their full potential. The changes recommended are also consistent with the administrative nature of the bill, and their application would be safeguarded by the new discretionary powers of the Regulator. In particular, the adoption of a single ‘biomass’ category is consistent with other changes to S.17, while the use of wood waste is already accepted within the operation of the current Act.

2.37 However, the adoption of a definition to include all biomass from ‘woody perennials’ (i.e. trees) as suggested by Greenfield Resource Options amounts to a more substantial policy change to the regime and should therefore be considered in the 2002 Review.

...

2.42 Although accepting that the standard operations of sugar mill generators could fall within the definition of ‘gaming’, the Committee considers that the amendments are appropriate. For the scheme to have continued credibility, the Regulator must have a broad discretionary power to determine what constitutes gaming in any given instance, especially in the context of the diverse industry involved in the MRET scheme.

2.43 The proper operation of the anti-gaming provisions must also be taken in the context of the enhanced information gathering powers for the Regulator contained in proposed Part 11A, together with the broad rights of objection, review and appeal under Part 6 of the Act.

2.44 There is no reason to consider that the legitimate operations of sugar mills would be classified as gaming by the Regulator, but it must also be recognised that gaming could occur in the sugar industry, by reason of their use of a readily transportable fuel source and multiple linked power stations. The Committee is not convinced of the necessity to limit or further define the powers envisaged by the bill.

...

The Committee recommends that the bill be passed, with consideration of the recommendations of this report.[40]

Recommendation

5.94 The Committee recommends:

That the Kyoto Protocol Ratification Bill 2003 [No. 2] not be proceeded with.[41]

There was general support for the majority of amendments to the Renewable Energy Bill, which can be attributed to the administrative – and fairly uncontentious – nature of the amendments...

The bill seeks to streamline elements of the energy industry and promote market transparency. Whilst it was clear from evidence to the inquiry that the bill does not address a key concern of submitters – that is, changes to the MRET scheme – the amendments proposed will implement small, but important changes to the operation of the energy market in Australia.

The committee recommends that the bill be passed.[42]

Recommendation 1

The Committee recommends that the Government, in consultation with energy interest groups and the energy industry, develop a detailed long-term strategy that includes specific CO2 emissions reduction targets for 2010, 2020 and 2030, with the ultimate goal of reducing greenhouse emissions by at least 60% by 2050 [para. 4.12].

Recommendation 2

The Committee recommends that the Government set abatement timeframes and raise the abatement targets for projects seeking funding through the Low-Emissions Technology Development Fund [para. 4.17].

Recommendation 3

The Committee recommends that the Government: recognise that geosequestration is one of many options for reducing Australia's CO2 emissions; and ensure that the greater proportion of the Low Emissions Technology Fund is made available to technologies which can provide emission reductions in the short term; fund only cost and abatement effective research and development on the basis of the principle that the polluter pays; and extend the life of the Low Emissions Technology Fund to cover the timeframe set out for emissions reductions targets, namely a reduction of at least 60% by 2050 [para. 4.26].

Recommendation 4

The Committee recommends that the Government provide incentives to encourage the uptake of current energy efficiencies, such as by adopting the NSW BASIX energy efficiency scheme on a national basis [para. 4.30].

Recommendation 5

The Committee recommends that the Government continue to fund the Photovoltaic Rebate Programme (PVRP), and set targets for the installation of standalone (RAPS) Photovoltaic (PV) energy systems and for grid-connected PV energy systems [para. 4.38].

Recommendation 6

The Committee recommends that the Government re-examine the projected costs of increasing the MRET to at least 5% by 2010, to 10% by 2020, and 50% by 2050, and if it is not prepared to do this, provide infrastructure grants for renewable energy developments [para. 4.39].

Recommendation 7

The Committee recommends that the Government not proceed with the proposed reductions in excise on diesel and petrol in the EWP, unless the decision to impose excise on biofuels and gaseous fuels by 2012 is reversed [para. 4.44].

Recommendation 8

The Committee recommends that the Government develop a more comprehensive policy framework that will set stronger market incentives to invest in energy efficiencies and mandate standards for CO2 abatement with specific, quantifiable and meaningful targets [para. 4.47].

Recommendation 9

The Committee recommends that the Government move to review its own operations in order to achieve maximum energy efficiencies and CO2 abatement prior to 2010 [para. 4.48].

Recommendation 10

The Committee recommends that the Government introduce a carbon trading scheme, or at least provide support for the states' carbon trading scheme, and mandate maximum levels of carbon emissions for Australia, according to diminishing benchmarks towards the goal of 60% by 2050 [para. 4.51].

Recommendation 11

The Committee recommends that the Government reconsider the benefits of a carbon tax as a tool to reduce carbon emissions in the industrial sector [para. 4.52].

Recommendation 1

The committee recommends that the Australian Government: establish an Australian Sustainability Charter that sets key national targets across a number of areas, including water, transport, energy, building design and planning; encourage a Council of Australian Governments agreement to the charter and its key targets.

Recommendation 2

The committee recommends that all new relevant Australian Government policy proposals be evaluated as to whether they would impact on urban sustainability and if so, be assessed against the Australian Sustainability Charter and the COAG agreed sustainability targets.

Recommendation 3

The committee recommends that: the Australian Government establish an independent Australian Sustainability Commission headed by a National Sustainability Commissioner; task the Commission with monitoring the extent to which Commonwealth funds and State and Territory use of Commonwealth funds promotes the COAG agreed sustainability targets; and task the Commission with exploring the concept of incentive payments to the States and Territories for sustainability outcomes along the lines of the National Competition Council model.

Recommendation 4

The committee recommends that the Department of Transport and Regional Services raise with the Development Assessment Forum the proposal to extend membership of the forum to representatives from the Department of Environment and Heritage and the CSIRO.

Recommendation 5

The committee recommends that the Department of Transport and Regional Services, in consultation with the Department of the Environment and Heritage, investigate options to extend the Roads to Recovery programme to include other modes of transport as a step towards including sustainability in the funding criteria.

Recommendation 6

The committee recommends that: transport infrastructure planning decisions be benchmarked against the recommended Australian Sustainability Charter; and the Australian Government significantly boost its funding commitment for public transport systems, particularly light and heavy rail, in the major cities.

Recommendation 7

The committee recommends that the provision of Australian Government transport infrastructure funds include provision of funding specifically for sustainable public transport infrastructure for suburbs and developments on the outer fringes of our cities.

Recommendation 8

The committee recommends that the Australian Government review the current FBT concessions for car use with a view to removing incentives for greater car use and extending incentives to other modes of transport.

Recommendation 9

The committee recommends that the Australian Government review the tariff policy on four wheel drive vehicles with a view to increasing the tariff rate on four wheel drive vehicles, except for primary producers and others who have a legitimate need for four wheel drive capability.

Recommendation 10

The committee recommends that the Australian Government provide adequate funding to develop new programmes and support existing programmes, such as TravelSmart and the National Cycling Strategy, that promote and facilitate public and active transport options.

Recommendation 11

The committee recommends that the Department of Transport and Regional Services investigate developing emission standards for older vehicles and work with the States and Territories with a view to instituting mandatory testing and reporting at point of sale.

Recommendation 12

The committee recommends that COAG, as part of the National Water Initiative, fund an education campaign educating the public about the benefits, economics and safety of using recycled water.

Recommendation 13

The committee recommends that the National Water Commission, in consultation with the States and Territories and the public, prepare an independent and transparent report on water options for each of the Australian capital cities and major regional centres.

Recommendation 14

The committee recommends that the Department of the Environment and Heritage undertake a public education campaign to increase community awareness of the Water Efficiency Labelling and Standards Scheme.

Recommendation 15

The committee recommends that the Australian Government ensure research and development regarding water resource management takes into account Water Sensitive Urban Design principles.

Recommendation 16

The committee recommends that the Australian Government commission research, either as part of the National Water Initiative or separately, to consider the economic viability and environmental benefits of decentralised water management systems.

Recommendation 17

The committee recommends that the Australian Government encourage the States and Territories to mandate disclosure of the energy efficiency and greenhouse performance of residences at point of sale and point of lease.

Recommendation 18

The committee recommends that the Australian Government, possibly through the CSIRO, investigate the value of a mass balance analysis for Australia.

Recommendation 19

The committee recommends that the Australian Government, in consultation with the Housing Industry of Australia, CSIRO and other industry and scientific bodies, investigate the establishment of a ‘sustainable building material’ labelling system.

Recommendation 20

The committee recommends that the Australian Government encourage the States and Territories to put in place a regime whereby approval for major residential and commercial renovations is conditional upon meeting energy efficiency and greenhouse performance requirements.

Recommendation 21

The committee recommends that the Department of the Environment and Heritage and the Australian Building Codes Board work with industry groups to raise awareness among builders, architects and developers of the economic and environmental benefits of sustainable building practices, including reusing and recycling building materials.

Recommendation 22

The committee recommends that the Australian Building Codes Board develop a nationally consistent building ratings tool that takes into account the range of environmental and sustainability factors dealt with by existing codes.

Recommendation 23

The committee recommends that the Australian Government increase the First Home Owner grant to $10,000 for those homes that meet a high standard of specified sustainability criteria and that these criteria be: stringent; and within the abilities of an HIA accredited builder.

Recommendation 24

The committee recommends that those States and Territories that do not have a 5 star rating system implement one as a priority.

Recommendation 25

The committee recommends that Australian Government departments and agencies that own property take steps to improve the sustainability of those buildings, at least to the 5 star rating, and that departments and agencies that rent property consider measures to improve building efficiency when seeking tenancy agreements.

Recommendation 26

The committee recommends that the Australian Government double the photovoltaic rebate to further encourage the uptake of photovoltaic systems.

Recommendation 27

The committee recommends that the Australian Government further develop its commitment to energy sustainability, particularly in the area of increasing the use of renewable energy.

Recommendation 28

The committee recommends that the Australian Government, through the National Framework for Energy Efficiency, examine the economic and environmental benefits of decentralised energy delivery and encourage investment in this area.

Recommendation 29

The committee recommends the Australian Government investigate US and German initiatives in the area of solar energy generation and purchase, and, where appropriate, implement or emulate them.

Recommendation 30

The committee recommends that the Australian Government: conduct an audit of existing research and funding opportunities for issues relating to the built environment and urban policy to ensure the adequacy of technical and policy research in this area; and, give consideration to nominating the built environment as a national research priority.

Recommendation 31

The committee recommends that, with reference to the Swedish model of environmental objectives, the Australian Government: develop an accessible and identifiable set of national environmental (or sustainability) objectives for Australia (based on the Australian Sustainability Charter recommendation in chapter 3); implement a national report card for Australia which represents transparently and simply our progress towards the objectives; and encourage similar programmes at a community level, possibly emulating the Tidy Towns or Celebrate WA programmes, but focusing on sustainability.

Recommendation 32

The committee recommends that Australia investigate opportunities to establish a Sustainable Cities network across Australia and Asia, and extend its regional and international commitment to urban sustainability through avenues such as: Technology and research exchange; Pilot demonstration projects, particularly in the area of water and waste treatment; Increased aid for social development in urban areas; and Local government partnership programmes.[43]

The Committee is of the view that this Bill requires further work before it can be passed by the Senate. In particular, the Committee is concerned about the testimony of a number of witnesses that they were surprised about its contents, despite an extensive consultation process. The Committee is also concerned that a number of substantive issues in relation to the Bill are to be introduced by regulation instead of being incorporated in the body of the Bill. This need to rely on as yet unseen regulations indicates that the Bill is being introduced before many substantive issues have been resolved.

 Further, the Bill provides for what appear to be excessively severe penalties for compliance breaches, and inappropriately wide powers to conduct inspections, in what is intended to be an essentially co-operative approach to improving energy use efficiency. There are also unresolved issues about the treatment of commercially sensitive information. For these reasons, the Committee considers that the Government should withdraw the bill for re-drafting.

Recommendation 1

2.39 The Committee recommends that the Bill not proceed unless amended:

(i) to give a clear indication to corporations and individuals affected by it of the extent of their obligations and liabilities on the face of the Statute itself, rather than delegating them to regulations;

(ii) to change the penalty provisions in clause 29(3) to a level more appropriate to the nature of a regulatory statute, and in particular, by removing the custodial penalty;

(iii) to provide that the signing obligation in clause 22(4)(b) of the Bill be placed on the Chief Executive Officer, or some other suitable senior executive officer, not the Chairman of the Board; and

(iv) to provide more appropriate and stronger protection for commercially sensitive and confidential information.

In its report, Sustainable Cities, tabled 12 September 2005, the Committee recommended that the Australian Government establish an Australian Sustainability Charter. While there is considerable support for the concept of a Sustainability Charter, there is also much debate about nearly all aspects of developing and implementing one. The Committee thought it would be useful to identify and flesh out some of the more contentious issues surrounding a Sustainability Charter and to make concrete recommendations. On 16 February 2006 it therefore resolved, under provisions of the House of Representatives standing order 215(c), to undertake an inquiry into a Sustainability Charter. Its recommendations follow.

Recommendation 1

The Committee recommends that within the first six months of the 42nd Parliament, the Minister for the Environment and Water Resources introduce a Bill for an Act to establish a statutory national Sustainability Commission, headed by a Sustainability Commissioner.

In drafting this legislation, the Australian Government should seek input from the state and territory governments.

In the Committee's view, and drawing from some of the suggestions made in submissions, the legislation should outline the ongoing roles of the Commission and Commissioner.

The ongoing role of the Commission should involve: defining what sustainability means to Australia; creating an aspirational Sustainability Charter with objectives and milestones; creating a supplementary technical implementation agreement containing targets; evaluating progress towards meeting national sustainability goals, objectives and targets and reporting on this to both Houses of Federal Parliament; conducting inquiries into sustainability matters, recommending remedial measures for unsustainable practices and gaps in policies and acknowledging those that are sustainable; reviewing (when necessary) national sustainability goals, objectives and targets; building and strengthening partnerships with government, industry and the community (nationally and internationally); 􀂄 influencing and guiding government, industry and the community in advancing sustainability outcomes; collecting, maintaining and disseminating information on sustainability, including national performance statistics.

The Commissioner should: head the office of the national Sustainability Commission and chair the advisory committee; be an independent statutory officer; be appointed with support of the government and the parliament for a 10 year, non-renewable period; be removed from office only by agreement of both Houses of Parliament on the grounds of misconduct, neglect of duty, or physical or mental incapacity; report annually to parliament; seek input from bodies such as the Commonwealth Scientific and Industrial Research Organisation in defining scientifically sound

Targets; have wide powers of access to people, places and papers in undertaking his/her duties; represent Australia at international sustainability forums; be bound by the functions and powers of the enabling legislation as well as meeting the obligations under the Public Service Act 1999 (Commonwealth); undertake and oversee (as appropriate) the duties of the Commission; draw upon existing sustainability measures.

Further, the legislation should provide for: the establishment of an advisory committee, chaired by the Commissioner and comprised of government, industry and community sustainability champions; informational and performance reporting against the Charter.

Recommendation 2

The Committee reiterates its recommendation in the Sustainable Cities report to establish a national Sustainability Charter.

The Charter should: be aspirational; define sustainability in an Australian context; contain clear and concise overarching objectives and timeframes.

The supplementary technical implementation agreement should: contain targets that are closely aligned with the objectives of the Charter; be used primarily by government and industry.

The scope of the Charter should, at a miminum, cover the following sustainability sectors: the built environment; water; energy; transport; ecological footprint; economics; waste; social equity and health; community engagement and education; and integrate their related components.

The process used for devising the Charter and supplementary technical implementation agreement should be transparent, participatory and inclusive.

Recommendation 3

The Committee recommends the Australian Government take a leadership role in advancing sustainability outcomes, not only through the measures outlined in Recommendation 1, but also through: the use of monetary and non-monetary incentives for governments, industry and the community in advancing sustainability outcomes; assessing existing and future policy against the proposed Sustainability Charter.

The committee noted the Commonwealth's intention regarding clause 5, expressed in the Explanatory Memorandum, 'is to work cooperatively with State and Territory governments to transition towards a single reporting system across all jurisdictions'. The committee supports the continuing cooperation between governments in implementing a national greenhouse reporting scheme. It is pleased to note that all parties remain committed to making progress with this initiative, and believes that some fine tuning of clause 5 may help ensure that this cooperation continues.

Recommendation 1

The committee recommends that clause 5 be re-drafted along the lines proposed by Professor Williams and others, to have the effect that the minister may by regulation exclude the operation of a state or territory law that duplicates reporting under the national reporting scheme.

Recommendation 2

The committee recommends that: subclause 27(1) be redrafted to replace the word 'may' with the word 'must'; and (for consistency) consideration be given to the deletion of subclause 27(2)(c).

Conclusion

The committee is satisfied with the bill as a whole. The committee believes that the bill lays the foundation for a rigorous, transparent and nationally consistent greenhouse and energy reporting system. This will also help form the vital foundation for any future emissions trading scheme in Australia.

The committee recognises the need, expressed by many stakeholders, for on-going consultation in the development of the regulations that will underpin the proposed system. The committee is confident that the government is committed to processes that will ensure constructive dialogue with stakeholders in the development of these regulations.

Recommendation 3

The committee recommends that, apart from those recommendations made above, the bill be passed.

Conclusion

As the MRET scheme is strongly linked to the proposed ETS, it is premature to amend the renewable energy power percentages without having regard to the wider implications of any pre-ETS alterations. The intent of the bill in promoting renewable energy use is not the main issue of concern of the committee, as this is in line with the government's policy to increase renewable energy use by 2020. Therefore, the committee agrees in general with the intentions of the bill.

In addition, amending the existing MRET scheme when the government has yet to release details of the emissions trading scheme and related renewable energy schemes is not an optimum approach. To do so could impose obligations on industry, consumers and other stakeholders that may be inconsistent with any aspects of the scheme relating to and promoting the use of renewable energy.

Recommendation

As an emissions trading scheme and its implementation mechanisms have yet to be finalised, the committee recommends this bill not be passed.

Global heating

Recommendation 1

The Committee finds that it is in Australia’s interests to secure global agreement to deliver deep cuts in emissions so as to stabilise concentrations of greenhouse gases in the atmosphere at 450 parts per million or lower by 2050.

Addressing climate change

Recommendation 2

The Committee recommends that the Australian Government be willing to adopt a policy setting to reduce Australia’s emissions of greenhouse gases by 80 percent by 2050 in seeking agreement from other developed countries to also cut emissions by 80 percent by 2050.

Recommendation 3

The Committee recommends that the Australian Government pursue the creation of an international carbon market as the primary mechanism for reducing greenhouse gas emissions.

Recommendation 4

The Committee recommends that the Australian Government take the following position to the 15th Conference of the Parties to the United National Framework Convention on Climate Change in Copenhagen, Denmark: that the international community reach an agreement to stabilise greenhouse gas emissions at around 450 parts per million or lower of carbon equivalent; that the agreement distribute responsibilities for reducing greenhouse gas emissions across nations by requiring developed nations to reduce emissions by 80 percent by 2050, with the residual reductions distributed fairly between developing and transitional nations; and that the agreement establish an international carbon market as the primary mechanism for achieving the necessary reductions.

Greenhouse gas reductions in Australia

Recommendation 5

The Committee recommends that the Australian Government work through the Council of Australian Governments to establish a high quality integrated public transport system including light rail technology.

Recommendation 6

The Committee recommends that the Australian Government endeavour to move to 'full carbon accounting' to ensure that emissions resulting from forestry activities as well as biosequestration are accurately accounted for.

Recommendation 7

The Committee recommends that the Australian Government, through both the Council of Australian Governments and ongoing work on the Carbon Pollution Reduction Scheme, and in consultation with relevant indigenous communities, explore ways to reduce greenhouse gas emissions from savannah burning.

Recommendation 8

The Committee recommends that promising renewable energy technologies which are not cost-competitive at the moment, including geothermal, solar thermal, large scale photovoltaic and wave energy, are further supported.

Recommendation 9

The Committee recommends that the Australian Government establish a coordinating mechanism through the Council of Australian Governments to ensure integration and coordination of greenhouse gas reduction actions across all States, Territories and levels of government, including local and State government planning processes.

Climate change adaptation in Australia

Recommendation 10

The Committee recommends that the Australian Government direct the Australian Building Codes Board to review the Building Code of Australia to ensure that it better provides for energy efficiency standards suitable for varied climate zones.

Recommendation 11

The Committee recommends that the Australian Government investigate using revegetation as an adaptation mechanism to reduce temperature and increase rainfall in applicable parts of Australia.

Recommendation 12

The Committee recommends that the Australian Government conduct an inquiry into adaptation strategies for climate change. This inquiry should include consideration of projected sea-level rise due to climate change and its impact upon Australian coastal communities and neighbouring countries.

General

Recommendation 1

The Committee recommends the inclusion within the Bill of an objects clause, providing that the legislation: provide greenhouse gas injection and storage proponents with the certainty needed to bring forward investment; and preserve pre-existing rights of the petroleum industry as far as is practicable to minimise sovereign risk to existing titleholders’ investment in Australia’s offshore resources.

Recommendation 2

The Committee recommends that the responsible Commonwealth Minister utilise established formal consultation pathways to consult with State Governments, industry and environmental organisations, with a view to achieving national consistency in the administration of GHG storage legislation.

Access and property rights

Recommendation 3

The Committee recommends that no acreage be automatically excluded from consideration for selection on the grounds of pre-existing petroleum activities.

Recommendation 4

The Committee recommends that the process for identifying and shortlisting acreage for release should be transparent and systematic, and should consider the views and submissions of all relevant stakeholders.

Recommendation 5

The Committee recommends that the criteria established for assessing work bid applications facilitates the uptake of CCS activities while maintaining transparency and consistency.

Recommendation 6

The Committee recommends that the legislation be amended to allow for a GHG assessment permit holder to apply for a single right of renewal for a maximum three years duration.

Recommendation 7

The Committee recommends that the GHG injection and storage rights conferred under s.137 of the Offshore Petroleum Act 2006 be maintained where practical.

Recommendation 8

The Committee recommends that the Government review the Offshore Petroleum Act and proposed amendments to provide for the development of integrated petroleum projects, including the injection and storage of GHG from multiple sources into a single storage formation.

Managing interactions

Recommendation 9

The Committee recommends that the Bill be amended to provide for the responsible Commonwealth Minister to direct the parties to negotiate in good faith where there are potential or actual overlapping GHG storage and petroleum titles, under both pre-commencement and post-commencement petroleum titles; and that the responsible Commonwealth Minister be empowered to direct an outcome.

Recommendation 10

The Committee recommends that the regulations and guidelines attendant upon the legislation are released for stakeholder and public comment as a matter of urgency.

Investment certainty

Recommendation 11

The Committee recommends that incumbent petroleum operators be offered a one-off opportunity to incorporate a GHG assessment permit over their exploration or production licence, with the condition that they must demonstrate utilisation of this permit within five years, or surrender it.

Recommendation 12

The Committee recommends that those proponents who can demonstrate a readily available CO2 stream for imminent injection receive preferential consideration when assessing bids for GHG acreage allocation.

Recommendation 13

The Committee recommends that the Government consider further financial incentives for the earliest movers in this new industry, and that these incentives be made public at the earliest opportunity.

Recommendation 14

The Committee recommends that a process for the formal transfer of long term liability from a GHG operator to the Government be established within the proposed legislation, such transfer to be conditional upon strict adherence to prescribed site closure criteria.

GHG storage

Recommendation 15

The Committee recommends that general criteria for achieving a site closing certificate be established and published as part of the implementation of the legislation.

Recommendation 16

The Committee recommends that non-fixed closure timeframes as currently prescribed within the proposed legislation be used in preference to alternative models such as fixed term closure periods.

Recommendation 17

The Committee recommends that community and stakeholder engagement strategies be considered as part of any GHG storage activity.

Recommendation 18

The Committee recommends consideration be given to making monitoring data associated with GHG storage project publicly available.

Recommendation 19

The Committee recommends the use of consultative pathways to provide feedback on the wider community’s concerns to the responsible Commonwealth Minister.

Recommendation 1

The committee recommends that the government: Continue to provide support to households to take up renewable energy and energy efficiency initiatives, including through schemes such as the SHCP; Give consideration to providing incentives to householders to install larger photovoltaic systems; and as part of its deliberations with COAG on feed-in tariffs, note industry preference for the introduction of a feed-in tariff scheme as a sustainable, long term mechanism to encourage domestic uptake of solar energy systems.

Recommendation 2

Coalition Senators recommend the Rudd Government reverse the means test and provide certainty to industry with ongoing funding of the rebate for the next five years.

Recommendation 3

Coalition Senators recommend the Rudd Government strongly consider a national feed-in tariff system and immediately begin consultation with the solar industry and experts to establish the most cost effective mix of tariffs and rebates to maximise environmental outcomes.

Recommendation 1

The committee recommends that the Senate pass the bill.

Recommendation 2

The committee recommends that the operation of the bill be reviewed three years after its proclamation.

Recommendation 3

That the government consider establishing an expert panel to advise the minister on matters of site selection, licensing, regulation, monitoring and environmental impact and site closures. Such advice should be made public.

Recommendation 4

The committee recommends that the government reject calls for it to assume explicitly longer-term liability for any leakage from carbon storage projects. Rather, it should investigate the means by which those companies undertaking such projects can contribute to the future costs of coping with any such leakage.

Recommendations

1. The Guidelines should be mandatory regulations.

2. There should be incorporated into the regulations conditions which must be met before the tax deductions would apply, namely; the carbon sink forests must be registered on the property title; no native vegetation can be cleared for or converted to carbon sink forests; carbon sink forests should be biodiverse and cannot be harvested or cleared, and no carbon sink forest can be established in the absence of a hydrological analysis including ground water and interception, of the proposed area to be planted.

3. To avoid the destruction of rural communities and the displacement of food crops, prime agricultural land must be excluded from carbon sink plantings.

Recommendation 1

Noting strong industry, consumer and government support for FIT schemes, the committee recommends that the Commonwealth government, through COAG, work as quickly as practicable to implement a FIT framework that is as far as possible nationally uniform and consistent.

Recommendation 2

The committee recommends that all governments consider carefully the evidence received by this Senate inquiry regarding metering, as well as the track record of existing FIT schemes overseas, in designing a nationally consistent FIT framework for Australia.

Recommendation 3

The committee recommends that a more regular system of payments to generators be considered than the annual payments in the proposed bill.

Recommendation 4

The committee recommends that tariff degression rates form part of the nationally consistent FIT framework, but that there also be capacity for degression rate 'pauses' to be instituted following a rate review procedure.

Recommendation 5

The committee recommends that tariff degression rates be technology-specific.

Recommendation 6

While strongly supporting a nationally consistent feed-in tariff framework, the committee recommends the current bill not proceed.

Recommendation 1

The Government should significantly increase the research effort in relation to the potential of soil carbon as a climate mitigation measure, as a means of reducing the capital input costs to agriculture as a means of increasing resilience in agricultural systems.

Recommendation 2

The committee recommends that the Government should provide for a full carbon accounting framework in relation to agricultural and forestry sectors in a domestic emissions trading scheme.

Recommendation 3

DAFF should prioritise strategic planning for climate change mitigation and adaptation in agriculture and rural communities and play a greater leadership role than is currently the case.

Recommendation 1

The committee recommends that, in the new Parliament, the Senate re-establish the Select Committee on Fuel and Energy with the same terms of reference as the current committee, empowered to consider all the evidence and records received by it and for the specific purpose of completing and tabling a comprehensive report on the findings of the committee.

Recommendation 1

The Committee recommends that the bills should be passed without delay.

Recommendation 2

The Committee recommends that the Government coordinates and advances a whole of government approach to jobs and skills in emerging low pollution industries.

The Committee further recommends that a process be developed which ensures effective implementation of all Government programs and policies which support green jobs and skill development throughout all sectors of the economy.

The Government should also develop Australia’s current and future skills base to ensure it has sufficient skills to take advantage of emerging employment opportunities driven though the CPRS and other complementary climate change policies.

Recommendation 3

The Committee recommends that the government develop policies complementary to the CPRS to encourage voluntary action.

Recommendation 4

The Committee recommends that the wording of section 14(5) of the CPRS Bill 2009 be amended so that in making recommendations on emissions caps the Minister "shall have regard" rather than "may have regard" to "voluntary action".

Recommendation 5

The Committee recommends that the Government continues to seek ways to assist the commercial scale development of renewable energy sources and sequestration technology as a priority.

Recommendation 1

The committee recommends that the Senate pass the bill.

Recommendation 1

The Committee recommends that the Senate pass the bills.

Recommendation 1

The committee notes that the Treasury modelling was conducted in economic circumstances that were markedly different to those in which the legislation is proposed to now be introduced. Since the modelling was conducted the global financial crisis has led to a marked deterioration in the short-term economic outlook.

Whilst the CPRS package has been revised on two occasions, the modelling continues to fail to take into account the impact of these changed economic circumstances. The committee considers the modelling undertaken by Treasury to be inadequate and recommends that the Government direct Treasury to undertake further modelling. The further modelling should: consider in detail the short-term adjustment costs; respond to criticisms made of Treasury's initial modelling including: taking into account the deterioration of the Australian economy the likely effect of the CPRS upon jobs and upon the environment the absence of any modelling of the impact of the CPRS on regional Australia; and model other types of schemes that have been proposed as alternatives to CPRS, including: a conventional baseline-and-credit scheme an intensity model a carbon tax a consumption-based carbon tax, and the McKibbin hybrid approach.

Recommendation 2

The committee recommends that the CPRS legislation not be passed in its current form.

Recommendation 3

The committee recommends any remodelled CPRS legislation clarify future arrangements to provide continued support for methane gas capture and energy generation following the foreshadowed cessation of state based schemes.

Recommendation 4

The committee recommends that the Government work with the NSW, ACT and Queensland governments to clarify, as a priority, transitional arrangements for power generation projects from waste methane which may be affected by the possible cessation of the NSW GGAS and similar programmes.

Recommendation 5

The committee recommends that the Government consider in detail different claims made about the probable expense of the expanded Renewable Energy Target. Analysis of the different cost estimates should be included in the Regulatory Impact Statement (RIS) accompanying the legislation to amend the Renewable Energy (Electricity) Act 2000.

Recommendation 6

The committee recommends that following the decision by COAG on 30 April 2009 to exempt major emitters, the Government should explain in the RIS accompanying the amendment bills: any differences in costs caused to householders and other industry sectors arising from the decision; the impact the exemptions will have on the efficiency and effectiveness of the scheme; and the form which compensation to householders will take.

Recommendation 7

The committee recommends the Government review the impact of the CPRS to avoid the EITE provisions generating perverse outcomes for the agriculture sector and the food processing and manufacturing sector such as scaling down and splitting operations.

Recommendation 8

The committee recommends that, as a priority, the Government develop complementary policy measures for greenhouse gas abatement and mitigation in the agricultural sector; and that such policy measures be underpinned by substantially greater research and development in this area.

Recommendation 9

The committee recommends that the Government establish an agriculture and land use policy taskforce to accelerate the development of complementary climate change policy measures for the land use sector; and to promote full carbon accounting in land use, agriculture and forestry sectors in international climate change fora.

Recommendation 10

The committee recommends that the Government promote the testing, development and roll-out of environmental restoration and land stewardship schemes, giving priority to schemes that can make a significant contribution to emissions reductions, agricultural productivity and biodiversity conservation.

Recommendation 11

The committee recommends that the Government promote the testing, development and roll-out of soil carbon technologies and schemes, giving priority to schemes that can make a significant contribution to emissions reductions and soil health.

Recommendation 12

The committee recommends that the Government takes steps to ensure that Australia encourages reform of international carbon accounting rules.

Recommendation 13

The Committee recommends that the Government provide greater funding so that recommendations 8, 9, 10, 11 and 12 can be implemented in a timely manner.

Recommendation 1

The committee recommends that as part of the 2014 review of the RET, the Treasury projection of total electricity demand in 2020 is reviewed and if it is revised up, there be a corresponding increase in the RET to maintain the goal of 20 per cent of electricity being generated from renewable sources in 2020.

Recommendation 2

The Committee recommends that to underline the shortfall charge's role as a penalty rather than a price ceiling, it be reviewed after any year in which the maximum price for a renewable energy certificate exceeds 80 per cent of the shortfall charge.

Recommendation 3

The Committee recommends that the banking of renewable energy certificates be assessed as a part of the 2014 review.

Recommendation 4

The Committee recommends that the Senate pass the bills.

Recommendation 1

The Committee recommends that the Australian Government commission a study on international coastal zone governance arrangements, policies and programs for addressing coastal climate change impacts, and adaptation strategies. The completed study should be made public.

Recommendation 2

The Committee notes the importance of mitigation measures in addressing climate change impacts and accordingly recommends that the Australian Government continue to take urgent action to ensure that Australia can best contribute to a reduction in global greenhouse gas emissions.

Recommendation 3

The Committee recommends that the Australian Government increase its investment in coastal based climate change research on: sea level rise projections and the dynamics of polar ice sheets, particularly in the Antarctic extreme sea level events, including as a result of storm surge and tropical cyclones regional variations in sea level rise: ocean acidification, particularly impacts on Australia’s coral reefs, higher ocean temperatures and changing ocean currents.

Recommendation 4

The Committee recommends that the coastal zone component of the National Climate Change Science Framework and proposed National Climate Change Science strategy be clearly identified by the proposed high level coordination group and involve key coastal stakeholders.

Recommendation 5

The Committee recommends that the Department of Climate Change continue to fund research to: establish the wave climate around the coast so as to identify those locations most at risk from wave erosion; examine how the wave climate nationally interacts with varying landform types.

Recommendation 6

The Committee recommends that the Australian Government continue funding under the Climate Change Adaptation Skills for Professionals Program. In addition, the Australian Government should liaise with tertiary institutions to ensure an adequate supply of appropriately skilled coastal planners and engineers.

Recommendation 7

The Committee recommends that the Australian Government: continue the Local Adaptation Pathways Program as a competitive funding program; review the program’s guidelines to secure better outcomes by:

⇒ use of consistent methodology for vulnerability assessments

⇒ evaluation of the outcomes of the projects that are undertaken with the grants

⇒ encouraging regional applications from local councils whenever possible.

Recommendation 8

The Committee recommends that the Department of Climate Change share all data collected through vulnerability assessments undertaken as part of the Australian Government Local Adaptation Pathways Program on the proposed National Coastal Zone Database (see also recommendation 42).

Recommendation 9

The Committee recommends that the Australian Government establish a coastal zone research network within the National Climate Change Adaptation Research Facility and that it complete a coastal zone research plan.

Recommendation 10

The Committee recommends that: the Department of Infrastructure, Transport, Regional Development and Local Government undertake a study into the human and resourcing needs of local governments to effectively plan for and adapt to the impacts of climate change; this study be carried out in conjunction with the Australian Local Government Association and the National Sea Change Taskforce

Recommendation 11

The Committee recommends that the Australian Government establish a National Coastal Zone Database to improve access to and consistency of information relevant to coastal zone adaptation. The National Coastal Zone Database should be an online portal that allows ready access to: ‘first pass’ National Coastal Vulnerability Assessment data; state and local Digital Elevation Modelling; National Climate Change Adaptation Research Facility reports; federal Local Adaptation Pathways Program reports; state and local coastal vulnerability assessment results.

Recommendation 12

The Committee recommends that, following the completion of the ‘first pass’ National Coastal Vulnerability Assessment, the Australian Government consider the resourcing and financing of second and third pass assessments, in conjunction with state, territory and local government authorities.

Recommendation 13

The Committee recommends that the Australian Government take urgent action to protect Australians from the threats of dengue fever and chikungunya virus. The knowledge gaps identified by the National Climate Change Adaptation Research Facility research plan with regards to the relationship between climate variation and vector-borne disease should be urgently addressed. The Australian Government should: undertake research into the relationship between climate change and vector-borne disease; produce modelling to allow for advanced early warning of impending threats from vector-borne disease; continue to work towards producing a structured national framework for dealing with mosquito outbreaks in Australia; increase biosecurity measures to better protect against chikungunya virus entering Australia.

Recommendation 14

To further enhance Australia’s disaster mitigation, preparedness, response and recovery arrangements in the event of possible major coastal disasters, the Committee recommends that the Australian Government establish a grants program, the Coastal Natural Disaster Mitigation Program, to fund natural disaster mitigation projects in the Australian coastal zone.

The Committee also recommends that the Australian Emergency Management Committee (AEMC) consider the following issues: improved data on coastal disaster risk assessment and vulnerable coastal sites; improved access and evacuation routes for coastal communities; improved coastal community awareness of and resilience to natural disasters; improved coordination of coastal disaster mitigation arrangements with other initiatives currently underway, such as reviews of the Australian Building Code and land use planning policies to take into account climate change impacts; improved early warning systems for coastal areas in the event of an extreme sea level event (storm surge, erosion, flooding).

The Committee further recommends that the AEMC provide a report on these matters to the Ministerial Council for Police and Emergency Management.

Recommendation 15

The Committee recommends that the Australian Government, through the Ministerial Council for Police and Emergency Management, recognise the extensive Surf Life Saving Australia network and take appropriate steps to integrate this network into emergency services preparedness, planning, and response systems and activities.

Recommendation 16

The Committee notes that major initiatives relating to climate change adaptation risk assessment and infrastructure are currently in progress. Given that much of Australia’s infrastructure is in the coastal zone and the particular threats facing the coastal zone from climate change, involving significant socioeconomic costs, the Committee recommends that the Australian Government ensure there is a comprehensive national assessment of coastal infrastructure vulnerability to inundation from sea level rise and extreme sea level events.

Recommendation 17

The Committee recommends that the Department of Climate Change, in collaboration with the Queensland Government, CSIRO and Indigenous communities in the Torres Strait, undertake a major study into the vulnerability of the Torres Strait to the impacts of climate change and provide assistance in the development of an adaptation plan.

Recommendation 18

The Committee recommends that the Australian Government give the five recommendations calling for information, studies and data, as proposed by the Torres Strait Regional Authority, early and urgent consideration with a view to their implementation.

Recommendation 19

The Committee recommends that the Australian Government request the Productivity Commission to undertake an inquiry into the projected impacts of climate change and related insurance matters, with a particular focus on: insurance coverage of coastal properties, given the concentration of Australia’s population and infrastructure along the coast; estimates of the value of properties potentially exposed to this risk; insurance affordability, availability and uptake; existing and emerging gaps in insurance coverage, with a particular focus on coverage of coastal risks such as storm surge/inundation, landslip/erosion and sea level rise (including the combined effects of sea inundation and riverine flooding); the need for a clear definition of the circumstances under which an insurance claim is payable due to storm surge/inundation, landslip/erosion and sea level rise, as well as due to permanent submersion of some or all of the land; the possibility of a government instrument that prohibits continued occupation of the land or future building development on the property due to sea hazard; gaps in the information needed to properly assess insurance risk and availability of nationally consistent data on climate change risks; examining the key actions for governments proposed by the Insurance Council of Australia and the Insurance Australia Group in their submissions to this inquiry; possible responses to a withdrawal of insurance for certain risks or regions, noting the increased burden this could place on government and taxpayers.

Recommendation 20

The Committee notes the Council of Australian Governments initiative (through the Local Government and Planning Ministers Council) to develop state-specific climate change planning policies by mid 2011, to inform local governments and regional planning responses to climate change. The Committee recommends that the Australian Government ensure that the outcomes of this initiative are included as part of the action plan under the proposed new Intergovernmental Agreement on the Coastal Zone.

Recommendation 21

The Committee recommends that the Australian Government consider the benefits of adopting a nationally consistent sea level rise planning benchmark and, if so, whether this be done on a statutory basis or otherwise. The outcomes of this consideration should then be included as part of the action plan for the proposed Intergovernmental Agreement on the Coastal Zone.

Recommendation 22

The Committee recommends that the Building Code of Australia, including cyclone building codes, be revised with the objective of increasing resilience to climate change.

Recommendation 23

Noting the gap in research on legal issues and climate change impacts on the coastal zone, the Committee recommends that the Australian Government request that the Australian Law Reform Commission undertake an urgent inquiry into this area, with particular focus on: clarification of liability issues with regard to public authorities acting or not acting in terms of climate change adaptation and possible coastal hazards (e.g. legal basis to implement adaptation strategies of protect, redesign, rebuild, elevate, relocate and retreat);  clarification of liability issues with regard to private property holders acting to protect their properties from the impacts of climate change; legal issues associated with the impacts of climate change on existing developments, as opposed to planned new developments; mechanisms to ensure mandatory risk disclosure to the public about climate change risks and coastal hazards (e.g. legislation harmonised across all states requiring mandatory disclosure of all known and predicted risk data by state and local governments to property purchasers during property conveyance and title search processes); whether there should be broader indemnification of local government authorities.

Recommendation 24

The Committee recommends that the Australian Government, through the Council of Australian Governments process, examine the establishment of a system of national coastal zone environmental accounts, employing the model developed by the South East Queensland Healthy Waterways Partnership.

Recommendation 25

The Committee recommends that the Australian Government, through the Australian Bureau of Statistics, ensure that:  accurate and consistent methods of measuring the numbers and the impact of tourists and other non-residents in coastal areas are undertaken to enable resources to be better matched with demand for infrastructure and services; improved data on long-term demographic trends in coastal areas is made available to assist in coastal zone planning and management.

Recommendation 26

The Committee recommends that the Australian Government: expand the list of national priority areas identified under the Caring for our Country program to include climate change impacts on biodiversity; give consideration in future funding rounds to projects that:

⇒ involve working with state/territory and local governments to improve coastal land use planning

⇒ seek to address loss of coastal habitat as a result of coastal development and population pressures.

Recommendation 27

The Committee recommends that, in seeking to expand the area protected within Australia’s National Reserve System (NRS) under the Caring for our Country program, the Australian Government focus on high biodiversity coastal habitat, including more effective off-reserve coastal zone conservation and expanded coastal reserves that provide larger buffer zones. In undertaking this initiative, the Australian Government should continue to work with state/territory and local governments, Indigenous groups, conservation organisations, private landholders and other stakeholders to ensure that these protected areas are added to the NRS in a timely manner.

Recommendation 28

The Committee recommends that the Australian Government, in considering its response to the Independent Review of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), take into account concerns about the EPBC Act and coastal zone management raised as part of this inquiry—in particular, the need to address the cumulative impacts of coastal development. This could be achieved by numerous means, including: a land clearing trigger; defining coastal ecosystems as a matter of national environmental significance; making more use of landscape-scale assessments through strategic assessments or bioregional plans.

Recommendation 29

The Committee recommends that the Australian Government: continue working with the Queensland Government and local councils under the existing Great Barrier Reef Intergovernmental Agreement to improve land use planning in the catchment;  commission analysis of the Great Barrier Reef as a case study for integrated coastal zone management (ICZM) in Australia. The study should draw out possible directions for ICZM in Australia with regard to:

⇒ addressing challenges associated with climate change impacts on biodiversity

⇒ declining water quality from catchment runoff and loss of coastal habitat from coastal development and population pressures

⇒ building cooperative partnerships between Commonwealth, state and local government, and other stakeholders

⇒ establishing governance and institutional frameworks

Recommendation 30

The Committee recommends that the Australian Government urgently commission a detailed climate change vulnerability assessment for Kakadu National Park, in consultation with the park’s traditional owners and other stakeholders and drawing on the results of the ‘first pass’ National Coastal Vulnerability Assessment of the park. This assessment should specifically focus on the vulnerability of Kakadu’s freshwater wetland systems to saltwater intrusion. A key outcome of the assessment should be the development of a Climate Change Action Plan for Kakadu National Park, with coordinated input from the Australian Government and Northern Territory Government, Indigenous land owners, researchers and other stakeholders.

Recommendation 31

The Committee recommends that the Australian Government: require that all Ramsar listed wetlands have effective and operational management plans and that resources are allocated by governments to monitor the implementation of these plans;  increase the number of coastal wetlands classified as Ramsar sites, particularly those classified as Nationally Important wetlands; work with state and territory governments through the Natural Resource Management Ministerial Council, and in consultation with other stakeholders, to improve the management and monitoring of coastal wetlands, particularly Ramsar sites located in close proximity to development; improve public awareness about what actions impacting on a Ramsar wetland should be referred to the Minister under the Environment Protection and Biodiversity Conservation Act 1999; ensure that the National Guidelines for Ramsar Wetlands also include modules on the process for nominating Ramsar wetlands; develop a climate change action plan for coastal Ramsar wetlands and Nationally Important wetlands.

Recommendation 32

The Committee recommends that the Australian Government: work through the Natural Resource Management Ministerial Council and in consultation with Birds Australia and other stakeholders to implement a National Shorebirds Protection Strategy. The strategy should focus on tightening restrictions on beach driving and access to bird breeding habitat, preserving habitat, identifying suitable buffer zones for migration of coastal bird habitat, managing pest animals and increased public education; provide further funding to Birds Australia and other research groups to ensure continued monitoring and data collection with regard to migratory and resident shorebirds; provide funding to strengthen partnerships between domestic and international shorebird conservation groups to increase awareness and conservation efforts in other countries; commission a detailed climate change impact study on Australia’s migratory and resident shorebirds; in its consideration of amendments to the Environment Protection and Biodiversity Conservation Act 1999 following the independent review, give consideration to the formal listing of coastal shorebird and sea bird communities as threatened species/ecological communities under the act.

Recommendation 33

The Committee recommends that the Australian Government: work with the Natural Resource Management Ministerial Council and other stakeholders to develop an action plan to:

⇒ ensure that coastal buffers, coastal habitat corridors and high ecological value areas are identified and included in Commonwealth, state and local government management processes

⇒ ensure appropriate infrastructure planning and that land is made available to allow for the migration of coastal ecosystems

⇒ promote cooperative ecosystem-based planning and management approaches across jurisdictions

⇒ implement a nationally consistent coastal and marine biodiversity monitoring and reporting framework

⇒ develop a targeted strategy to address key gaps in knowledge of coastal and marine biodiversity and improve access and sharing of knowledge and data

⇒ develop regional climate change adaptation policies and plans and integrate them into coastal and marine bioregional planning processes

⇒ ensure that all future national coastal zone policy incorporates these priorities, as well as future revised national sustainability, biodiversity, climate change and environmental policy frameworks.

Recommendation 34

The Committee recommends that coastal based Natural Resource Management bodies seeking funding under the Caring for our Country program have coastal and marine priorities, as well as coastal zone management principles integrated in their management plans.

Recommendation 35

The Committee recommends that the Australian Government, in consultation with Indigenous Australians and other coastal stakeholders, commission work to provide a national repository identifying Indigenous and non-Indigenous cultural heritage sites in vulnerable coastal areas.

Recommendation 36

The Committee recommends that the Australian Government urgently commission further research on socioeconomic vulnerability to climate change impacts, particularly in coastal communities.

Recommendation 37

The Committee recommends that the Australian Government: consider the Victorian Government’s model of a sustainable coastal community as part of the proposed Intergovernmental Agreement on the Coastal Zone to be concluded through the Council of Australian Governments; ensure an early response to the recommendations provided in the Sustainability for Survival: Creating a Climate for Change—Inquiry into a Sustainability Charter report and the Sustainable Cities report.

Recommendation 38

The Committee recommends that the Australian Government request that the Centre for Excellence for Local Government ensure a particular focus on capacity building for coastal local councils. Capacity building should focus on addressing issues relating to: population growth pressure; planning and design of new infrastructure; integrated coastal zone management; climate change impacts and adaptation.

Recommendation 39

The Committee recommends that the Australian Government give consideration to establishing a separate funding program for infrastructure enhancement in coastal areas vulnerable to climate change. Such funding should be provided according to a formula requiring contributions, either financial or in-kind, from state governments and relevant local government authorities.

Recommendation 40

The Committee recommends that the Australian Government undertake an awareness campaign to alert coastal communities to the key challenges facing the coastal zone and the value of community engagement in addressing these challenges. The campaign should aim to build understanding and awareness of coastal management issues to encourage the continued membership and support of volunteer networks in the coastal zone.

Recommendation 41

The Committee recommends that the Australian Government nominate 2012 as the Year of the Coast, to further build community awareness about the issues facing the coastal zone. The Australian Government should work with coastal stakeholders, volunteer groups and the general community in determining key activities as part of this initiative.

Recommendation 42

The Committee recommends that the National Coastal Zone Database be expanded over time to include information on environmental data and management and planning information relevant to the coastal zone.

Recommendation 43

The Committee recommends that the Australian Government provide funding support for the ongoing activities of the Australian Coastal Alliance in providing a national information and communication interface between research organisations and local government authorities and other coastal stakeholders.

Recommendation 44

The Committee recommends that the Australian Government, in cooperation with state, territory and local governments, and in consultation with coastal stakeholders, develop an Intergovernmental Agreement on the Coastal Zone to be endorsed by the Council of Australian Governments. The intergovernmental agreement should: define the roles and responsibilities of the three tiers of government—federal, state and local—involved in coastal zone management; include a formal mechanism for community consultation; incorporate principles based on strategic regional coastal planning and landscape scale/ecosystem based coastal zone management; include an effective implementation plan with resources allocated to ensure that objectives are realised; be overseen by a new Coastal Zone Ministerial Council; be made public.

Recommendation 45

The Committee recommends that the Australian Government: ensure that the Intergovernmental Agreement on the Coastal Zone forms the basis for a National Coastal Zone Policy and Strategy, which should set out the principles, objectives and actions that must be undertaken to address the challenges of integrated coastal zone management for Australia; establish a broad based National Catchment-Coast-Marine Management program to provide funding for initiatives relating to:

⇒ sustainable coastal communities

⇒ climate change and biodiversity

⇒ implementation of projects to progress integrated coastal zone management;

establish a National Coastal Zone Management Unit within the Department of Environment, Water, Heritage and the Arts to support the implementation of these national initiatives; develop a Coastal Sustainability Charter based on the Victorian Government model.

Recommendation 46

The Committee recommends that the Australian Government establish a National Coastal Advisory Council to: provide independent advice to government; advise the new coastal unit within the Department of the Environment, Water, Heritage and the Arts; ensure community input into national coastal zone policy, planning and management.

Recommendation 47

The Committee recommends that proposals for a National Oceans and Coast Act and a statutory Coastal Council be the subject of ongoing consideration once the Intergovernmental Coastal Zone Agreement is determined.

Recommendation

1.5 The committee recommends that this inquiry not be proceeded with and be discharged from the notice paper.

Making Decisions On-farm

Recommendation 1

The Committee recommends that the Australian Government support rural counselling and support groups, such as Rural Alive and Well, and place funding for such groups on a permanent and regular basis.

Recommendation 2

The Committee recommends that the Australian Government, as part of its overall response to issues affecting agriculture and climate change, take more effective account of the needs and decision making processes of farmers and ensure that the delivery of adaptation programs is flexible and responsive to the needs of farmers and rural communities.

Recommendation 3

The Committee recommends that the Australian Government, as part of its overall response to issues affecting agriculture and climate change, invest research funding in the following high priority areas: Soil carbon sequestration; Soil stabilisation and pasture improvements using methods such as perennial pastures, pasture cropping, rotational grazing, biodynamic farming, minimum/no till cultivation and controlled traffic farming; Soil water retention strategies and water use efficiency; Landscape planning and natural resource management; and Risk management.

Recommendation 4

The Committee recommends that the Australian Government, in conjunction with State and Territory Governments, establish a national Continuously Operating Reference Station network across Australia and regulate for signal compatibility between different GPS systems.

Recommendation 5

The Committee recommends that the Australian Government support further research efforts into the mitigation of greenhouse gas emissions from agriculture.

Recommendation 6

The Committee recommends that the Australian Government, as part of its overall response to issues affecting agriculture and climate change, increase its investment and support for research into energy efficiency in the agriculture sector and the development of alternative energy and alternative fuels on-farm, particularly in regard to: Biofuels; Biomass from agricultural waste; and Biochar.

Recommendation 7

The Committee recommends that the Australian Government increase funding for research into improving the consistency and accuracy of weather and climate forecasting, especially at a seasonal and regional level.

Recommendation 8

The Committee recommends that the Australian Government develop an education and training scheme for farmers in the understanding and use of weather and climate information.

Recommendation 9

The Committee recommends that the Australian Government maintain its commitment to climate change research pertaining to Australia‘s agricultural industries, ensuring that the funding is committed, sustained and pays due attention to regional as well as national needs and priorities. Climate change research must reflect the changes affecting different regions, soils and topography—as all have an impact on changes in farming practices to deal with them.

Recommendation 10

The Committee recommends that the Australian Government, as part of its ongoing strategy development to issues affecting agriculture and climate change, develop a strategy to capture, evaluate and disseminate the range of farmer driven innovations that have a significant capacity to increase the resilience and productivity of farm enterprises.

Recommendation 11

The Committee recommends that the Australian Government ensures that there is an overall body to receive and analyse research and co-ordinate research across the nation in relation to climate change adaptation in agriculture, and that said body is given the necessary resources of staff and funds to carry out its role.

Recommendation 12

The Committee recommends that the Australian Government give greater consideration to better integration of local and regional organisations into its overall response to the issues affecting agriculture and climate change, and provide additional funding to support the management role of these local and regional organisations.

Recommendation 13

The Committee recommends that the Australian Government give further consideration to the analysis of government policy and outcomes in the submission to the current inquiry made by the Future Farm Industries CRC, with a view to ensuring the better coordination of research and extension efforts and the delivery of effective policy outcomes.

Recommendation 14

The Committee recommends that the Australian Government, as part of its overall response to issues affecting agriculture and climate change, explore further opportunities to facilitate adaptation to climate variability and climate change through the use of targeted, industry and issue specific, incentives.

Recommendation 15

The Committee recommends that the Australian Government place funding for local and community organisations engaged in the work of supporting farmers in adapting to climate variability and climate change upon a permanent and regular basis.

Recommendation 1

The committee recommends that through its mandatory disclosure initiative, the federal government collect and analyse data to identify those factors that correlate with the emissions intensity of non-residential buildings. This information should be collated by location and made publicly available.

Recommendation 2

The committee notes the CPRS legislation and recommends that in preparation for the full implementation of the scheme, steps be undertaken to analyse the data referred to in recommendation 1 and formulate an appropriate scheme to enforce energy efficiency for commercial buildings.

Recommendation 1

The committee recommends that COAG re-examine the native vegetation legislation and its 2006 recommendations with a view to establishing a balance between maximising agricultural production and best practice conservation.

Recommendation 2

The committee recommends that the Commonwealth initiate, through the Natural Resource Management Ministerial Council, a national review to assess

the impact of various native vegetation legislative and regulatory regimes, particularly those at the state level. In undertaking such a review, the following issues should be specifically addressed: the liability of landholders complying with native vegetation laws for the payment of rates or taxes for land that is not available for productive use; the right of landholders to manage competing environmental objectives over land where restrictions have been imposed, for example the management of noxious weeds and pests in protected native vegetation areas; the institution of inexpensive, accessible, timely and independent administrative appeals processes against decisions of enforcement agencies or officials regarding the granting of permits or institution of regulatory regimes over private land; the application of state-wide regulations where there are distinct and notable variations in both the environmental conditions and objectives across regions within states; the burden of these laws on newer farming areas and communities as opposed to more established ones; and, the imposition of caveats by state authorities which prevent or restrict the

existing use of land when converting title from leasehold to freehold.

Recommendation 3

The committee recommends a review of best practice in relation to stewardship initiatives across the country with a view to re-orienting future regulatory activities.

Recommendation 1

The committee recommends the government consider options to ensure there are no perverse incentives to cease existing abatement projects, and encourage first movers to undertake further abatement or sequestration activities under the Carbon Farming Initiative.

Recommendation 2

The committee recommends the government consider what more can be done to fast track development of methodologies, and to develop and test the workability of carbon offsets projects in key agricultural industries.

Recommendation 3

The committee recommends the government continue to monitor scientific research relevant to the issue of permanence and adjust permanence obligations in the CFI to reflect international consensus on this matter.

Recommendation 4

The committee recommends that in developing the negative list the government takes care to preserve abatement incentives, for example by tightly defining excluded projects to reflect local environmental conditions or circumstances.

Recommendation 5

The committee recommends the government consider options for improving the capacity of natural resource management plans to take account of climate change mitigations options and adaptation needs, and to maximise the broader environmental and social benefits of the Carbon Farming Initiative.

Recommendation 6

The committee recommends the government consider further changes to regional natural resource management plans to improve their governance and consistency, such as by requiring each plan to: be managed by a statutory authority; address the same basic criteria, at a minimum; and be enforced to the same standard.

Recommendation 7

The committee recommends the government address obstacles to indigenous participation in the CFI, including resolving outstanding uncertainties in relation to participation by holders of non-exclusive native title.

Recommendation 8

The committee recommends the government make clear that Kyoto-compliant credits will be linked to any future carbon price mechanism.

Recommendation 9

The committee recommends that, subject to the recommendations contained elsewhere in this report, the Senate pass the Carbon Credits (Carbon Farming Initiative) Bill 2011; the Carbon Credits (Consequential Amendments) Bill 2011; and the Australian National Registry of Emissions Units Bill 2011.

Recommendation 1

The Committee recommends that the House of Representatives pass the Carbon Credits (Carbon Farming Initiative) Bill 2011.

Recommendation 2

The Committee recommends that the House of Representatives pass the Carbon Credits (Consequential Amendments) Bill 2011.

Recommendation 3

The Committee recommends that the House of Representatives pass the Australian National Registry of Emissions Units Bill 2011.

Report not yet tabled.

Interim report recommendations

Recommendation 1

It is the Committee's view that the carbon tax should be opposed and the legislation defeated in the Parliament as: there is no electoral mandate for the carbon tax; the modelling that supports it is based on a number of highly contestable assumptions; it is likely to undermine Australian businesses' ability to compete in the global economy; it will have significant adverse effects on particular sectors and regions, with a particularly disproportionate impact on regional Australia; the effect of the policy on the cost of living, and on jobs is likely to be higher than the government's current estimates indicate; there is considerable evidence that the carbon tax will not result in any real environmental gain, despite imposing a significant cost on the economy over the next thirty years.

The Committee recommends that the carbon tax be opposed by the Parliament.

Recommendation 2

The Committee recommends that if the Parliament believes that it should proceed with the carbon tax, any provisions in the legislation designed to bind future governments seeking to prevent them from amending or rescinding the scheme be removed.

Recommendation 3

The Committee recommends that if the Parliament believes that it should proceed with the carbon tax, that it does so once current global economic circumstances have improved and there is a legally binding global agreement on tackling climate change.

Recommendation 4

The Committee recommends that, should the government remain committed to proceeding with its carbon tax, before any vote the Senate should demand that: the government release all of its modelling, including the actual models, datasets and specifications used by the Treasury, to allow third party review; the government establish an Independent Expert Panel to review its modelling approach and framework; the Productivity Commission be asked to undertake a cost-benefit analysis of the proposed carbon tax; the legislation should be amended to ensure that any increase in the tax or lowering of the emissions cap be made a disallowable instrument and to ensure that carbon permits are not private property.