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The Climate Change Authority today released its review report on the National Wind Farm Commissioner.

The National Wind Farm Commissioner was appointed by the Australian Government in late 2015 in response to community concerns about wind farms. When the National Wind Farm Commissioner was established in 2015, the Government said it would review the role in 2018. The Authority’s review responds to that undertaking.

The Climate Change Authority Chair, Dr Wendy Craik said ‘In general, the National Wind Farm Commissioner has exceeded expectations in dealing with community complaints about wind farms.

The Authority recognises, however, that some stakeholders remain very unhappy with the outcome of their complaints to the Commissioner about wind farms – in many cases because of ongoing concerns about turbine noise and health impacts.

However, there isn’t much the Commissioner can do about wind farms that have already been approved – these are generally matters for state and local governments’, Dr Craik said.

The Authority found the Commissioner has made a number of best practice recommendations, which have improved the way the wind industry and governments work with affected communities.

In light of these findings and the ongoing growth in the wind industry in Australia, the Authority recommends that the role continue for a further three years.

The Authority also recommends that the Commissioner’s scope be expanded, with a modest increase in Australian Government funding, to include large scale solar and storage such as large scale batteries given their potential to cause community concerns.

The Authority recommends that the Commissioner’s role and funding be reviewed again in 2021 in light of the rapidly changing renewable energy industry in Australia.

With the goal of continuous improvement in mind, the Authority has recommended some enhancements to the accessibility and transparency of the Commissioner’s complaints handling services and measures to broaden public awareness of the role.

The Authority explored possible alternative funding models for the Commissioner (including an industry levy) but found the case for cost recovery is not compelling once administration costs are factored in.

The Climate Change Authority is an independent statutory agency, which provides expert advice to the Government on climate change policy. The Minister for the Environment and Energy, the Hon Josh Frydenberg MP, asked the Authority to conduct a special review of the role of the National Wind Farm Commissioner.

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The Climate Change Authority today released its research report on ways landholders can improve profitability, reduce greenhouse gas emissions and deliver broader environmental benefits at the same time. These objectives are known as multiple benefits.

For example, a farmer could establish a windbreak of native trees that leads to increased on-farm productivity, emissions reductions and helps native species.

Improving beef cattle herd management can reduce emissions, while increasing productivity. This can be achieved with feed additives, reducing unproductive animals in the herd and lowering the herd’s average age—in short getting stock off the land and to market sooner.

The Authority Chair, Wendy Craik said ‘We know farmers are already doing some great things on their land but we wanted to understand why it wasn’t even more widespread. We also wanted to see if there are some new ideas out there that could offer additional revenue streams to farmers and also help the environment.

It turns out that there is a range of barriers to multiple benefits on the land. Some relate to a lack of information, some relate to the costs of taking action (participating in government programs for example) and some types of action—like putting up windbreaks—require upfront capital, which can be hard to get’.

In a key finding, the Authority is recommending a new targeted investment fund be established to provide the necessary finance for farmers to invest in on-farm activities that deliver genuine multiple benefits.

The Authority is recommending a number of other approaches to drive genuine multiple benefits on the land including a voluntary online reporting tool to reduce costs; a new community of practice to coordinate policy; new Emissions Reduction Fund methods for projects with multiple benefits; and developing a standard to certify carbon credits that provide other benefits such as biodiversity.

The Climate Change Authority is an independent statutory agency, established to provide expert advice on climate change policy. In the final report of its 2016 Special Review into Australia’s climate goals and policies, the Authority recommended further research be done on the multiple benefits for farm profitability and the broader environment that could result from well-designed emissions reduction policies on the land. This report responds to that recommendation.

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The Climate Change Authority today released its review report on the Emissions Reduction Fund (ERF).

The Authority found that the ERF is performing well, creating incentives for new domestic emissions reductions at low cost that will contribute to Australia’s targets under the Paris Agreement. 

The Climate Change Authority Chair, Dr Wendy Craik said ‘In some ways, the ERF has surpassed expectations, contracting 189 million tonnes of emissions reductions over the last two or so years. We think it is a well-administered scheme and our recommendations are intended to enhance the ERF. We did not find any systemic problems’.

‘Investment by both Government and the private sector in ERF offsets, particularly for the land sector should be built on as part of the policy toolkit Australia needs to meet its Paris Agreement emissions reductions goals’ Dr Craik said.

The Authority found that the ERF has a range of checks and balances to bolster its environmental integrity. The independent, expert Emissions Reduction Assurance Committee plays a vital role as the gate-keeper of integrity standards, and the Committee’s method reviews are a key vehicle to ensure that emissions reductions remain robust as the scheme matures.

The Authority has recommended some new measures to help scheme participants become more aware of their obligations, and new tools to help the Clean Energy Regulator enforce breaches of the scheme.

The Authority also recommended new arrangements to enhance the effectiveness of ERF contracts and strengthen signals for new investment in ERF projects.

Stakeholders have highlighted some untapped opportunities for potential abatement on the land. To capture these, the Authority has recommended an enhanced process for method prioritisation and stakeholder engagement as well as new funds for research and development to deliver more domestic abatement.

The Climate Change Authority is an independent statutory agency, established to provide expert advice on climate change policy. The Authority is required by legislation to review the ERF every three years. The ERF is an emissions reduction offsets scheme combined with Government purchasing of abatement, which has been accomplished to date through competitive auctions.

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The Climate Change Authority today released a paper for consultation on its review of the Carbon Farming Initiative legislation, which governs the Emissions Reduction Fund.

The Chair of the Climate Change Authority, Dr Wendy Craik said: “The Authority is required to review the CFI legislation and the Emissions Reduction Fund every three years. The ERF has been in place for a while now so it’s a good opportunity to do a stock-take and see how it’s working."

The Authority looked at the role the ERF could play in helping to meet Australia’s Paris targets in its 2016 Special Review on Australia’s climate goals and policies and remains of the view that those findings are still current.

“Basically we said that the ERF should keep going until other emissions reduction policies like an Emissions Intensity Scheme or a Clean Energy Target and vehicle emissions standards are put in place.”

“The Authority does see a role into the future for the sort of offset crediting arrangements the ERF uses for the land sector.” Dr Craik said.

The key question for the Authority in this review is whether the ERF is being well administered and achieving its objectives.

Offsets need a clear and robust set of rules if they are to achieve genuine environmental outcomes but excessively restrictive rules and regulations can act as a barrier to participation.

The Authority’s CFI legislation review will examine whether current policy settings for the ERF have struck the right balance between the goals of market participation, administrative efficiency and environmental integrity.

The Authority is keen to understand if rules and processes for the ERF are working well for scheme participants and whether the scheme administrator, the Clean Energy Regulator, has enough of the right tools for the job of ensuring compliance with the scheme.

The Authority encourages submissions from individuals and organisations with an interest in the ERF and emissions reduction policy by 29 September 2017. Submissions on this paper will inform the Authority’s final review report on the ERF, which is due by 31 December 2017.

More information on the consultation is available here. 

Date: Wednesday, 30 August 2017

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Name: Aileen Muldoon

Agency: Climate Change Authority

Contact number: 0419 112 503

The Australian Energy Market Commission (AEMC) and the Climate Change Authority today released a new report on solutions for affordable, secure and lower emissions energy.

The joint advice released today was requested by the Commonwealth Minister for the Environment and Energy to provide advice on policies to enhance power system security and to reduce electricity prices consistent with achieving Australia’s emissions reduction targets in the Paris agreement.

Dr Wendy Craik AM, the Authority Chair, said: “Energy and emissions reduction policies have been largely pursued as separate agendas.

“The advice in this report is geared towards the better integration of energy and emissions reduction policies, to provide greater investment certainty and in doing so, help keep electricity prices as low as possible while enhancing power system security.

“Uncertainty has a price. New analysis done for this report by the Centre for International Economics found that current wholesale electricity prices are above long-run costs by around $27 to $40 per megawatt hour. Electricity prices could be lower than they would be otherwise if credible and durable policy is put in place to reduce emissions in the electricity sector,” Dr Craik said

The AEMC and the Authority are of the view that an Emissions Intensity Scheme (EIS) is the preferred policy mechanism for the electricity generation sector, consistent with the options they analysed in previous reports.

AEMC Chairman, John Pierce, said today the joint advice drew on existing analysis and independent modelling. It is consistent with previous advice from both the Commission and the Authority.

“Government policy certainty is needed to generate the investment required to transform the sector. Well integrated emissions and energy policy that can adapt to change and support the means of exchange and risk allocation is likely to be more stable into the future,” Mr Pierce said.

The Authority considers many different policies or policy sets can help to reduce emissions although their impacts on electricity prices and power security will vary depending on their nature and design features.

The Authority also thinks that good design and implementation are as important as policy choice if measures are to meet the three objectives of affordability, security and emissions reductions.

The Authority has recommended a Low Emissions Target (LET) be considered as an alternative policy given that the EIS has been ruled out by the Commonwealth Government. The Authority believes that a LET could support a wide range of generation technologies including gas and carbon capture and storage (CCS).

The AEMC has not conducted any quantitative analysis of a LET-type emissions reduction policy mechanism and how it compares to an EIS. Without such analysis it is not possible for the Commission to assess the impact of such a policy mechanism on the electricity market, and specifically its impact on prices and system security.

In addition to the recommendation on the EIS, the Authority and the AEMC also support the ongoing reforms of the east coast gas markets, agreed by the COAG Energy Council, and the continued development of a competitive energy services market as important elements of delivering affordable, secure and lower emissions energy.

The Government has said that this report will serve as an input into the Independent Review into the Future Security of the National Electricity Market being led by Professor Alan Finkel. The Finkel review will inform the Government’s 2017 review into climate policies.

About the AEMC and the CCA

The AEMC is an inter-jurisdictional body with many functions and responsibilities in the Australian electricity and gas markets. The Authority is a Commonwealth agency established to provide advice on emissions reduction policy.

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The Climate Change Authority today released an issues paper for consultation on its new research project which is looking at ways to reduce carbon emissions on the land while enhancing our natural environment and helping farmers improve their bottom line.

In the third and final report of its 2016 Special Review into Australia’s climate goals and policies, the Climate Change Authority recommended further research into the multiple benefits for farm profitability and the broader environment that could result from well-designed emissions reduction policies on the land.

The Authority’s Chair, Wendy Craik, said “if you go out and talk to farmers, you quickly find that many of them are doing great things on their farms to deliver ‘win-win’ outcomes.”

“Improving agricultural soils by changing farming practices can mean that farms are more resistant to drought, crops or pasture grows better and now there is also the possibility of soil carbon credits.”

Planting trees along a creek or riverbed can also store carbon, help prevent erosion and reduce agricultural run-off improving water quality.

“It would be good to see more of this kind of action happening across the country,” Dr Craik said.

In this research, the Authority is keen to understand the barriers to achieving the multiple benefits of reducing emissions, enhanced natural resource management and on-farm profitability.

Could such barriers be overcome with smart policy design? Is there scope for better integration between policies?

What should the roles be for government, the private sector and non-government actors? Is it possible to create new markets to support and enhance environmental or social benefits like biodiversity, Indigenous employment or diversified farming operations?

The Authority encourages individuals and organisations with an interest in these issues to make a submission by 20 April 2017. These submissions will help inform development of a research paper that the Authority plans to release in mid-2017.

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AUSTRALIA’S CLIMATE POLICY TOOLKIT

The Climate Change Authority today released the third and final report in its Special Review on the actions that Australia should take to meet its obligations in the historic Paris climate agreement.

Dr Wendy Craik, the Chair of the Climate Change Authority said: “The Authority found that one size cannot fit all of the many opportunities that exist to reduce emissions across our economy. Australia needs a set of measures - in other words, a policy toolkit - that is well calibrated to capture reductions in different sectors.

The Authority is recommending that the Government puts in place a policy toolkit that uses current measures like the Emissions Reduction Fund and the safeguard mechanism, as well as new measures, in a durable solution that would allow Australia to decarbonise its economy and plays its part in efforts to keep global warming well below 2 degrees.

The Authority emphasised the importance of a stable, effective set of policies to encourage investment in low-emissions technologies and practices. The overarching architecture for the toolkit would remain in place to help provide investment certainty while the measures themselves evolve and strengthen over time.

For the electricity generation sector, the Authority found that a market mechanism, in the form of an emissions intensity scheme that would start in 2018, would be the best fit.

“We also think that an enhanced safeguard mechanism offers a pragmatic and durable way of reducing emissions across a range of industrial, manufacturing and resource sectors.”

For households, vehicles and buildings, establishing or strengthening existing energy efficiency standards is the way to go. On the land sector, the Authority found that voluntary offsets are the best tool for the task, given the large number of landholders and the differences between farming operations.

Dr Craik said that this final report of the Special Review marks the culmination of 18 months of research, analysis and talking to stakeholders about how Australia should rise to the now pressing challenge of reducing its emissions.

Dr Craik also said that the final report did not seek to re-assess Australia’s 2030 Intended Nationally Determined Contribution (as the Paris targets are known). As the Authority indicated in the first report of this review, the third and final report of the Special Review is focused on the policy actions that Australia should take to meet its Paris obligations.

The Authority today also released its research report into policies that could be used to reduce emissions in the electricity generation sector. The report is based on economic modelling and analysis commissioned by the Authority, and is an important input into the Special Review.

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The Climate Change Authority today welcomed the historic climate accord reached in Paris at the weekend. As anticipated the agreement commits the signatories to be bound to their individual targets with 5 yearly reviews aimed at strengthening the agreement over time.

Above all, the almost 200 nations have committed to a temperature increase "well below" 2 degrees, putting the science at the heart of the policy framework.

The Authority will consider the outcomes from COP21 in Paris in its 3rd and final report on Australia’s climate policy actions due to be released in June 2016. 

Submissions on the Special Review second draft report options paper must be lodged by 19th February 2016.

The Climate Change Authority has today released its draft report on Australia’s climate policy options. This is the second report in its Special Review of Australia’s climate change policies and goals.

Australia and the world are negotiating a framework for climate action beyond 2020. The Government has set targets for 2020 and 2030, and may agree to progressively strengthen targets as part of an agreement in Paris. Australia will need new, stable policies to meet its current and future targets.

The Authority’s draft report invites a fresh conversation about Australia’s climate policy options. It poses questions and invites feedback on the merits of different approaches. The Authority is considering a range of policy options to reduce Australia’s emissions, including different types of emissions trading.

The draft report lays out how the Authority will evaluate the policy options, based on three key principles: cost effectiveness, environmental effectiveness and equity. The report also looks at how climate policy can affect international competitiveness.

The Authority wants to hear from interested Australians. Their views will inform the final report of the Special Review due by 30 June 2016. In the final report, the Authority will recommend the actions Australia should take following the international climate negotiations in Paris.

• Chair’s statement

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The Climate Change Authority secretariat today welcomed the appointment of a new Chair and members to lead its work advising the Australian Government on climate change policy.

A/g Climate Change Authority CEO, Shayleen Thompson said the new Authority members would bring a wealth of experience and expertise in energy, economics, transport, business and industry.

‘The Authority secretariat  welcomes their appointment and looks forward to working with the new Chair and members, drawing on their extensive skill set and in-depth experience, from both the private sector and from their work with government.’

The new Climate Change Authority Chair is Wendy Craik AM.  The new Authority members are Stuart Allinson, CEO of Bid Energy, Kate Carnell AM of the Australian Chamber of Commerce and Industry, Danny Price from Frontier Economics and the Hon John Sharp a former Minister of Transport, and a corporate adviser with specialist expertise in the aviation sector.  The new members will join the existing members, Professors Clive Hamilton, John Quiggin and David Karoly and the Chief Scientist, Professor Ian Chubb. 

The appointments have immediate effect.

View the statement

Date: Thursday, 08 October 2015