Budget to improve sustainability

The Rudd government’s budget has been slammed by the Liberal party as letting Australian families down, but has it let down business and the environment? With billions of dollars promised to help combat climate change, how has the money been spent and how will it affect business? Presented below is a summary of the budget initiatives that are aimed to work with Australian businesses to help tackle climate change.

Climate change tackled

The government has delivered $2.3 billion in funding to tackle climate change through initiatives across government over the four years of this Budget.

Minister for Climate Change and Water Senator Penny Wong said the government has provided $59.0 million to establish the Department of Climate Change to deliver on commitments including a national renewable energy target and an emissions trading scheme.

Initiatives on climate change include:

• $260.0 million to Australian businesses to reduce their impact on the environment;
• $1.7 billion to support Australia’s scientists, researchers and industry in their work to improve energy efficiency and develop clean energy options;
• $130.0 million to Australia’s Farming Future to deliver the Climate Change and Productivity Program, the Climate Change and Adaptation Partnerships Program, and the Climate Change Adjustment Program;
• $8.0 million for the forestry industry to better prepare for climate change, including the development of a Forestry Adaptation Plan and assessment of capacity for forests to sequester carbon.

Programs help business deliver energy- and water-efficient projects

The Clean Business Australia initiative is a $240 million partnership between government and business to deliver energy- and water-efficient projects with a focus on productivity and innovation. The programs under Clean Business Australia are:

• Re-tooling for Climate Change;
• Climate Ready;
• Green Building Fund.

Re-tooling for Climate Change
The government will provide $75 million for the Re-tooling for Climate Change competitive grants program.

Australian small and medium-sized manufacturers will be able to apply for grants from $10,000 to $500,000 to support initiatives such as improving the energy efficiency of their operations; investing in energy-efficient manufacturing tools; improving insulation and recovering waste heat; investing in small-scale cogeneration plants that capture waste energy and use it to produce electricity on site; and cutting water wastage, including through stormwater capture and improving water recycling.

Small and medium-sized manufacturers will also be able to access advice on how to improve their energy and water efficiency through the government's $100 million national network of Manufacturing Centres — part of the Enterprise Connect initiative.

Larger manufacturing companies will also be able to apply for grants under the Re-tooling for Climate Change initiative with funding to be considered on a case-by-case basis.

Climate ready
The government has delivered funding of $75 million for the Climate Ready competitive grants program.

The program will encourage Australian businesses to develop and commercialise products, processes and services that save energy and water, reduce pollution and use waste products in innovative ways.

Green building fund
The government has delivered on its commitment of $90 million for the Green Building Fund.

The fund will offer assistance for energy-efficient retrofitting of existing buildings and support for training initiatives to improve the skills of building operators.

The fund will help businesses implement cost-saving energy-efficiency measures by subsidising 50% of the cost, through offset payments for energy-efficiency aspects of retrofitting and retrocommissioning existing commercial office buildings. Commonwealth funding per building will be up to a maximum of $200,000, with priority given to large buildings of more than 5000 square metres.

Car innovation fund to address climate change

The government will work in partnership with local car and component manufacturers to help develop and build more fuel-efficient vehicles. A key element of the strategy is the $500 million Green Car Innovation Fund, which will operate over five years from 2011.

The fund will encourage the Australian automotive industry to develop and manufacture low-emission vehicles.

Long-term water plan

Water for the Future is a $12.9 billion long-term water plan that identifies using water wisely and securing water supplies as a key priority.

The plan focuses on four key priorities: taking action on climate change, using water wisely, securing water supplies and supporting healthy rivers.

Plan to secure cities’ water supplies

The National Urban Water and Desalination Plan is a key element of Labor’s election policy on water, with the government providing $1 billion over six years to help secure water supplies for families and businesses through desalination, recycling and stormwater harvesting.

Cities and towns of 50,000 people or more will be eligible for funding under the plan to establish new sources of water supply through the use of desalination, recycling and stormwater harvesting.

The private sector, water utilities and state, territory and local governments will be able to apply for funds, which will be provided through grants and tax offsets.

The full content of the 2008/09 budget can be found at http://www.aph.gov.au/budget/2008-09/content/speech/html/speech-01.htm