Clean Power

Published on May 5th, 2016 | by Giles Parkinson

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First Budget From Malcolm Turnbull Ignores Climate Change, Snubs Clean Energy

May 5th, 2016 by  


Originally published on RenewEconomy.

Climate change, prime minister Malcom Turnbull once said, is the ultimate long-term problem that needs to be acted on urgently. But in his first budget as government leader, it is as though the issue does not exist.

turnbull-budgetClimate change was not even mentioned as a word, or a concept, or even an issue – despite Tuesday’s budget apparently being about growth and jobs for the future. There was no new money for climate initiatives and the only mention renewable energy got was to confirm that $1.3 billion in funds would be stripped from the Australian Renewable Energy Agency.

“There was nothing in the speech, not a word,” Professor John Hewson, a former leader of Liberal Party, told the SolarExpo conference in 2016.

“The slogan is jobs and growth. I would have though that one of the most significant sectors for economic and jobs growth is renewables – I am staggered that it didn’t get a mention in the speech or in the documents.” Hewson said the decision to remove funding from ARENA was an “absolute tragedy.”

In the budget papers, for instance, there is no extra funding for the Direct Action plan that Turnbull once ridiculed and dismissed as a “fig-leaf” for a climate policy and now forms the basis of the government’s emissions reductions plan, including the Paris agreement it signed just a few weeks ago.

Once the government has spent the current $2.5 billion allocation for handouts to polluters to do pretty much what they were doing anyway, there is zero extra funding for emissions abatement.

The Coalition government might have been expected to shift towards a “modified” scheme that would see Direct Action evolve with its safeguards mechanism to become a baseline and credit scheme. But that’s what Labor suggested last week, and rather than accept the tentative offer of a return to a bipartisan approach to climate policies, the government slammed the door.

It slammed the door, too, on renewable energy innovation. The $1.3 billion of unallocated funds for the Australian Renewable Energy Agency remains excised from the budget papers – even though it remains legislated – while $1 billion is transferred from the Clean Energy Finance Corporation and rebadged as a new Clean Energy Innovation Fund.

Don’t expect Labor to stand in the way of that initiative. It voted with the Coalition earlier this week against a Greens motion to protect ARENA, and has since blamed NGOs for not standing up to the Coalition move to de-fund ARENA, so it won’t stand up either.

For his part, Australian Solar Council chief John Grimes was taking a stand on the matter, telling the Energy Storage Conference in Melbourne on Wednesday that the federal government had “taken a backwards step” in defunding ARENA, and not making the Agency’s competitive grants available any more.

“So they’ll only invest (in clean energy technology) on an equity or …a loan basis, which means that any money that’s given from the government has to be repaid with interest, and there has to be strong independent commercial case… and a risk mitigation.

“A lot of the blue sky research, the first research we might see out of somewhere like the CSIRO… you can’t make a commercial case to say, well lend me $1.5 million I’ll pay you back $2 million in three years (or) five years time.

“It just doesn’t work that way,” he said.

The Climate Institute was also critical of the budget, saying it “ignores the fact that if we do not invest in strong, effective action to reduce emissions now, it will simply cost us much more in the not too distant future.”

CEO John Connor said: “The consequences of ongoing failure to tackle climate change will be escalating energy, unemployment and other economic costs over the next few decades.”

“There’s no extra funding for the government’s current principal policy tool the $2.55bn Emission Reduction Fund now likely to be expended by the end of 2016 well before the policy review in 2017, threatening jobs and growth in the carbon farming and other emission reduction industries.”

He noted that support for climate adaptation research is to be slashed with no new money for CSIRO or the Bureau of Meteorology to fully redress CSIRO climate impact research cuts.

“Droughts, bushfires and the bleaching of the Great Barrier Reef are already major threats to jobs and growth, and weakening our knowledge base means we risk facing these threats blindfolded.”

He said the budget also contains no sign of extra climate finance commitments necessary to do our bit in assisting developing countries boost climate resilience and clean energy.

“We should be scaling up from the current $200 million annually to $1.5 billion by 2020 to help meet commitments made in Paris last year.

“Without a plan to end climate pollution with net zero emissions by 2050 the government doesn’t have a plan for the future let alone a plan for climate change.  This budget of delay is piling up the risks of shocks to electricity prices, energy security and the jobs that depend on both,” concluded Connor.

The Marine Conservation Society said the federal budget contains a mere $8.9 million a year year of new and additional funding over the next three years for the Reef. It noted that this compares with $7.7 billion a year for fossil fuel subsidies which have not been reduced in this Budget.

Reprinted with permission.






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About the Author

is the founding editor of RenewEconomy.com.au, an Australian-based website that provides news and analysis on cleantech, carbon, and climate issues. Giles is based in Sydney and is watching the (slow, but quickening) transformation of Australia's energy grid with great interest.



  • neroden

    Polling is tight, but there’s a good chance of knocking the COALition out of power. The “Trumbull bump” in the polls seems to have reversed, finally, and ALP is ahead in the two-party preferred.

  • Brent Jatko

    It seems to me that Australia has turned its collective back on the type of energy it is most suited to (solar, wind) in favor of extractive industries like oil and coal. This will be a short-term panacea but a long-term disaster.

    Fortunately, Australia simply doesn’t have enough population to make much difference.

  • John Moore

    The public votes for people like Turnbull over and over and over and over and over and over. Like it or not, this is what the people of Australia want. It’s hard to get one’s head around, but this is indeed what they want. They knew who and what Turnbull was when they voted for him. And now he is simply being Turnbull. You get the government you deserve.
    Hey, Australian public, how much of the Great Barrier Reef is not affected by the latest bleaching? 7%? Experts say that the whole reef could be dead in 20 years.
    Yet this is what the Australian people want. This is what they vote for.
    Don’t get me wrong, here. I live in America, so I feel the same horror and despair as the minority of Australian voters, the ones that aren’t brain dead.

  • Chris Marshalk

    What did you expect from a corrupt liberal, backwards thinking, parasitic, scumbag, shifty government.

    • paqza

      The “Liberal Party” in Australia is comparable to the Republicans in the U.S.; it’s the conservative, right-wing party. The Labour Party is the center-left party of Australia. The rest of what you wrote is spot on.

      • Chris Marshalk

        Lol. 🙂

        • paqza

          I didn’t get the joke

  • super390

    Instead of exporting coal to China, ordinary Australians will have to import cheap Chinese solar panels, put them on their houses, and go off the grid. I wonder if the Liberal Party ignored this, rejected the possibility, or intends further punishment on its citizens who take climate matters into their own hands.

  • JamesWimberley

    Solar and wind will make their own way in Australia. Axing domestic R&D merely ensures that the only jobs for Australians will be as semi-skilled labourers bolting together equipment designed and manufactured elsewhere.

  • LookingForward

    Australians should sue there government or do a sit in or collect autographes from the people or rally them in another way.
    With all due respect to Australia, there government is a joke!

    • Deep Time

      Be careful – we could have President Trump come November. And obstructionist Republicans in the House and Senate already make our government a joke.

      • neroden

        Don’t assume LookingForward is in the US! Yes, we have big problems here in the US.

        • LookingForward

          Lmao, tanx Neroden, I’m indeed not from the US, I’m from Holland.

      • LookingForward

        I’m not from the US, I’m from Holland. Unless he buys the presidentie, which is offcourse possible. But let’s say the votingsystem isn’t hacked/corrupt/whatever, I don’t think he will become president. Donald Trump is like the dutch minister Geert Wilders, a potsy for politics, to get more attention for politics/voting/government. Nothing more.

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