Nov 24, 2016 - 4:58pm
The Deputy CEO of The Climate Institute, Erwin Jackson, said today that the Emissions Reduction Fund is a good tool for unlocking emission reductions in the land sector, but is only addresses a tiny fraction of Australia’s contribution to climate change. He said emissions from the burning of coal, oil and gas are the real drivers of escalating climate change impacts.
“As the world switches to clean energy, global emissions from fossil fuels have now been flat for the last few years, and falling in major economies like China and the United States," Mr Jackson said. "But they're rising in Australia, because we have no national strategy replace our ageing coal plants with clean energy.”
He said this highlighted how crucial it is for next year's federal policy review to produce a credible and scalable decarbonisation strategy that can get Australia to net zero emissions.
Mr Jackson said there were a number of important observations to make about the fourth auction of the ERF:
- Having used up 83 per cent of the ERF's $2.55 billion budget, the central mechanism of the government's climate policy framework is almost exhausted, as no future funding has been allocated over the forward estimates.
- And what will the ERF do? The total of 178 million tonnes of abatement contracted through auctions 1-4, and set for delivery over the next 10 years, has to be seen in the context of Australia's abatement task.
- The ERF covers less than 5 per cent of the emission reductions needed by 2030 to be on a trajectory consistent with climate change of no more than 2°C (total emission reductions of 3750 million tonnes).
- Even to reach the government's current (inadequate) target of 26-28 per cent below 2005 levels by 2030, the ERF would deliver less than 12 per cent of the emissions reductions needed (1500 million tonnes).
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