The document summarizes Australian climate change policy and funding at the federal and state levels. At the federal level, it outlines policies like the Kyoto Protocol, the Carbon Pollution Reduction Scheme, and programs administered by the Department of Climate Change that provide renewable energy rebates and targets. It also discusses New South Wales climate change policies including residential and business rebate programs, a renewable energy development program, and a school energy efficiency program.

1. 1. Executive Summary of Federal/State Government Climate
Change Policy and Funding
1.1 Australian Renewable Energy Policy
(a) The Kyoto Protocol
Since January 2008, Australia has been a signatory to the Kyoto Protocol
(KP). This act has set Australia a mandatory GHG Reduction Target of
108% of 1990 levels by 2012 (the end of the First Commitment Period
2008-2012).
(b) Garnaut and the Green Paper
Following the signatory of the KP, the Australian States and Territories
instructed Professor Ross Garnaut (Garnaut) to conduct a review of the
economic impact of climate change on the Australian environment.
Garnaut released several reports culminating in the Final Report
published in September 2008.
The Federal Government has released its Green Paper on the operation
of the Carbon Pollution Reduction Scheme (CPRS) in July 2008.
(c) White Paper
The White Paper on the CPRS was released on Monday 15 December
2008 and aims to:
(i) Set Australia's Interim GHG Reduction Target until 2020;
(ii) Finalise the design of the CPRS; and
(iii) A range of complementary and supporting measures for
households/industry.
An exposure draft of the Legislation will be released late February 2009
for consultation.
(d) National Greenhouse & Energy Reporting Act (Cth) 2007
The Federal Government introduced the National Greenhouse & Energy
Reporting Act (Cth) 2007 which is intended as the underpinning
legislation to the CPRS for reporting and monitoring purposes which in
effect sets the thresholds for liable parties to report and monitor. This will
be complemented by the CPRS Legislation which is due out soon.
(e) Mandatory Renewable Energy Target (MRET)
There is also the Mandatory Renewable Energy Target (MRET) which is
in the process of being replaced by the Renewable Energy Target (RET).
The Office of the Renewable Energy Regulator (ORER) is the statutory
body established to oversee the implementation of the MRET/RET. In
short, this sets a target of 20% Renewable Energy Generation in Australia
by 2020. Under the target, all electricity retailers and wholesale buyers

2. have a legal liability to contribute towards the generation of additional
renewable energy. They are called liable parties and meet their
obligations by acquiring Renewable Energy Certificates (RECs).
RECs can be created when:
• Complete Solar Water Heaters are installed; or
• Renewable Energy is created by Small Generation Unites (SGUs)
or power stations.
The price for RECs varies because parties negotiate the price and
payment arrangements and are not a Government rebate/refund.
The RET is currently undergoing consultation which was released on 18
December 2008 due in February 2009.
1.2 Department of Climate Change - Federal Government
The Department of Climate Change (DCC) is the peak Federal Government
Department responsible for Australia's response to Climate Change. Some of
the main initiatives/funding/grants administered by the DCC are as follows:
(a) Remote/Country Renewable Energy
The Renewable Remote Power Generation Program (RRPGP) provides
financial assistance to increase the use of renewable generation in
remote parts of Australia. That presentably rely on fossil fuel generation.
(b) Residential Rebates
The Residential and Medium-scale Sub Program provides rebates for
households, communities, not-for profit, business, government and other
organisations that are not close to the grid to support the use of
Renewable Energy. Rebates of up to 50% of the capital cost of
renewable generation and essential enabling equipment are available to
applicants that fully comply with the eligibility requirements and
procedures outlined in the RM sub-program guidelines. The maximum
rebate available is $200,000.00.
(c) Solar Hot Water Rebate
Solar Hot Water Rebate Program helps households install climate friendly
hot water technologies. Rebates of up to $1000 are available for eligible
parties to install solar and heat pump hot water systems to replace
electric storage hot water systems in existing privately owned homes. The
rebate is offered from 18 July 2007 until March 2012, subject to
availability. Water heating is the largest source of GHG emissions from
the average Australian home and accounts for about 28% of home
energy use (save the family car). Installation can save a $300 to $700
per annum.
(d) Solar Homes & Communities Plan
The Government will continue to meet demand under the Solar Homes
and Communities Plan, which will transition to the Solar Credits Scheme
in mid 2009. Solar Credits will replace the Solar Homes Communities
Plan as the primary means of the Government supporting the installation

3. of Solar power. The Plan is 'means' tested and is only available for
households with an annual income of less than $100,000.00.
The Solar Homes and Communities Plan provides cash rebates for the
installation of solar photovoltaic systems on homes and community use
buildings: schools are not longer eligible for funding under this plan but
can apply under the National Solar Schools Program from July 2008 to
June 2015.
(e) Energy Efficiency
A National Framework for Energy Efficiency in Commercial buildings was
released for Consultation on the 18 December 2008.
(f) Green Buildings
(i) Green Star: is a comprehensive, national, ,voluntary rating
scheme that evaluates the environment design and achievements
of buildings. It was developed for the property industry in order to:
(A) Establish a common language;
(B) Set a standard of measurement for green buildings;
(C) Promote integrated, whole building design;
(D) Recognise environmental leadership;
(E) Identify building life-cycle impacts; and
(F) Raise awareness of green building benefits.
Green Star covers a number of categories that assess the
environmental impact that is a direct consequence of project site
selection, design, construction and maintenance. The nine
categories included within all Green Star ratings are:
(G) Management;
(H) Indoor Environment Quality;
(I) Energy;
(J) Transport;
(K) Water;
(L) Materials;
(M) Land-Use & Ecology;
(N) Emissions; and
(O) Innovation.
These categories are divided into credits, each of which
addresses an initiative that improves or has the potential to
improve environmental performance. Points are awarded in each
credit for actions that demonstrate that the project has met the
overall objectives of Green Star.
(ii) Nabers: is a performance based rating scheme for existing
buildings. Nabers rates a building on its anticipated operational

4. impacts on the environment and provides a simple indication on
how you are performing in comparison to your peers. Nabers
incorporated the Australian Building Greenhouse Rating (ABGR)
the commercial building policy for mandating energy efficiency
designs to be implemented in new builds and refurbishments for a
'star' rating.
(iii) Basix: introduced by the NSW Government, is the domestic policy
for mandating energy efficient designs be implemented in new
builds and refurbishments through the development application
process. Its aim is to use less potable water and reduce GHG
emissions by setting energy/water targets for houses/units. It is a
sustainable planning measure. All residential developments with a
total estimated cost over $50,000 must comply with Basix.
(g) Rain Water Tanks
National Rainwater and Greywater Initiative (NRGI) is a $250 million for
rebates of up to $500 per households to install rainwater tanks for
Greywater systems.
(h) Green Loans
Green Loans is a Government program to provide easy access to
practical household solutions to reduce energy and water usage. It
provides detailed, quality household sustainability assessments and
green renovations packs to households and loans up to $10,000.00 to
make existing homes more energy and water efficient. It will commence in
mid 2009.
1.3 NSW Government
NSW Government Policy is run by the Department of Environment and Climate
Change (DECC).
(a) NSW Residential Rebate Program
The $100 million residential rebates program is part of NSW
Government's Climate Change Fund established to make their homes
more water/energy efficient. It provides rebates for rainwater tank, climate
friendly hot water systems, ceiling insulation and water efficient washing
machines.
The rebates are in addition to any other rebates offered to NSW
residents: however, hot water systems, insulation and rainwater tanks
implemented to comply with Basix are not eligible for a rebates.
(i) Rainwater Tank Rebate: offers up to $1,500.00 for rainwater
tanks connected to toilets and washing machines;
(ii) Hotwater System Rebate: offers up to $1,200.00 to switch from
electric to solar, heat pump or gas hot water systems;
(iii) Ceiling Insulation Rebate: provides half the cost of installing
insulation in your home up to a maximum $300.00;
(iv) Washing Machine Rebate: offers $150.00 for buying a 4.5 Star
or higher WELS rated Washing Machine from 1 August 2008;

5. (v) Fridge Buyback: incorporates a $35 rebate, free in-home
collection by experienced removalists, a $190 annual average
saving on electricity bill, proper recycling and GHG savings.
(b) NSW Green Business Program
This program provides $30 million over 5 years for projects that will save
energy and water in business operations in NSW. Round 1 is closed and
Round 2 opens in early 2009. (contact ccf@environment.nsw.gov.au).
Eligible projects include:
(i) education and technology trial activities which increase the
adoption of energy efficient technologies and practices;
(ii) that improve the efficiency of buildings/appliances and industrial
processes;
(iii) that reduce peak electricity demand;
(iv) that reduce the use of electricity or water supplied from
electricity/water supply networks (i.e. cogeneration, fuel switching,
water recycling, stormwater harvesting);
(c) Public Facilities Program
The program provides for up to $30 million for water and energy saving
projects in facilities that are open to the public, such as, schools,
community buildings, sporting facilities, museums and art galleries.
Applications are open to providers of not for profit public or educational
facilities for projects which:
(i) Publicly demonstrate how energy/water savings can work;
(ii) Stimulate investment in innovate ways to save, harvest, recycle
water and/or reduce overall energy consumption (and related
GHG emissions) and/or peak electricity demand.
Activities which are eligible for funding include:
(iii) Education activities that have the potential to increase the
adoption of energy efficient technologies;
(iv) Projects that improve the efficiency of buildings and appliances;
(v) Projects reduce peak electricity demand; and
(vi) that reduce the use of electricity or water supplied from
electricity/water supply networks (i.e. cogeneration, fuel switching,
water recycling, stormwater harvesting).
(d) Renewable Energy Development Program (REDP)
The REDP provides $40 million under the NSW Climate Change Fund
over five years to support projects which are expected to lead to a large
scale GHG emission savings in NSW by:
• Demonstrating renewable energy technologies in NSW; and
• Supporting the early commercialisation of renewable energy
technologies in NSW.

6. The REDP supports Renewable Energy projects that will displace grid
electricity use in NSW for stationary energy reporting. Rounds 1 is closed:
and Round 2 is by Invitation only.
(e) School Energy Efficiency Program
The Program provides $20 million under the NSW Climate Change Fund
to help reduce GHG from NSW public schools.
(f) The Environmental Trust
The Environmental Trust is an independent statutory body established by
the NSW Government to support exceptional environmental projects that
do not receive funds from the usual government sources. Its main
function is to make and supervise the expenditure of grants. The Trust is
administered by the DECC.
(g) Waste
The NSW Government recently released the Mini Budget which amongst
other things it raised the landfill levy in NSW to $128 pounds per tonne
which is believed to be a strong price signal for AWT.

7. The REDP supports Renewable Energy projects that will displace grid
electricity use in NSW for stationary energy reporting. Rounds 1 is closed:
and Round 2 is by Invitation only.
(e) School Energy Efficiency Program
The Program provides $20 million under the NSW Climate Change Fund
to help reduce GHG from NSW public schools.
(f) The Environmental Trust
The Environmental Trust is an independent statutory body established by
the NSW Government to support exceptional environmental projects that
do not receive funds from the usual government sources. Its main
function is to make and supervise the expenditure of grants. The Trust is
administered by the DECC.
(g) Waste
The NSW Government recently released the Mini Budget which amongst
other things it raised the landfill levy in NSW to $128 pounds per tonne
which is believed to be a strong price signal for AWT.