With next to no new climate or energy initiatives in last night’s budget, one should neither ignore substantial existing investments and policies for the net zero transition nor excuse missed opportunities to sharpen focus and support for private investments in decarbonisation and climate solutions said the Carbon Market Institute (CMI) today.
“Short-term cost of living measures need to translate into long-term policy continuity and certainty for investors in a resilient, net zero emissions and nature positive Australia,” said John Connor, CEO CMI.
“CMI welcomes the refinancing of the Clean Energy Finance Corporation, indications of investment in the Nature Repair Market and additional investments for green iron and aluminium. These come on top of recent production tax credit reforms which supplement the first year of enhanced Safeguard Mechanism requirements for large emitters and mandatory disclosure requirements.”
In its Future Made in Australia program, the government allocated $3 billion to support green aluminium and iron ore building and extra $2 billion for the Clean Energy Finance Corporation to provide over $25 billion investments in developing net zero skills, industry and transition support.
The Saving Australia’s Bushland Program will invest $250 million over the next five years in conservation projects by private landowners while improving links between the nature repair and carbon markets and includes an unspecified amount allocated to the Nature Repair Market.
“However, in our budget submission, CMI had been looking for sharpened support to complete tasks in net zero sectoral planning, Climate Active improvements, carbon and nature repair market strategies, regional climate leadership and, acceleration in reforms to integrity and method development in Australia’s carbon crediting framework.”
“Ensuring progress on these tasks and credible 2035 emission reduction targets will now need to be the focus of engagement with the next government.”
“We look forward to more details on Coalition plans tomorrow night, including in relation to the Safeguard Mechanism and the carbon crediting framework that is driving hundreds of millions of dollars investment in regional Australia.”
“It is crucial to build durable policy and investment frameworks to address the longer-term cost-of-living implications of climate change and biodiversity loss. Most Australians understand that insurance affordability and cost of everyday food items are linked to a worsening climate crisis and the omission of such linkages last night was remarkable,” concluded Connor.
