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Tag Archives: CEFC

Hot time in Brisbane

In September 2013, then host of the G20, Russia, produced a 27-page long G20 Leaders’ Declaration outlining their future priorities and goals. Contained in that document was the following:

“We welcome efforts aimed at promoting sustainable development, energy efficiency, inclusive green growth and clean energy technologies and energy security for the long term prosperity and well being of current and future generations in our countries.

It is our common interest to assess existing obstacles and identify opportunities to facilitate more investment into more smart and low-carbon energy infrastructure, particularly in clean and sustainable electricity infrastructure where feasible. In this regard we encourage a closer engagement of private sector and multilateral development banks with the G20 Energy Sustainability Working Group (ESWG) and call for a dialogue to be launched on its basis in 2014 that will bring interested public sector, market players and international organizations together to discuss the factors hindering energy investment, including in clean and energy efficient technologies and to scope possible measures needed to promote sustainable, affordable, efficient and secure energy supply.”

In Australia, the Clean Energy Finance Corporation is doing just that.

“The CEFC investments in renewable technologies span a range of energy sources- wind, solar and bioenergy – and different financial structures. The CEFC has co-financed utility scale investments along with other Australian and international banks, co-financed businesses to maximise their potential use of renewable energy resources, and participated in refinancing deals.”

What’s more, they are attracting investment, creating jobs in new industries, and making a profit for the government while doing it.

“Since its creation 18 months ago, the CEFC has matched private sector funds of $2.90 for each $1 of CEFC investment to catalyse over $1.55 billion in non-CEFC private capital investment in projects and programs, while it has committed $536 million. Those projects account for a reduction in 3.9 million tonnes of carbon.

The CEFC is earning an average return of 7 per cent, and its abolition would cost taxpayers up to ­$200 million annually in lost ­revenue.”

There can be absolutely no justifiable reason for closing down the CEFC. It is the ultimate example of cutting off your nose to spite your face.

The 2013 G20 report also said:

“We appreciate the progress achieved since the establishment of the G20 Global Marine Environment Protection (GMEP) Initiative and welcome the launch of the GMEP Initiative website as a key element of the GMEP Mechanism for the voluntary exchange of national best practices to protect the marine environment, in particular to prevent accidents related to offshore oil and gas exploration and development, as well as marine transportation, and to deal with their consequences.”

They must be thrilled to hear this:

“According to a press release from the Australian Recreational Fishing Foundation, the peak body representing angler interests nationally, Environment Minister Greg Hunt said the Government would come good on its promise to “suspend and review” the controversial marine parks process initiated by Labor and the Greens.”

And this:

“Unfortunately, soon a massively destructive coal port will be built just 50 km north of the magnificent Whitsunday Islands. The port expansion was approved by the Abbott Liberal National government on Wednesday 11 December, and it will become one of the world’s largest coal ports.

The coal export facility is ironically located on Abbot Point. The construction of this port will involve dredging 3 million cubic metres of seabed. The dredge spoil will be dumped into the Great Barrier Reef World Heritage Area.”

And this:

“While Western Australia’s shark cull policy was meant to protect beachgoers, it has alarmed and horrified marine conservationists since it goes against the global effort to protect the declining shark population.”

Not to mention the whales… really… don’t mention the whales.

Another of the G20 goals was to phase out fossil fuel subsidies.

“We reaffirm our commitment to rationalise and phase out inefficient fossil fuel subsidies that encourage wasteful consumption over the medium term while being conscious of necessity to provide targeted support for the poorest.”

Christine Lagarde, president of the International Monetary Fund, has warned that climate change is one of the greatest economic threats facing the world.

“The planet is “perilously close” to a climate change tipping point, and requires urgent cooperation between countries, cities and business, International Monetary Fund chief Christine Lagarde has said.

Addressing an audience in London, Lagarde said reducing subsidies for fossil fuels and pricing carbon pollution should be priorities for governments around the world.

“Overcoming climate change is obviously a gigantic project with a multitude of moving parts. I would just like to mention one component of it—making sure that people pay for the damage they cause,” she said. “We are subsidizing the very behaviour that is destroying our planet, and on an enormous scale.

Both direct subsidies and the loss of tax revenue from fossil fuels ate up almost $2 trillion in 2011—this is about the same as the total GDP of countries like Italy or Russia.”

I wonder if they realise that:

“the Australian Government plans to gift over $10 billion of taxpayer’s money to subsidise fossil fuel use.”

Australia has assumed the presidency of the G20 for 2014 and Tony Abbott has released his agenda.

“Australia’s G20 Presidency in 2014 will structure leaders’ discussion around the key themes of:

  • Promoting stronger economic growth and employment outcomes
  • Making the global economy more resilient to deal with future shocks

We want to maintain a tight focus on practical outcomes that will lift growth, boost participation, create jobs and build the resilience of the global economy.”

Okay, reasonable goals, but what about clean energy and sustainable practice. This is what Tony has to say on that:

Strengthening energy market resilience

Well-functioning energy markets and reliable supply are essential to every household and business and have a significant impact on the cost of living and the cost of doing business. Emerging economies are expected to account for more than 90 per cent of growth in energy demand to 2035. In 2014 the G20 will support international efforts to improve the operation of global energy markets and increase cooperation between major producers and consumers. The G20 will also explore how it can advance work on energy efficiency and continue its work to improve the transparency of energy markets. These efforts will help position us to meet the energy demands of the future.”

The only environment mentioned in his document is the investment environment.

Abbott and Newman must be expecting a hot old time at the G20 meeting later this year in Queensland. In typical Queensland fashion, they have made new laws to cope with it.

“The Queensland Government last night passed legislation to strengthen police powers during the G20 events in Brisbane and Cairns.

The legislation declares special security areas in the two cities, gives police extra search and arrest powers, and creates offences for actions such as crossing barriers and disrupting meetings.

Police Minister Jack Dempsey says locals who do not pass criminal history checks will be denied access to restricted zones and alternative accommodation will be provided at the cost of a few hundred dollars.

“We’re expecting 99 per cent of people being able to go freely once they’ve had their criminal history checks and balances in place.”

The bill prohibits a series of items from G20 zones, including weapons, cans, jars, whips, eggs, insects, reptiles, banners that measure larger than 100cm in height by 200cm in width, and remote-controlled planes.”

I wonder how many patrol cars will be out there armed with Mortein, or capsicum spray for anyone caught with eggs in their groceries.

I would suggest that Tony is more likely to need protection from the people he has screwed over inside the conference centre rather than from the Joe Blakes outside.

 

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Renewable Energy Makes Tony sick

Since the introduction of the carbon price in July 2012, emissions from the National Electricity Market serving eastern Australia have fallen about 8.9 per cent, in part due to less demand from a shrinking manufacturing sector. By 2020, under current projections, wind, hydro and other renewable sources will supply more than 20 per cent, perhaps as high as 27 per cent, of our electricity needs.

So we appear to be on track. But, in what appears to be an increasingly common loathing for anything to do with tracks or Labor or anything green (unless it’s a paper abolishing regulations), Tony looks set to derail us again.

He has announced he will head an energy policy task force that will be “looking at new options to reduce the costs of energy.” He has also renamed the Australian Cleantech Competition – it will now be known as the Australian Technologies Competition.

“We have to accept that in the changed circumstances of today, the renewable energy target is causing pretty significant price pressure in the system and we ought to be an affordable energy superpower … cheap energy ought to be one of our comparative advantages … what we will be looking at is what we need to do to get power prices down significantly,” the prime minister said.

The Australian Energy Market Commission says the renewable energy target (RET) comprises less than 1 percent of the average household electricity bill. The Queensland Competition Authority notes in its latest finding that the large-scale renewable target (the apparent subject of the new government’s attacks) will cost Queensland households $26 a year, or about 1.3% of their bills - about half the rise in retail bills caused by soaring gas prices.

Climate Institute chief executive Erwin Jackson said

“For a cost of 80 cents a week for the average household, the RET has attracted billions of dollars in investment and cut millions of tons of emissions. That’s a pretty good investment.”

Kane Thornton, deputy chief executive of the Clean Energy Council agrees saying

“Any substantial change to the Renewable Energy Target would obviously have a big impact on the future of the solar industry. The goal makes up a very small proportion of power bills while creating thousands of jobs and billions of dollars in investment, much of which flows into regional areas.”

The solar PV industry employed about 13,600 as of late 2013. Research by industry group SolarBusinessServices suggested that would dive immediately by 2000 if the government were to end support for the industry by scrapping the RET, with the total number of jobs lost or foregone swelling to 6750 by 2018. A reduction on the goal that resulted in the halving of the price of small-scale renewable energy certificates would lead to about 600 solar jobs going.

With no policy change, 8000 jobs will be generated between 2014-18, assuming a floating carbon price – something the Abbott government has vowed to scrap – and electricity and PV prices would continue to fall, the report said.

Solar panels generated more than 25 per cent of South Australia’s electricity on January 4, 19 and 25 and supplied significant amounts during the state’s recent heatwaves, according to a new service supported by the Australian Renewable Energy Agency that tracks PV’s contribution to power supply.

In yet another waste of time and money, the Abbott Government has also announced yet another pointless inquiry into the health impacts of windfarms even though the overwhelming scientific consensus is that wind turbines have no health effects on the surrounding populations. Could it be because Tony’s adviser on all things, Maurice Newman, doesn’t want them near his property?

“Even before they threatened my property, I was opposed to wind farms.”

The Abbott government have also cut $435 million funding to the Australian Renewable Energy Agency (ARENA) and deferred $370 million funding announced by Labor in the 2013 budget to the agency, until the next decade.

Australian Conservation Foundation campaigner Tony Mohr said:

“The axing of $435 million from ARENA will starve research and development of clean energy in Australia, moving us to the back of the global race for clean tech.”

Australian Solar Council chief John Grimes called on the Parliament to block any attempt to gut the agency.

“The work that ARENA does is an excellent example of direct action,” he said. “This independent agency, with its annual funding prescribed in legislation, back practical programs. This is about real action in the real world.”

In another incomprehensible move, the government has decided to scrap the Clean Energy Finance Corporation which was set to invest $10 billion in low-carbon technologies, while achieving up to half the government’s emissions reduction target, and return a profit to the budget.

“The strong positive response from the market has enabled the CEFC to successfully build a total loan portfolio of $536 million funding projects with a value of over $2.2 billion.

Our portfolio represents a diverse mix across the economy, with projects comprising 56 per cent of renewables, 30 per cent in energy efficiency and 14 per cent in low emissions technologies. We have financed projects involving wind, solar, and bioenergy across Australia (both on grid and off grid), as well as energy efficiency and low emissions technology projects in manufacturing, buildings and local government.

The CEFC portfolio of contracted investments is presently expected to earn an average return of approximately 7 per cent, around 4 per cent above our benchmark return of the Government five-year bond rate.

Co-financing is integral to our strategy. Through matched private sector funds of $2.90 for each $1 of CEFC investment, the CEFC has been able to catalyse over $1.55 billion in non-CEFC private capital investment in projects and programs to deploy renewables and to improve energy efficiency.

The response that we have received from the market has remained extremely encouraging and we currently have 179 project proponents in our pipeline for projects to the estimated value of $14.9 billion.”

The march towards renewable energy is inevitable yet we are being held back by Tony’s ties to the fossil fuel industry which is determined to place every impediment in the way to prolong their profit-making at the expense of our jobs, our health and our home.

 

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