A $1.9 billion investment package in new and emerging technologies has been announced by the Federal Government. The Prime Minister Scott Morrison said the investment package in future technologies to lower emissions would back jobs now and into the future, cut costs for households and improve the reliability of our energy supply. Source: Timberbiz
The Government is supporting the next generation of energy technologies with an extra $1.62 billion for the Australian Renewable Energy Agency (ARENA) to invest, as well as expanding the focus of ARENA and the Clean Energy Finance Corporation (CEFC) to back new technologies that will cut emissions in agriculture, manufacturing, industry and transport.
Australian Forests Products Association Chief Executive Officer Ross Hampton said that the Government has made an important step in evolving Australia’s economic environment to be more resilient in a lower emissions future, and allowing industry to more effectively partner and play a significant role in reducing emissions and supporting Australia’s economy in a post COVID-19 world.
The new package also invests in a range of promising low-emissions, reliable new technology advancements including:
- Supporting businesses in the agriculture, manufacturing, industrial and transport sectors to adopt technologies that increase productivity and reduce emissions through a new $95.4 million Technology Co-Investment Fund that was recommended by the King Review
- Piloting carbon capture projects that will dramatically help cut emissions with a $50 million investment in the Carbon Capture Use and Storage Development Fund
- Helping businesses and regional communities take advantage of opportunities offered by hydrogen, electric, and bio-fuelled vehicles with a new $74.5 million Future Fuels Fund
- Setting up a hydrogen export hub worth $70.2 million to scale-up demand and take advantage of the advancements in this low emissions, high powered source of energy
- Backing new microgrids in regional and remote communities to deliver affordable, reliable power with $67 million
- Contributing $52.2 million to increase the energy productivity of homes and businesses, including a sector specific grant program for hotels supporting equipment and facilities upgrades
- Slashing the time taken to develop new Emissions Reduction Fund (ERF) methods from 24 months or more to less than 12 months, involving industry in a co-design process and implementing other recommendations from the King Review into the ERF, worth $24.6 million
- Boosting energy and emissions data and cyber-security reporting and supporting the delivery of future Low Emissions Technology Statements under the Technology Investment Roadmap process, as well as developing an offshore clean energy project development framework, together worth $40.2 million
“AFPA is encouraged by the Government’s recognition in this package that our renewable forest industries value chain can reduce emissions, store carbon and produce renewable energy in all its forms, if the right investments are supported,” Mr Hampton said.
“The new $95.4 million Technology Co-Investment Fund is a useful first step in funding new projects in agriculture and manufacturing sectors.
“Also, the announcement of long-term funding for the Australian Renewable Energy Agency (ARENA) helps ensure investment certainty.”
Additionally, the initiative to streamline the development of new methodologies would allow new projects to participate in the Emissions Reduction Fund (ERF) faster and more effectively.
“Bioenergy and the bioeconomy are key technology streams that need to be both developed and supported both by this new investment package and in the forthcoming Bioenergy and Technology Investment Roadmaps,” Mr Hampton said.
“Bioenergy can deliver baseload power 24 hours a day, 7 days a week, unlike many alternative renewables. Investing in it supports regional jobs as it is well suited to existing regional wood and paper product manufacturing sites nationally.
“Wood fibre is a sustainable biological resource that produces renewable wood and paper products, including new emerging innovative bioproducts like biomaterials, biochemicals and bioenergy. Apart from replacing existing products manufactured from fossil fuels these products provide, social, environmental, and economic benefits,” Mr Hampton said.
The Australian government has committed to reduce the nation’s emissions by 26%-28% on 2005 levels by 2030.
Our certified sustainable forest industries already contribute significantly to Australia’s carbon abatement efforts, through the carbon stored over time in growing forests and products manufactured from wood. In addition, relative to alternative materials, such as steel, concrete and plastics, wood products require considerably less energy in their production.
As Australia and the world ramp up efforts to drastically reduce emissions, our renewable forest industries can play an even greater role in Australia’s transition to a greener, low-carbon emission economy.
That is why Australia’s forest industries are pledging to remove over 18 megatonnes of CO2-e per year by 2030 – around 23% of the Australian Government’s current emissions reduction target.
This equates to a huge 115 megatonnes of CO2-e removed or stored over the period 2019 to 2030.
This ambitious but important goal can only be achieved through the right mix of policies across all levels of government to maximise the carbon-storing and emissions reduction potential of our renewable forests and forest products.
The 18 by 2030 initiative details how Australia’s forest industries can remove an additional 18 million tonnes of C02 equivalent per year from 2030 with the right policy settings – see www.18by2030.com.au
