Portfolio budget statements

Environment Budget Overview 2005-06

Environment and Heritage Portfolio

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Recent initiatives

Much new work has been funded since the 2004-05 Budget. Some of the most significant of these initiatives that pave the way for this year's Budget are summarised below.

National Water Initiative

Australia's highly variable and often-scarce water resources are crucial for our economic, social and environmental well being and the National Water Initiative (NWI), agreed to and signed at the 25 June 2004 meeting of the Council of Australian Governments (COAG), is a comprehensive strategy to improve water management across the country. The NWI provides a framework for the continued improvement of the productivity and efficiency of our water use, while maintaining healthy river and groundwater systems.

The Australian Government Water Fund

The $2 billion Australian Government Water Fund will promote increased productivity and better environmental and social outcomes through investment in smart water infrastructure and technologies, improved knowledge and water management, and better practices in the stewardship of Australia's water resources.

The three main components of the Australian Government Water Fund are: Water Smart Australia; Raising National Water Standards; and the Community Water Grants Programme. The National Water Commission, an independent statutory agency created in the Prime Minister's portfolio, administers the first two programmes. DEH and DAFF administer the Community Water Grants programme.

Water Smart Australia aims to accelerate the development and uptake of smart technologies and practices in water use across Australia. Through competitive grants the Government will directly support projects that develop technologies and practices that improve water use and management.

Through the Raising National Water Standards programme the Government will invest in Australia's national capacity to measure, monitor and manage its water resources. Investment through this programme will support: facilitation of a nationally consistent system for collecting and processing water data; strategic assessment of groundwater resources; local community work to improve the conservation of water systems with high environmental values; and the Water Efficiency Labelling scheme.

Community Water Grants promote the wise use of water. Two hundred million dollars will be available over the next five years for these grants (of up to $50,000 each) to save and protect water resources through practical on-the-ground work.

National Water Commission

The National Water Commission (NWC) is a key element of the NWI. The NWC is responsible for driving water reform, providing advice to the Council of Australian Governments (COAG) and the Australian Government on national water issues, and assisting in the administration of the Water Smart Australia and Raising National Water Standards programmes under the Australian Government Water Fund.

Murray-Darling Basin Intergovernmental Agreement

At the 25 June 2004 COAG meeting, the Australian Government agreed to contribute $200 million towards implementation of the Murray-Darling Basin Intergovernmental Agreement (MDB IGA). This agreement between the Australian Government, New South Wales, Victoria, South Australia and the Australian Capital Territory sets out arrangements for investing $500 million over five years from 2004-05.

The MDB IGA will support measures to reduce water over-allocation and achieve environmental benefits. Water recovery measures may include investment in water infrastructure, encouragement of behavioural change, and purchase of water on the market. Recovered water will be set aside for environmental purposes, with a focus on six significant ecological assets in the Murray-Darling Basin: Barmah-Millewa forest; Gunbower-Koondrook Pericoota forests; Hattah Lakes; Chowilla Floodplain (including Lindsay-Wallpolla); the Murray Mouth Coorong and Lower Lakes; and the Murray River Channel.

See: www.pmc.gov.au/nwi; www.nrm.gov.au/water-fund; www.nwc.gov.au; and www.mdbc.gov.au

Addressing Australia's Energy Needs Sustainably

In 2004 the Government's Energy White Paper: Securing Australia's Energy Future established a comprehensive long-term policy framework for Australian energy. It set out policies and principles that will guide the production and use of energy in Australia well into the 21st century, positioning Australia to be a global leader in combating emissions.

Securing Australia's Energy Future - Low Emissions Technology Demonstration Fund

The Government has provided $522.9 million over 16 years to establish a Low Emissions Technology Demonstration Fund to accelerate the demonstration of new low emission technologies to achieve significant greenhouse abatement over the long-term. The fund is designed to be technology neutral. Technologies that could be eligible for support include low emission fossil fuel electricity generation, geosequestration, hot dry rocks, energy efficiency and intelligent transport systems.

Securing Australia's Energy Future - Solar Cities

The Government has provided $75.3 million over nine years to trial the Solar Cities initiative, showcasing solar power and energy efficiency measures by Australian households and businesses. It will demonstrate the economic and environmental costs and benefits of solar technologies, energy efficiency, and smarter electricity meters that allow households to sell excess electricity back into the grid at peak times. Solar cities projects will be in urban settings, where households and businesses will trial solar energy systems for their electricity needs. The Australian Government will also work with state and local governments to improve energy market arrangements, and planning rules, which currently limit the uptake of solar energy.

Securing Australia's Energy Future - Wind Forecasting Capability

Wind is a renewable energy source and Australia's wind resource is world-class. The Government has provided $14 million over five years to support the development of a wind forecasting capability for Australian conditions. This funding will be used to develop and install systems to provide wind energy forecasts to facilitate greater penetration of wind in energy markets.

Securing Australia's Energy Future - Advanced Electricity Storage Technologies

A fund of $20.4 million over five years will develop advanced storage systems to manage the intermittency associated with some renewable energy sources. Wind and solar energy production are unable to consistently deliver electricity on demand because generation only occurs when wind and light are available. Low-cost ability to store generated energy, using it when required, will increase the attractiveness of these intermittent energy technologies.

Securing Australia's Energy Future - Energy Efficiency Opportunities Assessment

(Industry Tourism and Resources portfolio)

The Energy Efficiency Opportunities Assessment programme has received $16.9 million over five years from 2004-05 to encourage the identification and uptake of commercial energy efficiency opportunities among Australia's largest business energy users. The realisation of these opportunities by Australian business will significantly improve economic productivity while reducing greenhouse emissions. Commencing in 2006, large energy-using businesses in Australia will be required to undertake an energy efficiency opportunities assessment every five years and report publicly on the outcomes.

Securing Australia's Energy Future - Renewable Energy Development Initiative

(Industry Tourism and Resources portfolio)

The Government has provided $100 million over seven years to support strategically important renewable energy initiatives with strong commercial potential, and emissions-reduction potential. This will provide grants to firms for the development and commercialisation of new products, processes and services in the following renewable energy technology sectors: wind, solar photovoltaics, solar thermal, biomass, geothermal energy, wave/ocean energy, hydro and related enabling technologies.

See: www.pmc.gov.au/publications/energy_future; www.industry.gov.au; and www.greenhouse.gov.au/energy_transport.html.

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Budget statements

Australian Government

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