How Australia’s carbon price is working One Year On

June 2013 The Carbon Price After One Year Key Outcomes

It is now a year since the Australian Government And more introduced carbon pricing to help tackle the serious than 150,000 environmental problem of new jobs climate change. have been Scientists and institutions like the CSIRO and created the Bureau of Meteorology have advised that Persons employed (000’s) rising concentrations of carbon pollution in the atmosphere are causing climate change. 11,700 Their advice is that to avoid impacts like 11,650 higher temperatures and more extreme weather events, the world needs to reduce 11,600 the amount of greenhouse gases being 11,550 emitted into the atmosphere. 11,500

11,450

Australia’s 11,400 May economy April has grown solidly Source: ABS, 2013

The carbon price is designed to ensure % change Australia plays its part in international efforts Jul 2011- May 2012 to Jul 2012- May 2013 to tackle climate change – while ensuring our 6 economy remains strong. It works by putting a price tag on each 5 +5.1% tonne of carbon pollution released into the atmosphere by around 370 of Australia’s 4 largest industrial concerns, like coal-fired 3 power stations. +3.1% It will put a cap on Australia’s greenhouse +2.5% 2 gas emissions from 2015-16. That means it is +1.7% guaranteed to achieve emissions reductions to 1 2020 and beyond.

0 Carbon pricing will reduce pollution and boost GDP Industrial Retail trade Household production consumption investment in clean and renewable energy,

Note: All figures are in real terms like solar and . Source: ABS, 2013

2 The carbon price works hand in hand with a comprehensive set of policies. The Clean Energy Future plan also includes: • a Renewable Energy Target which Renewable will guarantee at least 20 per cent of Australia’s electricity comes from energy has renewable sources by 2020; grown • major investments in clean energy technologies; • support for manufacturing companies by fuel type to cut energy use and pollution; Terawatt-hours • support for farmers to reduce pollution 200 on the land; 180 18 23 • programs to help households, 160 21 22 communities and business improve 140 96 4.2% energy efficiency. 120 92 100 80 60 51 40 13.3% 44 The carbon 20 0 intensity of July 2011 - May 2012 July 2012 - May 2013 electricity is Renewables Gas and Liquids down Black Coal Brown Coal Source: National Electricity Market (NEM) - Review, 2013

Emissions intensity of the National Electricity Market (tCO₂-e/MWh) A year after the carbon price started, the 0.96 evidence shows these Clean Energy Future 0.94 policies are: 0.92 • reducing carbon pollution; 0.90 • driving investment in clean and renewable 0.88 energy; and 0.86 0.84 • transforming Australia’s economy to be 0.82 more competitive as the world tackles 0.80 climate change. 1 3 2 1 1 1 3 1 1 1 2 1 2 1 ------Since the carbon price commenced, Australia’s y y n n p y n p a a e a e J J J S S M a M a economy has remained one of the strongest in M a the industrialised world. Note: Emissions per megawatt hour sent out Source: Australian Energy Market Operator, 2013

3 Cleaner energy is reducing pollution

Power stations are one of In the 11 months from July 2012 to May 2013, Australia’s main sources of carbon pollution from the National Electricity Market was down by around 7.4 per cent carbon pollution and account compared to the same period in 2011-12. for over half of the pollution That’s almost 12 million tonnes less covered by the carbon price. pollution from electricity generation under carbon pricing. That means to clean up our economy we must transform our electricity generators, which Why is carbon pollution from electricity have traditionally relied heavily on coal as a generation falling? fuel source, towards cleaner fuel sources. A key reason is that the electricity supplied to The carbon price, the Renewable Energy the national grid has been cleaner since the Target and efforts by governments, carbon price started. businesses and households to improve their energy efficiency have all made a start in transforming Australia’s electricity sector. Australia’s Since the carbon price started on 1 July 2012, electricity there have been important changes in Australia’s electricity generation sector. sector is transforming

30 28.5

25 Generators 20 switch to cleaner fuels 15 Electricity emissions 10 are falling 5.6 5 % change

0

-2.4 -5 -4.2 -5.1 July 2011 - May 2012 to July 2012 - May 2013 July 2012 to - May 2012 July 2011 -7.4 -10

-15 -13.3 l l s s e a a s n l e o o u

c c b i o

y s a k n s i t i c w w i c e l a m r n r o t B e

c s and liquid l B R e a a l e t g

E o l T r a u t Emissions intensity a N

Source: Australian Energy Market Operator, 2013 and National Electricity Market (NEM) - Review, 2013

4 This is because renewable energy like wind down 14 per cent from the same period power, solar and hydro-electricity is making in 2011-12. up a larger proportion of our energy mix. In addition to cleaner energy, another reason In the 11 months to May 2013, for each emissions are down is because energy is megawatt hour (MWh) of electricity being used more efficiently – the amount of generated in the National Electricity Market, electricity to power our homes, factories and 0.87 tonnes of carbon pollution were released offices is down. into the atmosphere. In the 11 months to May 2013, the amount of This has fallen from 0.92 tonnes of carbon electricity sent out to the National Electricity pollution for each MWh in the same period in Market was down by 2.4 per cent. 2011-12. That is a decline of 5.1 per cent. This decline is driven by a range of factors. The carbon price and the Renewable Households and businesses are responding Energy Target are making renewable to higher power prices and being directly energy, and cleaner electricity generated supported by the Government to improve from natural gas, more competitive when energy efficiency. They are also installing compared to higher‑polluting coal-fired solar panels and solar water heaters on their electricity generation. roofs, meaning they use less electricity from the grid. As a result, electricity generation is switching away from high-polluting fuels like brown coal Around two-thirds of the drop in pollution and towards lower-polluting fuels like natural from the electricity sector is estimated to have gas and renewable energy sources. In fact, been driven by the uptake of cleaner energy renewable energy output increased by almost sources and around one-third from energy 30 per cent and the output from the seven efficiency and lower electricity demand. most highly-polluting coal generators was

SUMMER WAS HOTTER, BUT CLEANER

Australians sweltered during the summer On top of this, the amount of carbon pollution of 2012 ‑13. for each unit of electricity generated this summer Yet we used less electricity. And the electricity was also down, by 5.2 per cent compared to the we did use was cleaner. previous summer. The Bureau of Meteorology has reported that That was because we got more of our electricity the summer of 2012-13 was Australia’s warmest from renewable sources like wind, solar and on record in terms of both maximum and hydro-electricity which increased output by average temperatures. around 33 per cent compared to last summer, and because coal-fired generation was down. Normally a hotter summer pushes up electricity Cleaner electricity, improved energy efficiency

use as more people switch on air conditioners STUDY CASE for longer. and lower demand all added up to 2.6 million tonnes less carbon pollution from Australia’s But despite the hotter weather the amount of National Electricity Market in the first summer electricity generated in the National Electricity after the carbon price started. Market this summer was down by 0.8 per cent compared to the previous summer reflecting, That was equivalent to taking an estimated in part, that Australians are now using energy 3 million cars off the road during the more efficiently. summer months.

5 Investing in clean and renewable energy

The Clean Energy Future In April 2013, the energy company AGL policies are driving billions of opened its 420 MW Macarthur in western Victoria. dollars of investment in clean and renewable energy. This is the largest wind farm in the southern hemisphere and represents a This investment is not only reducing $1 billion investment. carbon pollution, it is also creating new AGL estimates that the Macarthur wind jobs and industries - there are now more farm can power an average of around than 24,000 jobs in Australia’s renewable 220,000 households, saving around 1.7 million energy industry. tonnes of greenhouse gas emissions a year. One of the main policies promoting clean Across the country there are also large wind energy investment is the Renewable Energy and solar farms operating, under construction Target – this will guarantee that at least or in advanced development (see below). 20 per cent of Australia’s electricity comes Individual households and businesses are from renewable sources by 2020. playing their part by installing solar panels and Australia now has over 370 renewable power solar hot water systems on their roofs, with generators accredited under the Renewable support from the Government’s Small-scale Energy Target policy. Renewable Energy Scheme.

Darwin

Windy Hill Wind Farm

Hallet Wind Farms Wind Farm Kogan Creek Solar Boost Project Greenough River Solar Farm Brisbane Mumbida Wind Farm Solar Plant‡ Perth Sydney Crookwell 2 Wind Farm Adelaide Canberra Lake Bonney Wind Farms Royalla Solar Farm Melbourne Mt Gellibrand Wind Farm Musselroe Bay Wind Farm

Ryans Corner Wind Farm Hobart Woolnorth Wind Farms Wind and Solar projects in an advanced development stage

6 There are now more than 1,046,600 rooftop MALLEE A CLEAN SOLUTION solar power systems supported under this Scheme - an increase of more than 1 million An innovation by Renergi Pty Ltd to turn systems over the past 5 years. And new agricultural waste and mallee biomass into systems are being installed at the rate of energy has received $3.6 million in support from around 3,300 rooftops a week. ARENA to provide the technical data necessary to design a commercial-scale gasifier. Australia’s installed rooftop photovoltaic Once developed, the gasifier will transform capacity increased from around 20 MW various types of biomass, such as agricultural to around 2,500 MW between 2008 and waste and mallee crops, into gas that can be fed 2013 and is expected to grow to more than into an engine to generate electricity. 5,100 MW by 2020 and 12,000 MW by 2031. Project partners include Curtin University, Cryofin, Verve Energy and the Oil Mallee The Clean Energy Future plan includes Association of Australia. The total cost of the unprecedented levels of funding for research project is $6.7 million. STUDIES CASE into renewable energy technologies and projects to deploy clean energy technologies through the economy.

The Australian Renewable Energy Agency FUNDING CHARGES RENEWABLE (ARENA) commenced on 1 July 2012. It is an SOLUTIONS independent agency with funding of around $3 billion to invest in projects that improve the Cost-effective battery storage for renewable competitiveness of renewable technologies energy systems is a step closer, following a and increase the supply of renewable energy $480,000 grant through ARENA’s Emerging in Australia. Renewables Program to Ecoult, aiming to optimise CSIRO’s UltraBattery technology. ARENA is currently supporting a range of ARENA will be investing in a 30-month project innovative renewable energy technology using the UltraBattery technology to determine projects, including bioenergy, geothermal, whether it can lower costs by conducting testing hydro, ocean and . on a storage pilot at CSIRO’s Newcastle facilities. The $1.1 million project aims to optimise the The Government has also established the UltraBattery technology for use in a range of $10 billion Clean Energy Finance Corporation settings, including residential locations, in (CEFC) to invest in businesses needing funds remote areas not connected to the national to get innovative clean energy proposals and electricity grid and in hybrid diesel systems. technologies off the ground. This will include renewable energy, energy efficiency and low emission technologies and projects. BLUESCOPE ROOFTOP SOLAR The CEFC commenced in August 2012 and PROJECT A WORLD LEADER the Government has issued an investment mandate to ensure the CEFC applies Supported by a $2.3 million grant BlueScope commercial rigour to its investment decisions will use thin-film solar panels to create sleeker, and seeks a commercial return for taxpayers. more efficient roofing designs that can produce electricity for new residential and commercial The carbon price, the Renewable Energy buildings, and are capable of generating energy Target, ARENA and the CEFC are all working for the electricity grid. together to drive billions of dollars of The development of the new roofing profile investment in clean and renewable energy will create new employment opportunities at in Australia. BlueScope and is an early sign of the innovations occurring under the Government’s broader Clean Energy Future package. 7 Helping industry to cut energy costs and reduce pollution

Since the carbon price started, Clean Australia’s manufacturing Technology industry has been investing Investment in new equipment to improve energy efficiency and Program reduce pollution. by the

Carbon price revenue is funding the numbers Government’s $1 billion Clean Technology $1 billion Investment Program which is helping Government funding businesses to make these investments. over five years for manufacturing More than 220 clean technology projects companies to invest are now under way at manufacturing plants in improving energy 2 around the country. efficiency and reducing Streams of funding: Food manufacturers are installing state of pollution. one for general the art refrigeration equipment to cut energy manufacturers and one costs and reduce emissions of harmful for food processors and refrigeration gases. foundry operators. Wineries are installing solar panels. Sugar mills are building co-generation plants 222 to generate renewable energy from sugar Projects at manufacturing cane residue. firms around Australia Brick makers are upgrading their kilns to use supported under the cleaner energy sources and cutting costs Program as at June 2013. of production.

DOWNER EDI ON THE ROAD TO A CLEANER FUTURE

One of Australia’s largest asphalt manufacturing The changes will substantially boost the plants is using a $1.4 million Government grant company’s energy efficiency, reduce its to upgrade its facilities in . environmental footprint and create a more Downer EDI is using a grant from the sustainable future. Government’s Clean Technology Investment It is expected that this project will allow Downer Program, funded by carbon price revenue, to to cut energy costs at the site by approximately support upgrades at its plant in Bli Bli, north $480,000 a year and reduce the facility’s carbon of Brisbane. emissions intensity by up to 33 per cent. This upgrade will enable the plant to

CASE STUDY CASE manufacture asphalt containing up to 40 per cent recycled materials.

8 Helping industry to cut energy costs and reduce pollution

These projects involve total investment of more than $338 million. They are cleaning up Australian manufacturing $121 million and generating big savings for businesses. Amount invested by the They are projected to deliver an average Government in the 222 reduction in emissions intensity – the amount projects. of carbon pollution emitted for each unit of production – of around 50 per cent. Improving energy efficiency and reducing the $338 million emissions intensity of production translates Total investment in these into a more productive manufacturing sector. projects - government grants Putting a price on each tonne of carbon plus co-contributions from pollution means businesses take the manufacturing firms. environmental cost of pollution into account when making investment decisions. It creates a financial incentive for businesses to invest in new ways of saving energy and 20 per cent reducing pollution. Average savings in energy It generates revenue which the Government use across projects. is using to help businesses to make these investments. 50 per cent This is the carbon price working as intended, cleaning up our economy and making it Average reduction in more competitive. emissions-intensity across the projects.

CHANGE IS UNDERWAY IN THE MEAT INDUSTRY

A.J. Bush and Sons, which has a large meat Instead of releasing the methane into the rendering plant in Bromelton, is one of the atmosphere, A.J. Bush will capture the gas and largest employers in the meat industry use it to power boilers that produce steam for in Queensland. the plant. In the past, A.J. Bush has released significiant It will also install new, more energy efficient amounts of methane from settlement ponds boilers, meaning the company will reduce the where the biological waste from its meat amount of coal it burns to fire the boilers. processing operations is deposited. These investments will cut the plant’s energy Now this company is making a $12 million costs by 46 per cent and its emissions intensity investment with the support from the Clean by 64 per cent. Technology Investment Program. STUDY CASE

9 10

CASE STUDY efficiency energy improve communities Helping has madeareal differenceonthe ground. Since 1 July 2012, Low Carbon Communities local councilsandcommunityorganisations. of programswhicharehelpinghouseholds, through Low Carbon Communities –arange the carbonprice tofundprojects like this The Government isusingrevenue raised by to addup toaround$500,000 a year. long-lasting lamps,thesavingsareexpected 25,000 street lightswithmore efficientand Council embarks onaprojecttoretrofit up to When anorganisationlike Brisbane City savings inpower bills. for instance, itdeliverssmallbutnoticeable the wallratherthanleaving them onstandby, When ahousehold turnsoffitsappliancesat and environmental benefits. the economyanddeliversignificantfinancial small individually–butthey canaddup across be Improvements inenergy efficiency can pollution, italsosavesmoney. not onlylowerscarbon Using energymoreefficiently energy, provide betterlighting levels anddo But thenewmore efficientlampsuseless light, becomingdim. which overtime give offareducedamountof The existing lightsaremercuryvapour bulbs, the projectover nexttwofinancial years. The Council will contribute afurther$5 million to efficient lamps. of the city’s streetlights with moreenergy to helpBrisbane City Council replace25,000 from the Community EnergyEfficiency Program The Government isproviding almost$5 million in Australia. undertaken be the largeststreetlightingretrofitproject ever to and moreenergyefficient inwhatisbelieved Brisbane’s streetlights arebecoming brighter BRIGHT IDEA FOR BRISBANE energy assessments and community energy assessments andcommunity installing solarhotwaterservices,household income households. These measures include efficiency measures foraround33,000low is providingupto$64 millionforenergy The aquatic andleisure centres andtownhalls. community use facilities,includingmuseums, energy efficiency andamenity ofcounciland conditioning. These grants willimprove the as lighting,heating,ventilation andair groups forenergyefficiency upgrades such governments andnon-profitcommunity is providing$112millioningrantsto170 local The improve energy efficiency. organisations onpracticalwaysthey can medium-sized businesses andcommunity deliver advicetowell over 200,000 smalland Grants initiatives, the In additiontotheLow Carbon Communities community buildingsandfacilities. heat pumpandsolarhotwatersystems in governments acrossthe countrytoinstall Program The workshops onenergy efficiency. community facilities. improved services andamenities, buildings and benefits ofsmartenergyuse, while providing helping informthe community aboutthe Program, fundedbythecarbon price, is The $112million Community EnergyEfficiency savings tothe Council’s annualelectricity bill. The projectwill resultin$500,000 worthof consumption by2.5percent. to reducethe Council’s overallelectricity 40 percent lesselectricity andareexpected When installed,thenewlights willuse for residents. meaning thestreetswill bewell- not deteriorate asmuchtheexisting lamps,

Low IncomeEnergyEfficiency Program Community EnergyEfficiency Program Local Government EnergyEfficiency

program isproviding$34 millionto willassistaround 250 local Energy Efficiency Information Energy Efficiency Information lit and safer lit andsafer

make ends meet ends make Helping households

Helping households make ends meet

The Government has delivered Other income support recipients such as tax cuts, increases in Family Tax students will also receive ongoing assistance, starting with a second lump sum payment Benefits and higher pensions from 1 July 2013 and an ongoing Clean Energy and allowances to help low and Supplement from 1 January 2014. middle income earners. The latest Consumer Price Index figures show the inflation rate was 2.5 per cent for the year This Household Assistance Package started in to March 2013. May 2012 with lump sum payments to more than six million Australians, including families, Westpac and National Australia Bank pensioners, self-funded retirees and people economists have estimated that the carbon receiving income support. price has increased the CPI by just 0.4 per cent. This means the Household Assistance Package From 1 July 2012, the Government tripled the has left many millions of Australians better tax-free threshold to $18,200 a year, delivering off financially. tax cuts to more than 7 million taxpayers earning up to $80,000 a year. The package has been reviewed by Treasury and the Department of Families, Housing, In March 2013, around 3.5 million pensioners Community Services and Indigenous Affairs. began receiving their ongoing Clean Energy Supplement in their fortnightly payments. This review found the tax cuts and increases These pension increases are worth around in family payments, pensions and other $350 a year for singles and around $530 a year benefits, together with growth in wages and for couples combined. other government payments, outstripped increases in the cost of living for typical low From 1 July 2013 more than 1.6 million families and middle income households over the year who receive Family Tax Benefit payments to March 2013. will start receiving ongoing increases in their fortnightly family payments.

FORTNIGHTLY COST OF LIVING AND PAYMENT INCREASES FOLLOWING START OF CARBON PRICE

Household Cost of living increases Payments, tax benefits Net gain Dec 2011 - Dec 2012 and wage growth Mar 2012 - Mar 2013 $ $ $ Single maximum rate Age Pensioner 17.41 52.90 35.49 Couple maximum rate Age Pensioners 26.25 79.80 53.55 Single parent with 1 child aged under 5 23.07 70.10 47.03 Couple family with 2 children aged under 5 53.89 110.67 56.78 (incomes $70,000 and nil) Couple family with 3 children, 1 aged under 5 58.38 150.61 92.23 and 2 aged 5-12 (incomes $70,000 and nil) Couple family with 2 children aged 5-12 72.37 137.08 64.71 (incomes $70,000 and $30,000) Couple family with 2 children, 1 aged 5-12 and 1 72.37 152.85 80.48 aged 13-17 (incomes $70,000 and $30,000)

Source: Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), 2013 11 Action on the land

The Carbon Farming Initiative is providing new sources of income to farmers and other land managers when Farmer earns carbon credits they reduce greenhouse gas CO 2 CO emissions or store carbon on 2 the land.

CO 2 CO 2 Carbon pollution can be reduced on the land CO 2 CO 2 through initiatives like growing trees and CO 2 reducing emissions from livestock, fertiliser and waste deposited in landfills. Polluting business buys credits $ Farmers who carry out projects like this can earn carbon credits from the Government’s Carbon Farming Initiative. Each credit represents a tonne of carbon pollution that Since the Carbon Farming Initiative started in has been reduced or stored. 2011, 15 methodologies have been approved Farmers can then sell these credits to for carbon farming projects. businesses like coal-fired electricity These include: destroying methane from generators, which have a carbon price liability, manure in piggeries and dairies; or to companies that want to voluntarily offset environmental plantings; savanna fire their carbon pollution. management; and capturing and combusting Carbon Farming projects need to be landfill gas. carried out under approved methodologies To date there are 65 projects participating in which ensure the projects deliver genuine the Carbon Farming Initiative. emissions reductions.

BLANTYRE FARMS PIGGERY

Blantyre Farms was the first approved piggery On top of that the farm is now earning $5,000 a project under the Carbon Farming Initiative and month selling electricity back to the grid. is successfully turning waste and methane gas And because the project reduces emissions of into clean energy. methane in the atmosphere, it will earn Carbon Edwina and Michael Beveridge have covered Farming Initiative credits which can be sold to effluent ponds and are capturing methane gas emitters or other companies looking to offset from the manure produced by their 22,000 pigs. their pollution. They have installed a biogas generator which The Beveridges have estimated they will earn takes this methane and uses it to generate another $175,000 a year from selling these

CASE STUDY CASE renewable electricity to power the farm. carbon credits. Heat from the generator is also used to keep the Their investment is expected to pay for itself in piglets warm in their sheds. three years – making strong financial sense as This Carbon Farming project has reduced their well as helping the environment. monthly electricity bill from $15,000 to zero.

12 These projects have already generated In addition to carbon farming, the more than 1.7 million carbon credits, Government’s new Biodiversity Fund is reducing carbon pollution in the land investing over $1 billion to help land managers sector by 1.7 million tonnes of greenhouse store carbon, enhance biodiversity and build gas emissions. greater environmental resilience across the Australian landscape. The Government’s $429 million Carbon Farming Futures initiative is using carbon price Funded by carbon price revenue, the revenue to help farmers and land managers Biodiversity Fund supports the establishment take advantage of carbon farming through of native vegetation and better management research, training, and other support activities. of existing native vegetation. Carbon Farming Futures programs have So far it has supported 312 projects worth already provided: $265 million to revegetate, rehabilitate and restore over 18 million hectares of land. • $74.1 million for 88 research projects on ways to improve soil carbon, reduce pollution from livestock and crops, and adapt to climate change; • $25.2 million for 59 projects to test research findings, demonstrate them to farmers and ensure laboratory results can be translated into practical on‑farm measures; and • $21.3 million for 24 projects to develop skills and knowledge on carbon farming for the livestock, dairy, horticulture, cotton and grains industries.

MUGGA LANE LANDFILL

When waste is deposited into a landfill it – reducing greenhouse gas emissions by more decomposes, releasing methane into the than 100,000 tonnes a year. atmosphere over many decades. The carbon price and Renewable Energy Target Methane is over 20 times worse than carbon make this clean energy more valuable on the dioxide in warming the globe. wholesale electricity market. If the methane is captured and destroyed, And the Carbon Farming Initiative makes it more instead of being released into the atmosphere, valuable still. these emissions are avoided which helps Mugga Lane earns around three Carbon Farming the environment. credits for every MWh of electricity generated at If a landfill operator goes a step further and uses this landfill. STUDY CASE the methane to generate renewable electricity, All up, the carbon price, the Renewable then it displaces coal-fired energy, leading to Energy Target and the Carbon Farming further reductions in pollution. Initiative added over $3 million of value to this Canberra’s Mugga Lane landfill captures energy in 2012-13 – which quadruples Mugga methane and uses the gas to generate Lane’s revenues. 25,000 MWhs of renewable energy each year 13 Looking to the future

The incentives created by the international commitments to reduce carbon carbon price flow through pollution can be met responsibly. the economy. Australia’s emissions were around 25 tonnes per person in 2012 – making us the highest per They make clean technologies more person emitter among developed economies, competitive, and motivate lower carbon higher even than the United States. actions and decisions at all levels across Without a carbon price, our emissions the nation. have been projected to increase to around Over time, this will bring about profound 27 tonnes per person by the end of the shifts in business and consumer behaviour next decade. and to the way energy is sourced and used With the introduction of carbon pricing, in Australia. emissions per person are projected to fall The latest emissions projections show to around 21 tonnes by the end of the next that the carbon price together with the decade, a reduction of nearly 20 per cent from Renewable Energy Target has set up a levels that would otherwise occur. long‑term structure that will transform The emissions intensity of the economy is also Australia’s energy market and its projected to decrease over the next couple industrial structure. of decades as capital and processes become It will mean Australia’s population and significantly less emissions intensive. economy continue growing into the By 2030 the emissions intensity of the future without our emissions per person economy is projected to decline by over also growing. 30 per cent from current levels. Australia’s per capita carbon pollution over the next two decades (tonnes CO2/person) It will enable Australia to demonstrate that our economy can be transformed and our Australia’s per capita carbon 27 pollution over the 25 21 next two decades 13 (tonnes CO2-e person)

2012 Expected carbon pollution per person in 2030

Pollution Without With carbon With carbon per person carbon price price (domestic price (domestic abatement) & international abatement)

Source: Australia’s Emissions Projections, 2012 14 The carbon price will drive emissions reductions across all Projected emissions reductions driven by the carbon price sectors Change in emissions (%)

Source: Australia’s Emissions Projections, 2012

These transformations will be achieved by Many of these new approaches have already unlocking ways of reducing pollution across been identified such as the installation all sectors. of super-efficient lighting, heating and processing systems. Changes are already Energy will be cleaner, industry more taking place in farming activities to lock efficient, waste systems greener, and there carbon in our soils, protect forest assets will be better management practices used and increase tree plantings. in agriculture and in how we manage our forest assets. But this is only the beginning. By 2020, a total of $20 billion is forecast to be The carbon price will continue to drive this invested in renewable energy sources. This is transformation into the years and decades expected to increase the amount of renewable ahead – ensuring Australia’s economy energy generated by 60 to 80 per cent. becomes more competitive and we play our part as responsible global citizens in tackling Different opportunities will emerge in climate change. different sectors, with the most innovative producers being rewarded for finding new and The rest of the world is acting to tackle cleaner ways of operating. climate change, increasingly through market mechanisms. The Clean Energy Future This transformation has started. plan is the only environmentally effective, Since the introduction of the carbon price, economically responsible and socially fair emissions from electricity have declined, approach for our nation. clean energy generation and investment have grown, and a wide range of sectors are looking at ways of cutting emissions. For more information: www.cleanenergyfuture.gov.au www.cleanenergymap.gov.au 15 Published by the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education © Commonwealth of Australia 2013 ISBN: 978-1-925006-24-7 (Print) 978-1-925006-25-4 (Web) This work is licensed under the Creative Commons Attribution 3.0 Australia Licence. To view a copy of this license, visit http://creativecommons.org/licenses/by/3.0/au The Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education asserts the right to be recognised as author of the original material in the following manner:

© Commonwealth of Australia (Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education) June, 2013. Many Clean Energy Future programs are ongoing, with new projects continuing to emerge and attracting support from the Australian Government. The information in this brochure was correct at the time of its publication in June 2013.