Victorian Climate Change Green Paper
Part 1 - Victoria's climate change framework
Green Paper part 1 - Victoria's framework (Printable version, PDF - 601 KB)
The Victorian Government wants to set strong, clear goals in responding to climate change.
1.1 Reviewing our approach to climate change
1.2 The Commonwealth Carbon Pollution Reduction Scheme - a new policy landscape
1.3 Governments working together - a new role for Victoria
1.4 Our long-term goals
1.5 Our priorities
1.6 Choosing between different policy ‘levers’
As part of the upcoming Climate Change White Paper, the Victorian Government wants to set strong, clear goals in responding to climate change. These goals and priorities should reflect the State’s contribution to national efforts to reduce emissions, as well as Victoria’s ambitions for managing and adapting to the impacts of climate change. The Government also wants to ensure that Victoria is positioned to take advantage of the new opportunities emerging from the introduction of a carbon price.
What is the Victorian Climate Change Green Paper?
Green Papers are draft policy documents, designed to stimulate community discussion on a particular issue. This Green Paper is intended to stimulate discussion about the Victorian Government’s policy response to climate change.
After the Government considers feedback on this Green Paper, it will produce a final White Paper, which will outline new initiatives, investment and timetables for action on climate change.
Steps to the Climate Change White Paper
| Step 1 - December 2007 | The Premier attends the 13th Conference of the Parties to the United Nations Framework Convention on Climate Change, where the Australian Government formally ratifies the Kyoto Protocol. |
| Step 2 - April 2008 | The Premier hosts a Climate Change Summit at Parliament House, bringing together 100 delegates from industry, non-government organisations, peak bodies, local government, community groups and regional Victoria. Following the summit, the Government releases a discussion paper - A Climate of Opportunity - as the first stage in the White Paper process. |
| Step 3 - May 2008 to November 2008 | The Victorian Government conducts consultations throughout Victoria, seeking ideas and input into the Green Paper. Submissions are also received from members of the public. The Government conducts an audit of its climate change policies and programs. |
| Step 4 - (This document) June 2009 | The Government publishes a Green Paper, which:
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| Step 5 - June 2009 to September 2009 | The Government seeks comment on the Green Paper within a set time period, asking Victorians for their views on the paper’s proposals and to put forward new ideas to implement the Government’s climate change framework. |
| Step 6 - June 2009 to October 2009 | The Government considers all feedback, comments, ideas and suggestions as part of its ongoing review of Victoria’s climate change strategy. |
| Step 7 - Late 2009 | The Government releases a White Paper, which sets out its final position and includes new investment, policies and actions on climate change. The Government also releases a draft Climate Change Bill to complement the new policies and actions included in the White Paper. |
1.1 Reviewing our approach to climate change
The Victorian Government is already taking action to respond to climate change. While strong progress has been made, the Government believes that Victoria needs a new and comprehensive, statewide climate change strategy. The Government also understands the necessity of keeping pace with rapid advances in climate change science and the evolving national and international policy framework.
| 2002 | In 2002, the Government launched the Victorian Greenhouse Strategy and commenced a three year program of action to reduce Victoria’s greenhouse emissions across a range of industry sectors. |
| 2005 | In 2005, the Government released the Victorian Greenhouse Strategy Action Plan Update to take into account national and international developments in climate change policy. |
| 2006 | In 2006, the Victorian Government released the Our Environment, Our Future - Sustainability Action Statement, which provided $200 million for actions aimed at securing a sustainable environment for the State’s future and for future generations of Victorians. |
| 2007 | In 2007, the Government announced major new investment of $4.9 billion to secure Victoria’s future water supply through the Victorian Water Plan. |
| 2008 | Work on climate change progressed throughout 2008. As the first step in updating Victoria’s climate change strategy, the Government hosted the Premier’s Climate Change Summit and released a discussion paper - A Climate of Opportunity. Over the past year, the Government has consulted widely on climate change, meeting with individuals, businesses, peak industry bodies and community groups across the state. The Government has also received submissions from Victorians in response to the summit discussion paper. The Victorian Government is playing an active role in the rapidly developing national debate about climate change. In 2008, the Commonwealth Government moved to implement at a national level many of the measures advocated by the Victorian Government to lower greenhouse gas emissions and promote renewable energy. In July 2008 it released its CPRS Green Paper setting out the framework for national emissions trading. This was followed by the release of the . nal report from the Garnaut Climate Change Review, which for the first time provided detailed analysis into the costs of climate change for Australia and recommendations on our long-term policy response to climate change. |
Work at the national level on climate change has continued this year. As part of its Nation Building and Jobs Plan, the Commonwealth launched the $3.9 billion Australian Government’s Energy Efficient Homes Package to improve the energy rating of Australian homes. These developments have been welcomed by the Victorian Government as a clear indication that the Commonwealth is taking action at the national level.
Today, Victoria needs a renewed climate change agenda in order to ensure that the State is best positioned to respond to both:
- The Commonwealth Government’s intention to put a price on carbon emissions through the CPRS; and
- The continuing unavoidable impacts of climate change.
Climate Change Policy in Australia – The Story So Far
The climate change policies of governments in Australia have been rapidly evolving in recent years. In many respects, the Victorian Government has played a leadership role amongst Australian governments in the development of climate change policy.
Before 2007, the Commonwealth Government did not support the use of a carbon price to reduce emissions in Australia. In the absence of national leadership, Victoria took on the responsibility for the development of carbon emissions abatement policies. Victoria implemented many Australian policy . rsts for emissions abatement during this time including:
- Being the first state to set a Renewable Energy Target to mandate a target of 10 per cent of Victoria’s electricity acquisitions being from renewable sources by 2016
- Launching a $200 million package of initiatives to drive environmental sustainability: Our Environment, Our Future
- Establishing the $370 million Energy Technology Innovation Strategy to support the research, development and demonstration of large scale low emissions energy technologies, such as coal drying, carbon capture and gasification, and solar
- Helping Victorians reduce their household energy use through the internationally recognised ‘Black Balloons’ awareness campaign
- Introducing the Victorian Energy Efficiency Target and Energy Saver Incentive scheme, to help more families reduce greenhouse gas emission and cut their power bills
- Being the first state in Australia to introduce 5-Star standards for new residential buildings
After the 2007 election, the Commonwealth Government joined the Garnaut Review and committed to the introduction of a national emissions trading scheme. Now that the Commonwealth Government is in the process of implementing this commitment through the Carbon Pollution Reduction Scheme, Australian climate change policy is entering a new phase.
1.2 The Commonwealth Carbon Pollution Reduction Scheme – a new policy landscape
The Commonwealth Government’s commitment to national emissions abatement through the Carbon Pollution Reduction Scheme changes the Australian climate change policy landscape. As the Commonwealth Government’s approach to emissions abatement has changed, so too must the Victorian Government’s climate change policy agenda.
As already outlined, the introduction of a carbon price will create opportunities for a policy agenda designed to capitalise on the transformation of the Victorian economy caused by the introduction of a carbon price. Similarly, the introduction of a carbon price will create a challenge for the Government to assist Victorians to adjust to the impact of such a price on their lives. However, the most significant impact of the CPRS on the Victorian Government’s policy agenda will be in the area of emissions abatement.
As Professor Garnaut notes later in this Green Paper:
The CPRS should be the main instrument for reducing emissions in Australia. Supplementary policies should be about reducing the cost to the economy of complying with the carbon emission trajectories that are part of the scheme.
In this new phase of climate change policy, the CPRS will be the primary mechanism for driving reduction of carbon emissions in Australia. To this end, once the CPRS is operational, the focus of Victoria’s climate change policies will need to be on actions complementary to the CPRS.
One example of this need for a change in policy focus is state based emissions reduction targets. As Professor Garnaut further notes in this Green Paper:
The introduction of the CPRS means that there is no longer any value in state and territory governments setting their own binding targets for reducing statewide emissions. Because circumstances vary across Australia, meeting national targets will be most ef. ciently achieved by allowing some states to make greater cuts than others. This is a major advantage of implementing a . exible policy tool like an emissions trading scheme.
In 2006, the Victorian Government set a long-term target to reduce greenhouse gas emissions by 60 per cent by 2050, compared to 2000 levels. This target was based on the best available scientific evidence at the time and - when introduced - was a world-leading initiative to tackle climate change.
While Victoria has been a leader in setting emissions targets, the introduction of the CPRS means that a binding emissions reduction target set by the Victorian Government would distort the operation of the scheme by mandating that a set level of reductions should take place within the State, regardless of the ef. cient allocation of national emission reductions that should be achieved through the CPRS market. Accordingly, the Government does not see any benefit in legislating for a state-based emissions reduction target that is inconsistent with a national target.
The Victorian Government has long argued for the introduction of a national emissions trading scheme. Victoria will play its part in ensuring the success of this new scheme. The Government, however, reserves its final opinion on the design of the CPRS until the relevant legislation is passed by the Commonwealth Parliament. In the event that the final CPRS design fundamentally differs from the proposals currently set out by the Commonwealth in key areas, the Victorian Government will consider its options for addressing any outstanding gaps. In particular, Victoria will not abolish or scale back State emission abatement initiatives until an effective Commonwealth equivalent is in operation.
1.3 Governments working together - a new role for Victoria
Victoria cannot respond successfully to climate change in isolation. Addressing climate change will require national action. It will require Australian governments to work together at all levels - local, state and territory, and national - to establish shared goals, deliver consistent messages on climate change, set clear divisions of responsibility and take action in areas of common interest and concern.
While Australian governments are already working together on a number of climate change-related matters, much more needs to be done.
Irrespective of the policies and actions initiated by state and territory governments, national cooperation will be crucial to success in a number of areas, including implementing an effective national emissions trading scheme, meeting national emissions targets, boosting investment in low emissions energy technologies, and creating a dynamic and robust national economy that has the capability to meet climate change challenges.
Each level of government in Australia has an important role to play in addressing climate change. But it is not always a simple matter to determine which level of government is best placed to take action. Responding successfully to climate change will require clear lines of responsibility between each level of government to reduce duplication and confusion, and to make sure that public investment is coordinated, efficient and effective.
Determining the level of government that should act in specific instances requires consideration of which government has the appropriate power to act (for example, if the activity comes within one of the Commonwealth’s heads of power under the Australian Constitution), which can deliver objectives at the lowest cost and which is best placed to coordinate delivery. More broadly, all Australian governments will need to deliver clear and consistent messages on climate change, champion agreed policies and initiatives, and demonstrate leadership in their decision making and operations.
The role of the Commonwealth Government
The introduction of the CPRS by the Commonwealth Government is consistent with the Commonwealth’s constitutional role. The importance of national coordination and consistency in relation to the scheme requires the Commonwealth Government to take the lead in implementing and administering the CPRS, and in funding the major adjustment policies that will need to go alongside this signi. cant policy change. As part of this, the Commonwealth - in collaboration with the states and territories - will also need to address any perverse environmental outcomes that emerge from the implementation of the CPRS, such as damaging impacts on ecosystems and biodiversity.
The Commonwealth will also lead national efforts to adapt to climate change. In turn, state and territory governments - with support from local government - will play a key role in designing and delivering adjustment and adaptation programs at the community level, and in ensuring that local markets and regulatory frameworks create an environment in which the CPRS and other climate change policies can be effective. Considerable cooperation and coordination between all three levels of governments will be essential to meeting these responsibilities.
The role of the Victorian Government
Generally, the Victorian Government should direct policy in those areas where specific issues have been identified that are relevant to Victoria’s circumstances. As with other Australian state and territory governments, the Victorian Government has the predominant role in:
- Managing adaptation issues speci. c to Victoria’s circumstances and jurisdiction (for example, in important agricultural sectors such as dairy and horticulture)
- Promoting industry development based on Victoria’s competitive advantages
- Managing adjustment policy to help Victorian communities and businesses to respond to a carbon price (such as providing support for energy efficiency improvements)
- Delivering policies where the State has a specific regulatory role, such as primary industries, transport, waste, education, environmental protection and planning.
One of the strongest roles for the Victorian Government in climate change policy will be in the area of adaptation. Across the State, regions face different risks and challenges based on their geography, demographic mix and resilience to the various impacts of climate change. Industries also face differing risks and challenges depending upon their energy intensity, trade exposure, size, market power, preparation for climate change or location (urban or rural). Action to adapt to these impacts is best managed at the local or regional level.
National reform on climate change
Over the last 25 years, Australia has enjoyed strong long-term economic growth, one of the highest rates of productivity growth in the developed world, and resilience in the face of tough economic conditions. This is due largely to major waves of economic reform that have opened up the Australian economy and increased its competitiveness. This prosperity is threatened by climate change, which has the potential to disrupt our economy, damage our environment and diminish our quality of life. Alongside other countries, Australia must take strong action to avoid irreversible and dangerous climate change and make the transition to a low carbon economy.
The current cooperative approach being adopted by Australian governments on a range of national issues builds on the success of the 2006 National Reform Agenda (NRA) led by the Council of Australian Governments (COAG). The COAG National Reform Agenda reflects a new, collaborative approach to governments working together in Australia. It aims to deliver national outcomes agreed to by all governments in the areas of human capital, competition and regulation - while supporting policy diversity and flexibility, and local solutions and responses. Through this new approach, the NRA aims to maximise the bene. ts of reform across the Australian community.
As a result of the NRA, and previous rounds of reform, Australia is better placed to deal with the structural transition that will be required as both mitigation efforts and adaptation activities gather pace. Nevertheless, climate change will present unique challenges. There will be opportunities for improvement in targeted areas through a collaborative national approach that will be mutually bene. cial for all jurisdictions and the Commonwealth. Recognising this, COAG has already put in place some arrangements to facilitate cooperation. However, more is required.
Victoria is calling for a significant escalation in COAG’s efforts in relation to climate change, underpinned by an intergovernmental agreement on national climate change reform and new institutional arrangements.
A cooperative national approach offers the best prospects of delivering effective and ef. cient actions to complement the CPRS, achieve economic ef. ciency, and deliver environmental and social objectives including an effective adaptation response in the longer term. The approach should fill key gaps and enable us to deliver on COAG’s overall goal of an effective national response to climate change.
The new reform push should have four key objectives:
- The development of an overarching implementation framework for a national adaptation response
- An agreed way forward among jurisdictions and the Commonwealth in relation to those areas of CPRS design that have the potential to impact materially on states
- An agreed way forward among jurisdictions and the Commonwealth on streamlining measures to complement the CPRS, including a commitment to retain the principles of complementarity into the future.
- Agreement among jurisdictions and the Commonwealth to collaborate effectively in areas that will be critical in the transition to the low carbon future under the CPRS. In particular:
- Structural adjustment policies for affected regions
- Innovation
- Skills and training
- Energy efficiency
- Infrastructure
All jurisdictions and the Commonwealth must be involved in the process of reform. COAG offers the best prospects of developing a coherent national approach to climate change, addressing issues of national significance and giving Australians confidence that climate change is being tackled across the nation.
This would also signal that climate change policy in Australia has truly come of age and that all Australian governments recognise the urgency and scale of the challenge facing our nation as we respond to the threats and opportunities presented by climate change.
The role of local government
Local government is a critical partner in the response to climate change - and climate change is increasingly becoming a priority for local governments.
Local governments deliver a wide range of programs and administer regulations that influence climate change mitigation and adaptation. Regional development agencies, local councils and regional business and industry organisations have a major role to play (in conjunction with state and territory governments) in helping to design and deliver policies and programs that have a particular regional and community focus. Local government also has an important role in monitoring the effects of national policies on local and regional communities, industries and economies.
Local governments are best placed to address local climate change impacts and to build community capacity to respond and adapt to climate change. Working on behalf of - and in partnership with - Victorian communities, local government has been at the forefront of local climate change response for several years. Currently, councils across Victoria are playing a major role in developing and facilitating local climate change initiatives, customising responses to suit local circumstances and engaging their communities in discussion about the potential local impacts of climate change.
In 2005, the Victorian Government and five key local government peak bodies signed the Victorian Local Sustainability Accord - a landmark partnership agreement that aims to improve environmental sustainability by strengthening cooperation between the state government and local government. To date, approximately 70 local councils have signed up to the Accord, developing Local Environmental Priority Statements and delivering a range of innovative local projects supported by Accord funding. This strong support for the Accord demonstrates the commitment of Victoria’s local government to play a leading role in meeting sustainability challenges.
1.4 Our long-term goals
At the Premier’s Climate Change Summit, the Government articulated its preliminary view on ten strategic goals in responding to climate change.
These goals were developed to re. ect the State’s contribution to national efforts to reduce emissions, as well as Victoria’s ambitions for successfully managing and adapting to the impacts of climate change and to ensure that Victoria is positioned to take advantage of the significant new opportunities emerging from the introduction of a carbon price.
After consulting and receiving feedback on the outcomes of the Summit, the Government proposes the following ten goals for Victoria’s climate change strategy across the critical policy areas of complementing the CPRS, adjustment, adaptation and a shared responsibility (community and government). These goals reflect the Government’s longer term ambitions as Victoria moves into an era of carbon constraint.
Victoria's climate change goals
| Complementing the CPRS - A new world of opportunities | |
| Goal 1 | Contribute to global and national emissions reductions |
| Goal 2 | Develop a portfolio of energy options for a low carbon future |
| Adjustment - The Low carbon economy - A climate of opportunity | |
| Goal 3 | Help communities and industries to adjust to a carbon price |
| Goal 4 | Capitalise on new opportunities emerging from a carbon price |
| Adaptation - A new reality | |
| Goal 5 | Enable Victoria’s regions, industries and communities to capture pportunities and adapt to a changing climate |
| Goal 6 | Promote resilience and improve the management of Victoria’s natural resources, ecosystems and biodiversity |
| Goal 7 | Manage the risks to Victoria’s infrastructure, built environment and communities through good planning and emergency response systems |
| A shares responsibility | |
| Goal 8 | Work in partnership with Victorians to provide the knowledge and information needed to respond effectively to climate change |
| Goal 9 | Help to ensure vulnerable communities are not further disadvantaged as a result of climate change |
| Goal 10 | Take action to reduce emissions across government operations and ensure that climate change is considered in all government decision making |
1.5 Our priorities
To support its long-term goals, the Government has developed five priorities for action that will give Victoria a strong foundation for developing a successful long term response to climate change. The Government is particularly interested in receiving suggestions for policies or projects that fall within these five priorities.
Victoria's climate change priorities
Drive innovation to position Victoria to capitalise on new jobs and skills, new technologies and new markets and accelerate the transition to a low carbon economy
- It is essential that the Victorian economy is prepared for the transition to a low carbon economy to ensure that large scale emissions abatement is achieved at least cost.
- This is a key area where State Government action can complement national emissions trading to make sure that the right conditions exist for businesses and communities to explore new ways of doing things. The Government can help Victorians to become more innovative in their responses to climate change by ensuring Victoria has a flexible and dynamic economy, with good infrastructure, institutions, low regulatory burden, and especially by promoting a strong skills framework.
Support private action to adapt to a changing climate, and undertake adaptation actions on behalf of the Victorian community to protect the environment, key public assets and manage major public risks
- Irrespective of current mitigation actions, a signi. cant degree of change is already built into our climate system. These impacts will be felt locally, giving state and local governments a strong role to play in undertaking research, disseminating information and taking action to assist the Victorian community to prepare for climate change.
- Adaptation actions by Victorian households and businesses will generally result in the most innovative, locally- appropriate and cost effective adaptation responses. However governments have a key role in facilitating this response by ensuring that adequate information is available and that markets and regulation support decision making.
- As well as enabling the adaptation response by households and businesses, government will need to act on behalf of the community to protect vital public assets or manage signi. cant public risks. For example, government will have a role in helping the natural environment to prepare for, and adapt to, climate change, and in undertaking adaptation action to protect long-lived or high-value public assets such as buildings, bridges and dams. Government will also need to drive the response in areas such as essential and emergency services.
Help vulnerable regions, businesses and communities adjust to a carbon price, particularly the Latrobe Valley
- While there are long term, unambiguous bene. ts of acting to reduce climate change, there are likely to be some adjustment costs in the short term. Some regions, businesses and communities of the State will be more immediately affected by the introduction of a carbon price than others.
- Where those affected are particularly vulnerable (eg: the Latrobe Valley), the Victorian Government has a role in working with the Commonwealth to ensure that the transition to a low carbon economy is a smooth one.
Promote low emissions energy technologies as the key to Victoria’s energy future
- The energy sector will have to undergo the most fundamental transition if we are to signi. cantly reduce our emissions to address the cause of climate change.
- The Victorian Government can continue to play a strong role in fostering industry and regional development by attracting new investment and signalling Victoria’s intention of becoming a location for new energy ideas, expertise and initiatives. Further activity in this area has the potential to drive important innovation in clean energy technologies, and to boost regional development through large-scale projects.
Establish future-focussed transport, planning and building systems to support a low emissions future and accommodate a changed climate
- Urban development and the performance of new and existing buildings are critical areas because of the high contribution that the built environment and transport make to total State emissions - and because the decisions made now will have lasting implications for Victoria’s ability to adapt to climate change in the future.
- Planning and infrastructure delivery is also an area of responsibility that sits clearly with state and local governments. A failure to address this area in the short term will make the transition to a low carbon economy more dif. cult and may limit the potential for gains from the growing market for sustainable buildings and the interest in liveable communities.
1.6 Choosing between different policy ‘levers’
The uncertainty surrounding the impacts of climate change makes choosing the right policies a particularly dif. cult and challenging task. This uncertainty means that we have to make our policy choices very carefully, balancing the costs and benefits of each decision and building in flexibility to shift direction if conditions change.
Once public consultations are complete, the Government will apply a consistent and rigorous approach to making decisions about which climate change policies it will pursue. The Government will ensure that each new climate change policy demonstrates:
1. A clear and appropriate role for government
2. A role for the Victorian Government and compatibility with the Commonwealth’s climate change strategy
3. Alignment to Victorian policy objectives
4. Policy efficiency
5. Policy effectiveness
There are a range of different policy ‘levers’ that can be applied to the various problems that Victoria may face as a result of climate change. Often one single policy is not as effective as a suite of policy options to deal with a problem or opportunity. Each of these ‘levers’ has pros and cons, as set out below. These trade-offs need to be considered when deciding which options to pursue.
Policy levers open to government
Pros |  | Cons |
| Can provide certainty and clarity where requirements and standards are set out in detail Can be a cost effective way of achieving outcomes if well targeted | Legislation and Regulation Government mandating or using co-regulation or voluntary agreements to control certain activities | Can reduce overall levels of efficiency in the economy when resources are diverted away from areas where they could be used most productively. Imposes costs on the community when people are compelled to undertake actions that are not least cost. May impose a significant burden on affected parties (such as high compliance costs). Significant resources may be required to establish and maintain the regulatory framework Can be more inflexible than other forms of intervention |
| Provides greater flexibility for participants in achieving compliance Encourages economically efficient allocation of resources and least-cost methods of compliance Avoids problems associated with centralised discretionary decision-making | Market-based instruments Inventions that work by affecting prices in market | Can be difficult to determine optimal caps or tax levels if sufficient information is not available Does not work as well where:
|
| Disseminates information about compliance requirements Can reduce resources expended on implementing and enforcing regulatory programs Can educate the community about the virtues of a particular policy, increasing acceptance or compliance | Education and Information strategies Establishing education / information campaigns | May be less effective than other regulatory approaches as it relies on voluntary action The community can become desensitised to or weary of messages for long term problems, reducing effectiveness Specific groups may hard to target |
| Can be mobilised quickly and targeted in specific areas Can demonstrate Government leadership and commitment to specific issues Can drive private sector investment to deliver broader public benefits in multiple areas | Government spending Using Government funds directly or to promote or support certain activities or markets | Significant resources may be required to establish and maintain programs Reduces resources available to spend on other areas |
| Can save costs associated with developing new regulation by more effectively using the existing legislative framework Promotes consistent treatment of related issues or concerns Can be an important prerequisite for further policy development May promote a high level of compliance where existing legislation is well understood | Broader policy settings Supporting polices that account for climate change and build capacity for change (can include advocacy and organisational structures) | Could result in legislation that is too complex Current resources may not be able to deal adequately with all matters covered by the legislation Not as flexible as other options when technology is changing rapidly |
The White Paper will lay the foundations for Victoria’s response to climate change. It will also complement the Government’s policy statements across the spectrum of issues that relate to climate change, including the Victorian Water Plan, Melbourne 2030, the Future Farming statement and The Victorian Transport Plan. In turn, future policy statements will complement the direction of the Climate Change White Paper, including the forthcoming Future Energy Statement and the Land and Biodiversity in a Time of Climate Change White Paper.
A question to consider
Has the Government set the right priorities for short-term action on climate change? Should there be others?
Premier’s Climate Change Reference Group
In May 2008, the Government established the Premier’s Climate Change Reference Group to provide expert, independent advice on a range of climate change issues. In particular, the Government has used the group’s advice as a guide to climate change policy in the context of a national emissions trading scheme, the opportunities for Victoria in terms of innovation, technology and industry, and the type of support and assistance vulnerable communities will need to make the shift to a low carbon economy.
The group has strongly advocated early action by Victoria on climate change, stating that “the urgency of climate change cannot be underestimated” and calling on the Government “to invoke a ‘call to action’ from our communities and businesses”. The group has made a number of recommendations to the Premier. In particular, the group has recommended that the Victorian Government should:
Emissions
- Advocate for a peak in total national greenhouse gas emissions by 2010, a national emissions reduction target of 25 to 40 per cent below 1990 levels by 2020 and an ‘aspirational’ national emissions reduction target of at least 80 per cent below 1990 levels by 2050. In the absence of national targets that meet these standards, the Victorian Government should commit to these targets at the state level
- Develop a Climate Change Action Plan, to be revised every five years
- Implement an aggressive energy ef. ciency strategy through public education, .financial incentives and regulation
- Establish a major statewide initiative to ensure the achievement of 7-Star energy standards for all Victorian residential buildings by 2020, with building codes for new buildings adjusted to meet world’s best practice energy efficiency standards by 2015
- Investigate the climate change-related structural changes and social impacts in the Victorian economy
- Deliver an assistance program for low income households that includes the provision of information, energy efficiency measures, material assistance and the engagement of these households in seeking solutions
- Ensure transport infrastructure planning considers the needs of low income, vulnerable and regional communities
- Increase the level of research and development in new energy and transport technologies
- Increase Victoria’s skills base through additional training places and university partnerships, in areas such as energy efficiency, carbon accounting and low emissions technology
- Develop urban and regional planning policies that encourage low-emission transport options, sustainable building design and green urban areas
- Develop and implement a Victorian Climate Change Adaptation Strategy that includes local/regional Adaptation Plans, sectoral adaptation responses and the regular review of existing laws, regulations and protocols to assess their responsiveness to climate adaptive needs
- Establish an independent statutory Victorian Climate Change Adaptation Council to oversee statewide adaptation activities
- Close knowledge gaps through ongoing research into climate vulnerability and resilience, and climate threats to Victoria
- Develop a behaviour change information campaign to encourage the Victorian community to reduce emissions and energy consumption
- Establish regular business and industry forums to increase information sharing and develop strategies to assist Victorian businesses reduce emissions and adjust to the Carbon Pollution Reduction Scheme
- Establish a process to ensure climate change factors are explicitly considered in all Victorian state and local government decisions.
- Regularly review and audit Victorian legislation, including all State and local government regulations and policies, to ensure their harmony with current climate change mitigation and adaptation requirements.
David Karoly – Professor of Meteorology and Federation Fellow in the School of Earth Sciences at the University of Melbourne (Chair)
Kate Auty – Magistrate and Chair of the Victorian Ministerial Reference Council on Climate Change Adaptation
Robin Batterham – Group Chief Scientist with Rio Tinto Limited and President of the Australian Academy of Technological Sciences
Peter Christoff – Coordinator, Environmental Studies, Faculty of Land and Environment at the University of Melbourne and member of the Victorian Ministerial Reference Council on Climate Change Adaptation
Erwin Jackson – Director of Policy and Research at The Climate Institute Amanda Lynch – Professor and Federation Fellow with the School of Geography and Environmental Sciences at Monash University
Tony Nicholson – Executive Director of the Brotherhood of St Laurence Bob Welsh – Chief Executive of VicSuper The Group’s recommendations are set out in full at www.climatechange.vic.gov.au.
The global economic crisis: no excuse for inaction onclimate change
The current economic crisis is not an excuse for inaction on climate change; it is an opportunity for innovation.
Innovation potential is one of the major value drivers of any industry sector’s long term pro. tability and economic performance.
This current economic crisis is now shaping up as the most extensive since the Great Depression nearly 80 years ago. In light of this, some business leaders have called for a moratorium on the Commonwealth and state governments’ policy commitments to tackle the climate crisis.
This view is short-sighted for two reasons.
First, the current financial crisis, while severe, can be treated with short to medium term intervention by governments around the world using policies and tools that have been effective in the past. If history is a reasonable guide, confidence in credit markets can be restored, the financial system can be recapitalised and economic activity revitalised.
In contrast, the climate crisis is pervasive, entrenched and accelerating, and cannot be treated with short to medium term intervention measures by governments. The climate crisis requires considerably longer term intervention using new policies and tools and a fundamental redesign of business. This calls for innovation on a scale not seen before.
Secondly, the financial crisis provides unprecedented opportunities to use innovation to combine policies to stimulate the economy with policies encouraging greenhouse gas abatement.
For example, policies that promote retrofitting Australian housing stock with insulation and thermal solar power have considerable potential to provide jobs and stimulate the economy, as well as providing meaningful reductions in greenhouse gas emissions.
There is no time for trial and error with climate change. If we fail in our quest to tackle it, there will be no opportunity for a government-led bailout. If we fail in arresting greenhouse gas emissions, the economy will become irrelevant - and in the end, we will find that we cannot eat and breathe our money.
Bob Welsh
Chief Executive of VicSuper and member of the Premier’s Climate Change Reference Group
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