While the federal budget of Australia’s conservative Liberal-National government announced last night cut almost all the climate action programs inherited from the previous Labor government, it also took an axe to the current government’s own proposed replacement the Direct Action plan.
Buried in the budget papers is the fact that the government has slashed the budget for its headline climate policy, Direct Action, by nearly two thirds from its election commitment of $3 billion.
The proposed cash flow for the central part of Direct Action, the Emissions Reduction Fund (ERF) is shown as projected funding of about $1.1 billion over four years instead of the previously projected $2.55 billion.
The budget overview reveals the government will spend $2.55 billion over 10 years instead of four as originally promised.
Significantly the budget allocates just $75 million to the emissions reduction fund in 2013-14, $300 million in 2015-16 and $355 million in 2016-17.
When Environment Minister Greg Hunt revealed the white paper for the ERF late in April, he announced there would be $300 million in funding for its first year alone.
The fund is the centrepiece of the government’s Direct Action policy to deliver Australia’s five per cent in emissions cuts on 2000 levels by 2020.
“Direct Action was supposed to be the signature climate policy of the Abbott Government, yet even it doesn’t appear to believe in it enough to fund it properly,” said Victoria McKenzie-McHarg, climate change program manager at the Australian Conservation Foundation (ACF).
“Hidden in the budget papers was a stunning revelation, that instead of the $3 billion promised before the election, the Emissions Reduction Fund is now only funded for one third of its promised amount; $1.1 billion.
“Any expert you cared to ask would tell you that Direct Action is fundamentally flawed, but now it’s one third the policy it was.
“This is a broken promise that serves as a huge blow to all Australians who hope to see us keep cutting pollution and doing our part for a safe, healthy climate.
“Environment Minister Greg Hunt says the government is still committing $2.55 billion, but there is nothing in the Budget to show that.
“While it’s ripping money out of its own climate policies, let’s not forget it is chopping Australia’s existing ones, too; scrapping ARENA and abandoning their promise of a million solar roofs.
“Australians want to be able to shift to clean energy. Why does this government want to prevent that?” Ms McKenzie-McHarg asked.
“Budgets are all about choices. The government had a chance to show it was serious about Australia’s role in tackling climate change, and it has thrown this chance away.
“In a week where reports are indicating that Antarctic melt from climate change, and rising sea levels is inevitable, our government has chosen to take a $2 billion backwards step from a safe climate,” Ms McKenzie-McHarg added.
The Liberal-National government is attempting to repeal Australia’s current carbon price laws and replace them with its Direct Action plan, however that move is currently stalled in the upper house Senate.
