Labor fixes Australia’s budget spending on climate and warns of future costs | Australian budget 2022

Labor has renewed Australia’s response to climate change and environmental degradation, redirecting nearly $750 million in coalition commitments, including some spending on gas and carbon capture and storage.

as such It was revealed by the Guardian AustraliaAlbania’s first government budget canceled the Scott Morrison-era electricity generation subscription plan that had been promised, but she failed, to build up to five new gas-fired generators and six water plants. It has also reduced and “realigned” subsidies for carbon dioxide capture and storage away from new developments of fossil fuels.

Instead, the government has promised $141 million over a decade to develop carbon dioxide capture and storage in “hard-to-mitt” industries where there are few alternatives to reducing emissions, such as cement manufacturing. Some of the funding will also be directed at “negative emissions” technologies aimed at removing and storing carbon dioxide from the atmosphere, such as live air capture.

But the bulk of CCS’s funding has been delayed beyond the four-year period outlined in the budget papers, pushing it well beyond 2025 — and the next election.

The government confirmed previously announced climate and environment commitments, including $20 billion over 10 years to reconnect the state’s program to provide low-cost financing for new electricity transmission links. About 6 billion of that Promise last week To help build the Marinus Link – two new undersea transmission cables across Bass Strait – and the Kerang link between Victoria and New South Wales.

It said it would establish a $1.9 billion “region energy” fund to support jobs and cut emissions in regional areas. There was $47.1 million over four years for the Climate Change Authority, which is what it was Giving an expanded advisory role After the coalition cut its funding, $306.5 million for community batteries and solar banks and an additional $275 million for zero-emissions electric vehicle charging.

Minister of Climate Change, Chris Bowenhe said: “This is Australia’s roadmap to delivering cleaner and affordable energy to households and businesses, setting us on the right track to be a superpower in renewable energy.”

One of the biggest budget changes was the inclusion of a statement for the first time on the financial impact of climate change. She said physical impacts such as higher average temperatures and more extreme weather events will increasingly affect Australia’s financial situation.

As it becomes more frequent, it will lower productivity, harm physical capital and disrupt some regions and industries. This will erode the country’s tax base and “upward pressure on spending” – in other words, forcing governments to spend more.

The government said it would include indicators of the impact of climate change and a list of climate spending in every budget. She said she would ensure that climate considerations are better integrated into decision-making through public service training and by rebuilding the Treasury’s climate modeling capacity.

The budget papers made clear that the impact of climate change is already being felt. Preliminary estimates included that this month’s current floods would cut GDP growth by 0.25 percentage points. The damage was expected to add 0.1 percentage point to inflation this quarter and again in the next, mainly due to higher fruit and vegetable prices and supply chain disruptions.

The schedule of key climate spending lists $24.9 billion in commitments over the next eight years, with the nation rewiring and powering larger regions.

In the environment portfolio, the government has promised $1.8 billion in what the minister, Tanya Plibersek, called “a down payment on strong action to protect, restore and manage nature.” The bulk was the previously announced $1.2 billion in support programs for the Great Barrier Reef that he had promised more than a decade.

Climate and environmental action programs were funded in part by redirecting $746.9 million from programs promised by the coalition, including $325.9 million from the Energy and Emission Reduction Program that included funds for gas and carbon storage and storage projects and $89.9 million for previous government projects low. – Technology investment roadmap for missions, which also included support for carbon dioxide capture and storage.

It said it saved $63.9 million by canceling its subscription to a new power generation program and committed funding for energy storage technologies.

The budget also revealed significantly different priorities in water projects compared to the coalition’s last budget in March. Major projects championed by citizens to expand agriculture, including the Hills Gate Dam, the Higenden irrigation system in Queensland and the Dongguan and Wingala dams in New South Wales, have been dumped or postponed. Instead, the government has allocated $278 million over five years to “nationally significant transformational projects,” such as securing the water supply in Cairns.

She said the Murray Darling Basin Authority will receive a $51.9 million payment over five years to update its understanding of climate change and its impacts on the basin. It will also receive $22.9 million to “modernize the science of water management.”

The budget also included an unpublished amount of “seed funding” to “achieve the plan’s environmental water goals”—likely money for further voluntary water buybacks. It is becoming clear that neither New South Wales nor Victoria will meet their obligations under the plan by 2024.

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