I am pleased to release today a White Paper which establishes a comprehensive long term policy framework for Australian energy.
Securing Australia's Energy Future sets out policies and principles that will guide the production and use of energy in Australia well into the 21st century. These policies will deliver the energy investment needed to provide prosperity, security and environmental sustainability for all Australians.
The White Paper establishes an integrated policy framework for:
#61607; developing Australia's enormous energy resources
#61607; improving our stationary (electricity and gas) and transport energy markets
#61607; overhauling Australia's fuel excise system
#61607; improving energy efficiency
#61607; enhancing energy security
#61607; lowering Australia's long term greenhouse emissions signature
#61607; improving air quality and managing the environmental impact of large projects
#61607; the role of energy innovation in delivering prosperity, security and sustainability
Australia's energy resources and sector are a source of great wealth for the nation. Energy exports earn Australians more than $24 billion annually, with coal being our single largest export earner. More than 120 000 Australians are employed directly in the energy sector. Australia's low-cost reliable supplies of energy deliver many hundreds of thousands more jobs and underpin a world competitive resource processing sector.
Securing Australia's Energy Future recognises that we have a responsibility to develop Australia's resources in an environmentally sustainable way. It positions Australia to deliver better global outcomes by showing leadership with technological innovation in emission reduction.
Securing Australia's Energy Future includes a range of major new initiatives, including:
#61607; driving investment of at least $1.5 billion to demonstrate break through technologies with significant long term greenhouse gas reduction potential through the establishment of a $500 million fund to leverage private sector investment of at least $1 billion in the demonstration of low emission technologies;
#61607; the provision of $134 million to support commercialisation of renewable technologies;
#61607; a commitment of $75 million for Solar Cities trials to demonstrate a visionary new energy scenario - where solar, energy efficiency and markets reforms combine to provide a sustainable future;
#61607; a comprehensive overhaul of the fuel excise system, reducing excise costs on businesses and households by $1.5 billion in the period to 2012-13;
#61607; a requirement that Australia's largest energy users undertake regular energy efficiency assessments, with firms using more than 0.5 petajoules of energy a year undertaking mandatory energy assessments every 5 years and reporting publicly on the outcomes; and
#61607; a requirement that large energy projects and recipients of more than $3 million in excise credits to manage their emissions through membership of the Greenhouse Challenge Programme.
The White Paper builds on the nearly $1 billion the Government has invested in a range of climate change measures across the economy.
The White Paper strengthens existing efforts to:
#61607; encourage investment in the development of our energy resources, including through the provision of increased incentives to encourage exploration in frontier areas;
#61607; reform Australia's stationary energy markets as recently agreed by the Ministerial Council on Energy, with key national institution s to be established on 1 July 2004;
#61607; manage energy security, including through an increased focus on the protection of critical infrastructure, strengthened arrangements for responding to emergencies and the establishment of biennial energy security reviews;
#61607; improve air pollution, through improved fuel and vehicle standards, better information for consumers and new requirements on heavy vehicles accessing excise relief;
#61607; strengthen energy innovation through Backing Australia's Ability - Building our Future through Science and Innovation and the development of strategic assessments for the energy technologies; and
#61607; improve the efficiency of Australia's transport sector through AusLink, reforms to fuel excise and the development of fuel and emissions standards.
The Australian Government does not take Australia's economic prosperity for granted. Achieving the right balance in energy policy means pursuing economic growth and energy security while at the same time ensuring we meet our goals for protecting the environment.
Australia is on track to achieving our Kyoto target. The Government is looking beyond 2012 and acting to lower the costs of meeting future greenhouse constraints, and this will position Australia well to contribute to global emission reductions while maintaining our prosperity.
Australia has a rich resource base and reliable supplies of low cost energy. The Government recognises that our production and use of energy - now and in the future - needs to be environmentally sustainable.
Securing Australia's Energy Future delivers the investment security needed to ensure Australia's energy sector continues to support prosperity, security and sustainability for all Australians.
White Paper details are available at www.pmc.gov.au/energy_future