To combat climate change and facilitate Australia’s transition to a low-carbon economy, the Government has introduced various measures to the Climate Change, Energy, the Environment, and Water portfolio in the Budget. These include measures complying with Australia’s international obligations, a review of the Australian Carbon Credit Unit scheme as well as multiple water-related initiatives. There is also funding to establish regulatory frameworks and bilateral instruments to better support heavy industry to reduce carbon emissions.
Australia’s international climate change engagement
In light of the International Energy Agency, G20 and United Nations Framework Convention on Climate Change, the Government will provide an additional $76.2 million over five years from 2023–24 (and an additional $0.3 million from 2028–29 to 2029–30).
This measure is to support Australia’s continued engagement in international climate change and energy transition issues, bolster trade opportunities and enhance security relationships with key partners, and bid to co-host the 31st Conference of the Parties in partnership with the Pacific and undertake initial planning in the event of a successful bid.
Australian Antarctic Program funding
The Government will provide $290.5 million over five years from 2023–24 (and an additional $207.8 million from 2028–29 to 2032–33) to continue delivery of the Australian Antarctic Program and expand Australia’s international scientific activities:
- $163.3 million over four years from 2024–25 (and an additional $207.8 million from 2028–29 to 2032–33) to continue critical safety works and rebuild the Macquarie Island research station to enable delivery of year-round monitoring and scientific programs;
- $109.6 million over three years from 2023–24 to support operations of the RSV Nuyina, including management of short-term shipping risks; and
- $17.6 million over two years from 2024–25 to increase RSV Nuyina’s operational days at sea to support additional delivery of marine science and environmental activities.
Efficient cost recovery arrangements
The Government will provide $8.2 million in 2024–25 and increase revenue by $10.2 million over four years from 2024–25 (and $2.6 million per year ongoing revenue from 2028–29) by updating and improving cost recovery arrangements:
- $7.9 million in 2024–25to continue administering the Waste Exports Licencing scheme under the Recycling and Waste Reduction Act 2020; and
- $0.2 million in 2024–25 to continue the Commonwealth’s contribution to the Water Efficiency Labelling and Standards scheme.
Review of Australian Carbon Credit Unit scheme
The Government will provide an additional $48.0 million over four years from 2024–25 to implement further reforms to the Australian Carbon Credit Unit scheme as part of the Government’s response to the Independent Review of Australian Carbon Credit Unit.
These reforms will establish the Carbon Abatement Integrity Committee to oversee the new proponent led method development process and strengthen integrity, provide enhanced transparency measures, and support First Nations participation including in supporting consent processes for projects on Native Title land.
In order to increase the supply of Australian Carbon Credit Units to the Safeguard Mechanism Cost Containment Measure, the Government will forgo $9.7 million over two years from 2023–24 in receipts to trial on a pilot basis a partial delivery requirement as part of the fourth exit window for fixed delivery Carbon Abatement Contract exit arrangements. The results of this trial will be used to establish a long-term exit arrangement for fixed delivery Carbon Abatement Contracts.
Water-related measures
There are a number of water-related measures in the Budget, including:
- Inspector-General of Water Compliance Legislative Functions: The Government will provide $28.6 million over four years from 2024-25 to the Inspector-General of Water Compliance to undertake inquiry, oversight and public engagement functions under the Water Act 2007 and to maintain its independence.
- Murray-Darling Basin Plan: The Government will provide multiple funding over five years from 2023–24 to continue implementation of the Murray-Darling Basin, including $27.0 million in 2024–25 to expand the existing Resilient Rivers Water Infrastructure Program to enable the Commonwealth to work with private proponents on water recovery activities, $17.0 million over three years from 2023–24 to enhance shorebird and wetland habitat in the Coorong region and $4.0 million in 2024–25 for the hydrological modelling platform underpinning implementation of the Basin Plan and a business case for further development.
- National Water Grid Fund: The Government will provide $174.6 million over six years from 2024–25 to deliver new water infrastructure projects, including:
- $119.6 million over six years from 2024–25 for five construction projects;
- $26.1 million over three years from 2024–25 for 11 First Nations water infrastructure projects, including ten construction projects and one business case;
- $18.1 million over four years from 2024–25 for nine business cases relating to potential new projects; and
- $10.7 million over three years from 2024–25 for 12 science projects.
- Paradise Dam Improvement project: The Government will provide $592.3 million over five years from 2023–24 for the Paradise Dam Improvement project, the Big Rocks Weir project and the Hughenden Irrigation Scheme has been deferred, with an investment decision to be made upon completion of the business cases and planning works.
- Sustaining water policy functions: The Government will provide $262.2 million over five years from 2023–24 to support the Australian Government’s water policy functions:
- $217.3 million over four years from 2024–25 for the Department of Climate Change, Energy, the Environment and Water to extend terminating funding for core water policy functions and to provide resourcing to enable the delivery of the Murray-Darling Basin Plan;
- $32.0 million over four years from 2024–25 to extend the terminating Improving Great Artesian Basin Drought Resilience program to deliver water saving projects and improve water security in the region;
- $7.2 million over five years from 2023–24 for the Murray-Darling Basin Authority to deliver new statutory responsibilities under the Water Amendment (Restoring Our Rivers) Act 2023;
- $5.7 million over two years from 2024–25 for the Australian Competition and Consumer Commission to implement water market integrity functions, including new compliance, enforcement and information-gathering power.
Nature Positive Plan
The Government will provide a further $40.9 million over two years from 2024-25 to continue implementing the Nature Positive Plan: better for the environment, better for business. The additional funding in this measure includes:
- $17.6 million over two years from 2024-25 for the Department of Climate Change, Energy, the Environment and Water to establish and commence operation of the Nature Repair Market;
- $14.0 million over two years from 2024-25 for the Clean Energy Regulator to administer the Nature Repair Market once open for participation;
- $5.3 million in 2024-25 for additional funding to progress legislative reforms;
- $4.1 million over two years from 2024-25 to drive voluntary uptake of the Nature Repair Market and nature related-reporting by businesses.
Regional cooperation initiative on carbon sequestration
The Government will provide $32.6 million over four years from 2024–25 to establish regulatory frameworks and bilateral instruments to better support heavy industry to reduce emissions to meet Paris Agreement commitments, both in Australia and overseas.
