There has been a mixed response to last night’s Federal Budget by industry groups despite billions of dollars in new spending for renewable energy initiatives.
Rewiring Australia labelled it Australia’s first electrification budget.
Treasurer Jim Chalmers announced $300 million for electrification and energy performance upgrades for social housing and $1 billion in new funding for the Clean Energy Finance Corporation to offer solar, storage and electric upgrade finance to more than 170,000 homes.
This is in addition to the recent announcement of a new 20 per cent tax deduction for small businesses that invest in batteries and other electrical devices which is worth about $314 million over the forward estimates.
Rewiring Australia co-founder and chief scientist, Dr Saul Griffith, said this budget is a profound reset of climate and energy policy after a lost decade under the previous government.
“This is Australia’s first electrification budget. It positions us to become a world leader in the efficient electric energy system of the future. It demonstrates federal ministers have worked hard to start the massive shift towards a new energy paradigm across the economy,” Griffith said.
“The electrification budget builds on Australia’s love affair with rooftop solar. It will help households to realise cost savings from substituting expensive gas machines for clean, electric alternatives. “
However, the Climate Council wasn’t as optimistic claiming measures in this budget to address cost of living pressures are only temporary.
Climate Council CEO, Amanda McKenzie, said the budget was a missed opportunity to permanently lower power bills.
“To meet the climate challenge head on, Australia needs to urgently unlock the most affordable energy source available, renewables,” she said.
“Sure, this Budget provides renewables assistance to 170,000 households. But when you consider the critical challenge of electrifying everything with renewable power, backed with storage, for 10.8 million households, that barely gets us off the starting blocks.
“We can’t settle for a slow jog when the climate crisis calls for a sprint. Climate change is already reshaping our world, the government needs to fundamentally re-shape the Budget to tackle it.”
The Australian Academy of Technological Sciences and Engineering (ATSE) welcomed measures for science and technology but called for more investment in research and development.
ATSE CEO, Kylie Walker, said innovation is the life blood of economic progress.
“Time is of the essence for Australia to grow as a leading innovation nation, rapidly decarbonise our economy and become a global renewable energy powerhouse,” she said.
“The Australian Research Council and the Universities Accord Reviews have shown that Australian research is in crisis and our potential to lead the world in renewable energy is being left largely untapped.
“We have abundant critical mineral wealth, we have exceptional leaders in research and innovation, and we have the chance to bring these together through advanced manufacturing to lead the world - but it requires vision, infrastructure and backing.”
The Academy welcomed $2 billion for the new Hydrogen Headstart program, $36.7 million over four years to develop further energy efficiency initiatives, $18.1 million for reforms and auditing from the Independent Review of Carbon Credits, $28 million over two years to develop Australia’s first National Climate Risk Assessment and a National Adaptation Plan and $20.9 million over five years towards decarbonising transport and infrastructure.
Engineers Australia welcomed funding support for the clean energy transition but pointed out that the skills crisis is at a critical juncture for the nation.
Engineers Australia CEO, Romilly Madew, said over the past two years, engineering vacancies have increased by 80 per cent nationally.
“We welcome the budget focus on developing engineering skills locally through greater emphasis on Australia’s education system (primary, secondary and tertiary education),” she said.
“Reforming the migration program and easing migration pressures to increase the numbers of skilled migrant engineers arriving in Australia is also a positive step.
“Due to significant challenges in the supply of domestically trained engineers, Australia’s migration program will continue to be a significant contributor to Australia’s engineering capability making investment in reforming the program critical.”