Clean Power: Kyoto gives industry new drive, $20bn energy boom

Adelaide Advertiser
Monday 10/12/2007 Page: 43

AUSTRALIAN clean energy businesses are preparing to inject an additional $20 billion into new projects over the next decade, following the Rudd Government's ratification of the Kyoto Protocol. Until now, the Australian renewable energy industry has lagged the rest of the developed world, and even some developing countries like China and India, due to a lack of political will and regulatory support. But the cloud has been lifted.

"Australia's back in the game," Clean Energy Council head Dominique La Fontaine said at a UN climate change conference in Bali, which new Australian Prime Minister Kevin Rudd will attend with five senior ministers this week. "Europe, the U.S. and even China have all been booming and Australia's been lagging, but we're going to see massive growth now as we play catch-up." Rudd last week said he wanted Australia to take a lead role in Bali to thrash out a roadmap for a global warming pact to replace Kyoto beyond
2012.

He agreed on the need for deep cuts in greenhouse gas emissions and set a target of getting 20 per cent of Australia's energy from renewable sources by the year 2020. This is expected to drive demand for clean technology like wind, solar and geothermal power plants that account for just 8 to 9 per cent of total power consumption -paltry compared to the U.S. and Europe. Coal currently generates more than 80 per cent of Australia's electricity, and accounts for 50 per cent of household and industry greenhouse gas emissions.

Mr La Fontaine, part of the official Australian delegation in Bali, said the renewable energy target would trigger an additional $20 billion worth of investment in Australia, create 50,000 new jobs and the equivalent of 100 clean power stations across the country. The move to ratify Kyoto would also see Australian companies expand overseas operations under a scheme known as the Clean Development Mechanism, through which they're now eligible to earn carbon credits to sell on the global market by investing in clean technology projects in poorer nations.

Previously, Australian companies had to set up joint ventures with overseas partners to access this income stream, which increases project revenue by up to 20 per cent, making projects commercially viable and helping to cover risks associated with investing in developing economies, business leaders said.