Rees review for climate change programs

Sydney Morning Herald
Wednesday 24/12/2008 Page: 2

THE Premier has asked for a review by the independent pricing tribunal of every major NSW climate change program. Among programs to be reviewed will be residential rebates for solar hot water systems and insulation, the schools energy efficiency program, and the building sustainability or BASLX program that requires every new home or renovation to meet set environmental standards.

The review by the Independent Pricing and Regulatory Tribunal will examine the efficiency and effectiveness of 12 state programs designed to cut greenhouse gases and whether they are compatible with the federal scheme announced by the Prime Minister, Kevin Rudd, last week. The review will examine, in particular, the operation of the NSW Climate Change Fund created by former premier Morris Iemma, which includes $340 million for residential rebates and to promote renewable energy in schools, businesses and homes, and $137.5 million for energy efficiency programs.

Nathan Rees requested the review after Mr Rudd unveiled his scheme, which includes a modest national target to cut greenhouse gas emissions between 5 and 15% below 2000 emissions by 2020. The NSW programs, some dating back to premier Bob Carr's era, were designed to put NSW ahead in cutting emissions. Mr Rees's instruction to the tribunal notes that the Government regards Mr Rudd's scheme as the ''principal'' national policy measure to cut greenhouse gases.

The NSW Minister for Climate Change and acting premier, Carmel Tebbutt, said yesterday the Government remained "strongly committed to measures to support the community and businesses to use energy more efficiently and reduce emissions". Ms Tebbutt said the review of the state climate change programs by the tribunal was part of an agreement by all state governments to examine their climate change programs in light of the federal scheme to ensure they were complementary.

Public submissions to the review can be made until mid- February. The review will go to Mr Rees by May before he and Ms Tebbutt announce the state's climate change plan. Mr Rudd's scheme has been criticised by environmental groups and the Government's own climate change adviser, Professor Ross Garnaut, as being too weak and handing over too many free permits to pollute to the most greenhouse intensive industries, including coal-fired power generators.

Figures released yesterday by the Australian Bureau of Agricultural Resource Economics show the mining industry in particular has become less energy efficient over the past 15 years, wiping out improvements from other sections of the economy. Energy consumption by industry accounted for more than half of the country's total use, with residential households making up just 12% and transport 37%.