Consideration of the utility and limits of existing policies and legal frameworks relating to the renewable energy and fiscal incentives as well as adaptation initiatives.
Renewable energy
Just as there are many natural sources of energy, there are many renewable energy technologies. Solar is one of the most well known, wind power is one of the most widespread, and hydropower is one of the oldest. Other renewable technologies harness geothermal energy, bioenergy or ocean energy to produce heat or electricity.
Equally exciting are new enabling technologies that help to manage renewable energy so it can be produced day and night while strengthening the electricity grid. These enabling technologies include battery-storage, supply prediction and smart grid technologies.
A key objective of renewable energy policies in Australia is to reduce greenhouse gas emissions. The two main policy instruments currently driving increases in renewable energy are the Australian Government’s Renewable Energy Target (RET) scheme and state-based feed-in tariff (FiT) schemes. Reviews of these schemes show that they have increased investment in renewable energy infrastructure and increased uptake of renewable energy systems. However, there has also been criticism of both types of mechanism, particularly in relation to cost and investment certainty.
Fiscal incentives
Economic and fiscal incentives can be used to reduce various pollutants. Environmental taxes, incentive payments/subsidies, eco-labelling, and environmental markets are commonly used as fiscal incentives. These mechanisms complement or direct regulations or used instead of these approaches. Our focus is on incentive payments, subsidies, tax credits, and other programs used to encourage adoption of environmentally friendly practices.
Adaptation initiatives
All levels of government, individuals, businesses and the community must accept their responsibility to address current and future projected impacts of climate change. Depending on location, services, assets and current practices, government will be affected by climate change in varying degrees. Therefore, governments will need to prepare for climate change and at the very least develop the capacity to protect their own assets and adapt to localised conditions.
Readings
- KPMG, Taxes and Incentives for Renewable Energy, 2014. Available at http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/taxes-incentives-renewable-energy-v1.pdf
- K. Bubna-Litic & N.P. Stoianoff, ‘Carbon Pricing and Renewable Energy Innovation: A Comparison Between Australian, British and Canadian Carbon Pricing Policies’, Environmental and Planning Law Journal, 2014, vol 31 Pt 5, 368–384. Available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2506417
- Local Council Risk of Liability in the Face of Climate Change – Resolving Uncertainties. Available at http://alga.asn.au/site/misc/alga/downloads/environment/ALGA%20Consolidated%20Report-v7B-1392955-SYDDMS%20-%20Final.pdf
Questions
- Can renewable energy provide any real solution to climate change?
- Government subsidies and tax incentives of some sort have been provided in many countries seeking to increase innovation in the renewable energy sector. Wouldn't a carbon pricing mechanism be enough? Discuss.
- Is the Emissions Reduction Fund an opportunity for cross-sector involvement in carbon reduction activities or just a rort?
- Should the government be an investor in innovation or is it best left to the private sector?
- What mechanisms are utilised for climate change adaptation by local governments around the world and how effective are these mechanisms?