The Climate Institute today welcomed Minister Combet’s confirmation that targeted assistance will be provided to Australians as carbon pollution pricing changes investment and generation decisions in clean energy, but called for a broader focus to help households and business manage their bills.

“Making our biggest polluters finally begin to pay for their pollution allows for this support for low and middle income households,” said The Climate Institute CEO, John Connor.

“Putting a price on pollution drives changes in investment and power generation decisions but to provide lasting help with bills and encourage cleaner industries, this support should be backed by a national initiative to improve Australia’s woefully wasteful use of energy.”

Alongside a pollution price, The Climate Institute is calling on the Government to establish a National Energy Savings Initiative to help households and businesses cut their energy bills. A National Energy Savings Initiative– as recommended by the Prime Minister’s Task Group on Energy Efficiency – will ensure energy retailers invest in energy efficiency improvements in households and businesses and help them manage energy bills.

“Investing in energy efficiency is a no brainer – it keeps energy bills down and makes homes warmer during winter and cooler during summer.”

“A renewed focus on energy efficiency will also help grow clean and efficient industries, providing new jobs and ensuring Australia remains competitive in the emerging global low pollution economy.”

“Australia’s energy efficiency efforts lag well behind our key trading partners. Improving energy efficiency, across all sectors of the economy, is long overdue and critical to ensure the long-term global competitiveness and productivity of a range of sectors from manufacturing to mining.”

Modelling undertaken for the Task Group found that by 2020 this initiative could reduce annual household energy bills by an average of $87 - $180. For some households the scheme could deliver annual savings of up to $296. The modelling also showed that the scheme would defer the need to invest in generation and network infrastructure, saving up to $12 billion by 2040.

“Properly targeted household support is a vital part of a comprehensive pollution pricing and clean energy reform package, this is an important step as we move to resolve other issues and ensure Australia is on track to pollution reduction and cleaner industries.”

Carbon pollution and clean energy policies have become scapegoats for electricity price rises which are being driven primarily by rising fuel costs and the need for network upgrades.

“With financial assistance alongside smart energy efficiency policies, Australian households can actually be better off with a pollution price than they would otherwise be.”

“We look forward to further details on this household support and how it targets low income and vulnerable households relying on pensions and allowances like Newstart.”

“It is time to put an end to the irresponsible scare campaign on costs of living and focus efforts on pollution and clean energy policies that can make a real difference to our still rising carbon pollution and can help spark investment in our abundant clean energy resources,” said Mr Connor.

For further information:
John Connor | CEO, The Climate Institute | 0413 968 475
Harriet Binet | Communications Director, The Climate Institute | 02 8239 6299