Climate Change Fund boosts inefficietnt businesses - 17 September 2009

In Budget Estimates hearings today it was revealed that the NSW Climate Change Fund is allocating three times the funds to businesses than the amount provided to householders, yet businesses are returning almost the same amount of reductions in energy and greenhouse gases (GHG) as the householders.

“Businesses receive $27 million in funding compared to $9 million for households yet households are achieving similar energy and GHG total savings. If householders can deliver comparable reductions at a third of the cost of businesses they should be given priority under the Climate Change Fund.”

“NSW greenhouse gas emissions are projected to be 165.4 million tonnes in 2009-10. The NSW Climate Change Fund, in 2007-08, achieved GHG emission savings of 259,311 tonnes. If the same level of GHG abatement is maintained through 2009-10, the NSW Climate Change Fund will reduce NSW emissions by only 0.001%.”

“The overall emission reduction cost of the NSW Climate Change Fund is approximately $172 a tonne of GHG – a result that is not so surprising given the CCF’s funding model. Can we conclude that the NSW Government is more concerned with aiding business rather than supporting householders who are taking steps to combat climate change?” says Greens MLC, Ian Cohen.

“The NSW CCF’s annual report for 2007-08 showed that the 51 programs funded in the business sector achieved savings of 127,063 megawatt hours and 126,861 tonnes of CO2 equivalent. The 9 programs funded for householders achieved savings of 101,369 megawatt hours and 107,114 tonnes of CO2 equivalent.”

“The CCF’s programs should aim for the household demand side. Householders are showing that they are the most cost and environmentally effective targets for funding, providing maximum emission reductions for the money spent.”

“The Climate Change Fund could be assisting people to take up rainwater tanks, hot water systems and ceiling insulation rather than wasting it on businesses.”

“The upfront costs to make energy saving changes in the homes are still prohibitive to most consumers. The CCF’s Residential Rebate Program could be giving greater rebates to individual consumers.

“With the energy efficiencies we have already seen resulting from the meager $9 million in funding allotted last year, householders could return an exponential increase. That would really show how committed the Government is to slowing climate change, at the same time rewarding the most efficient savers – the people of NSW.”