PDC: Energy, Environment and Climate Change Policy

Working group report
This working group was tasked with developing policy to deal with climate and environmental issues. This policy is in the development stage, so if you want to contribute email policydev@pirateparty.org.au.

Preamble
Action is needed to address climate change and ecological damage. Support for this position does not require belief in the science, merely belief that the welfare of future generations is sufficiently important to apply a precautionary principle. Driving innovation and progress in this area (as in all others) is ultimately beneficial throughout the economy in ways which extend far beyond the issues of climate change and environmental management.

A 21st century energy grid
Australia has immense natural advantages as an energy producer. However, our grid is relatively poor: a host of decades-old coal power plants are reaching the end of their life, with accumulated maintenance costs rising to $100 billion. To take no action will pass this on to consumers and businesses in the form of perpetually rising energy prices. Countries such as Canada, Denmark, and Norway demonstrating that renewable energy is not merely possible but feasible as a base-load, functional source of energy—and cheaper than coal once the health impacts are taken into account. Pirate Party Australia supports a transformation of Australia's energy grid which will create tens of thousands of skilled jobs, drive investment in Australia’s farms and regions, help to safeguard our oceans and land from the ecological harm posed by climate change, and provide businesses and consumers with low and stable energy prices into the future.

To accomplish that, we propose the introduction of a unified, comprehensive feed-in tariff (FIT) to support renewable investment. A FIT is a long-term contract offered to renewable energy producers which guarantees the purchase of power over time. Feed-in-tariffs are the most successful global mechanism for expanding renewable energy and have notable advantages over other approaches:


 * Where a renewable energy target drives investment only in the cheapest sources, FIT contracts can be varied for different types of renewable energy and can thus be used to create balanced and mixed energy grids.
 * Costs for a FIT can be met out of general government revenue, reducing energy prices for consumers and businesses.
 * A unified national FIT could replace six piecemeal state schemes, hugely simplifying our national response to climate change and reducing the burden on renewable firms which operate across multiple states.
 * FIT contracts, once signed, are guaranteed and thus not subject to political interference, providing investor certainty
 * FIT contracts still on offer can have their terms dynamically adjusted based on the quantity of renewables deployed: this encourages early investment, caps overall costs, and complements investor certainty with policy adaptability.
 * Contracts can be allocated for smaller-scale community owned generation assets. This will enable farmers and small businesses to become energy suppliers and encourage community participation.

Feed-in tariffs are also a solid complement to existing carbon pricing regimes. Carbon pricing has clearly succeeded in driving renewable investment and is also a simultaneously reduce taxes on work and savings.

Pirate Party Australia would also establish several funds governed by expert panels. A land management fund will sponsor sustainable land use and fund research into carbon sequestration. An energy efficiency credit facility will provide loans and capital in cases where profitable improvements in energy efficiency have been thwarted by misaligned incentives (for example, cases where landlords have no incentive to improve buildings because power bills are paid by tenants). Finally, a technology fund will sponsor upgrades to the grid, as well as infrastructure to enable the uptake of hybrid and electric vehicles (EVs). EVs can provide important community benefits including improved urban air quality and reduced reliance on foreign oil. Large-scale EV production will be important in a future renewable grid since recharging of EV batteries constitutes a kind of 'dispatchable demand' that can help to balance supply.

The weight of scientific evidence now clearly shows that the bulk of remaining coal must be left in the ground in order to avoid catastrophic climate impacts on our ecology, oceans, cities and farms. In recognition of the precautionary principle and the stakes, we propose a temporary moratorium on new coal exploration until such a  time as Carbon Capture and Storage technology (CCS) is viable and   commercial. A similar precautionary approach is required for coal seam gas (CSG) extraction, which is currently being undertaken from a position of profound ignorance regarding its impacts on rivers and groundwater, food  security, and biodiversity. Given the emerging evidence of  fugitive emissions leaks and other unforeseen impacts,  we believe hydraulic fracturing should be paused until more evidence is available regarding its safety. CSG is largely exported, and sufficient capacity exists in current coal mines to feed the grid until greater renewable capacity can be brought is brought  online. Any job losses will be more than replaced by job creation in the renewable sector, high-tech manufacturing and construction industries.

While the changes required are significant, the benefits are immense. Renewable energy investment will allow climate change objectives to be met, and the impacts of fossil fuel pollution reduced. Economic stimulus will invigorate our regions, and long-term energy security and price stability will boost our economic resilience. The drain of water from our waterways required to support coal plants will be curbed, and consumers will be spared the massive deadweight costs of extending our coal grid further beyond its useful lifetime.

Preserving Australia’s ecology
Pirate Party Australia believes management of our environment should be holistic and reflect the best available scientific knowledge. Cases such as the Murray Darling system demonstrate the risks of splitting ecosystem management across state borders: a more unified approach which recognises the interconnections and complexity of ecosystems is urgently needed. Accordingly, we will press for the development of a comprehensive biodiversity matrix to better classify land and ocean ecosystems. This will underpin a more scientifically-informed and unified approach to land management. It will also provide the public with essential information about the ecological health of our continent.

We will also seek to protect our irreplaceable heritage directly. Pirate Party Australia supports expansions to national parks and expanded investment in programs to protect biodiversity. We will also push for improved Federal protections against land and ocean degradation and misuse.

Prudent and scientific investments in ecology and energy are ultimately an investment in our own future.

Policy text
The Pirate Party will seek to address ecological issues and climate change through the following measures.

Target 80% renewables by 2030

 * Introduce a comprehensive feed-in tariff covering wind, solar PV, solar thermal and geothermal energy, with potential expansion to other energy forms
 * Existing state schemes will be integrated.
 * Tariff levels and contract lengths will be set to support the creation of a balanced base-load grid.
 * Annual reviews and automatic degression as a function of the quantity of renewables deployed will apply.
 * A 15% allocation will support small-scale and community projects.
 * Grid connections will be mandatory where grid access is feasible, and a facilitation office will be formed to speed approval processes and provide mediation where required.
 * Energy price rebates to consumers will offset costs imposed by feed-in tariffs.
 * Consumers may choose to opt-out of rebates in favour of a voucher for installation of solar PV and/or accredited insulation systems.
 * Establish supporting funds to facilitate investment and emissions cuts.
 * A $7 billion technology fund will fund grid upgrades, smart meters, technology exports and electric vehicle (EV) charging stations.
 * EV Locations will be determined in line with a national rollout plan and development of an Australian standard for EV rechargers.
 * Assistance to private operators who wish to operate recharging stations will be offered through the Clean Energy Finance Corporation.
 * A corporation will be created with joined State and federal government ownership to lease recharging sites on public land.
 * An independent $3 billion energy efficiency credit facility will provide capital and fund guarantees to sponsor energy efficiency projects including retrofits, equipment upgrades, and Environmental Upgrade Agreements.
 * Collection of loan repayments through utility meters will be trialled.
 * A $5 billion land management fund will provide funds for soil carbon sequestration and research, reforestation and re-vegetation of marginal land.

Adopt regulatory measures to improve energy efficiency

 * Retain a carbon tax based on the 2012 model until such a time as a strong global ETS is available.
 * Adopt EU 2020 vehicle fuel efficiency standards including the passenger vehicle target of 95g CO2/Km by 2023.
 * Ensure all buildings are subject to mandatory disclosure of energy ratings, with performance-based standards to all retrofits and new buildings.
 * Require that new buildings attain 6-star ratings under the NABERS system by 2015.
 * Extend commercial tax deductions to include purchase of appliances and equipment with enhanced efficiency ratings.
 * Provide a single public information source to outline energy incentives and easy and common ways for businesses to save energy.

Phase out coal and coal seam gas extraction

 * Ban development or expansion of coal fired power stations.
 * Institute a moratorium on new and expanded thermal coal mines.
 * This moratorium will be lifted for sales to users of commercially available carbon capture and storage technology.
 * Institute a moratorium on extraction of coal seam gas through hydraulic fracturing.
 * The moratorium will apply to all new mines as well as additional fracturing on current mines in metropolitan areas.
 * Periodical reviews will assess evidence  and present     recommendations   to the Government on the scientific case for lifting   or modifying the moratorium.
 * Extraction and exploration in or around water catchment areas and aquifers will be permanently banned.
 * Landowners will be granted a right to refuse exploitation of coal seam gas on land they own.

Improve environmental management and land use

 * Expand the environmental oversight of the federal government to cover climate, rivers and water areas, national parks and forests, and provide independent statutory status to areas conducting approvals.
 * Ensure clear channels exist for local and community input, with autonomy devolved to regional communities and expert bodies in matters of purely local impact.
 * Enable all species reported as being at risk of extinction through any credible scientific source to be listed as “notifiable”.
 * Enact recovery plans and threat abatement plans for endangered species and ecological communities.
 * Reverse funding cuts to the Biodiversity Fund.
 * Develop a biodiversity matrix to classify land and ocean ecosystems and species distribution.
 * Information collected will be published and will inform land use changes, development approvals, and management of national parks.
 * Increase national park thresholds to cover 15% of land in Australia, with a representative sample of at least 80% of regional ecosystems protected in each bio-region.
 * Engage NGOs in management of feral animals, with options to include the creation of fenced-off “arks” where endangered native species can be re-introduced.
 * Reverse the burden of proof currently applying to the 'Assessment and Approvals' section of the National Parks Act in areas where the biodiversity matrix records high biodiversity value.
 * Ban port expansions and stop dredging and offshore dumping of dredge spoil within World Heritage waters.
 * Provide additional $20 million funding to Reef Rescue program to support management of water quality issues associated with agriculture.