The Federal Government’s decision in Budget 2022-23 to claw back over $250 million in funding for Carbon Capture Utilisation and Storage (CCUS) and other low emissions technology will make reaching Australia’s net zero targets almost impossible.
The cost and speed of our energy transition, the energy security of our nation, as well as the future of many industries and their workforces are all negatively impacted by this decision.
The over-subscription to the Australian Government’s CCUS Development Fund by a factor of eight, demonstrated there was real momentum from industry to partner with governments to invest in low emission technology projects like carbon capture and storage.
The CCUS Development Fund alone was estimated to have created over 7000 clean energy jobs and create new opportunities in an Australian clean energy future and export market.
Low Emission Technology Australia (LETA) Chief Executive Officer Mark McCallum said scrapping this funding now puts Australia dangerously behind the rest of the world on our long-term emissions reduction targets, as many of these projects are unlikely to go ahead without this critical funding and support from Government.
“Cancelling the CCUS Hubs and Technologies grant program is a step backwards in our efforts to reach our emission reduction targets.
“Government support for these projects, in conjunction with pragmatic, workable policy settings, was desperately needed to ensure we could continue progressing the technology and incentivising investment.
“CCUS is not a technology in its infancy and is working in more than 25 countries around the world today.
“The UN’s International Panel on Climate Change (IPCC) and the International Energy Agency (IEA) have both said CCUS technology is crucial to reducing emissions and meeting global climate goals.
“These global experts strongly believe that all technologies will be needed, with CCUS technologies accounting for 25% of the emission reduction task to reach our global warming targets.
“At a time when countries around the world are significantly increasing funding of CCUS projects, the Government has rejected the global experts view on the importance of CCUS by scrapping funding for this critical technology, chilling investment and sending us to the bottom of the pack.
“There is a growing movement for CCUS globally and across the world there have been great levels of collaboration between industry and governments to accelerate CCS deployment.
“The best example of this is in the United States where support from the Biden Administration has driven a 13 fold increase in projects, which will capture the equivalent of a quarter of Australia’s total annual emissions.
“Cancelling critical programs like the CCUS Development Fund are a missed opportunity for Australia, that will delay our energy transition, damage investor confidence and make the energy transition more expensive for Australian households and businesses.”
“It is now up to the Federal Government to explain how Australia will reach its global commitments without a critical low emissions technology.”
ENDS