The Prime Minister’s announcement to channel $2 billion over ten years to the so-called ‘Climate Solutions Fund’ falls drastically short of what is required to credibly tackle Australia’s emissions.

 

“The Emissions Reduction Fund (ERF) will not bring down emissions in the majority of our economy and cannot credibly be considered a centrepiece climate policy,” says Richie Merzian, climate & energy program director at the Australia Institute.

 

“The ERF is just a warm-up act and we are still – 6 years on — waiting for the main performer.

 

“The ERF has a useful role in the land and agriculture sector, it is not capable of carrying out the heavy lifting to meet Australia’s fair share of emissions reductions.

 

“Of all the carbon credits issued by the ERF to date, only 1% were from emission reductions in the heaviest polluting sectors of energy and industry.

 

“This $2 billion over ten years, is a mere drop in the ocean compared to what must be done to reduce Australia’s emissions – something that cannot be achieved unless big polluters are held to account.”