Identifier
Created
Classification
Origin
09CANBERRA275
2009-03-20 02:21:00
UNCLASSIFIED
Embassy Canberra
Cable title:
AUSTRALIA STIMULUS PACKAGES GREEN COMPONENT
how-toP 200221Z MAR 09 FM AMEMBASSY CANBERRA TO SECSTATE WASHDC PRIORITY 1231 INFO AMEMBASSY BEIJING AMEMBASSY JAKARTA AMEMBASSY LONDON AMEMBASSY SEOUL AMEMBASSY TOKYO AMCONSUL MELBOURNE AMCONSUL PERTH AMCONSUL SYDNEY DEPT OF ENERGY WASHINGTON DC DEPT OF TREASURY WASHINGTON DC
UNCLAS CANBERRA 000275
STATE FOR OES/EGC DEROSA-JOYNT
E.O. 12958: N/A
TAGS: EFIN ENRG SENV AS
SUBJECT: AUSTRALIA STIMULUS PACKAGES GREEN COMPONENT
REF: A. STATE 26022
B. CANBERRA 268
UNCLAS CANBERRA 000275
STATE FOR OES/EGC DEROSA-JOYNT
E.O. 12958: N/A
TAGS: EFIN ENRG SENV AS
SUBJECT: AUSTRALIA STIMULUS PACKAGES GREEN COMPONENT
REF: A. STATE 26022
B. CANBERRA 268
1. (SBU) Per instructions in reftel, Post is providing the
following answers to questions regarding the two fiscal
stimulus packages launched by the federal government in
December (A$10 billion) and February (A$42 billion).
Q: Has the country passed a fiscal stimulus package that
designates spending on any of the following, and if so how
much? And/or is spending on any of the following being
planned that will use stimulus money designated more broadly?
A: The second stimulus package (the Nation Building and Jobs
for Australia) included A$3.9 billion in new funding to
provide subsidies for installation of ceiling insulation in
homes and for installation of solar water heaters. The home
insulation program (A$2.7 billion) provides up to A$1600 for
Australian home owner-occupiers for insulation installations
between July 2009 and December 31, 2011. A low-emissions
plan for renters rebate (A$613 million) will allow landlords
with tenants to claim an A$1000 rebate for insulation in
rental properties. A solar hot-water heater rebate program
(A$507 million) will be increased to A$1600 and the existing
means test for rebates will be dropped. The rebate is
available until June 30, 2012. Estimates of the effect of
these two measures vary depending on how many home owners
take advantage of the program, but the measures could result
in CO2 emissions abatement of 4.7 million metric tons of CO2
equivalent per year starting in 2012. Total abatement is
forecast to reach nearly 50 million metric tons by 2020.
It is worth noting that the government's stimulus package,
and the A$20 million Building Australia Fund announced last
year, do not currently contain spending specifically for
energy infrastructure or transmission networks. There will be
some enhancements to transport energy efficiency from
improved road and rail networks, but there is no explicit
effort to develop green technologies or infrastructure in
these spending measures.
Q: Is the spending on the above "new," or does it appear to
be previously planned for and then added to a fiscal stimulus
package?
A: The money for energy efficiency is new money, not
accelerated funds from the 2008-2009 budget. The government
already has in place rebates for reducing emissions for
renters and solar hot water systems, so the A$1.12 billion
added in the stimulus package for those programs is in
addition to existing program funding.
Q: How soon will the money get spent?
A: The stimulus programs run from mid-year 2009 to either the
end of 2011 (insulation) or mid-2012 (solar hot water
heaters). Homeowners who install insulation before the
program starts in July 2009 are eligible to claim
reimbursement up to A$1600 after the program commences.
Q: Has the country coupled policy reforms intended to spur
new private investment in energy technologies with the
spending components?
A: As stimulus spending is limited to demand management at
the household level, this package does not have a technology
component, and does not include any policy measures designed
to improve technology development.
CLUNE
STATE FOR OES/EGC DEROSA-JOYNT
E.O. 12958: N/A
TAGS: EFIN ENRG SENV AS
SUBJECT: AUSTRALIA STIMULUS PACKAGES GREEN COMPONENT
REF: A. STATE 26022
B. CANBERRA 268
1. (SBU) Per instructions in reftel, Post is providing the
following answers to questions regarding the two fiscal
stimulus packages launched by the federal government in
December (A$10 billion) and February (A$42 billion).
Q: Has the country passed a fiscal stimulus package that
designates spending on any of the following, and if so how
much? And/or is spending on any of the following being
planned that will use stimulus money designated more broadly?
A: The second stimulus package (the Nation Building and Jobs
for Australia) included A$3.9 billion in new funding to
provide subsidies for installation of ceiling insulation in
homes and for installation of solar water heaters. The home
insulation program (A$2.7 billion) provides up to A$1600 for
Australian home owner-occupiers for insulation installations
between July 2009 and December 31, 2011. A low-emissions
plan for renters rebate (A$613 million) will allow landlords
with tenants to claim an A$1000 rebate for insulation in
rental properties. A solar hot-water heater rebate program
(A$507 million) will be increased to A$1600 and the existing
means test for rebates will be dropped. The rebate is
available until June 30, 2012. Estimates of the effect of
these two measures vary depending on how many home owners
take advantage of the program, but the measures could result
in CO2 emissions abatement of 4.7 million metric tons of CO2
equivalent per year starting in 2012. Total abatement is
forecast to reach nearly 50 million metric tons by 2020.
It is worth noting that the government's stimulus package,
and the A$20 million Building Australia Fund announced last
year, do not currently contain spending specifically for
energy infrastructure or transmission networks. There will be
some enhancements to transport energy efficiency from
improved road and rail networks, but there is no explicit
effort to develop green technologies or infrastructure in
these spending measures.
Q: Is the spending on the above "new," or does it appear to
be previously planned for and then added to a fiscal stimulus
package?
A: The money for energy efficiency is new money, not
accelerated funds from the 2008-2009 budget. The government
already has in place rebates for reducing emissions for
renters and solar hot water systems, so the A$1.12 billion
added in the stimulus package for those programs is in
addition to existing program funding.
Q: How soon will the money get spent?
A: The stimulus programs run from mid-year 2009 to either the
end of 2011 (insulation) or mid-2012 (solar hot water
heaters). Homeowners who install insulation before the
program starts in July 2009 are eligible to claim
reimbursement up to A$1600 after the program commences.
Q: Has the country coupled policy reforms intended to spur
new private investment in energy technologies with the
spending components?
A: As stimulus spending is limited to demand management at
the household level, this package does not have a technology
component, and does not include any policy measures designed
to improve technology development.
CLUNE