Climate change initiatives in Budget 2022 follow the Government’s recently released Emissions Reduction Plan, and several initiatives have already been announced in that plan. $2.9 billion of funding (sourced from cash proceeds from the Emissions Trading Scheme) is allocated to investments to be made by the Climate Emergency Response Fund (CERF), such as:
a vehicle “scrap and replace” scheme providing funding and “in-kind support” to low-income households to shift to low emission alternatives, upon scrapping their vehicle- support for moves to shift away from motor vehicle reliance, like urban cycle networks, walkable neighbourhoods, safer, greener, healthier school travel, and more reliable and user-friendly public transport
- decarbonising the public transport bus fleet, with zero-emission buses and associated infrastructure
a vehicle “scrap and replace” scheme providing funding and “in-kind support” to low-income households to shift to low emission alternatives, upon scrapping their vehicleForestry and agriculture sector investments include:
- reducing the use of coal and other carbon-intensive fuels and materials
- creating large-scale native forests as carbon sinks
- a Centre for Climate Action in Agriculture to support innovation and research
- an agricultural emissions pricing scheme
Notably absent are tax concessions which could assist here, such as FBT exemptions for employer-subsidised public transport or electric vehicles.
