The just released issues paper Research and Development: Low Emissions Energy Technologies says emissions from the stationary energy sectors are “much higher” in Australia than in other developed countries. These countries on average have a higher percentage of energy coming from lower emissions power sources.
In 2005, emissions from energy-related sector accounted for almost 70% of total greenhouse emissions in Australia. Stationary energy alone accounted for 50% of emissions and in the 15 years from 1990 to 2005 emissions increased by 42.6%.
A comparison with the information technology and pharmaceutical industries shows how little funding goes towards low emissions technology R&D in the power generation sector.
Globally, some 10-20% of the annual turnover in the pharmaceutical and information technology industries is directed towards technology R&D while in the power generation sector, private sector investment has fallen sharply with the privatisation of energy industries to the point where it is under 0.4% of turnover.
To identify the market barriers and failures that have led to low levels of investment in low emissions technologies in the energy sector and industry-wide, the discussion paper calls for submissions on how to improve policy frameworks to foster innovation.
The issues paper does not commit to any definite policy frameworks but instead opens up a list of questions for feedback including:
- How can governments improve policy clarity, continuity and coherence for businesses for looking to invest in new energy technologies, or in other sectors with the potential to contribute to mitigation or adaptation?
- How can the governments avoid ‘picking winners’ while encouraging increased innovation? What is current best practice for technology neutral innovation policy?
- What are the appropriate policies for minimising barriers to market entry without undermining the competitive advantage of established firms?
- How can government create more cohesive research environments and promote genuine cooperation between rival firms or organisations?
Submissions to the issues paper are due by April 11.
A discussion paper on the design of the emissions trading scheme is due to be released by Professor Ross Garnaut on March 13 as he prepares for the Garnaut Climate Change Review to be released in September. Prime Minister Kevin Rudd has said this review will guide the design of the emissions trading scheme and 2020 emission reduction targets.
