Turnbull’s climate change boost defies Abbott

MALCOLM Turnbull has signalled a renewed focus on climate change, reviving two environmental funds that Tony Abbott ditched.

(FILES) A combo image of two file photographs shows current Australian Prime Minister Malcolm Turnbull (L) at a press conference in Canberra on September 20, 2015, and former prime minister Tony Abbott (R) speaking to the media in Sydney on April 18, 2015. Australian Prime Minister Malcolm Turnbull on March 22 March, 2016 slapped down his predeccessor Tony Abbott who dramatically intervened to claim credit for policies the government is taking to upcoming elections. Abbott, who was ousted last September in a party coup, announced the government was running on his record, in extraordinary comments reminiscent of the political anarchy that has produced five leaders in five years. / AFP PHOTO / PETER PARKS AND WILLIAM WEST

MALCOLM Turnbull will keep two climate funds that Tony Abbott went to the 2013 election pledging to abolish.

The Prime Minister says clean energy is a vital part of his plan to boost innovation and create jobs beyond the mining boom.

The prime minister will announce today that a $1 billion Clean Energy Innovation Fund will be set up in July, jointly managed by the Clean Energy Finance Corporation and Australian Renewable Energy Agency.

The two bodies will jointly manage the fund from July in order to finance products such as large-scale solar.

Mr Turnbull, a previous supporter of an emissions trading scheme, has been toning down criticism of clean energy financing since ousting Mr Abbott in September.

However, many Coalition members remain sceptical about the value of spending too much money on climate-related projects.

Labor and the Greens have been critical of the government’s opposition to the CEFC, arguing it showed a lack of credibility on the issue of climate change.

Labor has yet to unveil the full details of its policy, which will include a globally linked emissions trading scheme.

TURNBULL’S GREEN SHIFT

Mr Turnbull said the government would “retain and reinvigorate” the CEFC and ARENA.

“We are promoting innovation and new economic opportunities, enhancing our productivity, protecting our environment and reducing emissions to tackle climate change,” Mr Turnbull said in a statement.

He said projects could include a large-scale solar facility with storage in Port Augusta, South Australia.

“By offering innovative equity and debt products, the Clean Energy Innovation Fund can accelerate the availability of new technologies to transform the energy market, and deliver better value for taxpayers.”

ARENA will continue to manage its existing portfolio of grants and the $100 million large-scale solar round, but will be told to focus on energy efficiency and low-emissions technology.

Once the solar round is completed, ARENA will move from a grant-based role to a “debt and equity basis” under the new CEIF.

Climate change is likely to be a key battleground in this year’s election.

The $1 billion CEIF will be established from within the CEFC’s $10 billion allocation and will make available $100 million a year for 10 years.

Mr Turnbull said the government remained committed to reducing Australia’s emissions by 26 to 28 per cent by 2030.

Environment Minister Greg Hunt said on Monday the government had made “no change in the policy” to axe the CEFC.

However, federal cabinet agreed to the policy at a meeting in Sydney on Tuesday.

Former treasurer Joe Hockey described the CEFC as a “giant $10 billion slush fund”.

The legislation to abolish the CEFC has been twice rejected by the Senate and is a double-dissolution trigger.

But Mr Turnbull said on Monday he did not intend to use it as a trigger.

Mr Abbott was forced to keep ARENA in place in exchange for the Palmer United Party’s support to bring in the Coalition’s Direct Action plan.

FAUX ELECTION CAMPAIGN BEGINS

The major parties are engaged in a faux election campaign ahead of parliament resuming in April to deal with workplace laws that could become a July 2 double-dissolution trigger if they are blocked.

Mr Turnbull will be in Sydney, while Mr Shorten will campaign in the central Queensland city of Gladstone.

Two new polls show a tightening gap between the coalition and Labor.

A Seven News-ReachTel poll puts the two-party figure at 52-48, while the Essential poll has the parties at 50-50.