Policy reboot is a big deal and deserves more credit

A $2 billion reboot of direct action finally gives the Morrison government a story to sell on climate change policy.

It is a recommitment to using government funds to sponsor better land management and improvements in industrial processes to save carbon dioxide emissions. The co-benefits approach is a big deal that is not given sufficient credit. The reverse auction scheme which underpins the government’s Emissions Reduction Fund has been praised internationally and builds a platform for what could be a significant future market if opened to business and international markets. That said, without revisions the direct action pitch risks short changing taxpayers for little political benefit.

Energy policy, electricity prices, renewable energy targets and subsidies will remain the major battleground on which climate change politics will be fought — a shame because bolstering the resilience of natural systems in a way that improves habitat and builds soil fertility is a solid investment.

It can help tackle the nation’s crisis in endangered species and guard against the threatened impacts of a changed climate of which scientists have warned.

The government has spent more than $2.3 billion on carbon abatement contracts for an average price of $12 a tonne. The ERF has delivered more than 193 million tonnes of emissions reductions through 477 projects.

Today’s announcement replenishes the fund with a further $2 billion over 10 years.

The government says the money will be used to partner with farmers, local government and business to deliver practical climate solutions across the economy that reduce emissions.