The LETDF will provide competitive grants of $A20 million and more to Australian projects that can demonstrate commercially viable technological applications that provide significant emissions reduction.

In addition to Government funding, the LETDF is expected to create $A1 billion in private sector investment in long-term emission reduction technology.

Federal industry minister Ian Macfarlane said the demonstration fund would support low-emission technologies across the full spectrum of energy sources – ranging from renewable energy initiatives to fossil fuel and energy efficiency technologies.

"It's a serious investment that will ensure Australian industry is an active and innovative partner in securing a low-emissions future for our nation," Macfarlane said.

Technologies likely to be involved are hot dry rocks, large-scale solar concentrators, coal-fired power involving carbon capture and storage, and energy-efficient power plants, both stationary and for use in vehicles.

"The key criterion will be the ability of the technology to reduce Australia's energy sector emissions by at least two per cent per annum over the longer term, and the potential to be available commercially by 2020 to 2030," Macfarlane said.

The fund follows the announcement of the Asia Pacific Partnership on Clean Development and Climate and cements technological solutions as an essential part of Australia's climate change strategy.

Environment minister Ian Campbell said Australia depended on both renewable and fossil fuel energy sources and needed to seek more efficient ways of using energy.

"That is why the fund is available to all energy technologies – renewable and fossil fuel energy supplies, energy efficiency and transport," Campbell said.

"Australian industry has been widely recognised for its inventiveness and it now has an opportunity to develop and drive the new generation of energy technologies."

However the Australian Greens said including coal in low-emissions technology would only delay the serious action needed to address climate change.

"The integrity of the fund is undermined by including coal-fired generation with carbon capture and storage," Greens energy spokesperson Christine Milne said.

"The overwhelming majority of government funding already goes to coal-fired power," Milne said.

"This latest fund is another example of corporate welfare for the coal industry, whose greenhouse gas pollution will continue to be subsidised by public funds at the rate of $1 of government funds for every $2 from industry."

Milne criticised the government's goal of reducing emissions by 2% per annum from 2030, as emissions growth was currently running at 2.4% a year.

"This is nowhere near good enough when we need to aim for a reduction of around 60%," she said.

"This fund should be devoted to supporting proven renewable energy technologies and energy efficiency, aiming at no emissions, if we are to avert catastrophic damage to Earth's ecosystems that we all rely upon.

"Capping greenhouse gases and introducing a trading scheme with a maximum level of emissions from any new power station would drive innovation in the energy industry."

EnvironmentalManagementNews.net