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Each Low Emissions Technology Statement will be an annual ministerial statement to Parliament.

The Australian Government has been a significant investor in a wide range of low emissions technologies, having invested over $10 billion on research, development, demonstration and commercialisation since 2014-15 (Figure 5). The biggest investments have been in solar (over $3 billion), energy efficiency (almost $3 billion) and wind (over $1 billion). The bulk of this investment (more than 85%) has been aimed at commercialisation, mostly through finance from the CEFC. Around 5% has been invested in demonstration projects and around 9% has been invested in public research and development.[16]

Looking ahead, all investments will be tracked against our overarching objectives and the impacts we aim to see. A key indicator will be the level of private sector investment in a particular technology.

The Government will seek to leverage between $3 and $5 in new co-investment for every dollar it invests, on average, in low emissions technologies. Where public investment is not being multiplied by private sector spending, the Government will consider, through further Statements, the need to reprioritise that technology.

The Government expects to invest over $18 billion in low emissions technologies over the decade to 2030. By leveraging additional co-investment the private sector and other levels of government, Australia could secure between $50 and $100 billion in total investment in low emissions technologies over the decade.[17]

The Minister for Energy and Emissions Reduction will meet regularly with the Chairs of the implementation agencies – ARENA, the CEFC and the CER – and those agencies will report quarterly to the Minister on Roadmap implementation and actions they are taking to support the stretch goals. The agencies’ annual reports will specifically report on Roadmap priorities.

Rigorous impact evaluation will be central to the Roadmap framework. An ongoing responsibility for the Department of Industry, Science, Energy and Resources will be to undertake this impact evaluation to support the Minister and the Council. This will require specific, measurable, achievable, relevant and time-bound (SMART) indicators to assess progress. A key focus of the second Low Emissions Technology Statement in 2021 will be establishing a robust approach to impact evaluation.

Figure 5: Public spending on low emissions technology research, development, demonstration and commercialisation (2014–15 to 2019–20), by technology

Footnotes

[16] Spending described in Figure 5 is based on reporting by key Commonwealth science agencies, and includes research funding from the ARC, public contributions to CRCs, grant funding through ARENA, innovation activities by CSIRO, finance from the CEFC, direct purchasing of carbon abatement through the CER, and investments through the Industry portfolio in CCS.

[17] Includes projected spending by ARENA ($1.4 billion to 2030), the CEFC ($1.3 billion per year, in line with average historical investment levels), and the CER ($2.9 billion through the Emissions Reduction Fund and Climate Solutions Fund), as well as CSIRO, CRCs and the ARC (a combined total of around $1 billion, being an extrapolation of historical investment by those organisations). Actual levels of investment by these agencies could be higher or lower depending on the pace of technology development and broader economic factors.

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