The federal carbon capture and storage bill is so biased towards protecting petroleum industry interests that it could stifle plans for offshore storage of massive quantities of CO2 captured from Latrobe Valley power stations and derail coal-based projects worth billions, according to the Victorian Government, power generators and the coal industry.
Energy and Resources Minister Martin Ferguson will shortly announce a new 'clean coal council', comprising representatives of industry and federal, state and territory officials.
The mining union says the move is welcome, but warns rapidly commercialising carbon capture and storage will require more industry cash and market reforms.
Meanwhile, Ferguson wants draft federal legislation on offshore CCS to be a 'road map' for equivalent state laws.
Resources and energy minister Martin Ferguson on the weekend released a long-awaited draft Bill amending offshore petroleum legislation to establish carbon capture and storage rights.
It's Labor's first commitment period – with the Rudd government last night setting out where its climate change and environment cash will be spent over 2008-2012. New Budget climate measures will get $341.6 million in 2008-09 and a total of $2.3 billion over 2007-08 to 2011-12.
Meanwhile, Treasurer Wayne Swan says the review of the tax system – due to report by the end of 2009 – will 'look at the role to be played by environmental taxes'.
CE Daily looks at where the money will go and guides you through the maze of Budget papers.