To respond to the challenge of climate change, Australia needs to invest in renewable energy at a far greater rate than we current do. The production and installation of these technologies will initially need substantial market-enablement support from the government.

How can we maximise our potential to grow new clean energy industries and clean energy jobs? A review to answer
these questions is needed urgently, before our competitors in clean tech advance beyond our reach.

Feed-in tariffs

Feed-in Tariffs (FiTs) are an internationally proven means of supporting growth in renewable energy production. This has
been the secret of Germany’s massive increase in renewable energy and clean energy jobs over the last decade.

A gross Feed-In Tariff should be made available at all scales to households, nongovernment organisations and businesses. The more widely available the FIT is, the greater the likely growth in renewable energy and the greater the reduction in
greenhouse gas emissions.

To achieve maximum effectiveness the scheme should also cover all renewable energy technologies. This will provide an
incentive for large-scale renewable power generation that can feed into homes and businesses. The widest range of renewable energy technologies should be covered by the tariff, with a regular review aimed at incorporating new technologies as they become commercially available.

The incentive should be available to businesses both large and small as well as households. This will help small businesses
and create opportunities for large-scale renewable energy production.

Moving away from fossil fuels

Rising fuel costs will allow ever greater profits to be made from investing in energy efficiency and renewables. The cost savings from moving out of intensive fossil fuel use, minus the cost of implementing energy-saving and clean-energy infrastructure would fund the repayment of loans made under the Green New Deal. The more rapid the increase in carbon prices, the greater will be the incentive to invest, the potential profit from investment and the speed of transition to a low-carbon future.

Public funding could be augmented by encouraging the use of private savings from individuals, super funds, banks and
other sources to invest in government backed energy efficiency, renewables and clean tech programs.