Jobs for the Future Economy

Victoria’s Action Plan for Green Jobs

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At a business breakfast I was asked a very direct question: “What will my grandchildren do for a living?” This question reflects the concerns of those who see the world changing rapidly in response to the challenges of globalisation, technological advancement and the onset of climate change. It is true we face great uncertainties, but these changes also present great opportunities.

We need to work hard to maintain our traditional strengths in agriculture, manufacturing, services and resources. We must build up those industries in which we have a comparative advantage – notably the knowledge-based industries of research and education, financial services, information technology, tourism, and the media, arts and screen industries.

We need to recognise that climate change is as much an economic and social challenge as it is an environmental one. Taking action to respond to climate change will entail fundamental changes in the way our industries operate, the way we live, and how we work. This will require investment in new technologies and green skills.

By investing in areas of competitive strength and high growth potential – such as green industries – we will create new and rewarding jobs for our grandchildren.

Victoria has led the debate on climate change policy and the introduction of an emissions trading scheme. We were the first State to introduce a mandatory renewable energy target. We are committed to working with the Commonwealth in introducing an expanded national renewable energy target and support the Commonwealth’s Carbon Pollution Reduction Scheme.

Message from the Premier

A Climate of Opportunity

The challenge for Victoria is to create an environment where we can make the most of the opportunities that these reforms will bring. This Jobs for the Future Economy Action Plan is about securing these opportunities and the green jobs they will generate. By providing $175 million for 18 priority actions, it will stimulate new private sector investment, help to secure thousands of green jobs and facilitate training for green skills sought by industry.

Jobs for the Future Economy includes immediate actions to bolster green investment – such as fast-tracking renewable energy projects, creating solar hubs across the State, and making government buildings more energy and water efficient.

This Action Plan will help ensure Victoria’s future is sustainable and prosperous. Our goal is to make Victoria a centre for investment in green jobs and industries, presenting opportunities for Victorians to secure jobs in a new economy.

John Brumby Premier of Victoria

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Already we have set a strong renewable energy target to drive investment in renewable generation such as wind farms, and we are leading the nation in sustainable building regulation. Major green projects – such as building the world’s first 6 Star convention centre – have helped stimulate new jobs and investment. Investment in energy innovation is accelerating the commercialisation of technologies like large-scale solar, supporting the shift to low-emissions energy.

Jobs for the Future Economy outlines the next steps in Victoria’s transition to a low carbon and greener economy. Over coming months the Government will announce further actions through a Climate Change White Paper and statements focused on energy and regional development.

Jobs for the Future Economy sets out actions across Government to secure jobs in a low carbon economy. These actions support jobs growth and will improve environmental outcomes. They are designed to build resilience in our economy, maximise investment, facilitate regional development, and encourage businesses, families and communities to reduce their energy and water consumption.

This Action Plan outlines what we can do right now to facilitate green investment and secure jobs for the long-term. It provides incentives to accelerate innovation and the uptake of green technologies, and signals how we will build the green skills needed in our workforce – providing our children with skills for the new economy.

The 18 priority actions outlined in Jobs for the Future Economy concentrate on five key themes:

• Securing more jobs in construction;

• Securing more jobs in energy;

• Developing sustainability skills;

• Driving low emissions industry growth; and

• Promoting innovation.

Message from the Ministers

Opening the Green Door

Gavin Jennings

Minister for Environment & Climate Change

Minister for Innovation

Jacinta Allan

Minister for Regional & Rural Development

Minister for Industry & Trade

Bronwyn Pike

Minister for Skills & Workforce Participation

Minister for Education

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Contents

Introduction 6

Chapter 1 Securing More Jobs in Construction 8

Action 1: Greener Government Buildings 9

Action 2: 1200 Buildings Program 10

Action 3: Six Star New Homes 11

Action 4: Green Plumbing Initiative 12

Action 5: Energy and Water Efficient Schools 13

Action 6: Green Door for Sustainable Buildings 14

Chapter 2 Securing More Jobs in Energy 16

Action 7: Solar Energy Hubs for Victorian Communities 17

Action 8: Demonstrating Fuel Cells in Public Housing 18

Action 9: Investing in Alternative Fuels 19

Action 10: Green Door for Renewable Energy 20

Chapter 3 Developing Sustainability Skills 22

Action 11: Green Skills for Trades 23

Action 12: Sustainability Skills for Industry 24

Chapter 4 Driving Low Emissions Industry Growth 25

Action 13: Carbon Market Services 26

Action 14: Investing in Low Emissions Regional Industry 27

Action 15: Cutting Green Tape 28

Action 16: Resetting Waste Landfill Levies 29

Chapter 5 Promoting Innovation 30

Action 17: Investing in Electric Vehicles 31

Action 18: Sustainable Research and Development· 32

Summary Funding Table 33

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Introduction

Tackling climate change is a major challenge for Victoria that requires action by government, industry, communities and households to move to a low carbon economy.

It will involve unprecedented investment in green industries and new technologies.

It will create new jobs and opportunities for Victorians and foster green skills for both new and existing jobs.

The Victorian Government is addressing the challenge of climate change by promoting action to:

• lower greenhouse gas emissions and secure our energy supply;

• reduce energy, water and resource consumption;

• upgrade our building stock to operate more efficiently;

• develop more efficient vehicles and low emissions fuels;

• minimise the generation of waste and pollution; and

• protect and restore ecosystems and biodiversity.

Victoria was the first State to establish a renewable energy target and Five Star standards for new homes, promoting investment and jobs in green energy and green technologies.

Jobs for the Future Economy is an 18 point Action Plan outlining Victoria’s next steps to bolster industries of the future, secure green jobs and foster green skills. The Action Plan focuses on five key themes:

Securing More Jobs in Construction

Actions to promote high standards of design and construction in commercial buildings and new homes will deliver energy and water efficiency savings and support jobs in the construction industry and trades.

Securing More Jobs in Energy

Support for the development and uptake of renewable energy – such as through streamlined development processes to encourage private sector investment and the creation of solar hubs across Victoria – will reduce our carbon emissions and secure new jobs in green industries.

Developing Sustainability Skills

Green skills are needed not only in green industries, but also in industries such as construction and trade services which utilise or install green technologies. Actions will support training in sustainability-related skills for tradespeople and will identify and address green skills and training needs across industries.

Driving Low Emissions Industry Growth

The growth of green industries across Victoria will be supported by removing barriers to investment, fostering new markets such as carbon market services, boosting jobs in resource recovery and recycling, and introducing smarter regulation so that business can achieve environmental objectives with lower compliance costs.

Promoting Innovation

New research and industry science projects and investment in electric vehicle trials will stimulate the development of low-emissions innovations and technologies, creating new jobs.

Overview of Jobs for the Future Economy

Opportunities

• Create green jobs for the future

• Build the skills needed in a sustainable, low carbon economy

• Reduce energy, water and resource consumption

• Reduce costs for businesses and households

• Reduce carbon emissions.

Focus of Action

• Secure more jobs in construction

• Secure more jobs in energy

• Drive low emission industry growth

• Develop sustainability skills

• Promote innovation.

Key Sectors

• Building and construction

• Carbon market services

• Renewable energy and fuels

• Electric vehicles

• Research and development.

• Resource recovery and recycling

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Jobs for the Future Economy is a plan to ensure thousands of Victorian workers will be engaged in green jobs emerging across the economy: in construction, energy, manufacturing, financial and legal services, engineering, audit and assessment, transport, training and science and technology. Victoria’s building and energy workers will be at the frontline of this effort in transforming our building stock and delivering low emission energy.

Jobs for the Future Economy is a critical step towards a sustainable, low carbon economy. It is one of a series of strategies and policies that the Government is releasing to mitigate climate change and present new opportunities for green jobs. These include:

• Securing our Natural Future – the Victorian Government’s Land and Biodiversity White Paper released in December 2009 to set the direction for policy and investment in land, water and biodiversity over the next 20-50 years and will identify environmental markets that can support future jobs in natural resource management;

• the Future Energy Statement will map in more detail the steps needed for Victoria to transition to a low carbon energy mix and ensure secure energy supply;

What are “green jobs”? Traditionally, green jobs were associated with protecting or conserving the natural environment. Green jobs today also include employment in industries that are developing cleaner and more sustainable processes and products, or provide green skills and services. A green job may involve work that:

• reduces energy, water and resource consumption;

• reduces greenhouse gas emissions;

• minimises the generation of waste and pollution;

• conserves, protects and restores ecosystems and biodiversity;

• produces environmental or low-emissions goods;

• provides environmental services;

• trains people in green skills; and

• undertakes environmental research and development.

Future growth in green jobs is anticipated in areas such as building and construction, renewable energy, energy auditing, carbon markets, new manufacturing processes, energy and water efficiency retrofitting, and the recycling of materials.

• the Climate Change White Paper will provide a climate change strategy for Victoria for the next 10 years, outlining new initiatives, investments and timetables for action; and

• the Blueprint for Regional Victoria will identify opportunities for future growth and prosperity in regional communities, including new green industries and jobs.

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The Victorian Government’s Greener Government Buildings program will reduce energy costs and water use in schools, community and government buildings, demonstrating significant cost-saving benefits.

Considerable savings will be achieved by installing more efficient lighting, heating, ventilation and air-conditioning systems, building automation systems, co-generation and other innovative improvements.

Greener Government Buildings projects will pay for themselves as the savings realised are used to repay the capital costs over the life of the investment. This approach demonstrates both the financial and environmental benefits of investment in energy efficiency, and will further grow the capacity of the energy services sector in Victoria.

The Energy Performance Contracting (EPC) process requires service providers to guarantee the savings, so they may be used to repay the capital costs of works. Under the EPC’s competitive tender process, contracts will be awarded to the provider that identifies the greatest savings over the eight year payback period.

By 2018, sites accounting for 90 per cent of the Government’s total energy consumption will be assessed as part of the scheme and all cost-effective solutions will be implemented. The savings achieved will be measured and verified annually.

The Government will initially invest around $60 million in eight priority projects that are forecast to save over 130,000 tonnes of greenhouse gases and $7 million in operational costs each year.

This includes a project covering 16 CBD and regional office buildings, totalling 83,000m2, which will be the largest EPC implemented in Australia. Energy consumption in these buildings will be reduced by at least 33 per cent and water consumption by 8 per cent. Ongoing cost savings are expected to be in excess of $1 million each year. The service provider will guarantee these savings to Government.

Other projects to be implemented in the first stage of the program include:

• the Heidelberg Repatriation Hospital and Royal Talbot Rehabilitation Centre;

• the Melbourne Museum, Royal Exhibition Building, Scienceworks, Immigration Museum and associated storage facilities;

• the Melbourne Sports and Aquatic Centre and State Netball and Hockey Centre;

• campuses operated by Kangan Batman TAFE;

• campuses operated by South West TAFE;

• 62 regional public schools; and

• replacement of traffic light globes across the state with energy efficient LED technology.

Most of these Greener Government Buildings projects will be completed within the next 18 months, securing an estimated 250 jobs.

Sustained commitment to greening Government buildings• A 15 per cent improvement in energy efficiency in government buildings has been achieved between 2000

and 2006, with an additional 5 per cent efficiency improvement expected to be achieved by the end of 2010-2011.

• Since 2007, the Government has had in place a target for office buildings to achieve a 5 Star Green Star Rating, including a 4.5 Star NABERS rating for energy performance. New office tenancies leased by government are required to achieve a 5 Star NABERS energy rating.

• Since 2008, the Government has actively implemented a green leasing policy requiring private landlords of leased Government offices to commit to environmental performance standards when managing the building.

The Greener Government Buildings program will provide a mechanism to achieve even greater energy savings across public buildings.

Action 1: Greener Government Buildings

Invest $60 million to upgrade schools, hospitals and government buildings, reducing greenhouse gas emissions by over 130,000 tonnes and securing 250 jobs

Chapter 1 Securing More Jobs in Construction

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The Victorian Government will:

• consider legislation to enable Melbourne City Council to apply property levies to repay loans made to building owners, so that the 1200 Buildings program can operate at full capacity; and

• allocate $500,000 to support the expansion of the 1200 Buildings program.

Melbourne City Council’s 1200 Buildings program will seek to deliver environmental retrofits to 1,200 commercial buildings in the city over the next decade as part of its Zero Net Emissions by 2020 Strategy. The program will involve retrofits of offices, shopping complexes, hotels, restaurants, and education, health and community facilities. It will be implemented in cooperation with CBD building owners, tenants, finance institutions and trades.

The Melbourne City Council announced that the 1200 Buildings program could lead to new investment of $1.3 billion over the next decade and could secure up to 800 jobs (FTE). On 31 March 2010 30 buildings were signed up to the program including the Melbourne Town Hall and Commonwealth Bank Building.

The program will be trialled and may be extended to other council areas and other sectors of the economy.

This collaboration builds on the partnership between Sustainability Victoria and the Council in delivering CitySwitch, a national program which signs up tenants of commercial buildings to achieving at least a 4 star NABERS energy rating through practical support.

1200 Buildings Project: 500 Collins Street500 Collins Street was constructed in 1970. After refurbishment under the 1200 Buildings program 500 Collins Street became the first refurbished inner-city building in Australia to be awarded a 5 Green Star v1 Design rating. Among the benefits for the buildings owners and tenants are:

• 30 per cent savings in air-conditioning energy;

• 50 per cent savings in energy from lighting;

• 15 per cent savings in energy from hot water;

• 40-50 per cent savings in water consumption; and

• improved quality of the indoor environment, with positive perceptions of staff health and a significant reduction in sick leave.

Source: City of Melbourne

Action 2: 1200 Buildings Program

Support the Melbourne City Council to develop the 1200 Buildings program, which has the potential to generate $1.3 billion of new investment and secure up to 800 jobs

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The Victorian Government will introduce the Six Star minimum standard for new homes and major renovations from 1 May 2011. Six Star homes will provide a more comfortable environment for home occupiers and reduce their energy expenses.

Builders and developers will be encouraged to apply Six Star standards or higher in advance of the May 2011 implementation date. $5 million will be provided under the Skills for Trades initiative to assist tradespersons in meeting the new Six Star standards (see Action 11).

The Victorian Government will work with industry to develop for consultation a regulatory impact statement (RIS) on the introduction of energy efficiency requirements for hot water systems, as well as complementary water conservation, water efficiency and stormwater standards.

In 2005, Victoria became the first State in Australia to introduce Five Star standards for new homes. Since then, around 35,000 homes have been built each year that are 50 per cent more efficient than their typical Two Star predecessors. In 2008, the Five Star scheme was expanded to include renovations and extensions, enabling a further 40,000 homes each year to be upgraded to these standards.

This has stimulated the development of more energy efficient homes, created strong demand for tradespeople with appropriate skills, and boosted demand for industries that design, manufacture and construct energy efficient products and materials.

Our next step in improving the energy and water efficiency of Victoria’s building stock will be the introduction of Residential Mandatory Disclosure (RMD) in 2011, subject to a RIS. RMD would enable purchasers and renters to take environmental performance into account when making their purchase or leasing decision. Some 300,000 properties would be assessed each year, providing jobs for trained assessors and further stimulating employment in the manufacture, supply and installation of energy and water-efficient appliances and equipment.

Action 3: Six Star New Homes

A mandatory Six Star rating for all new homes will benefit home owners and help secure up to 700 jobs

Victorian job opportunities from Six Star Homes and Residential Mandatory Disclosure

Impacts Jobs

Six Star Standard supply and installation of insulation, energy efficient windows and awnings 150

Manufacturing and installation of rainwater tanks* 400

Manufacturing and installation of solar hot water systems* 150

Trained assessors for Residential Mandatory Disclosure 500

Estimates based on assessments by the Allen Consulting Group and subject to Regulatory Impact Statements.

* Job estimates assume that all new houses will install these systems.

Chapter 1 Securing More Jobs in Construction

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The Victorian Government will commit $10 million over 2 years through the Green Plumbing Initiative to encourage households and businesses to implement water efficient systems. The Green Plumbing Initiative will provide additional opportunities for the plumbing industry and will secure 25 jobs.

The Green Plumbing Initiative will provide:

• $5 million for 5,000 additional rebates for rainwater tanks plumbed into toilet systems;

• $1.6 million to appoint 10 additional water advisors for industry water saving programs;

• $1.3 million to expand programs to reduce leaks and wastage of firewater in buildings;

• $750,000 for the replacement of low-flow showerheads, bringing the total number of low-flow showerheads exchanged to 500,000;

• $750,000 for the Industry and Commercial Water Efficiency incentive; and

• $600,000 to double the rebate for dual flush toilets, in order to replace 12,000 old toilets.

A sustainable water supply is essential for the health of Victoria’s environment, community and economy. Considerably lower than average rainfall and runoff in Victoria over the past decade has required a fundamental change in water planning. The Victorian Government has responded to this challenge with a long-term water plan: Our Water, Our Future.

Water efficiency measures and water saving campaigns targeted at both households and industry have resulted in a significant reduction in water use. The Target 155 water saving campaign in Melbourne, for example, has helped households save 22.5 billion litres of water since December 2008. WaterMAP business customers across Victoria have saved 15 billion litres since the program commenced in mid-2007.

Rebates for rainwater tank installation under the water plan have seen 37,000 rainwater tanks installed. Small and large-scale investments are securing jobs in water management systems and green plumbing.

The Government will also provide green training support for apprentice and working plumbers (see Actions 11 and 12).

Action 4: Green Plumbing Initiative

$10 million for new water efficiency measures for households and industry, delivering opportunities for thousands of registered plumbers and securing 25 jobs

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The central role played by schools in local communities makes them an ideal place to demonstrate the effectiveness of sustainable solutions. The Victorian Government will invest about $5 million to implement energy and water savings solutions in 62 Victorian schools in the Grampians and Loddon Mallee regions. The initiative will aim to achieve at least a 25 per cent reduction in energy use in these schools as part of Action 1: Greener Government Buildings.

This initiative will build on a wide range of other investments that have been made to improve the sustainability of Victorian schools, including:

• Energy Update Program (established 2006) has supported over 70 schools to install energy efficiency measures, achieving up to 25 per cent reduction in energy use. In the last 12 months this program has employed over 50 local contractors.

• the Solar in Schools Initiative is providing 500 schools and community organisations with funding of $5,000 for the installation of solar panels. This initiative is complemented by the Commonwealth National Solar Schools Program, which will fund the installation of solar panels. $63 million has been allocated to Victorian Government Schools and 311 schools will receive funding this year.

Action 5: Energy and Water Efficient Schools$5 million investment for energy and water efficiency improvements in 62 regional schools

• the $1.2 million Schools Water Efficiency Program required all Victorian schools to participate in a water audit and undertake water efficiency measures to reduce their consumption of potable water. Initial water and cost savings achieved indicate an average reduction in water consumption of 15 per cent.

• the $1.9 billion Victorian Schools Program incorporates sophisticated sustainable design features in its school rebuilding program. Sustainable building and retrofitting is also supported by the Commonwealth’s Building the Education Revolution program, with $2.5 billion invested in Victorian Government schools.

Balnarring Primary School - 2009 ResourceSmart School of the YearBalnarring Primary School is a leader in sustainability education. Staff, students and the broader community each play a vital role in the success of the school’s programs. Leadership within the school ensures that new staff members are committed to sustainability in their classrooms, and across the whole school.

The school has effectively made water, waste, energy and biodiversity key areas of learning across the curriculum. It has made a huge contribution to both the school community, and to the local area.

Balnarring Primary School’s winning entry in the 2009 Awards showcased the school’s commitment to sustainability across the entire school. The school’s first class outdoor learning spaces were a standout feature, providing amazing hands-on opportunities for the students.

Some of the school’s ResourceSmart achievements include:

• daily water usage per student of 1.67kL. The average for Victoria schools is 6.6 kL;

• from 2007 to 2008 they reduced the amount of waste going to landfill by 23 per cent;

• the school will install a 5 kilowatt solar system funded by the National Solar Schools Program and the Victorian Solar in Schools initiative; and

• the environment club, the BEAT kids are an integral part of sustainability activities. These students, from Years 3 – 6, are active in educating and mentoring other students and members of the broader community through the Sustainable Classroom Challenge.

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The Victorian Government will provide a Green Door for Sustainable Buildings to assist major commercial and institutional building projects that seek to attain a 6 Star standard – indicating exemplary sustainable design. Criteria will be developed to assist project developers through planning processes.

Victoria’s transition to an advanced sustainable economy will involve substantial improvements in the energy and water efficiency of commercial buildings. The electricity used in commercial sector buildings contributes around 16 per cent of Victoria’s energy-related greenhouse gas emissions. Commercial premises also account for a significant proportion of the State’s water use.

Improving the sustainability of commercial buildings will deliver financial benefits to building owners and tenants by lowering energy and water consumption and reducing utility bills. Green buildings will also be better able to deal with the effects of a warming climate.

The Green Building Council of Australia’s Green Star standard establishes sustainability design goals relating to buildings’ energy efficiency, water use, construction materials and transport. The Victorian Government strongly supports the design and construction of commercial and institutional buildings to achieve high Green Star ratings, and to purchasing and leasing offices that achieve a minimum 5 Star rating.

Green Building Council Green Star Ratings4 Star Green Star – Best Practice

5 Star Green Star – Australian Excellence

6 Star Green Star – World Leadership

60 Victorian buildings and facilities have been certified with a rating of 4 Star Green Stars or higher. Seven projects have attained a ‘world leadership’ 6 Star Green Star rating.

A further 100 Green Star projects are under development in Victoria, including 8 that are aiming to reach a 6 Star Green Star standard for building design or build.

Melbourne Convention CentreThe Melbourne Convention Centre is the first convention centre in the world to achieve a 6 Star Green Star environmental rating. Developed in partnership between the Victorian Government and the private sector, the convention centre together with its commercial precinct secured more than 1,780 jobs during construction.

Built with materials sourced from renewable and sustainable industries, the Convention Centre’s innovative and sustainable design features include the use of fresh air and natural light, energy-saving lighting, solar hot water, irrigation and cooling towers, and a blackwater treatment plant.

Action 6: Green Door for Sustainable Buildings

Supporting the development of 6 Star commercial buildings

Chapter 1 Securing More Jobs in Construction

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Action 7: Solar Energy Hubs for Victorian Communities$5 million for up to 10 solar energy hubs across Victoria, delivering 8.6MW of community-based solar power and providing opportunities for the more than 500 accredited installers

The Victorian Government will allocate $5 million for a new Solar Energy Hubs program to assist the creation of up to 10 solar energy hubs across the State by 2013 – many of these in regional Victoria. Communities will be able to benefit from bulk purchases of solar panels and installation services, reducing the cost of individual rooftop solar system installations.

The solar energy hubs will be developed through partnerships between local community groups, local government, sustainability groups and other interested parties. These partnerships will form proposals for the installation of solar photovoltaic panels, which could be installed in a group of houses, community buildings or commercial properties.

Grants for the solar energy hubs will range from $250,000 to $1 million, with the maximum amount to be no more than $500 per kilowatt of the individual photovoltaic system installed. Sustainability Victoria will assess the proposals and allocate funds to those projects that offer the best opportunities to reduce emissions, create green jobs, and attract investment.

Victorians are strong supporters of renewable energy technologies, particularly solar energy. The Victorian Government has helped make the take-up of solar power technology more affordable for households through the premium feed-in tariff scheme, which pays 60 cents per kilowatt hour – or nearly four times the retail price – for any excess power households feed back into the grid. The cost of installing solar photovoltaic panels is currently subsidised by a bonus to households under the national Renewable Energy Target scheme.

There are now over 16,000 small rooftop photovoltaic systems installed in Victoria, with a total capacity of over 19 megawatts. Almost 12,000 of these units were installed in 2009. Victoria currently has 527 accredited solar photovoltaic installers.

The Solar Energy Hubs program will add 8.6 megawatts of community-based solar power to the system by 2013.

The solar energy hubs are anticipated to generate $60 million of solar installation work for Victorian solar companies.

Solar Photovoltaic Installations in Victoria

2000-2008 2009 Total

Number of installed units 4,269 11,867 16,136

MW installed 5.75 13.35 19.10

Source: Department of Environment, Water, Heritage and the Arts 2010

Towong Shire Solar CommunityLocated in northeast Victoria, Towong Shire Council’s landmark solar energy project, Pure Towong Energy, recently received the Economic Development Australia Award for Excellence in Environmental Economic Innovation. Developed in response to challenges facing the Shire from drought and a declining agricultural sector, the Pure Towong Energy project is believed to be an Australian first in local government-facilitated solar energy system purchase.

Towong Shire Council was able to minimise the cost of solar technology for the community by bulk purchasing solar panels from one supplier, Zen Home Energy Systems, and negotiating with project partner WAW Credit Union to offer discount loans. The project enabled residents who may not have been able to afford the usual up-front costs of solar energy to install solar systems. It created four new, permanent jobs in Towong and helped up-skill local contractors.

Towong Shire’s solar photovoltaic installation per head of population is estimated to be 50 times the State average.

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Action 8: Demonstrating Fuel Cells in Public Housing$1.35 million to support the largest demonstration of locally developed fuel cell technology in the world

The Victorian Government will invest $1.35 million to demonstrate the benefits of the locally developed BlueGen™ clean energy technology in 30 public housing properties. The project will provide low-income households with substantial savings on their energy bills, as well as securing 6 jobs in the production of BlueGen™ units and supporting green jobs in locations where units are installed.

The Victorian Government supports innovation by clean energy developers, particularly in the crucial phase of moving from product development to early market deployment. Our support to Ceramic Fuel Cells Limited (CFCL) – a leading Victorian technology company focused on the development of high efficiency and low emission electricity generation units – for trialling the fuel cell generator BlueGen™ demonstrates how Victorian innovations can provide practical environmental solutions.

CFCL is commercialising the BlueGen™ technology in Europe and Australia. Victoria’s public housing project will be the largest demonstration of the technology to date anywhere in the world.

VicUrban announced in December 2009 that it will demonstrate the BlueGen™ system at a number of its sites, including the Aurora project – Australia’s first 6 Star energy-efficient community development.

BlueGen™ TechnologyBlueGen™ units are about the size of a small washing machine and can generate electricity at up to three times the efficiency of the current Victorian electricity system, significantly reducing greenhouse gas emissions and cutting energy bills. Each unit can produce up to 17,000 kilowatt hours of electricity per year – more than twice the electricity needed to power an average home – generating surplus electricity that can be exported back into the grid.

Chapter 2 Securing More Jobs in Energy

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Action 9: Investing in Alternative Fuels

Support the development of an advanced biofuels industry in Victoria, by facilitating a potential $400 million investment in waste to fuel technology

The transport sector currently contributes around 17 per cent of Victoria’s total greenhouse gas emissions. The development and use of alternative fuels can therefore make an important contribution to reducing emissions in this state as well as creating jobs and investment.

Advanced biofuels – sourced from non-food, agricultural and forestry residues, and municipal waste – herald the potential for development of Victoria’s biofuel industry and associated jobs.

The Victorian Government is currently helping to facilitate investors into a potential $400 million biofuels investment based on worlds leading technology from US biotech company, Coskata. This facility will be capable of producing 200 megalitres of ethanol per year from waste materials such as municipal solid waste, tyres, crop or timber residues.

GM Holden will manufacture vehicles capable of running of high blends of ethanol (E85). It is now likely that Victoria’s household waste could be used to fuel the low emissions cars of the future – both reducing emissions and reducing household waste.

Significant investment is likely to be generated out of these technologies and innovations. To help secure these investments the Victorian Government will give consideration to a mandated target on biofuels directly linked to industry investment in Victoria.

The Victorian biofuels industry is currently based around facilities in Barnawartha and Laverton North, which together employ more than 70 people and support many more upstream supply-related jobs.

To attract new investment in the biofuels industry, the Victorian Government will:

• invest $2.5 million in biofuels infrastructure in Victoria over the next 12 months;

• trial the use of biofuels on V Line trains to reduce Victoria’s emissions; and

• provide $350,000 towards a Regional Biodiesel Distribution initiative to establish biofuel tanks and improve access to biofuels in regional Victoria.

These initiatives will support 70 jobs and could lead to more than 100 new jobs, more than doubling the size of Victoria’s biofuels industry.

Smorgon Fuels Smorgon Fuels Pty Ltd is one of Australia’s largest biodiesel manufacturers. The business, which is located in Melbourne, employs 30 people in the production facility, sales, support services and raw material management.

The company has developed a new oilseed variety Biomax DLJ200 specifically for use in the manufacture of high grade BioMax biodiesel. This oil seed has been developed specifically as a rotational dryland cropping option for very low rainfall areas. This seed not only produces quality fuel but has enhanced the income security of farmers in regions where alternative crop options are extremely limited.

In addition to its DLJ200, the company produces biodiesel from environmentally friendly feedstocks such as:

• used cooking oils which are collected from fast food outlets, restaurants and commercial cooking enterprises; and

• waste fats from the meat processing industry.

Smorgon Fuels’ need for cost effective, environmentally friendly and reliable biodiesel feedstocks has stimulated the company to become one of the foremost developers of algae oils through the use of waste carbon dioxide.

The Victorian Government is enhancing access to this environmentally friendly home grown fuel through its $350,000 support for Smorgon Fuels biofuel distribution initiative.

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Action 10: Green Door for Renewable Energy

Provide a Green Door for Renewable Energy to support a projected $4 billion of private sector investment

To streamline development of renewable energy projects the Victorian Government will establish a Green Door for Renewable Energy.

The Green Door will be a ‘one-stop shop’ - for energy projects that meet a low emission threshold of 0.5 t CO2/MWh – which includes both renewable energy and low emissions gas projects.

Projects will benefit from the Green Door only if they commit to applying good practice consultation principles with local communities (see breakout box). These guidelines will require investors to consult meaningfully with the local community on the development of renewable energy projects.

Project proponents will be assisted by an expert team through the Invest Assist facilitation program, and eligible projects will also benefit from streamlined planning approval processes.

Major reforms to Victoria’s planning laws now underway will also include provisions that support the Green Door process. Planning schemes have been amended to include a definition of renewable energy facility, providing greater guidance and certainty to councils, industry and the community in regard to renewable energy projects.

Other initiatives to support renewable and low emission energy generation projects include a Grid Connections Review to ensure that investment is not delayed or discouraged due to difficulties and inefficiencies relating to grid connection.

Victoria is a leading location for the creation of jobs in the rapidly expanding renewable energy industry. In 2009, Ernst and Young identified Victoria as the State with the most active support for renewable energy and the best transmission grid infrastructure.

In 2007, Victoria was the first State to introduce a Renewable Energy Target, sparking new investment in renewable energy across the State. Victoria’s target scheme transitioned into the Commonwealth’s expanded national Renewable Energy Target in 2010. This is expected to generate about $4 billion of new investment and an extra 7,000 GWh of large scale renewable energy in Victoria over the next ten years.

Green Door - Good Practice Principles

Renewable energy projects will benefit from the Green Door facilitation and streamlined approval processes only if developers commit to applying good practice consultation principles with local communities. These Include:

• early and inclusive engagement of the local community in the development of the project to ensure robust and effective input into its decision making process; for example at the point of identification of potential sites;

• an open and transparent consultation process where all relevant information is made available to the local community;

• timely and responsive feedback so that those involved in the consultation have a good idea of how their feedback and comments are being used;

• maximise benefits to host communities: Renewable energy developments will need to minimise impact on residential properties that are located near development sites and clearly identify benefits for local communities; and

• all reasonable efforts must be made to resolve conflict.

Chapter 2 Securing More Jobs in Energy

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Action 11: Green Skills for Trades

Establish a $5 million Building a Green Future fund to support sustainability-related skills for tradespeople

A new $5 million Building a Green Future fund will provide assistance to encourage Victoria’s 22,000 registered building practitioners to upgrade sustainability-related skills.

Sustainable buildings of the future will be more energy and water efficient through improved design and extensive use of innovative green systems, equipment and appliances. Tradespeople involved in design and construction will need new knowledge and skills to fully realise the potential of leading construction techniques, advanced materials and green technologies.

A two year program, Building a Green Future will support the implementation of the Six Star residential building standards (see Action 3).

Building industry associations and union training organisations will be invited to submit proposals to the fund for sustainability training of their members. Training modes and programs will be shaped by industry to ensure that workforce needs are addressed. The program will also provide the basis for future work to establish minimum core competencies for training and ongoing professional development for those working in the building industry.

Plumbing Industry Climate Action CentreThe Victorian Government has provided $2.1 million to help establish the Plumbing Industry Climate Action Centre in Brunswick. This innovative $9 million Centre is the result of a successful green partnership with industry, unions and government. The Plumbing Industry Climate Action Centre offers training in state of the art green plumbing techniques, supplementing the skills delivered in current VET plumbing courses. The Centre’s focus on sustainability, energy saving, waste reduction and water conservation will support Victoria’s transition to greener modes of water use and the growth of the green plumbing industry.

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Chapter 3 Developing Sustainability Skills

Action 12: Sustainability Skills for Industry $5 million to help more than half a million VET students – including over 100,000 apprentices and trainees – access green skills

Green skills will become increasingly important as industries seek to operate in an environmentally sustainable way. To expand and enhance delivery of industry-related green skills training the Victorian Government will:

• invest $1 million to support the Centre for Sustainable Water Management at Chisholm Institute of TAFE and its partners to develop and deliver training matched to industry needs and Victoria’s water plan;

• provide $1 million to extend the activities of the Specialist Energy Training Network to address energy industry training needs – particularly for companies engaged in renewable energy and low emissions coal-based power generation;

• invest $1 million in Lean and Green Training for Sustainable Manufacturing to build on the Government’s Competitive Manufacturing Training Network project;

• provide $630,000 to develop and support the delivery of five new green courses and support resources;

• establish a new $400,000 Green Workforce Partnerships program to assist 40 young job seekers secure a green job or green training;

• expand the successful Skills for Growth: Workforce Development program to enhance green workforce development and training support for small businesses in the Gippsland region; and

• introduce a new Green Training Award to recognise the critical role that the vocational education and training (VET) system plays in developing skills for a sustainable economy.

In 2008, the Victorian Government announced its commitment to invest an additional $316 million through Securing Jobs for Your Future – Skills for Victoria to provide more training places and create a more flexible and responsive system to meet the future needs of Victoria’s industry.

A Green Skills Taskforce will be established through the Victorian Skills Commission to provide strategic advice on Victoria’s green skills and training needs. The Taskforce, informed by Victorian Industry Training Advisory Bodies, will audit green job and skills needs and advise on the capacity of the Victorian training sector to address these needs.

Victoria is also working closely with the Commonwealth and other States to implement a National Green Skills Agreement that will identify and address green skills gaps in training packages. From 2011, the more than half a million Victorians who participate in VET each year – including over 100,000 apprentices and trainees – will be able to access green training and develop core green skills.

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Chapter 4 Driving Low Emissions Industry Growth

Action 13: Carbon Market Services

Support the growth of Victoria’s carbon market services industry and establish Victoria as a leading regional centre for carbon market services, potentially generating over 800 jobs

To support the establishment of the carbon market services sector the Victorian Government will:

• provide up to $800,000 over three years to establish an export cluster that will assist Victorian businesses to participate in Clean Development Mechanism (CDM) projects in the Asia-Pacific region;

• undertake a feasibility study into the establishment of a Carbon Market Institute that would provide information, training and networking support to businesses;

• continue to publish the Melbourne Carbon Market Services Guide; and

• develop international trade and investment linkages to assist companies to engage in global carbon markets.

The value of the Australian carbon market services industry is projected to be more than $190 million over the period 2010-2015. While some of this value creation is contingent upon the introduction of the Australian Government’s Carbon Pollution Reduction Scheme (CPRS), the industry is already established and delivering services locally and into international markets.

Victoria is well placed to become a leading carbon market services centre in the Asia-Pacific region as we have a concentration of over 100 carbon market businesses and a strong clean technology sector. Victoria also has well established business relationships with developing countries eligible to host CDM projects, supported by the Victorian Government’s overseas business offices.

Victorian Carbon Market Services Industry Snapshot:

Services Provided Number of Companies

Carbon asset management and strategy 73

Monitoring, validation and verification 56

Financial 18

Trading 17

Offset providers 15

Brokers 13

Legal 9

CDM Export Cluster

Victoria’s CDM cluster will help Victorian businesses participate in renewable energy, energy efficiency and other eligible projects under the Kyoto Protocol’s Clean Development Mechanism. An analysis by Ernst and Young indicates that Victoria’s CDM industry could grow from $64 million today to $2.2 billion by 2020, with employment reaching 860 FTEs in 2020. This growth is dependent on the introduction of the CPRS and growth of international carbon trading.

Victoria projected revenue from CDM market Potential jobs from CDM Cluster

Source: Ernst & Young, 2009.

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Action 14: Investing in Low Emissions Regional Industry

$7.4 million to develop new green industries in regional Victoria

To support the development of green industries in regional Victoria the Government will:

• invest $3.4 million in matched funding through the Green Regional Industry Investment Program to attract new green industries to regional areas;

• expand the successful Regional Industry Water and Energy Efficiency initiative by $4 million to significantly cut power and water consumption and reduce the carbon footprint of regional industries; and

• identify emerging opportunities for regional industries through a study of bioenergy potential to best target future investment.

Regional Victoria is gifted with renewable resources in wind, solar, hydro, biomass, geothermal and tidal energy and is an exemplar of green industry development in a low carbon economy. There are large-scale wind developments in the South West and Central Highlands, hydro in the North East, and solar thermal in the North. Regional industries are leading the way with the adoption of cogeneration technology, bioenergy and water saving innovations.

Large-scale renewable energy projects will offer local jobs in construction as well as in ongoing maintenance. The

emergence of second generation bioenergy also signals potential for downstream job growth through the production of biomass.

The Victorian Government’s $10 million Water and Energy Efficiency initiative has already stimulated strong interest in innovative projects across the State. Regional grants include:

• $1.25 million towards the establishment of a cogeneration plant at the Unilever Australasia factory in Tatura, Northern Victoria, which is anticipated to reduce factory greenhouse gas emissions by about 44 per cent and improve energy supply;

• $1.57 million towards a new recycling project to secure Leongatha’s water supplies by reducing Murray Goulburn’s call on town water by around 60 per cent;

• $990,000 for Midfield Meats International in Warrnambool to install a 1.55 MW natural gas-fired cogeneration unit, reducing the site’s greenhouse gas emissions by 80 per cent; and

• $440,500 to R Radford & Sons in Warragul to install an innovative waste water treatment system – a first in the red meat industry – saving 58.5 ML per year.

Maine’s Power The 2009 Maine’s Power project in Mount Alexander Shire is an outstanding partnership in the transition to a lower carbon economy. In response to mounting concern about the impacts of climate change in the Shire, local businesses, the community and all levels of government came together to address the sustainability of the Shire’s manufacturing base. The Victorian Government assisted the project with funding of $85,000 through the Planning for Change program and Smart Energy Zones.

Drawing on CSIRO expertise, the energy usage and emissions tonnage from four large, co-located manufacturers in the Shire was mapped. This revealed that the manufacturers produced about 86,000 tonnes of CO2 emissions per year, or about 45 per cent of the annual stationary energy emissions of the entire town.

The report resulted in one of the participants, George Weston Foods, establishing a four MW cogeneration unit as part of a $150 million expansion, supported by a $3 million Victorian Government grant. The expansion will see production double, the creation of 200 ongoing jobs, and a 30 per cent reduction in demand for electricity from the Castlemaine network.

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Action 15: Cutting Green Tape

Develop smarter, more effective regulation for environmental protection to minimise business compliance costs, saving businesses up to $48 million each year

To achieve environmental objectives in the most efficient and effective way the Victorian Government is committed to minimising ‘green tape’ – the regulatory burden and costs to business. The Victorian Government will:

• reform the Environment Protection Authority’s (EPA) licensing system through a progressive roll out in 2010. A streamlined and efficient system will make environmental licences more accessible and easier to understand and manage. It will also allow the EPA to focus on improving compliance and to better assist those businesses seeking to exceed licence requirements;

• establish a framework for evaluating the effectiveness of new and existing environmental regulation;

• simplify reporting requirements for large water users under WaterMAP – with a reduction from around 90 requirements to 15 one-off and 20 ongoing reporting requirements;

• no longer require entities whose sites report under the Environment and Resource Efficiency Plan (EREP) program to complete a separate WaterMAP report;

• improve the Environment Effects Statement process to deliver streamlined decisions and provide greater certainty for businesses complying with ‘best practice’ principles; and

• reduce the EPA timeframe for dealing with works approvals to two months.

It is important that Victoria’s regulatory system encourages environmental sustainability and a low-carbon economy, while also enabling the creation of new jobs, technologies and markets. In 2008, the Victorian Government directed the Victorian Competition and Efficiency Commission (VCEC) to investigate the benefits and costs of Victoria’s current environmental regulation and report on opportunities to reduce the burden on business.

The Victorian Government is now implementing the recommendations of the VCEC report A SustainableFuture for Victoria: Getting Environmental Regulation Right, which have the potential to save businesses up to$48 million per year.

Chapter 4 Driving Low Emissions Industry Growth

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Action 16: Resetting Waste Landfill Levies

$59.7 million to boost recycling and tackle litter which will help secure up to 700 jobs

The Victorian Government will increase the landfill levy to better reflect the real cost of dumping waste in landfill and to encourage greater recycling and resource recovery activities. This will encourage innovation in environmental technologies and services and strengthen the incentives for wider industry use materials more efficiently. It will protect the environment and communities by reducing the amount of waste disposed to landfill.

A significant amount of funds raised will be reinvested in waste avoidance and the resource recovery sector. This will help reduce the generation of wastes and improve the recovery of resources from households and businesses.

Projects include:

• $14 million to assist businesses to reduce the amount of waste they generate from daily operations;

• $14 million to support councils and recyclers with new resource recovery investments and initiatives to complement the levy and accelerate recycling;

• $5.5 million to assist councils in metropolitan Melbourne to implement best practice waste collection and management systems in line with the metropolitan waste plan;

• $3 million to assist councils in regional Victoria to implement a range of collection and waste management initiatives;

• $6 million to establish a Strike Force to address illegal dumping and a further $5.5 million to clean up contaminated legacy sites; and

• $5.7 million to environment agencies to further support households, councils and industry to tackle waste and sustainability issues which includes $1.14 million for both the Metropolitan Waste Management Group and Regional Waste Management Groups.

This is on top of the Victorian Government’s commitment of $6 million to work with local governments to curb litter and includes the roll out of recycling bins at sporting grounds, local shopping strips and on the transport network. Local government litter prevention officers will be employed to educate and, where necessary, issue litter penalty notices.

Access Economics research prepared for the National Waste Policy found that recycling is a lot more labour intensive than landfill. It is expected that if more recycling occurs as a result of the increase in the landfill levy, there could be an increase in recycling industry employment. It is estimated that this will help secure up to 700 jobs over the next five years.

Western Metropolitan Recycling FacilityThe Alex Fraser Group’s $45 million Western Metropolitan Recycling Facility opened in November 2009 in Laverton. The facility is one of the best in world and secured 160 jobs during its construction.

Under the Towards Zero Waste strategy, the Victorian Government contributed $500,000 to Alex Fraser Group’s second facility in Clarinda, which will divert one million tonnes of material every year from landfill.

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Action 17: Investing in Electric Vehicles

$5 million investment in electric vehicle trials in Victoria

The Victorian Government is supporting the development of the electric car market by:

• committing $5 million over five years to trial electric vehicles and better understand and manage the real world implications of wider electric vehicle use, positioning Victoria as the electric vehicle State;

• providing over $100,000 for a preliminary study by Standards Australia to ensure that electric vehicles and associated charging infrastructure will be introduced with appropriate standards to protect vehicle service and road rescue personnel and consumers; and

• investing $138,300 to partner with Swinburne University to establish the first Australian training course for the retrofitting of conventional vehicles to battery electric vehicles and for subsequent vehicle servicing and maintenance. Research and analysis will also be undertaken into key issues, barriers and opportunities for electric vehicles to become a form of distributed electricity generation.

Electric vehicle technology is developing at a rapid pace. Hybrids are now commonplace on Victoria’s roads and full electric vehicles are also beginning to appear. There is significant potential for jobs and investment as traditional car manufacturers develop new products and new car manufacturers enter the market – greening traditional automotive industry jobs.

Victoria is already a leader in this area. It is the only State in Australia to produce hybrid cars, joining just four other countries in hybrid car production. Our work to develop electric vehicle standards has received global attention. Victoria has also supported small conversion companies such as Blades Electric Vehicles in Castlemaine.

As well as new jobs in manufacturing electric vehicles, employment opportunities are also likely to arise in areas such as:

• the servicing and repair of electric motors;

• the manufacture and installation of recharge technology;

• the conversion of electricity connections in houses; and

• the installation and checking of metering for those connections.

Toyota Hybrid Camry The Victorian Government has provided support for the manufacture of Australia’s first hybrid car by Toyota at Altona, helping secure jobs in the automotive industry. The Altona plant employs 3,200 people and is the regional base for the Hybrid Camry. Production of the Hybrid Camry commenced in December 2009, with 10,000 cars anticipated to be manufactured each year – taking the plant’s total annual car production beyond 150,000.

The Victorian Government will purchase 2,000 Hybrid Camrys over two years.

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Chapter 5 Promoting Innovation

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Action 18: Sustainable Research and Development$12 million for new research and industry science projects supporting 56 high-skill green jobs

The Victorian Government will provide $12 million from Victoria’s Science Agenda Investment Fund to support seven new research and industry partnership projects that will have a total value of more than $40 million. The funding allocations are:

• $3 million for the establishment of the Victoria-Suntech Advanced Solar Facility at Swinburne University, which will develop new thin film photovoltaic technology to improve the efficiency of solar collectors;

• $3 million towards the Cities as Water Supply Catchments program in which Monash University will lead a large national consortium to design and demonstrate stormwater harvesting systems in cities;

• $2.98 million to The University of Melbourne for the Victorian Centre for Aquatic Pollution Identification and Management to improve pollution detection and monitoring of inland waterways;

• $1.5 million towards a project to be undertaken by Polymers CRC Pty Ltd and partners to deliver new systems for suppressing evaporation in water storages;

• $800,000 to develop a biodegradable replacement for expanded polystyrene foam products. Victorian based technology company RMAX will collaborate with CSIRO to develop fully biodegradable expanded foam beads for packaging, building and other markets;

• $400,000 for the Bushfire Shelter Project in which the Victorian Centre for Advanced Materials Manufacturing and partners will research bushfire shelters, shielding and heat resistant materials with the potential to reduce the impacts of bushfires; and

• $300,000 towards the development of low carbon emission reinforced geopolymer concrete. Halcrow Pacific Pty Ltd will work with consortium partners to develop new pre-cast concrete products for the lining of tunnels and underground shafts.

The Victorian Government will also provide a $150,000 investment in low-emissions technologies. This will support initiatives such as training for the installation of ground source heat pumps in residential houses, which will be delivered by the Centre for GeoExchange and Renewable Energy Infrastructure mostly in regional areas.

Since 1999, the Victorian Government has committed over $3.39 billion for major science and innovation-related initiatives, including $380 million in grants from the Energy Technology Innovation Strategy (ETIS).

The Victorian Organic Solar Cell ConsortiumThe Victorian Organic Solar Cell Consortium (VICOSC) seeks to develop breakthrough technologies in third generation solar cells. Supported by funding from the Victorian Government’s ETIS program, the consortium brings together world leaders in organic cell synthesis, characterisation and device assembly with industry leaders in solar cell manufacture, lifetime testing, materials, substrates and printing on plastics. VICOSC aims to prototype organic cells printed on plastic within three years.

VICOSC directly employs 35 staff and involves over 80 people across Victoria. The consortium has more than a dozen international collaborators and linkages with researchers in the United Kingdom, Europe, Malaysia and the USA.

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Summary Funding Table

$175 million to stimulate private sector investment and secure green jobs and training

Action $m

Securing More Jobs in Construction

Action 1 - Greener Government Buildings 60.0

Action 2 - 1200 Buildings Program 0.5

Action 3 - Six Star New Homes -

Action 4 - Green Plumbing Initiative 10.0

Action 5 – Energy and Water Efficient Schools 5.0 included in Action 1

Action 6 - Green Door for Sustainable Buildings -

Securing More Jobs in Energy

Action 7- Solar Hubs for Victorian Communities 5.0

Action 8 – Demonstrating Fuel Cells in Public Housing 1.4

Action 9 – Investing in Alternative Fuels 2.9

Action 10- Green Door for Renewable Energy -

Developing Sustainability Skills

Action 11 - Green Skills for Trades 5.0

Action 12 - Sustainability Skills for Industry 5.0

Driving Low Emissions Industry Growth

Action 13- Carbon Market Services 0.8

Action 14 – Investing in Low Carbon Regional Industry 7.4

Action 15 - Cutting Green Tape -

Action 16 - Resetting Waste Landfill Levies 59.7

Promoting Innovation

Action 17 - Investing in Electric Vehicles 5.2

Action 18 - Sustainable Research and Development 12.1

Total 175.0

Published by the Victorian Government Department of Innovation, Industry and Regional Development Melbourne, April 2010

© The State of Victoria, Department of Innovation, Industry and Regional Development 2010

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