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Our EcoCheck series takes the pulse of some of Australia’s most important ecosystems to find out if they’re in good health or on the wane.

When Europeans first saw Victoria’s native grasslands in the 1830s, they were struck by the vast beauty of the landscape, as well as its productive potential.

The explorer Sir Thomas Mitchell described the western Victorian plains as “an open grassy country, extending as far as we could see … resembling a nobleman’s park on a gigantic scale”. His fellow pioneer John Batman, in 1835, described the grassy plains to the north and west of what is now Melbourne as “the most beautiful sheep pasturage I ever saw in my life”.

Victoria’s volcanic plain, home to a rich variety of wildflowers. Hesperian/IBRA/Wikimedia Commons

The native temperate grasslands of southeastern Australia are a group of ecosystems defined mainly by the presence of dominant native grasses. Trees are either completely absent, or occur in very low numbers.

In Victoria, native grasslands can be found on the volcanic plains that stretch from Melbourne as far west as Hamilton. Despite their rather plain name, native grasslands are extraordinarily diverse, containing many species of wildflowers that grow between the tussocks of grasses.

It is possible to find more than 25 different plant species in a single square metre of native grassland, and the wildflowers produce dazzling displays of colour during spring.

The animals that inhabit these grasslands are equally diverse and fascinating. The striped legless lizard, grassland earless dragon and golden sun moth are three that live there today, although many others are now locally extinct. One can only imagine how impressive it would have been to see brolgas, rufous bettongs and eastern barred bandicoots roaming, nesting and digging on these plains.

Grassland earless dragon. John Wombey/CSIRO/Wikimedia Commons, CC BY

Native grasslands were a significant food source for Aboriginal people. They provided both meat (kangaroos and other grazing animals were attracted to the open grassy landscapes) and vegetables.

Many of the native forb plants produce energy-rich tubers or bulbs that can be eaten much like a potato. These made up a large part of the diet of Aboriginal people living in these areas.

Fire is critical to maintaining the diversity and health of native grasslands, and fire regimes used by Indigenous people are an important aspect of grassland management.

Plains to pasture

The story of Victoria’s native grasslands since European settlement is not a happy one. Grasslands offer extremely fertile land (by Australian standards, at least), which made them attractive for agriculture and grazing. Overgrazing by sheep and cattle, the addition of fertilisers to “improve” pastures, and changes to the frequency and extent of fires in the landscape led to a noticeable degradation of Victoria’s native grasslands by the early 20th century.

Since then, habitat loss and degradation from intensive grazing, cropping and – more recently – urbanisation have reduced the native grasslands of the Victorian volcanic plain to less than 1% of their original extent (as documented in the paper titled “Vegetation of the Victorian Volcanic Plain” available here).

Land clearing for urban development continues to pose a major threat to Victoria’s native grasslands. Many remnants exist in and around Melbourne’s key urban growth corridors.

A 15,000-hectare grassland reserve is planned to the west of the city to offset the losses that will occur as Melbourne grows. This is an exciting prospect – such a large reserve would provide an opportunity to showcase this threatened ecosystem on a landscape-wide scale.

But successful implementation of this reserve requires significant investment in restoration and management, and only time will tell whether it truly compensates for the inevitable losses elsewhere.

Saving what remains

A major challenge for the conservation of Victoria’s native grasslands is to maintain the patches that remain. These remnants, nestled in agricultural and urban landscapes, are often small and fragmented, and are subject to threats such as weed invasion and broad-scale use of herbicides and fertilisers.

Without regular fires or some other form of biomass removal, the native grasses grow too big and smother the wildflowers. Over time, grasslands can lose their species diversity, and with it the intricate beauty of their varied wildflowers.

Redreaming the Plain. Digital composite created for Imagine The Future (ITF) Inc. by Csaba Szamosy, 1996, from photographs by James Ross (Victorian National Parks Association), Mike Martin (Victoria University), Tom Wheller (VNPA), Vanessa Craigee (Department of Natural Resources and Environment), John Seebeck (NRE) and Ian McCann (courtesy NRE/McCann Collection), and based on a concept by Merrill Findlay for ITF.

On the face of it, the prognosis for these grasslands does not look great. They are certainly one of Australia’s most endangered ecosystems, and their conservation must necessarily occur alongside human-dominated land uses. This brings social challenges as well as ecological ones.

Native grasslands suffer from a public relations problem. The need for regular fires is not always well aligned with objectives for human land uses. What’s more, all those wildflowers only appear in season, and even then their beauty is only really evident at close quarters.

But grasslands have a few tricks up their sleeves. First, high-quality grasslands can be maintained in relatively small patches. There are some great examples around Melbourne, including the Evans Street Native Grassland, which covers just 4 hectares. But as tiny as they are, these reserves can be just as diverse as larger grassland remnants.

Second, native grasslands can be surprisingly resilient, in both urban and agricultural landscapes. A case in point is the tiny grassland at the Watergardens shopping centre northwest of Melbourne, which has been maintained despite being completely surrounded by a car park. Several high-quality grasslands in pastoral areas have been maintained for decades under grazing at low stocking rates.

Third, native grasslands represent a great opportunity to engage urban residents with nature in cities. Many beautiful remnants exist in some of Melbourne’s newest suburbs. Some already benefit from the efforts of dedicated community groups, while others are still waiting to be discovered.

Grasslands in other parts of the world, such as North America’s prairies or the African savannah, are viewed with romanticism and awe. In the Australian consciousness, grasslands take a back seat to the mythical outback. But the future of the grasslands of southeastern Victoria may well depend on our capacity to generate the same public profile for this truly remarkable but critically endangered ecosystem.

Are you a researcher who studies an iconic Australian ecosystem and would like to give it an EcoCheck? Get in touch.

Georgia Garrard is supported by funding from the National Environmental Science Programme's Threatened Species Recovery Hub.

Sarah Bekessy receives funding from the Australian Research Council and through the National Environment Science Programme's, Threatened Species and Clean Air and Urban Landscapes Hubs.

Tasmania's hydro power is dependent on rains. Dam image from www.shutterstock.com

Fighting climate change will involve massive changes to the way we produce and distribute energy. Those changes are already happening. Several studies have looked at how our energy systems will change as clean energy increases and fossil fuels are replaced.

But climate change must be planned into this transition.

For instance, temperature is a key driver of demand for electricity, and future increases in heatwaves will probably drive higher electricity demand for air conditioners.

So how could future climate changes affect the ability of the system to generate enough electricity?

Climate and energy

Renewable energy technologies are highly dependent on climate-related factors including sunlight, wind speed and water availability. Water is also a key requirement for coal and nuclear power stations. Heatwaves can impact on the capacity of transmission lines to move energy around the national grid.

The changes to climate in Australia resulting from increased greenhouse gas emissions include more extreme heat events, longer and drier droughts, and longer and hotter heatwaves, as well as stronger storms and rainfall events. Shifts in large-scale circulation patterns may have some impact on wind speed but these effects are less clear.

These climate events and trends affect almost all energy generation and distribution systems, and need to be factored into good management. There is a broad range of intersections between the changing climate and the energy systems of the future that need to be considered.

The future is here

The current mix of generation technologies in the energy system is in a state of flux and undergoing relatively rapid change, as renewable energy, particularly wind turbines and rooftop solar, increase. And the changing climate is already affecting the current energy infrastructure.

Recent years have seen several extreme weather events – with a detectable influence from climate change – that have seriously impacted electricity generation in Australia.

Tasmanian hydro dam levels are currently at record lows. With the Basslink connector also out of action, the shortfall in energy generation is being made up through the use of diesel generators.

Much has been made of this situation already, but the lack of rainfall over the past year is consistent with long-term projections for rainfall in southeast Australia.

In 2014, the Hazelwood mine fire was started by bushfire embers in rural Victoria. It burned for 45 days in the wake of a heatwave that brought temperatures not seen since the extreme heat of 2009.

The 2009 heatwaves themselves shut down the Basslink transformer in Georgetown, Tasmania, reducing the electricity available to Victoria and South Australia. At the same time, two transformers in Victoria failed, leading to supply loss that significantly impacted Melbourne and western Victoria.

In Queensland, the 2010-11 floods caused widespread damage to the electricity network. Substations were flooded, high-voltage feeder lines were damaged and, in the Lockyer Valley, much of the electricity infrastructure was destroyed.

The costs of replacing and repairing electricity networks damaged by extreme weather events can be seen as one consequence of our continuing reliance on fossil fuels.

More variable rain and sun

As the climate changes further, electricity networks will have to manage increasingly variable rainfall – less in southeast and southwest Australia and possible increases in the north.

In 2013, Australia had more than 120 operating hydroelectric power stations, with a total generation of almost 20 terawatt-hours (8% of total energy generated).

Most hydro power is produced at dams on Australia’s major river valleys, and only a few of these have been left untouched. As water availability becomes more uncertain, this type of generation is unlikely to expand much further.

Australia has the highest average solar radiation per square metre of any continent in the world. More than five gigawatts of solar photovolaic panels have been installed, both on rooftops and more recently as large-scale installations.

These panels are prone to extreme weather events, such as hail. Events such as Melbourne’s 2010 storm and Perth’s freak storm the same year could dramatically impact a high-penetration renewable energy system.

Similarly, plans for large-scale solar plants that create steam to drive turbines should take changes to rainfall and available water resources into consideration at the planning stage. Solar radiation is affected by El Niño, with up to 10% less radiation available during La Niña conditions.

Other areas of generation (such as wind, ocean and bioenergy) may also be affected by climate change, as circulation changes result in shifts in wind fields and precipitation patterns (affecting biofuel crop yields).

The likely effects of these changes are much harder to project, but the potential for reduced output needs to be taken into consideration when making plans for future energy systems.

Roger Dargaville receives funding from the Australian Renewable Energy Agency (ARENA).

Jane Mullett receives funding from the Cooperative Research Centre for Contamination Assessment and Remediation of the Environment (CRC-CARE).

The Australian Heritage Council is assessing the Tjoritja/West MacDonnell National Park (including the adjacent Standley Chasm) for potential inclusion on the National Heritage List. Comments close 20 June 2016.

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Some 40 Bruny Island households are to be transformed into ‘mini-power stations’ as they trial Reposit Power’s software and solar storage

There are more than 1.5m households in Australia with rooftop solar. And in a few months time, 40 Tasmanian homeswill be acting as mini power stations – not just producing energy for their own consumption and to export back into the grid, but actively trading and profiting from the power they generate.

Much has been written about rooftop solar and the impending boom in battery storage but the key ingredient to turning homes into mini-power stations is the software that links the hardware of these technologies. Now the Canberra-based startup Reposit Power is helping to change the way households and energy companies think about solar and storage.

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As we predicted last year, the background atmospheric carbon dioxide levels measured at Cape Grim on Tasmania’s northwest coast have officially passed the 400 parts per million (ppm) mark. Our measurements, compiled by our team at CSIRO together with the Bureau of Meteorology, show that the milestone was reached on May 10.

In the past few days, the 400 ppm level has also been breached in Antarctica, where CSIRO’s measurements at Casey Station show the 400 ppm level was exceeded on May 14.

Together, these measurements show that the atmospheric CO₂ concentration of the entire southern hemisphere is now at or above 400 ppm. It is unlikely to dip back below this level for many decades to come.

Cape Grim’s carbon dioxide record shows that background levels have now exceeded 400 parts per million.

The threshold was reached earlier than we and our colleagues had anticipated, as a result of a recent, strong increase in the growth rate of atmospheric CO₂. This was probably driven by increased emissions from fossil fuels, as well the impact of the recent strong El Niño, which reduced the capacity of natural systems such as oceans and plants to absorb CO₂.

Southern hemisphere lag

CO₂ concentrations over the southern hemisphere are trailing those in the planet’s northern half, where 400 ppm level was breached in 2014-15. The northern hemisphere’s carbon dioxide levels are higher because most CO₂ sources (such as vegetation and fossil-fuel-burning installations) are mainly found in the north, whereas CO₂ “sinks” such as oceans are predominantly in the southern hemisphere.

The northern hemisphere’s CO₂ levels also show a much stronger seasonal variation. Ironically, the only place on Earth where baseline levels of CO₂ are likely to stay under 400 ppm for the next few years is the high Arctic, where the extreme summer carbon dioxide minimum will likely result in sub-400 ppm averages for 2017 and 2018.

After that, however the world’s background levels of CO₂ are unlikely to fall back below 400 ppm for many decades – perhaps a century or more – depending on the success of humankind’s efforts to reduce emissions.

What does 400 ppm really mean?

The 400 ppm level of atmospheric CO₂ is largely symbolic. The real concern is the current rate at which this figure is increasing: roughly 3 ppm per year. If this were to continue for another two decades, we would pass 450 ppm of CO₂. Once that level is reached, the levels of all greenhouse gases put together (carbon dioxide, methane, nitrous oxide and synthetic greenhouse gases) would add up to the equivalent of about 550 ppm of CO₂.

This is the level at which average global temperatures would be likely to reach 2℃ above pre-industrial levels in the decades thereafter (given the time lag between atmospheric CO₂ and its global warming impact).

This is the amount of global warming that the Paris Agreement is designed to avoid – indeed, the agreement calls for temperatures to be held well below this level.

It is clear that strong, worldwide initiatives aimed at curbing carbon dioxide emissions are needed now if we are to avoid the most dangerous predicted effects of climate change.

A relentless trend

Atmospheric CO₂ has been increasing relentlessly over the past 200 years or so, as can be seen in the chart below. Air and ice measurements allow us to trace the dramatic rise in CO₂ levels from about 280 ppm, before the start of the industrial era around the year 1800, to the current level above 400 ppm.

Ice core measurements show the rise of carbon dioxide since 1800, combined with Cape Grim measurements starting in 1976. CSIRO

That is an increase of 43% in scarcely more than two centuries, largely as a result of human activities. The time to start reversing that trend is now.

Paul Krummel receives funding from MIT, NASA, Australian Bureau of Meteorology, Department of the Environment, & Refrigerant Reclaim Australia.

Paul Fraser has received funding from MIT, NASA, Australian Bureau of Meteorology, Department of the Environment, & Refrigerant Reclaim Australia.

Chemical used in Monsanto’s Roundup weedkiller ‘unlikely to pose carcinogenic risk from exposure through diet’

Glyphosate, the key ingredient in Monsanto’s Roundup weedkiller brand, has been given a clean bill of health by the UN’s joint meeting on pesticides residues (JMPR), two days before a crunch EU vote on whether to relicense it.

The co-analysis by the UN’s Food and Agriculture Organisation (FAO) and World Health Organisation found that the chemical was “unlikely to pose a carcinogenic risk to humans from exposure through the diet”.

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Unpublished report found four-fifths of the 433 London primary schools in areas breaching EU limits for NO2 were deprived

An air quality report that was not published by Boris Johnson while he was mayor of London demonstrates that 433 schools in the capital are located in areas that exceed EU limits for nitrogen dioxide pollution – and that four-fifths of those are in deprived areas.

The report, Analysing Air Pollution Exposure in London, said that in 2010, 433 of the city’s 1,777 primary schools were in areas where pollution breached the EU limits for NO2. Of those, 83% were considered deprived schools, with more than 40% of pupils on free school meals.

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Ornithologists hope for glimpse of species reported to have been seen in Wales and west country

A spectacular bearded vulture, believed to be the first recorded in the UK, has been spotted soaring over the Severn estuary and moorland in Devon.

If it is confirmed that the vulture, also known as the lammergeier or ossifrage, is a wild bird, it will be the first of its species to be found in Britain and the sightings have already caused ornithologists to rush to the west country hoping for a glimpse.

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Statoil granted seabed lease to develop floating windfarm 15 miles off the coast of Peterhead that is expected to be operational by the end of 2017

The world’s largest floating windfarm is set to be built off the coast of Scotland after its developers were granted a seabed lease on Monday.

Statoil, the Norwegian energy company, expects to have five 6MW turbines bobbing in the North Sea and generating electricity by the end of 2017. The company has already operated a single turbine off Norway.

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The effects from riding four 'gyroscopes'

Smart leak detection and reusing stormwater to reduce urban heat are discussed at this year’s OzWater as cities prepare for climate change

For the international water industry delegates descending upon Melbourne last week, in the leadup to OzWater 16, it must have seemed they had arrived in the wrong place.

The torrential rain and flash floods inundating the city appeared at odds with Australia’s billing as the driest inhabited continent in the world, and certainly made for an unlikely setting to host a conference focusing on sustainability in a future of increasingly scarce water supplies.

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Frustrated by simplistic portrayals of poaching, photographer Benjamin Rutherford has documented the complex and violent trade in his new project, Nyama

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Delegates will meet at the World Conference Centre in Bonn. Qualle/Wikimedia Commons, CC BY-SA

The dust has long settled from December’s Paris climate summit, which hammered out the first truly global deal to reduce emissions. But the negotiations ended with widespread acknowledgement that the deal needs significant strengthening if its overall goal of keeping warming well below 2℃ is to be met.

The Paris Agreement therefore requires countries to ramp up their efforts significantly over the coming years and decades.

That job arguably begins today, with the opening of an 11-day meeting in Bonn, Germany, featuring the first session of the Ad Hoc Working Group on the Paris Agreement (APA).

The APA functions rather like a much more modest version of the Paris conference. Parties to the Paris Agreement send delegations, and small groups can be tasked with resolving specific issues before reporting back to the larger group for decision-making.

Among the most important items on the meeting’s agenda is the Global Stocktake to assess overall progress towards fulfilling the Paris Agreement’s goals. This stocktake will kickstart the process of five-yearly reviews to strengthen the Paris Agreement, the first of which will happen in 2023.

A new approach

The Paris Agreement sets down a new model for confronting global warming. Unlike the Kyoto Protocol, which imposed emissions targets on each country in a “top-down” way, the Paris process allowed countries to pledge their own climate targets.

This approach has been credited for the Paris negotiations' success, in contrast with previous talks which descended into recriminations over the burden that each country should bear.

But one obvious weakness of the new model is that the countries' voluntary commitments will not deliver anything like the necessary emissions reductions to prevent dangerous warming.

The five-yearly review mechanism thus aims to ensure that nations ramp up their commitments in coming years.

The question of fairness

As the Paris regime’s core review mechanism, the Global Stocktake will consider many aspects of the parties’ collective progress. While it will focus mainly on practical and scientific issues, the Paris Agreement also requires it to assess the collective progress “in the light of equity”.

In international climate negotiations, “equity” refers to an array of moral principles developed by the parties since 1992. These principles flesh out ethical priorities, such as ensuring the sustainable development of poorer countries.

They also inform burden-sharing decisions – for example, requiring countries that are more able to fight climate change, or that bear greater historical responsibility for it, to shoulder more of the burden.

As such, those five short words – “in the light of equity” – are arguably the first ever attempt to formalise the idea of countries doing their fair share when considering their contribution to the global fight against climate change.

What will the meeting achieve?

It is too early to know exactly how the APA will implement its mandate. However, in order to cover equity appropriately, the stocktake will need to include an official consideration of how well each country’s climate efforts accord with the Paris goals and principles. This means considering two key questions:

• Is each country doing what it promised?

• Is it promising enough?

This is not what normally happens when parties discuss ethics and fairness. Because the climate negotiations have had no principled system of moral evaluation and deliberation, countries can make implausible and inconsistent ethical claims as they defend climate targets that were actually chosen on the basis of national self-interest.

In the ideal case, the stocktake will encourage countries' delegates to talk in a reasonable and structured way about the ethical principles that inform their national climate targets. It will hopefully prompt them to be clearer about what principles they think are important, and how those principles justify their contribution.

As well as encouraging laggards to lift their game, the stocktake could clarify the application of specific equity principles. This could lead to improved overall ambition, more fairness in burden-sharing, and a greater shared belief in the regime’s legitimacy. Indeed, the process leading up to the stocktake can itself realise important procedural values, such as inclusiveness, reciprocity and deliberation.

In time, the process may prove to be an essential part of a functioning Paris regime.

What could possibly go wrong?

Opening up an official space for moral appraisals offers perils as well as promises. We must bear in mind that the Kyoto model failed precisely because it proved impossible to get consensus on questions of burden-sharing. An equity-based review might just reignite these past disagreements.

Indeed, any appeal to ethics carries some risks. Sometimes it’s better to speak of collective risk reduction rather than taking an adversarial position of preaching, lecturing or blaming others.

Despite these dangers, the Paris model desperately needs a principled mechanism for reviewing national climate targets so as to scale up the overall level of ambition to what’s needed globally.

The task is not impossible. The drafting of the Universal Declaration of Human Rights shows that, with clear structures and strong leadership, constructive international moral deliberation is possible.

Crucially, the stocktake will not need to take a single authoritative position on what equity requires. It can still drive improved ambition even if it allows coutries substantial flexibility in how they understand and apply equity principles.

While 2023 may seem a long way off, if the APA wants to ensure a constructive process, it will need to start laying the groundwork soon. It can start engaging states on equity issues in small meetings at the upcoming annual climate summits, starting with this year’s talks in Marrakech, or more formally at the Facilitative Dialogue scheduled for 2018.

After all, any assessment of this type does its best work long before it happens. In signalling that an ethical reckoning is on the horizon, it can encourage countries to start seriously considering whether their current commitments are fair, and what they could do better.

Hugh Breakey receives funding from the Australian Research Council for the Discovery Grant 'Towards Global Carbon Integrity' (DP140101897)

This summer, bushfires ravaged thousands of hectares of world heritage forest in Tasmania. Ancient species are in grave danger. We go to visit the firefields.

• 23-year-old bitten by 2ft nurse shark which refuses to let go
• Ocean Rescue captain: ‘I have never seen anything like it’

News reports on Sunday said a 23-year-old woman was bitten by a small nurse shark in Boca Raton.

The South Florida Sun-Sentinel reported that the woman was taken to the hospital by ambulance with the 2ft shark still attached to her arm.

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The sea lamprey, Petromyzon marinus, is most likely to be seen in British rivers at this time of year as the adults swim upstream to spawn.

They are remarkable creatures but good looks are not one of their attributes. They resemble an eel and have a permanently open mouth with a great number of teeth. They also have some nasty parasitic habits.

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• Two dogs were killed and several people stung in Concord
  
• ‘They were all over my hair – I had to shake it out,’ says resident
  

A bee expert says a northern California neighborhood overtaken by a swarm of aggressive bees, which are suspected of killing two dogs and stinging several people, is considerably safer after the insects made it back to their cluster.

“These bees are a little off the wall. We’ve been having Africanized bees moving into California for quite a few years up from South America,” Norm Lott, of the Mount Diablo Beekeepers Association, told local KGO News.

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Energy efficiency projects could receive more subsidies if Direct Action is continued. David González Romero/Flickr, CC BY

Direct Action is the centrepiece of Australia’s current greenhouse gas reduction efforts. To date, A$1.7 billion in subsidies has been committed from the government’s Emissions Reduction Fund to projects offering to reduce emissions.

The scheme replaced Australia’s two-year-old carbon price in 2014 and is a key part of the government’s plan to reduce emissions by 5% below 2000 levels by 2020, and 26–28% below 2005 levels by 2030.

Environment Minister Greg Hunt has called Direct Action a “stunning success” and “one of the most effective systems in the world for significantly reducing emissions”.

In a new article in Economic Papers, I look into the economics of Direct Action and how it is working. I conclude that the scheme is exposed to funding projects that would have happened without government funding.

This issue has long been known as a threat to schemes of this type, and means that the scheme is likely to be less useful in reducing emissions than the government is claiming.

Commonwealth Procurement Rules require value for money in government purchases. It is not clear we are getting that with Direct Action.

Information problems

The key challenge for schemes like Direct Action is information. What exactly is the scheme buying, and would that have happened without it?

Direct Action works by inviting voluntary project proposals and then allocating funds to the lowest bidders in reverse auctions.

Unfortunately, projects that would have gone ahead even without a subsidy – call them “anyway projects” – have a cost advantage that makes them well placed to win the auctions. It is often difficult for the government to identify such projects. When projects of this type receive funding, taxpayers’ money is being used ineffectively.

Economists call this adverse selection, or the “lemons problem”.

All about that baseline

The government has developed a set of methods for defining projects and measuring the emission reductions provided by each project against estimated baselines. It is an economy-wide scheme, and there are methods covering everything from energy efficiency to aviation.

As is, the methods leave opportunities for anyway projects to qualify. The Emission Reduction Fund White Paper states that a “flexible approach” is being pursued so as to encourage participation.

One rule is that projects be new. But across the Australian economy, new projects are launched every year. Some happen to reduce emissions. These projects are being attracted into the Direct Action auctions.

Carry-overs from the former Carbon Farming Initiative have also been allowed to side-step the newness requirement.

The experience so far

Three Direct Action auctions have been held to date, with the most recent in late April 2016.

Some of the funded projects are likely to be providing genuine reductions in emissions. Unfortunately, however, some project categories are rather questionable.

Landfill operators have been awarded Direct Action subsidies in each of the auctions. Their projects are often already generating revenues from electricity sales and renewable energy certificates.

Other projects to win subsidies include upgrades to lighting in supermarkets and to the fuel efficiency of vehicles. These are activities that are supposed to happen anyway.

The biggest winner to date has been vegetation projects. Among these are projects to reduce tree clearing, including of invasive native species near Cobar and Bourke in New South Wales. The large payments for these projects are likely to have preserved some vegetation. But some farmers appear to have not actually been planning to clear. If so, funding is going to anyway projects.

Projects potentially in line for the next auction include boiler upgrades and modifications to aircraft. If Direct Action were to continue for years to come, the bill could become very big.

Journalists such as Lenore Taylor and Tristan Edis are among those who have raised concerns about the quality of Direct Action projects. The government has yet to properly engage with this issue.

This problem could be avoided

There are far better policy approaches than Direct Action subsidies.

A key advantage of either an emissions tax or an emissions trading scheme is that the government does not need to evaluate individual projects from covered enterprises.

These schemes instead introduce a price per unit of emissions and leave the private sector to decide which projects to implement. Large emitters are already required to report their emissions, so implementation is comparatively straightforward. Any revenue raised could be used to reduce other taxes or Australia’s budget deficit.

Regulations could also be put to more use. Strengthened restrictions on vegetation clearing and on the release of coal mine gas are examples.

Eligibility to generate offset credits should be tightened to cover only credibly genuine emission reductions that are difficult to achieve using other policies. Some carbon farming activities can meet this criterion, and could generate revenue from private-sector buyers. Public expenditure on new offset projects could be ended.

Better off going back to what was working

There are many other downsides to Direct Action. These include its administrative complexity, the issue of emissions reappearing elsewhere in the economy, and the subsidy culture it inculcates.

The scheme is yet to induce emissions reductions in key sectors of the economy. Emissions from electricity generation are rising again.

Australia has a big challenge ahead in decarbonising our economy. There are many opportunities, but we need to get our policy settings right. It would be better to move on from Direct Action subsidies. An approach centred on pricing emissions makes more sense.

An open-access version of Paul’s paper can be downloaded here.

Paul Burke does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.