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Climate change and drought policy in Victoria: context and recommendations for VCOSS December 2007 Jess Fritze Climate change and drought policy officer Patron Governor of Victoria Level 8, 128 Exhibition St Melbourne Vic 3000 Phone (03) 9654 5050 Fax (03) 9654 5749 www.vcoss.org.au [email protected] ACN 005 014 988 ABN 23 005 014 988 Contents Executive summary ................................................................................................... 4 1. Introduction ......................................................................................................... 6 2. Climate change and drought in Victoria: expected impacts on low income households .............................................................................................................. 6 2.1 Hot days and heat waves ........................................................................... 7 2.2 Air quality ................................................................................................. 8 2.3 Extreme weather events ............................................................................ 8 2.4 Drought and water availability ..................................................................... 9 2.5 Increased cost of essential goods and services: food, utilities and transport .. 10 3. Climate change policy context and emerging policy debates....................... 11 3.1 Federal climate change policy overview ..................................................... 11 3.1.1 Engagement with international climate change policy frameworks .......... 11 3.1.2 National emission reduction targets ........................................................ 11 3.1.3 Efficiency and emissions reduction ......................................................... 12 3.1.4 Alternative energy ................................................................................... 12 3.1.5 Adaptation .............................................................................................. 12 3.2 Victorian climate change policy ................................................................. 13 3.2.1 Emissions reduction and low emissions technology ................................ 13 3.2.2 Energy efficiency .................................................................................... 13 3.2.3 Adaptation .............................................................................................. 14 3.3 Strategic climate change policy development and research ......................... 14 3.4 Climate change policy issues and debates ................................................. 15 3.4.1 Utilities: pricing, efficiency and water shortage ........................................ 15 Utilities pricing ............................................................................................. 15 Efficiency ..................................................................................................... 16 Domestic water availability ........................................................................... 17 3.4.2 Health and wellbeing .............................................................................. 18 Heat waves .................................................................................................. 18 Air quality ..................................................................................................... 18 Food costs ................................................................................................... 18 3.4.3 Housing: the built environment and insurance ........................................ 19 3.4.5 Climate related rural adjustment ............................................................. 19 2 4. Drought policy responses and policy debates................................................ 20 4.1 Federal drought policy overview................................................................ 21 4.2 Victorian drought policy overview .............................................................. 21 4.3 Emerging drought policy issues and debates in Victoria .............................. 22 4.3.1 Strengthening and supporting rural communities .................................... 22 4.3.2 Education and training ............................................................................ 23 4.3.3 Health ..................................................................................................... 23 5. Role for VCOSS ................................................................................................. 24 5.1 Impact of drought and climate change on community service delivery .......... 24 5.2 Supporting community sector sustainability ................................................ 26 5.3 Supporting inclusive and equitable climate change policy and research ........ 25 5.4 Climate change, drought and equity cross sector advocacy ......................... 24 5.5 Proposed priority policy areas for VCOSS.................................................. 24 6. Recommendations ............................................................................................ 27 6.1 Organisational recommendations .............................................................. 27 6.2 Recommended policy positions ................................................................ 28 Glossary .................................................................................................................. 30 3 Executive summary Climate change has long been recognised as a social justice issue at a global level. Concerns about intergenerational equity and distribution of responsibility and vulnerability between developed and developing countries has been prominent in the development of international responses. However, interest in the social and equity implications of climate change within Australia has only recently emerged. The weight of scientific evidence now confirms that to avert dangerous climate change, global greenhouse gas emissions will need to reduce by 60 – 80 per cent over the next 45 years. Given the entrenched dependence of the Australian economy on the use of cheap fossil fuels, this will lead to significant social and economic changes. Even if greenhouse gas emissions can be drastically reduced, some degree of climate change is now inevitable. In Victoria this is predicted to lead to higher temperatures, more frequent heat waves, greater frequency of extreme weather events and, most significantly, reduced rainfall and inflows into river systems and increased incidence and severity of drought. If greenhouse gas emissions are not stabilised and reduced, these impacts are predicted to be more severe. Currently, drought in Australia is largely treated as a business management issue, moving into emergency response in periods of ‘exceptional circumstances’ which are deemed to be ‘once in a generation’ climate events. As climate change reduces water availability and Australia experiences more frequent and extreme droughts, this policy model will become increasingly unsustainable. This will also have serious social and economic ramifications for climate vulnerable rural and regional communities. Low income and disadvantaged groups are particularly vulnerable to many of the impacts of climate change and drought. The most significant areas of impact in Victoria include: higher temperatures and longer and more frequent heat waves; economic and social impacts of drought; increased costs for essential goods and services; and damage to housing and the built environment. The equity and social issues associated with climate change and drought are only recently being identified in research and policy development. This is reflected at both federal and state level in a greater focus on climate change adaptation. As a consequence of these pressures on low income households, there are a number of policy areas in which VCOSS could usefully intervene. The most significant of these are: energy and water pricing and household efficiency; heat waves and health inequalities; responses to increased food costs; domestic water security; social and economic support policies associated with drought; and housing standards and insurance. 4 The community sector is already significantly affected by drought and will increasingly be affected by other climate change impacts and policies. The community sector also has a responsibility, as a social justice imperative, to reduce its environmental impact. VCOSS has an important and widely recognised role in leading policy, advocacy and community sector development in these areas. It is recommended that VCOSS: 1. Work to minimise the impacts of climate change and drought on low income and disadvantaged households by engaging in climate change and drought policy development and advocacy. This could be achieved by: a. incorporating consultation, advocacy and policy development around social and equity implications of climate change (including drought) into existing VCOSS policy areas, specifically; utilities, emergency relief, housing, health and transport; and b. coordinating cross sectoral advocacy and policy development around the social and equity implications of drought and climate change. 2. Build on existing research and government networks to promote a focus on social and equity issues in emerging climate change research agendas. 3. Incorporate environmental sustainability for the community sector into VCOSS community sector development work. This could include: a. promoting environmental best practice; b. distributing information about environmental programs and funding opportunities; c. coordinating information sharing on environmental strategies; d. investigating bulk purchase opportunities for more sustainable products; and e. investigating the more effective use of technology (e.g. video conferencing) to reduce travel. 5 1. Introduction Our current social and economic systems are built on unlimited use of cheap fossil fuels, the main cause of anthropogenic climate change. Our heating and cooling, personal transport and movement of goods, the way we light our homes and produce the goods and services we have come to take for granted, to a large extent depend on energy use systems which are unsustainable. A 2°C increase in average global temperatures is generally accepted as the threshold beyond which dangerous climate change will occur. To avoid warming of this scale is estimated to require a reduction in greenhouse gas emissions of 60 – 85 per cent below 2000 levels by 2050.1 However, if these reductions are distributed more equitably between developed and developing countries, Australia would need to reduce our greenhouse gas emissions by upwards of 80 per cent by 2050. In real terms (excluding emissions savings from land use changes), Australia’s greenhouse gas emissions have already grown by over 30 per cent since 1990.2 Reducing our use of fossil fuels in energy and transport, which together account for about 64 per cent of our greenhouse gas emissions, presents an enormous challenge, especially given the urgency of the task.3 2. Climate change and drought in Victoria: expected impacts on low income households The existing elevated concentrations of atmospheric greenhouse gases and their long life span mean that some climate change will now inevitably occur, regardless of actions taken to reduce emissions. However, the severity of climate change impacts and speed at which they occur will be largely determined by the rate at which greenhouse gas emissions build up in the atmosphere. Reducing greenhouse gas emissions remains critical to preventing dangerous climate change. The Victorian Government uses Commonwealth Scientific and Industry Research Organisation (CSIRO) projections as a basis for climate change policy. CSIRO predictions for the impact of climate change on Victoria can be summarised as: temperature increase of 0.8 to 5.0C in northern Victoria and 0.6 to 4.0C in the south of the state by 2070 (from 1990 temperatures) with more frequent extremely hot days and heat spells; longer bush fire seasons and potentially more serious fires; reduced rainfall in the range of -15 per cent to +2 per cent in the north and 10 per cent to + 2 per cent in the south; increased solar radiation due to reduced cloud cover; greater incidence of drought and greater evaporation leading to reduced runoff into water catchments; increased frequency of flooding in some areas; coastal erosion and increased storm surges; and less snow fall over the alps4. Australia is likely to be more negatively affected than any other developed country by climate change, due to our already highly variable and dry climate and our proximity 6 to climate vulnerable developing countries in the Pacific and south east Asia.5 Some more extreme climate impacts around the world such as increased frequency of hurricanes, inundation of low lying coastal areas and spread of vector borne diseases away from the tropics are more likely to impact on tropical and sub-tropical areas.6 These impacts may have flow on effects to Victoria in terms of climate refugees, disruptions to imported foods and greater financial impacts of climate change at the federal level. Various frameworks have been developed to conceptualise climate change vulnerability. The model below suggests that vulnerability, whether to climate change (or climate change policy), is a combination of level of exposure combined with the impact of this exposure, and that this risk can be mitigated by adaptive capacity. Low income and disadvantaged groups have enhanced risk on all these dimensions. Source: Allen Consulting Group, Climate change risk and vulnerability: promoting an efficient adaptation response in Australia, Australian Greenhouse Office, Department of Environment and Heritage, 2005, ix. Using this framework it is evident that the effects of climate change and drought on low income and disadvantaged Victorians will be both direct and indirect. Direct effects include exposure to high temperatures, extreme weather events, bushfires and lack of water. Indirect effects include price rises, social impacts and changes in the availability and distribution of employment. 2.1 Hot days and heat waves Increasingly hot summers with more hot days and longer, more frequent and more extreme heat waves are likely to lead to significant health impacts. The elderly, infants and young children and people with chronic health conditions are particularly vulnerable to the effects of high temperatures.7 People living in isolation without the benefits of social networks to assist with outdoor tasks, such as shopping, are especially at risk. Heat impacts will be most severe in the north of the state, however, urban areas are also problematic as buildings, roads and lack of cooling green space create ‘heat islands’ and further increase temperatures.8 The potentially devastating impact of heat waves was experienced in Europe where between 22,000 and 35,000 deaths occurred that were directly attributable to high temperatures during the 2003 heat wave.9 In Victoria, heat related deaths are 7 predicted to rise from 582 per year at present, to up to 604 per year by 2020, and up to 1,318 per year by 2050 as temperatures increase.10 Low income and disadvantaged groups are less likely to have access to air conditioning and will have less capacity to ‘climate proof’ their homes by installing insulation, shading and cooling systems making them more vulnerable to heat related illness and even death.11 This is especially true for low income people living in rental properties, temporary accommodation or low cost housing options such as caravans. 2.2 Air quality Air quality in both rural and urban Victoria is likely to decrease due to climate change effects. Both airborne dust from drought affected areas and smoke from bushfires increase particulate air pollution which can trigger and exacerbate respiratory illnesses such as asthma.12 There is also evidence that higher temperatures may increase the formation of ozone from photochemical smog at ground level.13 Air quality is generally worse in low socio-economic areas due to greater concentrations of heavy industry and associated commercial freight routes.14 In addition, low income and disadvantaged people are more likely to have pre-existing vulnerabilities to poor air quality such as respiratory conditions. 2.3 Extreme weather events The last five years have seen some of the most severe bushfire seasons on record, as well as severe flooding in Gippsland. Losses of personal property, damage to farms and rural businesses have had a direct impact on the local economy in affected areas, resulting in less employment opportunities particularly for unskilled or younger workers who would usually engage in seasonal agricultural and tourism work.15 As the frequency and intensity of bushfires increase due to climate change, individuals and rural communities will be subjected to increased risk and reduced recovery periods. Extreme weather events of all types also have a significant social impact in terms of stress, trauma, grief and loss. These impacts can be compounded by the duration and re-occurring nature of these events.16 Increased frequency and severity of extreme weather events will also increase the pressure on Victoria’s emergency response system which depends to a large extent on volunteers.17 The built environment is particularly vulnerable to the effects of climate change, especially extreme weather events resulting in loss or damage to homes, property, community facilities and major infrastructure.18 Damage to communications, water and energy delivery systems is predicted to contribute to increased utilities costs. Damage from floods and fire can be devastating in both the short and long term as people need to find alternative accommodation, deal with losses of personal possessions and rebuild their communities and risk losing the accumulated capital tied up in the family home. The risks from these forms of damage are likely to be much greater for low income and disadvantaged households, as many are uninsured or underinsured and have limited financial resources to recover from these events. 19 The issues for low income households in fire or flood prone regions will be exacerbated as the impacts of climate change become better understood, and the value of properties in these areas decreases relative to other areas, making it more 8 difficult to relocate. It is predicted that the effects of climate change will lead to greater instability and vulnerability within the insurance sector and: …increased premiums, altered product offerings and more stringent eligibility requirements expected to be part of an insurance future driven by predictive modelling rather than historical analysis.20 Extreme weather events will also impact on the planning and maintenance of major infrastructure community facilities. Low income households will be particularly affected by damage to community facilities, such as sporting grounds, community health centres, maternal child health centres, childcare centres, neighbourhood houses, and community centres as they are least likely to be able to afford private sector alternatives. 2.4 Drought and water availability Drought is a current crisis in extensive areas of Victoria. Approaching the summer of 2007-08, many Victorian agricultural communities are facing even more severe drought impacts. Victoria’s major grain crops are predicted to fail in many areas of the state resulting in increases to food costs and huge financial impacts on many farming communities. The resulting high price of stock feed may mean that some farmers will be unable to afford to maintain their livestock.21 With extremely low water allocation due to the lowest inflows to Victorian river systems on record, much of Victoria’s irrigated agriculture is now under threat, especially permanent fruit tree and vine plantings in the Murray and Goulburn irrigation districts in the north of the state.22 This situation comes after prolonged drought conditions across most of Victoria which have weakened many agricultural communities’ capacity to respond to the current crisis. Drought has profound social and economic impacts in rural and regional communities. In particular, large sections of the rural population become low income, though remaining asset rich, as farming businesses cease earning income and accumulate debt. Farming families who do not identify as ‘low income’ or ‘welfare recipients’ increasingly need to access financial and social support services through Centrelink, emergency relief providers and health services.23 Social impacts of drought can be hard to isolate from broader trends associated with rural adjustment, such as population decreases, trends towards larger farms, centralisation of services and the aging of the rural population.24 These trends are documented in influential work by Neil Barr at the Department of Primary Industries (DPI).25 The mental health impacts of drought combined with existing rural adjustment trends can be profound. The stress and uncertainty of drought conditions, and the emotional impact of crop and stock losses lead to increased levels of depression and anxiety for farmers, their families and indeed, whole communities.26 Education pathways for young people may be disrupted as they are needed to work longer hours on farms or earn income to support themselves and their families. There is some evidence that rural young people in drought affected areas may also constrain or delay their tertiary education in response to economic hardship caused by drought.27 9 Lack of water availability for domestic use such as washing, cooking and drinking heavily impacts on low income households who are not on the reticulated water system, as the costs of water cartage can be prohibitive.28 While the focus of public and political attention during droughts is on farmers, drought affects entire communities. Lower farm incomes translate into less spending in rural businesses. 2.5 Increased cost of essential goods and services: food, utilities and transport Climate change and drought will have a significant impact on the cost of food, especially if agricultural adjustment to new climate conditions is slow. Already in Victoria, food prices are expected to increase because of drought conditions.29 High grain and fodder prices flow through to meat prices as the cost of feeding livestock increases. The drought has reduced dairy output and many horticultural products such as fruit will have to be imported as irrigated agriculture is further compromised by lack of water.30 Extreme weather events such as storms, fires and flooding can also cause damage to food crops and kill or injure stock leading to higher food prices. More distant climate related disruptions to Victoria’s food supply chain can also impact on local food prices, as witnessed by the impact of Cyclone Larry on banana prices. Low income households spend a disproportionate percentage of their income on basic items such as food. Cost increases in these basic commodities, especially in the context of high housing costs, will contribute further to financial hardship. In addition, climate change has implications for health inequalities as the highest price rises are expected to occur on fresh fruit, vegetables, diary and meat products, potentially further reducing access to healthy food options for low income households.31 Utilities and petrol costs are likely to increase both due to the impacts of climate change and, potentially, emissions reduction policies such as carbon pricing. A CSIRO report released in March 2007 outlines the vulnerability of Victoria’s major infrastructure such as water, power and communications delivery systems to climate change impacts. The report also suggested that the increased costs of repairing and maintaining this infrastructure would likely be passed on to utilities consumers, subject to regulation by the Essential Services Commission (ESC).32 The lack of water within catchments and the need for greater investment in water infrastructure and processing facilities has already put upward pressure on water prices.33 Climate change policies such as carbon pricing also have the potential to increase energy costs. Increased costs to energy producers from emissions pricing and investment in emissions reducing technology could be passed on to consumers. The embedded increased cost of energy would also potentially impact on the price of goods and services.34 Depending on the extent of an emissions trading scheme, transport fuel prices may also increase with a price on carbon. Low income families in areas with poor public transport already spend a significant proportion of their income on transport and may 10 have difficulty affording increased petrol costs.35 Rural households are additionally vulnerable to high petrol costs due to the increased centralisation of services. As the political pressure to reduce greenhouse gas emissions increases, other market mechanisms which may have unintended equity implications, such as road pricing, may also impact on low income and disadvantaged groups. 3. Climate change policy context and emerging policy debates There is some duplication of state and federal climate change policy areas due in part to past inaction at the federal level and to very different historic interpretations of the urgency of the issue. Currently, market mechanisms and voluntary engagement with emissions reduction programs are generally favoured at both levels of government. Given the global nature of the climate change challenge, major climate change mitigation policies will be most effective if they are at the national and international level. State and local governments are seen as best placed to be responsible for the development and implementation of adaptation policies and regional or community level initiatives as well as behaviour change policies. New policies to address climate change are put in place at the federal level, such as emission trading, efficiency and renewable energy targets, are likely to override existing state based policies. With the recent election of the federal Labor government in November 2007, climate change policy at the federal level is likely to change substantially. At this point, the new Labor Government’s direction on climate change has been indicated by their pre-election policy statements and high level participation in the United Nations Climate Change Conference in Bali in December 2007. 3.1 Federal climate change policy overview In 1998, the Coalition Federal Government established the Australia Greenhouse Office (AGO). The AGO has since been incorporated into the federal Department of Environment and Water Resources. The AGO is responsible for most federal climate change programs including emissions monitoring and reporting required under the United Nations Framework Convention on Climate Change (UNFCCC). 3.1.1 Engagement with international climate change policy frameworks Australia is a party to the UNFCCC which outlines the principles and directions of international action on climate change. Following a long period of disengagement, Australia has now ratified the Kyoto Protocol (which is under the UNFCCC). Under the Kyoto Protocol, Australia negotiated to increase emissions by 8 per cent from 1990 levels by 2012. This is in contrast to most developed countries which negotiated emissions reduction targets. Australia also argued for the inclusion of changes to land clearing practices in emissions calculations. If land clearing changes are excluded from emissions calculations, Australia’s emissions have grown by over 30 per cent from 1990 levels.36 3.1.2 National emission reduction targets Under the UNFCCC, Australia is required to report annually on levels of greenhouse gas emissions. 11 The Coalition Federal Government consistently argued that regulating to reduce emissions or setting an emissions reduction target was not in the national interest, and would harm the Australian economy due to our dependence on fossil fuels both for domestic consumption and as a significant proportion of our exports.37 Subsequently, the Coalition favoured voluntary emissions intensity targets negotiated outside the United Nations framework.38 Currently, the Coalition opposition under Brendan Nelson has endorsed the ratification of the Kyoto protocol.39 The Labor Federal Government has a policy of a 60 per cent greenhouse gas emissions reduction by 2050 from 2000 levels, which is in line with several state targets, including that of Victoria. Prime Minister Rudd has announced that short term emissions reductions targets will be established based on the findings of the Garnaut review (see section 3.3).40 3.1.3 Efficiency and emissions reduction Federal efficiency and emissions reduction policies have largely focussed on voluntary programs to engage industry in climate change auditing and emissions reduction initiatives. The Coalition Federal Government initially opposed the introduction of a national emissions trading scheme in Australia. In response, the States and Territories formed the National Emissions Trading Taskforce (NETT) in 2004. The NETT undertook consultation and developed an emissions trading discussion paper which was released in August 2006. Subsequently, the Federal Government set up the Prime Minister’s Task Group on Emissions Trading. On the recommendation of this group, Coalition policy is now to introduce a national emissions trading scheme by 2012.41 The Federal Labor Government plans to introduce an emissions trading scheme by 2010. The emissions trading model favoured by both the NETT and the Federal Government is a ‘cap and trade’ system which would establish a limit on allowable emissions and a market for trading emissions rights. Such a system would in effect create a carbon price. 3.1.4 Alternative energy The Federal Coalition Government’s Mandatory Renewable Energy Target (MRET) was set at an additional 2 per cent of energy production from renewable sources by 2010. A review of the target which recommended it be substantially increased was rejected by the Coalition Government in 2004. However, in September 2007 the then Prime Minister announced a new target of 15 per cent of energy to come from ‘low emissions’ sources, potentially including clean coal and nuclear, by 2020.42 The Federal Labor Government has a policy to increase the MRET to ensure 20 per cent of Australian electricity is generated from renewable sources by 2020.43 3.1.5 Adaptation Federal funding for climate change adaptation is largely centred on research. In May 2007 the then Coalition Government announced $126 million for a new Australian Centre for Climate Change Adaptation to conduct research on vulnerable industries and regions. The Council of Australian Government’s (COAG) National Climate Adaptation Framework, which was announced in April 2007, is intended to guide adaptation work in all jurisdictions for the next five to seven years. Focus areas under 12 the framework include research on environmental, economic and social impacts of climate change and development of methodologies for monitoring impacts (including social impacts).44 3.2 Victorian climate change policy The Victorian Labor Government’s approach to climate change is outlined in policy documents including the Victorian Greenhouse Strategy Plan Update and Our Environment, Our Future: Sustainability Action Statement 2006. Broadly these reflect a view that: climate change is already occurring; global warming of over 2C will lead to dangerous and irreversible climate change; deep emissions reductions are required; Victoria needs to position its economy for a ‘low carbon future’; adaptation to now inevitable climate impacts is important; and averting dangerous climate change requires a cooperative global response which will require partnership and joint action (including involvement in the Kyoto protocol).45 The Victorian Government’s latest environmental policy statement, Our environment, our future: sustainability action statement, 2006, breaks down current policy initiatives around climate change broadly into the three areas of low emissions technology, energy efficiency and adaptation. Labor’s election promises in the area of climate change in the lead up to the 2006 state election are outlined in Tackling Climate Change – Helping families play their part and Tackling Climate Change – Helping Victoria play its part. Policy positions identified here are drawn from these policy statements. In the lead up to the November 2006 State election, the Bracks’ Government announced that they would create an Office for Climate Change (OCC) within the Department of Premier and Cabinet (DPC). While the OCC is still in the process of developing a work plan and scope of operations, it is expected to be responsible for setting broad directions in climate change policy, working on intergovernmental issues including the development and implementation of the national carbon trading system and coordinating a whole of government approach to climate change in Victoria. 3.2.1 Emissions reduction and low emissions technology The Victorian Government has committed to legislate for a long term target to reduce greenhouse emissions by 60 per cent by 2050 compared to 2000 levels and support a national emission trading scheme. To support renewable energy the Victorian Renewable Energy Target (VRET) mandates a minimum of 10 per cent renewable energy by 2016. There is an additional commitment to achieve a target of 20 per cent renewable and low emissions energy generation by 2020. 3.2.2 Energy efficiency The Victorian Government has put in place a target for a 10 per cent reduction in household emissions by 2010 as part of the Victorian Energy Efficiency Target (VEET) scheme. The Government has funded extensive rebate and community education programs to achieve this aim. 13 3.2.3 Adaptation In 2006, the Victorian Government provided $14.8 million for the Victorian Climate Change Adaptation Program. The program is managed by an interdepartmental committee, involving DSE, DPI, DHS, DPC and DIIRD and involves a range of adaptation projects, many of which are specifically discussed below. The program has four major initiatives the first of which is developing knowledge and expertise in the following areas: ‘improving resilience of natural assets to cope with greater risks from bushfire, coastal erosion and flooding; making agricultural systems resilient to climate change; making our buildings, infrastructure and homes more adaptable to climate change; understanding what climate change will mean for the health of Victorians; and understanding what climate change will mean for individual communities’.46 The Victorian Climate Change Adaptation Program also involves establishing a Centre of Research Excellence in climate change adaptation and working with local communities to build local understanding about climate change adaptation. DHS has received funding under this program to assess the health impacts of climate change. A conference on Climate Change and Human Health was convened by DHS in October 2007.47 At this conference, DHS launched a discussion document on health impacts of climate change in Victoria titled Climate change and health: an exploration of challenges for public health in Victoria. 3.3 Strategic climate change policy development and research Climate change policy development, especially in the areas of equity and social impacts, is still relatively new in Australia. Until recently, research and policy development has largely focussed on refining climate change predictions and developing policies around emissions reductions. However, there is a substantial amount of research interest in the area of climate change adaptation with many universities and research institutions in the process of developing research centres and projects.48 The announcement of the Federal Government’s proposal for an Australian Centre for Climate Change Adaptation, including a Climate Change Adaptation Research Facility, in May 200749 may have increased research interest in this area. The Garnaut Climate Change Review is being coordinated by the Victorian Department of Premier and Cabinet. This review is an initiative of the Council of Australian Federation and the Federal Labor Government.50 It will investigate the economic impacts of climate change and related policies and develop policy recommendations. Garnaut has publicly commented on the importance of social justice and equity considerations in responses to climate change at both a global and national level.51 Under the Victorian Climate Change Adaptation Program, a number of local government based ‘greenhouse alliances’ have been funded to undertake local climate change adaptation assessments. Some have already been completed, such as those undertaken by the North East Greenhouse Alliance and Western Port Greenhouse.52 14 It is important that all climate change policy development and research includes information on how impacts will be distributed through the community. If public consultations occur, the community sector and low income and disadvantaged groups need to be adequately represented. 3.4 Climate change policy issues and debates This section discusses key areas of climate change impact on low income households in Victoria and their policy context. 3.4.1 Utilities: pricing, efficiency and water shortage Much of the current work in Australia in the area of social and equity impacts of climate change has focussed on utilities costs. Key concerns include: vulnerability to price rises for low income households without access to programs for efficiency; low price elasticity for electricity and water, especially for low income households; the regressive nature of higher utilities prices as a mechanism for reducing greenhouse gas emissions as higher income households will be able to ‘pay to pollute’; and a focus on households rather than industry as industry already enjoys lower energy costs and accounts for a high percentage of emissions. Utilities pricing The pricing of energy and water is currently not reflective of its true value, especially when considering environmental costs. Simultaneously utilities providers are anticipating increased costs of production and distribution as climate change impacts require greater investment in infrastructure. However, low income households have very limited ability to absorb higher utilities costs.53 There is growing concern that the introduction of an emissions trading scheme may result in higher energy costs for low income households. A joint submission to the Prime Ministerial Taskforce on Emissions Trading by the Brotherhood of St Laurence (BSL), Catholic Social Services Australia and the National Welfare Rights Network advises that a national emissions trading scheme must not impact disproportionately on low income earners by providing financial compensation and assistance with energy efficiency measures.54 In response, in October 2007, then Prime Minister Howard announced an election commitment to establish a fund from emissions trading revenue to develop clean energy technologies and assist low income households adapt to higher energy prices.55 The ability of energy producers to pass increased costs on to consumers will depend on the regulatory environment in which the system operates. Technically, an emissions trading system which allows costs to be passed on to consumers may undermine its effectiveness as it will decrease the incentive to reduce emissions and thereby avoid the costs of purchasing emissions rights. Advocacy in this area needs to maintain a focus on the design of emission reduction policy to ensure equitable outcomes while avoiding the implication that emissions reduction policy itself is inherently socially regressive. Therefore, pricing frameworks 15 need to price utilities in a way which encourages efficiency for businesses and households, while protecting a basic needs component at an affordable price.56 Efficiency Reducing household energy and water use is essential to protect low income and disadvantaged households from predicted high utilities costs and is often seen as a way to reduce the household costs of carbon pricing. However, the vast majority of Victorian initiatives to support households to increase their energy and water efficiency are aimed at homeowners who pay the upfront expenses of an upgrade and then claim a rebate. A large range of water saving product rebates are available through the Water and Garden Smart Rebates Scheme and Sustainability Victoria administers both state and commonwealth rebates for energy efficiency products. Rental properties are largely excluded from these rebate systems. Rental property owners have little incentive to invest in capital upgrades to their property, as they do not receive a financial benefit of lower utilities bills. In an attempt to address this issue, some rebates have been targeted to landlords. Former Environment Minister, John Thwaites announced new rebates for landlords who install additional insulation in rental properties that are leased to low income tenants in his final speech before his resignation.57 The Victorian Government has also committed to investigating options for supporting low income tenants to increase household efficiency under their 2006 State Election Policy.58 The Federal Labor Government announced their Low emission plan for renters which will provide additional rebates for landlords to install insulation in rental properties (though this initiative is not targeted at low cost properties).59 Market mechanisms which encourage efficiency could also benefit some low income households. For example, the introduction of the Victorian Energy Efficiency Target (VEET) will provide incentives for energy retailers to meet energy reduction targets. This will hopefully provide an incentive for energy companies to “offer to retrofit Victorian households and businesses with improvements such as low energy lighting and other energy saving devices for little or no cost”.60 Public housing has seen some investment in efficiency through internal maintenance programs. When public housing properties are due to be upgraded, or when an appliance such as a heater or hot water system needs to be replaced, the Office of Housing uses high efficiency products.61 Some retrofitting of public housing is also undertaken through the Energy Taskforce project which is implemented by Sustainability Victoria in partnership with DHS Neighbourhood Renewal and community organisations. The program retrofits public housing in neighbourhood renewal areas and provides skill development and employment.62 However, much public and community housing continues to have very poor standards of energy and water efficiency. Ongoing advocacy to promote energy and water pricing structures and efficiency programs which are both environmentally effective and equitable is essential to prevent low income and disadvantaged households being disproportionately affected by rising utilities costs. Effective collaboration between the environment and community sectors on these issues is vital. 16 Domestic water availability Domestic water availability is already an issue in some drought affected rural areas. For low income households not connected to the reticulated water system, the current rebate system is inadequate. The Carted and Non-Mains Water Rebate administered through the Department of Human Services Concession unit provides assistance to low income households to purchase non-mains domestic water for filling water tanks. In December 2005 the Victorian Government increased the Non-Mains Water Concession from one to up to three times per year.63 However, the rebate only covers a percentage of the cost of carted water which is unaffordable for some low income households.64 As a consequence some community support organisations have started providing domestic water emergency relief to low income households (see case study below). Access to domestic water supply at an affordable price should be a guaranteed in Victoria. Case Study – Rural Community Resource Worker, Anglicare Victoria, Hume Region. Between December 2006 and end of March 2007 Anglicare paid for the delivery of 68 loads of domestic water to families in financial difficulties (most deliveries were around 23,000 litres / 5000 gallons and cost $110 – 150 per load). Funding for this program was sourced entirely from community donations through a group called the ‘Bucket Brigade’ who raised an initial $10,000 an amount that ran out within nine weeks. This was followed by a Melbourne based public appeal through Anglicare Victoria which raised $30,000. Additional funding was also provided by St Vincent de Paul and Salvation Army. Many requests for assistance were from households in which someone required home dialysis. Some examples of households in need of this form of assistance included: a woman whose husband was using home dialysis and who required four deliveries over the summer; four families caring for parents in palliative care who required two to four loads per household; and a retired single women on a farm in her fifties caring for two high needs foster children, her two teenage daughters and grandson. Issues identified with the existing rebate system for water cartage included: some households were not on an appropriate health care card; the rebate does not cover the full cost (and cartage costs are very high); the rebate requires up front payment which may be beyond the financial means of low income households; and households are limited to three rebates a year. There is much concern about the upcoming summer season, when access to water is likely to again be a significant issue. 17 3.4.2 Health and wellbeing Most research into the impacts of climate change on health have been within a medical model of health – assessing likely rates of mortality and morbidity to climate change related conditions such as high temperatures. Taking a social model of health, secondary effects such as financial difficulty, stress and increased food prices also have the potential to seriously impact on health. This is reflected in scoping work undertaken by DHS; “Climate change research to date has focused mostly on thermal stresses, extreme weather events, and infectious diseases, but little work has been done on the indirect impacts resulting in social, economic and demographic changes which are themselves determinants of health”65 Human health and climate change is identified as a priority area under the Victorian Climate Change Adaptation Program and DHS has a budget of $11-12 million over four years to establish a heat plan response strategy and conduct research on health and climate change. Heat waves DHS is currently undertaking research and policy development work around heat wave planning. Services which work with the most vulnerable groups (in particular the isolated elderly, chronically ill and people with young children) will have an important role in communicating information and implementing responses. The cost of ‘climate proofing’ against hot weather and paying for cooling is likely to be an issue for many low income households. Older people in particular may be reluctant to use air conditioners because of energy costs. Options for programs which provide both financial and technical assistance for high risk groups to modify their homes by shading or increasing insulation should be investigated. Air quality The interaction between poor air quality and health impacts on older people and people with pre-existing medical conditions may require a public health response which needs to reflect that isolated and vulnerable community members may require additional assistance and more carefully targeted information. A response similar to inclusive heat wave planning may be appropriate. Food costs Food costs represent the biggest category of household expenditure in Australia.66 The cost of food has been identified by VicHealth as a significant contributor to food insecurity 67 - which is currently experienced by 6 per cent of Victorians.68 Lack of access to affordable food has significant health effects and the concentration of drought related price increases on fresh food products such as vegetables, fruit, meat and dairy may contribute further to health inequalities. The impacts of climate change on food prices will be hard to mitigate against, for example through increase social welfare payments, as prices will vary substantially from season to season and in different areas. Food costs are already predicated to increase due to the impact of the current drought on grain production, irrigated crops and the dairy industry.69 Consumer Price Index figures released in October 2007 already show significant price rises for fruit and vegetables.70 In the long term, if more frequent and intense drought makes food production in northern Victoria unsustainable, Victoria will rely increasingly on imported food from interstate or overseas. The reliance on food which has travelled 18 further has both nutrition and cost implications, especially if the price of fuel continues to increase. Strategies for ensuring an affordable supply of fresh food to low income and disadvantaged Victorians, especially those already experiencing food insecurity, should be developed. 3.4.3 Housing: the built environment and insurance Building standards have been developed in response to historic conditions. As climate change alters the frequency of extreme weather events and temperatures increase, existing building standards will not adequately ensure the safety and comfort of the population. Since July 2004 all new Victorian homes have had to comply with a five star energy rating. From May 2008, renovations will also have to achieve this rating under the Building Code of Australia 2008.71Melbourne 2030 includes a policy initiative to “introduce changes to Victoria’s planning and building systems that will be needed to help adapt to the impacts of climate change”.72 However, a significant proportion of Victoria’s building stock pre-dates energy standards, with much of the poorest quality housing in the rental market. At present there are no standards for the thermal efficiency of rental housing, and while some subsidies for energy improvements are available there is little incentive for landlords to renovate a home for which others pay the energy bills. Climate related standards such as thermal and energy efficiency need to be developed for rental properties to enable greater efficiency of energy use and to protect tenants comfort and safety during heat waves. Policy to support recovery from the impacts of extreme weather events on the built environment should also be developed to address the particular vulnerabilities of low income and disadvantaged households. The Victorian Government currently provides emergency grants to people affected by natural disasters who do not have adequate insurance. There does not appear to be research available to indicate the level of expenditure on such programs or projected impacts due to increased frequency of utilisation under the effects of climate change. In the context of climate change, policies to ensure that low income households have access to affordable insurance credit at a reasonable rate and should be investigated. 3.4.5 Climate related rural adjustment The severe impacts of drought on rural communities, combined with predictions of more frequent and more severe droughts as a result of climate change, create serious challenges to the viability of some rural communities in their present form. Policy development and research around the need to adapt the Victorian rural economy to climate change are beginning to enter Victorian Government policy development. The DPI has undertaken research into climate change vulnerability and adaptation for agricultural and rural communities. This has resulted in the development of an ‘adaptive capacity index’ which incorporates economic, socio-cultural and infrastructure and institutional indicators.73 In July 2007 a new three year research program commenced under the Victorian Climate Change Adaptation Program to refine and expand on this work. While this project is highly consultative, it is primarily 19 aimed at people involved in the rural economy and local institutions and decision makers. 74 The concerns of low income or disadvantaged groups, or the community sector, may not be a strong focus of this work. Similarly, long term vulnerability assessment and agricultural market planning work is being undertaken by DPI through programs such as Our Rural Future. However, given the department’s focus on agriculture and industry, this work has limited capacity to assess the distribution of impacts within communities (social equity implications). While the viability and strength of rural communities does rest on the sustainability of their economic base, there is currently less research and long term policy focus on social transitions or programs to increase the social health of rural communities facing economic adjustment and the impacts of climate change. 4. Drought policy responses and policy debates There is ongoing debate about whether the current drought is due to, exacerbated by or unrelated to climate change. While Victoria has been subject to frequent periods of drought, the current drought conditions are unprecedented. In October 2007, the DSE’s website states that: Victoria is now experiencing its tenth year of drought. Drought is common in Australia – it is a natural part of our highly variable climate. Even when this cycle of drought ends, Victoria is projected to get drier, have more hot days and more storms, all as a result of climate change. A main cause of the current drought in Australia is El Niño - a period of sustained warming over the Pacific Ocean combined with atmospheric changes.75 Victorian and federal level drought responses currently operate in an emergency response framework of risk management involving preparation, augmented with emergency intervention and recovery support for times of severe drought – with severe drought anticipated to occur on a 20 to 25 year basis.76 There are two competing discourses governing the development of drought policy. Traditionally, drought has been seen as an ‘act of God’ – a crisis which demands an emergency response. In the 1980’s and 1990’s drought was redefined as a normal part of the business environment in which Australian agriculture operates.77 The policy focus attempted to shift to a risk management approach which focussed on preparation, response and recovery. However, there is still enormous political pressure to provide emergency responses, especially financial relief, to drought affected communities. In addition, recent drought periods have been unprecedented in their persistence and severity. With predictions of a changing climate, including decreased rainfall and increased drought, neither discourse is adequate to plan for and respond to the challenges ahead. The National Farmer’s Federation has released a statement calling for “a generational shift in thinking… to move from the necessity for drought relief to drought management and preparedness” in order to “safeguard against climate change and future droughts”.78 Leadbeater (2007) points out that it is difficult for rural communities to prepare for unprecedented drought conditions as the level of preparation required is unknown.79 20 There is a research gap in documenting the effects of drought, and drought policy responses, on low income and disadvantaged people living in rural and regional communities.80 A poverty analysis of rural areas has been suggested by Botterill (2003) in order to better target drought and rural adjustment policies more effectively and to ensure that the most disadvantaged are not overlooked.81 The tension between the tradition of emergency response to drought and the reality of an imminent period of more frequent and intense drought periods is resulting in heightened debate about agricultural policies in Australia. Decisions made in relation to these issues will determine Victoria’s future pattern of agriculture, the sustainability of both farming and urban communities in rural areas, and the cost of food paid by Victorian households. 4.1 Federal drought policy overview State governments can apply for areas to be declared in exceptional circumstances by the Federal Government. This then entitles farmers and agriculturally dependent businesses to access a range of economic support including exceptional circumstances Relief Payments through Centrelink. Receipt of payments is used as an eligibility criteria for some drought support programs (e.g. the Victorian Municipal Rates Subsidy) The main federal drought support programs currently in place include: interest rate subsidies; exceptional circumstances Relief Payments for farmers and small businesses (through Centrelink); exceptional circumstances Health Care Cards and associated concessions; funding for emergency relief i.e. through the Country Women’s Association emergency Drought Aid Fund; the Rural Financial Counselling Service Program and funding of additional counselling services; grants for financial planning and advice e.g. FarmBis and Farm Help; Drought Force (Work for the Dole); community strengthening programs such as ‘Local Answers’; and ‘exit grants’ to support farmers to leave farming. Most of these programs are time limited and/or linked to exceptional circumstances status. 4.2 Victorian drought policy overview Drought policy in Victoria falls largely within the operations of DPI, DSE and DHS. Similar to the Federal Government, Victorian drought policy distinguishes between support for farm families and support for farm businesses. The main Victorian drought support programs currently in place include: municipal rates subsidy; support for farm business to better manage drought conditions; 21 rebates for low water allocations; rebates for water cartage and tanks; the Drought Apprenticeship Retention Bonus; mental health support; and social support initiatives. In October 2007, the Victorian Government announced $100 million in additional funding for drought assistance to ‘help rural communities battle the worst drought on record’.82 This funding included a range of targeted social and community support measures including: additional mental health services; Emergency Volunteer Support Grants; additional funding for drought employment programs; funding for local employment and community strengthening programs; and additional funding for drought coordinators. Water supply security has been a major policy area for DSE with recent announcements of significant spending on infrastructure, including a desalination plant, pipelines to transfer water between regions and upgrades to irrigation systems. Our Water Our Future and associated plans form the framework of water policy in Victoria.83 4.3 Emerging drought policy issues and debates in Victoria 4.3.1 Strengthening and supporting rural communities Community strengthening and social capacity building fit within the drought policy approach of supporting preparation, resilience and recovery. The Victorian Government has funded a number of programs in drought affected communities with these aims in mind.84 The Victorian Drought Social Recovery Strategy, coordinated by the DHS Emergency Response Unit, provided funding to employ local community development officers to support community strengthening and drought recovery activities including social gatherings. The aim of this program was to build community adaptive capacity using local resources.85 The Rural Women, Drought and Climate Change Initiative under the DPCD is a two year project (which commenced in 2007) that employs five local coordinators to develop networks and strategies to support rural women’s role in supporting adaptation to climate change and drought. In October 2007, the Victorian Government announced funding for drought coordinator positions within local councils in exceptional circumstances declared areas. This program will aim to provide coordination and brokerage of drought responses at the local level.86 While there is a clear community strengthening and resilience focus of these projects, the efficacy of these community strengthening approaches may have been undermined by short time funding models. For example, the Victorian Drought Social 22 Recovery Strategy was designed as a four year project, and was funded in four separate nine month funding rounds.87 Programs funded by DHS such as the ‘Sustaining Community Wellbeing’ program and the ‘Tackling Mental Health Initiative’ were targeted at specific areas deemed to be severely drought affected and also received only time limited funding. Short term funding creates difficulties in staff recruitment and retention and leaves programs vulnerable to disruption due to changes in staff – a significant issue in work which is centred around networking. Even where funding for programs is extended, uncertainty leading up to funding announcements contributes to staff turnover. These short term funding models reflect an ‘emergency response’ approach to drought policy. Many programs are also focussed on farmers and may not address the needs of other low income and disadvantaged groups within drought affected communities. Community strengthening programs need to be more widely and sustainably funded and better integrated with other social and economic transition activities to develop ‘bridging capital’ and to function more effectively to increase community resilience.88 4.3.2 Education and training The economic stresses of drought impact on the education of rural young people.89 Several policy initiatives at the Victorian and federal level have been developed to address these issues. The federal Drought Force program, which allows people in drought affected areas to undertake farm work as part of a Work for the Dole scheme, provides benefits to rural young people by allowing them to work on the family farm while accessing a NewStart allowance. Some funding for skill development is available through the Federal Government to support drought affected farmers to either gain accreditation for additional skills, such as trades, or to retrain on exiting farming. The Victorian Government has put in place a number of drought policies related to education assistance including: ‘Back to School’ funding, administered through VicRelief and Foodbank, which distributes funding to meet school costs through local community agencies; assistance for families in drought affected areas who are struggling to pay kindergarten fees; and apprenticeship retention support. Evaluation of the effectiveness of these programs and the distribution of access to them within drought affected community in Victoria would greatly assist in future policy making around education and training. 4.3.3 Health The mental health impacts of drought are significant and widely recognised. In October 2007, the Victorian Government announced an additional $587,000 funding for mental health services in drought affected areas. This investment builds on a previous funding which was due to expire in December 2007. 23 Appropriate service delivery models for drought related support services – such as outreach models which support anonymity of service users in rural communities - are essential. Short term funding models for drought social support services impact on the retention of a skilled workforce and increases the cost of program delivery. The financial and social effects of drought and their health implications adds greater urgency to issues associated with limited access to bulk billing health services in rural areas and recruitment difficulties for rural health and mental health professionals.90 5. Role for VCOSS 5.1 Climate change, drought and equity cross sector advocacy Most coordinated advocacy in the area of climate change and equity within the nongovernment sector has been focussed at the federal level, particularly in the context of a federal election year.91 For example, the Brotherhood of St Laurence (BSL), the National Welfare Rights Council, the Australian Conservation Foundation (ACF) and the Climate Institute convened a ‘Climate Change and Equity’ roundtable in March 2007. The BSL’s policy and research unit is developing a research program in this area and is in the process of employing research staff.92 Australian Council of Social Service, the ACF and Choice have also formed a partnership to produce a report on energy efficiency and equity.93 There is a gap in such coordinated advocacy at the Victorian state level - given that state and local governments are likely to remain responsible for many policy areas particularly those around adaptation, in which social and equity impacts of climate change are likely to be an issue. VCOSS could have a role in developing networks between the environment and social justice sectors to advocate at the state level. In the UK, the community sector has developed the ‘Third Sector Declaration on Climate Change’ as a public statement of the link between social justice and climate change issues. The declaration summarises the imperative for the community sector to address environmental issues as organisations and advocates.94 The adoption of a clear policy position which identifies climate change as a social justice issue is a possible first step towards coordinated advocacy across the non-government sector. VCOSS could provide leadership in this area through the development and endorsement of a similar statement. 5.5 Proposed priority policy areas for VCOSS The social justice and equity implications of climate change, drought and policies to address these issues create a case for VCOSS intervention in a number of policy areas. In some cases these issues are already addressed within existing VCOSS policy areas. For example, climate change issues are already incorporated as a secondary consideration into policy work around transport and utilities. However, including climate change as a social justice issue in and of itself has not been part of VCOSS policy work to date. 24 Some work around the impact of drought on service provision in the context of climate change is already undertaken by VCOSS in the areas of emergency relief and health, however drought and accompanying rural social and economic adjustment have not been actively considered as a long term drivers of social policy. A clearer mandate to work directly on equity and climate change issues would increase capacity, expertise and visibility in specific aspects of policy related to climate change and drought. This would allow VCOSS to engage more actively in policy development and critique in these areas. The following policy areas are considered the most immediate and strategic for VCOSS to begin actively incorporating into policy work: energy and water pricing and household efficiency; heat waves and health inequalities; responses to increased food costs; domestic water security; social and economic support policies associated with drought; and housing standards and insurance. Policy positions in these, and other areas, are outlined in Section 6 below. 5.3 Supporting inclusive and equitable climate change policy and research It is vital that the community sector engages with policy and research developments to encourage and facilitate the inclusion of equity considerations and the voices of disadvantaged groups. Research and policy development around climate change within universities and government is broadening from looking at purely eco-systemic and environmental impacts to looking at social impacts and adaptation. Ensuring that there are adequate baseline measures and appropriate indicators which can be used to monitor the impacts of climate change and climate change policy on different vulnerable groups is important.95 Similarly there is a role for the community sector in assisting researchers and policy makers in including direct information about impacts on vulnerable communities in their work. At the local level this involvement is also critical. Regional work into understanding the impacts of climate change on communities and assessments of adaptive capacity, for example, need to reflect diversity within communities. The community sector can have a role in ensuring that disadvantaged communities are able to participate in consultation and planning processes as well as representing these groups and advocating on their behalf. VCOSS’s role in undertaking social research and links to the research community and government provide an important opportunity to proactively ensure that social and equity considerations are incorporated from an early stage. This is essential not only to avoid inequitable outcomes, but also to avoid social and equity concerns being manipulated as a justification to avoid action. 25 5.4 Impact of drought and climate change on community service delivery Climate change and drought will be increasingly prominent in the operating environment of community sector organisations. VCOSS could take the lead in documenting the impact of climate change and drought on the community sector and advocating for appropriate and timely strategic planning in this area. The community sector delivers a range of services which may face increasing demand under the effects of climate change and drought. These include; health and mental health services, support for older people, emergency response and emergency relief services. It is important that services are able to be expanded to meet this increased demand. The ability of the community sector to respond to changing community needs will require appropriate and timely service planning and adequate funding. The community sector may need to continue to advocate for adequately funding for these services supported by evidence of changing service demand and unmet need. Outreach models suitable for drought support work in rural areas may raise occupational health and safety issues for unaccompanied workers ‘cold calling’ clients who may be in crisis in areas with poor mobile phone coverage.96 The cost of outreach service delivery models over large service areas is also problematic in the context of high petrol prices.97 Community based organisations have strong links into local communities, especially into groups within communities who may have difficulty accessing information or may be hard to reach with mainstream marketing and communication strategies. The community sector’s role as a conduit of information to vulnerable and disadvantaged groups will be vital in ensuring that information about climate risks is distributed to, and understood by, those who need it most. For example, information about preparing for heat waves or other emergencies, opportunities for climate proofing or increasing water and energy efficiency within the home and support services or material assistance available during droughts, fires or other emergencies will reach vulnerable groups more effectively through the utilisation of community sector networks. 5.5 Supporting community sector sustainability The community sector, like all other parts of the Australian community, has a responsibility to take action to prevent catastrophic climate change, especially given the equity implications at a global level. There is growing interest within the sector in incorporating environmentally sustainable organisational practices.98 Community sector organisations will also need to adapt to changing conditions under climate change including higher utilities and fuel prices as part of broader sector sustainability planning. The community sector has scope to reduce their environmental impact and vulnerability to price rises but may benefit from education, support and funding incentives to do so given limited financial resources.99 There are numerous programs, networks, information services and grant opportunities to support the business sector to reduce their environmental impact, some of which may be available to the community sector. 26 The community sector may also choose to become involved in the delivery of environmental programs, especially those like household retrofitting which will directly benefit low income groups.100 In response to these emerging issues, opportunities for VCOSS’ in sector development include work to support and encourage the sector to function more sustainably. Work in this area could include: information distribution; coordinating training and professional development; advocating for increased access to grants programs; brokering of partnerships and access to sustainability services; development of environmental management strategies for the community sector; and investigation of the use of ICT to reduce fuel consumption. 6. Recommendations 6.1 Organisational recommendations It is recommended that VCOSS: 1. Work to minimise the impacts of climate change and drought on low income and disadvantaged households by engaging in climate change and drought policy development and advocacy. This could be achieved by: a. incorporating consultation, advocacy and policy development around social and equity implications of climate change (including drought) into existing VCOSS policy areas, specifically; utilities, emergency relief, housing, health and transport; and b. coordinating cross sectoral advocacy and policy development around the social and equity implications of drought and climate change. 2. Build on existing research and government networks to promote a focus on social and equity issues in emerging climate change research agendas. 3. Incorporate environmental sustainability for the community sector into VCOSS community sector development work. This could include: a. promoting environmental best practice; b. distributing information about environmental programs and funding opportunities; c. coordinating information sharing on environmental strategies; d. investigating bulk purchase opportunities for more sustainable products; and e. investigating the more effective use of technology (e.g. video conferencing) to reduce travel. 27 6.2 Recommended policy positions 1. Strategic policy and research development a. Equity should underpin climate change and drought policy formation. b. Social impacts of climate change should be incorporated into government research on climate impacts and adaptation (including projects such as the Garnaut review and adaptation assessments). c. Climate change impact and vulnerability assessments which inform policy should actively include a focus on low income and disadvantaged groups. 2. Utilities a. Utilities pricing structures should protect the affordability of basic usage for all household sizes, while discouraging excessive use. b. Revenue generated from emissions trading or other carbon pricing policies should be used to fund efficiency programs for low income and disadvantaged households. c. Further investment is required in programs which support low income and disadvantaged households to increase their water and energy efficiency, including the purchase of energy efficient appliances. d. Public housing properties should be proactively retrofitted to increase their efficiency. e. Programs should be developed to support low income renters to increase their water and energy efficiency. f. All low income households in Victoria should have access to domestic water at an equivalent cost. g. Low income households who are not on the reticulated water system should be supported to increase their water storage capacity. 3. Housing a. Rental housing standards which include energy and water efficiency and thermal efficiency should be established. b. Building standards need to be strengthened to further enhance the energy and water efficiency of new homes. c. As areas vulnerable to flooding and coastal erosion/sea level rise are identified, planning processes should be amended to prevent residential development in these areas. d. Policy options for relocating households in climate vulnerable areas should be explored. 4. Transport a. Investment in public and active transport should be increased to reduce the vulnerability of low income and disadvantaged households to high fuel prices. 28 5. Drought a. Drought should be treated as a long term policy issue in the context of climate change and rural adjustment. b. Given the long term nature of drought impacts, short term funding of drought social support programs undermines their effectiveness and efficiency due to loss of staff, networks and expertise between funding rounds. 6. Health a. Low income and disadvantaged groups, especially isolated older people, people with chronic illness and families with young children should be the primary target of heat wave planning and response policies. b. The Victorian Government should work actively with the community sector to identify and appropriately support groups vulnerable to the effects of high temperatures. c. Food insecurity is a significant health risk – all Victorians should have access to affordable and nutritious food. d. Mental health services in drought and climate change affected rural areas should be adequately funded. 7. Community strengthening a. Community strengthening will assist in reducing the negative impacts of climate change and drought on low income and disadvantaged communities. b. Social and employment support programs associated with drought should actively include low income and disadvantaged groups. c. The Department of Planning and Community Development should conduct a rural social health audit, building on, but not limited to, established community indicators. 8. Education and training a. Policies and programs should be put in place to reduce the impact of drought on rural young people’s educational opportunities. 9. Emergency response a. Emergency relief networks need to be strengthened and better coordinated in order to deal with increased frequency of drought and extreme weather events in rural and regional areas. b. The emergency relief sector should be supported to collect adequate data to provide evidence of increased demand. c. Emergency response networks which rely on volunteers need to be better supported to deal with increased demand and potentially lower volunteer base due to aging populations. d. Policy options for increasing access to insurance and emergency credit for low income and disadvantaged groups need to be developed. 29 10. Community sector development a. The community sector should take active steps to reduce greenhouse emissions. b. The community sector should have access to grants programs for infrastructure to increase their energy and water efficiency. Glossary ACF Australian Conservation Foundation AGO Australian Greenhouse Office (federal Department of Environment and Water Resources) BSL Brotherhood of St Laurence COAG Council of Australian Governments CSIRO Commonwealth Scientific and Industry Research Organisation DHS Department of Human Services DIIRD Department of Innovation, Industry and Regional Development DPC Department of Premier and Cabinet DPCD Department of Planning and Community Development DPI Department of Primary Industries DSE Department of Sustainability and Environment MRET Mandatory Renewable Energy Target NETT National Emissions Trading Taskforce OCC Office for Climate Change (Department of Premier and Cabinet) UNFCCC United Nations Framework Convention on Climate Change VCOSS Victorian Council of Social Service VEET Victorian Energy Efficiency Target VRET Victorian Renewable Energy Target 1 International Panel on Climate Change, Climate change 2007: Mitigation. Contribution of working group III to the fourth assessment report of the Intergovernmental Panel on Climate Change [B. Metz, O. R. Davidson, P.R. Bosch, R. Dave, L. A. Meyer (eds)], Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA, May 2007. Available from http://www.ipcc.ch/SPM040507.pdf, viewed 21 August 2007. 2 P Christoff, ‘Policy autism of double-edged dismissiveness? Australia’s climate policy under the Howard government’, Global Change, Peace and Security, Vol 17, No 1, February 2005, p. 36. 3 Australian Greenhouse Office (AGO), National Greenhouse Gas Inventory 2005, Department of Environment and Water Resources, Commonwealth of Australia, 2007, 1. Available from: http://www.greenhouse.gov.au/inventory/2005/pubs/inventory2005.pdf, viewed 10 June 2007. 4 Department of Sustainability and Environment Climate change in Victoria: a summary, Victorian Government, Melbourne, 2006. The range within these predictions is due to the complexity of climate modelling and reflects the use of a variety of modelling scenarios. The climate predictions provided by CSIRO are based on global modelling by the International Panel on Climate Change (IPCC) and adapted to assess local impacts. They are generally considered to be a conservative predication based 30 on the best scientific evidence available. They exclude predictions of climate ‘tipping points’ such as the melting of the Greenland ice sheets or the melting of arctic permafrost which some scientists argue may lead to accelerated climate change impacts. 5 R Garnaut, ‘Will climate change bring an end to the platinum age?’, Inaugural S. T. Lee Lecture on Asia and the Pacific, Australian National University, 29 November 2007. 6 B Pittock, Climate change: turning up the heat, Earthscan, Melbourne, pp. 120-121. 7 R Woodruff, S Hales, C Butler and A McMichael, Climate change health impacts in Australia: effects of dramatic CO2 emission reductions, Australian Conservation Foundation and Australian Medical Association, 2005. Available from: http://www.acfonline.org.au/news.asp?news_id=565, viewed 13 July 1007. 8 Department of Human Services, Climate change and health: an exploration of challenges for public health in Victoria, Victorian Government Department of Human Services, October 2007. 9 International Federation of Red Cross and Red Crescent Societies, World Disasters Report, 2004. 10 Department of Sustainability and Environment, Climate change in Victoria. 11 A McMichael et al, Human health and climate change in Oceania: a risk assessment, Commonwealth of Australia, Canberra, 2003. Available from: http://www.health.gov.au/internet/wcms/Publishing.nsf/Content/health-pubhlth-publicat-documentmetadata-env_climate.htm/$FILE/env_climate14.pdf, viewed 13 July 2007. 12 L Denison, ‘Predicted impact of climate change on air quality and implications for health’, presentation at the Climate Change and Human Health Conference, Melbourne, 16 – 17 October, 2007. 13 M Cope, ‘Climate change, air quality and health’, presentation at the Climate Change and Human Health Conference, Melbourne, 16 – 17 October, 2007. 14 Denison. 15 Regional Development Victoria, 2007 Report from the Ministerial Taskforce on Bushfire Recovery, Victorian Government, Melbourne, March 2007. 16 Regional Development Victoria. 17 Department of Sustainability and Environment, Regional Atlas 2006, 2006. Available from http://www.dpi.vic.gov.au/CA256F310024B628/0/72575D6701CA8226CA257117001C7480/$File/Vo lunteer+emergency+services.pdf, viewed 5 June 2007. 18 Commonwealth Scientific and Industrial Research Organisation (CSIRO), Infrastructure and climate change risk assessment for Victoria, CSIRO, Melbourne, March 2007, 3. Available from http://www.greenhouse.vic.gov.au/CA256F310024B628/0/2021C307264A6473CA2572DD00055CBB /$File/Climate+change+and+Infrastructure+Final.pdf, viewed 5 June 2007. 19 G Sheehan and G Renouf, Risk and reality: access to general insurance for people on low incomes, Brotherhood of St Laurence, June 2006, iii. 20 CSIRO, 29. 21 O Guerrera, ‘Poor grain drives up food price’, The Age, September 19, 2007. 22 Department of the Environment and Water Resources, Murray-Darling basin dry inflow contingency planning: overview report to first ministers, Australian Government, Canberra, September 2007. Available from http://www.environment.gov.au/water/publications/mdb/dry-inflow-planningsep07.html, viewed 16 July 2007. 23 Interview with Brenda McLachlan, Drought Coordinator, Victorian Farmers Federation, 5 June 2007. 24 Interview with Victor Sposito, 5 June 2007, and interview with Sally Rose, Department of Human Services, 3 September, 2007. 25 N Barr, Understanding Rural Victoria, Department of Primary Industries, April 2005. Available from http://www.dpi.vic.gov.au/dpi/nrenfa.nsf/LinkView/E7CCC81CD1D09B57CA25706C00276AB4B135 CE2F68C588B6CA256E760010E52E, viewed 20 July 2007. 26 Department of Human Services. 27 M Alston and J Kent, The impact of drought on secondary education access in Australia’s rural and remote areas, Centre for Rural Social Research, Charles Sturt University, February 2006. Available from: http://www.dest.gov.au/NR/rdonlyres/4415AD4A-F3AF-40DF-9F1000F5DE08E855/12764/Impact_Droughtreport23Jan2006.pdf 28 Interview with Lea Markey, Rural Community Resource Worker, Anglicare Victoria, 10 September 2007 29 Guerrera. 30 Australian Greenhouse Office, Living with climate change: an overview of potential climate change impacts on Australia, 2002. Available from: http://www.greenhouse.gov.au/impacts/overview/, viewed 14 July 2007. 31 31 J Lee, Climate change and equity in Victoria: social impacts of climate change on low-income earners, Friends of the Earth, Melbourne, 2007. 32 CSIRO. 33 Interview with Dean Lombard, Policy Analyst, Utilities and Consumer Affairs,VCOSS, 23 July 2007. 34 National Institute of Economic and Industry Research, The impact of carbon prices on Victorian selected household types: a preliminary analysis, Brotherhood of St Laurence, March 2007. 35 G Currie and Z Senbergs, ‘Exploring forced car ownership in Melbourne’, Australasian Transport Research Forum, 2007. 36 Christoff, p. 36 E.g. Department of Prime Minister and Cabinet, Securing Australia’s Energy Future, Commonwealth of Australia, Canberra, 2004. 38 L Minchin, ‘APEC sets high energy target’, The Age, 23 August 2007. 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M Warren and S Marris, ‘Rudd resiting Bali targets’, The Australian, 12 December, 2007. 41 Department of Prime Minister and Cabinet, Australia’s climate change policy: our economy, our environment, our future, Commonwealth of Australia, July 2007. 42 B Doherty and J Topsfield, ‘Coalition sets energy targets’, The Age, 24 September, 2007. 43 K Rudd, P Garrett and C Evans, Labor’s 2020 target for a renewable energy future, election 2007 policy document, Alp, Canberra, http://www.alp.org.au/download/071030_renewable_energy_policy___final.pdf, viewed 17 December 2007. 44 Council of Australian Governments, National Climate Change Adaptation Framework, April 2007. Available from: http://www.coag.gov.au/meetings/130407/docs/national_climate_change_adaption_framework.pdf, viewed 26 August 2007. 45 Department of Sustainability and Environment, Victorian Greenhouse Strategy Action Plan Update, Victorian Government, Melbourne, April 2005. Available from http://www.dpi.vic.gov.au/dse/nrence.nsf/childdocs/-9346722B17B12FB94A256B2600181AF1?open, viewed 12 June 2007. 46 Victorian Climate Change Adaptation Program website, http://www.greenhouse.vic.gov.au/greenhouse/wcmn302.nsf/LinkView/DB2BD54FA9CEEC7CCA25 719A002A0E70013EE11B94AB8025CA2571A80011DB4B, viewed 16 August 2007. 47 See http://www.healthclimate2007.com/ 48 Interview with Professor John Wiseman, 6 August 2007. 49 M Turnbull (Minister for Environment and Water Resources),‘$170 million to help Australian adapt to climate change’, media release, 8 May 2007. 50 K Rudd (Federal Labor Leader), Garnaut climate change review, media release, 30 April 2007. 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Available from http://www.alp.org.au/media/1007/msloo261.php, viewed 10 November 2007. 60 Victorian Labor Party. 61 Interview with Ken de Vries, Department of Human Services, 3 August 2007. 62 Interview with Gavin Dufty, St Vincent de Paul, 24 July, 2007. 63 Department of Human Services, Carted and Non-Mains Water Rebate 2006/07: Fact sheet, Victorian Government, Melbourne, 2006. 64 Interview with Lea Markey. 65 Department of Human Services. 66 Department of Sustainability and Environment, Melbourne Atlas, 2006, 5.10. 67 VicHealth, Healthy Eating – Food Security Investment Plan 2005 – 2010. Available from http://www.vichealth.vic.gov.au/assets/contentFiles/VicHealthper cent20Foodper cent20Insecurityper cent20Investmentper cent20paper.pdf, viewed 11 November 2007. 68 See Victorian Community Indicators Project website http://www.communityindicators.net.au/. Viewed 14 November 2007. 69 Guerrera 70 Australian Bureau of Statistics, Consumer Price Index, Australia: September 2007, Report number 6401.0, ABS, Canberra, October 2007. 71 See http://www.buildingcommission.com.au/www/html/1619-5-star-renovations-and-relocationsfrom-1-may-2008.asp, viewed 10 November 2007. 72 Department of Sustainability and Environment, Melbourne 2030: planning for sustainable growth, Victorian Government, Melbourne, October 2002. 73 R Sietchiping, ‘Applying an index of adaptive capacity to climate change in north-western Victoria, Australia’ Applied GIS, Vol 2, No 3, 2006. 74 Interview with Patricia Fitzsimons, Section Leader, Spatial Sciences Parkville - Landscape Systems, Department of Primary Industries, 10 August 2007 75 Department of Sustainability and Environment website, http://www.dse.vic.gov.au/DSE/wcmn202.nsf/LinkView/536BE7F119278811CA2572050019952C24 A863482673BE31CA25720A0022D13B, viewed 1 October 2007. 76 L Botterill, ‘Uncertain climate: the recent history of drought policy in Australia, Australian Journal of Politics and History, Vol 49, No 1, 61-74. 77 A Leadbeater, ‘Social policy or divine intervention? 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Available from: http://www.dest.gov.au/NR/rdonlyres/4415AD4A-F3AF-40DF-9F1000F5DE08E855/12764/Impact_Droughtreport23Jan2006.pdf 90 Participant discussion, Climate change and rural health: the challenge of climate change for health in rural and regional Victoria, seminar at the University of Melbourne, 27 August, 2007. 91 Interview with Louise Morris, Climate Campaigner, Environment Victoria, 12 July, 2007. 92 Interview with Dr Janet Stanley. 93 Interview with Tony Westmore, ACOSS, 21 September, 2007. 94 Available from: http://www.everyactioncounts.org.uk/declaration/ 33 95 Interview with Prof John Wiseman Interview with Lea Markey. 97 VCOSS, ‘Health and community sector workshop: Peak oil petrol prices and climate change conference’, 27 June, 2007. Available from http://www.vcoss.org.au/what-we-do/transport/peakoil.htm, viewed 13 July 2007. 98 K Olaris, Climate change action in community health, unpublished research paper, 2007. 99 Olaris. 100 Interview with Dr Janet Stanley, Brotherhood of St Laurance, 96 34