Towards the 2014 Victorian Election by Environment Victoria

Towards the Victorian Election

2014

A 21st century agenda to restore Victoriaâ&#x20AC;&#x2122;s environment, safeguard Victorian communities and jobs, and rise to the global challenge of climate change

March 2014

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TOWARDS THE 2014 VICTORIAN ELECTION A 21st century agenda to restore Victoria’s environment, safeguard Victorian communities and jobs, and rise to the global challenge of climate change. A strong, resilient and prosperous Victoria is entirely dependent upon functioning ecosystems such as healthy rivers, oceans, land and forests, and a stable climate. These ecosystems provide the services and materials for our economy and are tremendous natural assets. They sustain and enrich life for all Victorians. For decades, we have used these natural assets unsustainably, culminating in the mega-trends of climate change, resource scarcity and ecosystem depletion. Often these are viewed as environmental problems, but they pose a grave threat to our economy and wellbeing. With the environmental damage inflicted often outpacing the response from governments, now is make or break time for our environment and all of us who depend on it. The 2014 Victorian election presents an opportunity to put Victoria’s environment back on a sustainable footing, grow jobs and new industries and secure the wellbeing of current and future Victorians. But that means departing from a business as usual approach to developing environment policy. At previous elections political parties have developed an assortment of environment announcements and knitted them together into a patchwork (and often patchy) policy agenda. The starting point for determining policy priorities has been what is popular, or what might suffice to demonstrate that there is an environmental agenda, rather than what is necessary. Far greater focus and cohesion has been given to the economic agenda. At the 2010 Victorian election, environmental policy was further diminished. Neither the ALP nor the Coalition released formal environment policies ahead of the election, with the ALP relying instead on its work

in government (the Climate Change and Land and Biodiversity White Papers) and the Coalition deciding not to release its environment policy agenda. The Greens released ambitious policies that were big on vision but short on detail and delivery. In 2014 all political parties have the opportunity to develop an environmental policy agenda that views the health of our environment as inextricably linked to the health of our communities and economy; using the 2013 State of Environment Report as a foundation for policy development and asking ‘what needs to be done’. Rather than seeking a single environment policy ahead of the election from each political party, Environment Victoria believes three broad areas of policy are required to develop a 21st century agenda. Specifically we are seeking from all political parties contesting the 2014 Victorian election: 1. An action plan for a safe climate and clean energy economy; 2. An action plan for smart and sustainable homes, cities and communities; 3. An action plan to restore and protect nature. We will also be watching to ensure that there are no election commitments that would take us backwards on environmental protection and are at odds with a clean, modern economy, for example new coal mines or the development of a coal seam gas industry. This document outlines the need for a 21st century policy agenda and the necessary elements for the three action plans. The detail of this agenda will be refined as we approach the 2014 election, but the three action plans will remain our key tests of party policy.

Transformative essentials from business as usual Clean, renewable energy & energy efficiency

Restore & connect systems

Closed loop production & consumption

Zero carbon buildings & transport

True value pricing of natural resources

Services culture replaces consumption culture

Low carbon economy, food, products & services

Sustainable primary industries & urban development

Respecting our environment & sustainable behaviours are the norm

Forest protection & carbon storage in ecosystems

Sustainable, integrated planning

Water, energy & materials efficiency

Economic models that value ecosystems & measure wellbeing

Victorian economy that supports sustainable industries & jobs

Laws, markets and incentives that protect nature and deter pollution, waste & nature destruction

Sustainable global population

PRIORITY 1 An action plan for a safe climate and clean energy economy The Problem

The Solution

The threat climate change poses to our environment, economy and wellbeing is well understood but poorly managed by our state government.

21st century governments are rapidly moving away from coal, preparing the way for a low-carbon economy and future. These governments stand to be the economic powerhouses of the 21st century.

At times Victoria has been a climate change leader. We pioneered the way with the Victorian Renewable Energy Target and the Victorian Energy Efficiency Target, which delivered billions of dollars’ worth of investment in clean energy projects. For a brief period Victoria led the nation with a legislated target to reduce greenhouse emissions by 20 percent by 2020, until that target was scrapped by the Coalition state government in 2012. But we’ve also been a climate laggard. We’re home to some of the oldest, most polluting coal-fired power stations on the planet, which makes us one of the most polluting societies in the developed world. And successive Victorian governments have harboured dreams of exploiting our massive brown coal reserves and exporting this polluting product to international markets. It’s time for our governments to recognise that coal is a dead-end industry - simply too polluting to have a place in a low carbon future. Our continued investment in fossil fuel industries places our economy, environment and jobs in grave danger. As Fatih Birol, Chief Economist of the International Energy Agency has warned, two-thirds of all proven reserves of oil, gas and coal will have to be left undeveloped if the world is to achieve the goal of limiting global warming to two degrees Celsius1.

Since 2010, 145 coal-fired power stations in the United States have closed or have announced closure dates2. At the same time, China is looking to ban the import of low grade coal (like Victoria’s) and has the fastest growing renewable energy industry on the planet.3 In 2010, global net investment in renewables surpassed investment in fossil fuels for the first time, while in 2012 investment in renewables far outstripped investment in fossil fuel generation ($US 227 billion versus $US 147.7 billion4). Clearly the economy, industries and jobs of the future are in developing and implementing climate change solutions like renewable energy and energy efficiency. If Victoria is to maintain its economic edge, protect jobs and deliver a safe climate for future generations, the next Victorian government must have a plan for a clean energy economy that complements national and international plans and rapidly transitions our state to a low carbon economy. This responsibility cannot be left to the federal government. State governments make important decisions that determine if pollution increases or falls. After all it is the state government that approves new power stations, freeways, building efficiency standards and other long-lived infrastructure. For Victoria the choice is clear. We can continue to support old coal plants and pursue a coal export industry and by doing so expose Victorians to deadly heatwaves, fires and floods and risk our economic and job security. Or we can reap the economic, social and environmental rewards of decarbonising our economy and securing a safe climate for all Victorians.

The Action Plan: What the next Victorian government needs to do While there is no single formula for cutting Victoria’s greenhouse emissions and attracting clean energy investment, the following policy elements need to be included in the Action Plan for a Safe Climate and Clean Energy Economy.

1.1 Set a stretch target, based on climate science, for reducing Victoria’s greenhouse pollution Reinstate Victoria’s legislated target to reduce emissions. Environment Victoria supports a goal to halve the state’s emissions by 2020 on 2000 levels. As long as there is a national price on carbon, no sanctions or penalties would be attached to the target. Rather it would be used as a guide for state investment and decision-making, and a goal for driving action and clean energy investment.

1.2 Support higher national emissions reduction targets and a national emissions trading scheme

the national stage that it should use to support the adoption of higher national emissions reduction targets for 2020 and 2050 in line with what the science shows is necessary; and to support a national emissions trading scheme as the key mechanism advocated by most economists to reduce emissions efficiently.

1.3 Develop a renewable energy investment strategy to ensure Victoria receives at least its fair share of the national Renewable Energy Target The national Renewable Energy Target (RET) aims to increase renewable energy’s share of the national electricity market to 20 percent by 20205. This is equivalent to the energy produced each year from five power stations the size of Hazelwood. The RET is estimated to have already underpinned $18 billion of investment in renewable energy projects since 2001, and is predicted to require a further $18 billion to meet the 2020 target6. However, Victoria has only received 15 percent of investment in large scale renewables projects under the target7, substantially less than our share of Australia’s population. This suggests that Victorian policy settings are costing us jobs, investment and clean energy generation.

The Victorian government has a powerful voice on 1 Birol, F., Quoted in the Irish Times, http://www.irishtimes.com/news/world/europe/two-thirds-of-energy-sector-willhave-to-be-left-undeveloped-bonn-conference-told-1.1425009#.UbtHPV1vafY.twitter 2 http://news.nationalgeographic.com.au/news/energy/2013/06/130625-obama-unveils-climate-change-strategy/ 3 http://www.nortonrosefulbright.com/knowledge/publications/99759/chinas-proposed-ban-on-lowerquality-coal-imports 4 REN21, Renewables Global Status Report 2013, p.63 5 Climate Change Authority, Renewable Energy Target Review, December 2012 6 The Climate Institute, http://www.climateinstitute.org.au/articles/media-releases/major-parties-urged-topromote-policy-stability-on-clean-energy.html/section/397 7 Climate Change Authority, Renewable Energy Target Review, December 2012, p.11

PRIORITY 1 An action plan for a safe climate and clean energy economy The fundamentals of the Renewable Energy Investment Strategy should include: 1. R emoving VC82, the Coalition government’s anti-windfarm planning laws; 2. A renewable energy skills strategy and funding for training programs and centres of excellence for renewable energy installers and practitioners; 3. D irecting all Energy Technology and Innovation Strategy (ETIS) funding to renewable energy and energy efficiency projects; 4. A revolving fund to support grid connection for new renewable energy projects; 5. E ncouraging renewable energy technologies not adequately supported by the RET such as tidal and wave power, biomass and large-scale solar; 6. I ncreasing the solar feed-in tariff to match retail prices for electricity for all residential PV installations; 7. P lanning for any future increase in energy demand to be met by renewable energy. 8. D eveloping an Energy Storage industry development plan to prepare for greater uptake of renewable energy technologies and reduce peak demand.

1.4 Accelerate the phase-out of our most polluting power stations Work with the federal government, electricity generators and stakeholders in the Latrobe Valley and Anglesea to plan for and secure the orderly closure of our oldest and most polluting power

stations like Hazelwood, Anglesea and Yallourn by 2020. This would attract new investment in power generation, provide secure employment transition timeframes, diversify the state’s energy mix and reduce emissions. It could be achieved by altering generation licences and bringing forward their expiry date or the introduction of an emissions performance standard that declines over time. 1.5 Implement a new round of energy efficiency programs to lock in the decrease in electricity demand for Victoria: Victoria has experienced falling electricity demand since 20088 delivering significant emissions cuts and more affordable energy bills. Demand has fallen due to rising electricity prices, the growth of solar PV, falling industrial demand and the success of energy efficiency programs. It is estimated that in 2012 households and small businesses saved $240 million on their power bills as a result of the Victorian Energy Efficiency Target (VEET) and this will rise to $550 million in 20139. VEET has also created 2,500 new Victorian jobs10. Specific actions to lock in further energy savings include: 1. Renewing the successful Victorian Energy Efficiency Target (VEET) scheme by setting new targets for the periods 2015-17 and 2018-20 and adding measures, particularly ceiling insulation, to the program; 2. Developing new commercial and industrial energy efficiency programs that complement federal programs; 3. Implementing new programs to support the uptake of solar water heating (see section 2.1).

What Victorians want A 2012 Essential Media poll found that: • 76% of Victorians think the Victorian government has a responsibility to act to reduce greenhouse pollution. • 78% of Victorians want more renewable energy, 82% want more energy efficiency while just 7% want more coal-fired power stations and 13% want more coal mines.

Investment

Growth

Solar

In 2012 investment in renewables far outstripped investment in fossil fuel generation ($US 227 billion versus $US 147.7 billion)12.

The RET is estimated to have already underpinned $18 billion of investment in renewable energy projects since 2001, and is predicted to require another further $18 billion to meet the 2020 target.

By June 2013 182,679 households and businesses had installed solar PV in Victoria13.

1.6 Rule out a further coal allocation and abandon plans to develop a brown coal export industry for Victoria Successive Victorian governments have attempted to develop new industries based on opening up Victoria’s brown coal reserves. These attempts have been unsuccessful as there is little international demand for low grade coal and Victoria would be a high cost producer11. Furthermore significant coal resources have already been allocated but not developed suggesting that those pursuing new coal allocations are speculators rather than genuine proponents. It is time to pursue genuinely sustainable industries in the Latrobe Valley and further diversify the region’s economy rather than continue to raise false hopes about ‘clean coal’ technologies that are not yet in existence and are unlikely to be commercially viable.

1.7 Strengthen rehabilitation requirements for all coal mines The Hazelwood mine fire has shown current mine rehabilitation to be inadequate to ensure the safety of Victorian communities. Rehabilitation bonds for existing coal mines should be reviewed. Bonds are currently too low to make the mines clean and safe at the end

of their lives, potentially leaving a multi-million dollar tab for taxpayers to pick up. Explicit and enforceable timelines for progressive rehabilitation are needed, to ensure disused parts of mines are made safe as quickly as possible. The standard of rehabilitation work should also be revised, if the coal under rehabilitated land can still be ignited, as shown in the Hazelwood fire.

1.8 Maintain a moratorium on coal seam gas and other unconventional coal and gas projects Environment Victoria is mindful of the direct impacts that current and proposed fossil fuel industries have on communities and their environment. We support actions that will protect the air, land, water and future of these communities. Victoria must properly regulate new industries like coal seam gas (CSG) or other unconventional coal or gas projects. The burden of proof should be with proponents to meet high standards for life cycle emissions and to demonstrate that there will be no detrimental impacts on surface water or aquifers. A moratorium on all activity including exploration should remain until the Victorian government has rigorous independent data to benchmark development proposals.

8 Saddler and Meade, Keeping electricity demand in check, April 2013, http://www.businessspectator.com.au/article/2013/4/5/energy-markets/keeping-electricity-demand-check 9 Submission by Energy Efficiency Certificate Creators to Review of Energy Saver Incentive. 10 Ibid. 11 Campbell R., 2012, Undermined or Overburdened. Victoria’s brown coal: an economic perspective a report for Environment Victoria, prepared by Economists at Large, Melbourne, Australia 12 REN21, Renewables Global Status Report 2013, p.63 13 ecoGeneration Solar map of Australia 2013

PRIORITY 2 An action plan for smart and sustainable homes, cities and communities The Problem

The Solution

Victoria’s high quality lifestyle continues to attract people from around the world and our population is rapidly growing towards 6 million. Population growth and increased consumption is placing further pressure on natural areas close to our towns and cities and on regions beyond, which supply our cities with food, materials, energy and water. Meanwhile our ageing transport infrastructure, centralised models of energy and water supply and inefficient buildings are harming the environment while threatening the state’s economic competitiveness and creating social disadvantage.

21st century governments are recognising that the way we organise and plan our cities, towns and buildings affects not only their environmental footprint but also their social cohesion and economic development. Embedding sustainable design and transport in plans for new settlements future-proofs these communities from the impacts of climate change and rising costs of utilities and transport.

Decisions made by past Victorian governments to establish a public transport network, create green wedges, introduce 5 and then 6 star standards for new homes and renovations, and efforts to improve the water sensitivity of our cities have all contributed to Victoria’s livability and prosperity. However, the vast majority of Victorian homes have an energy efficiency rating of 2 stars or less14 and although we reduced water use by 35 percent during the millennium drought, we’ve returned to our old, wasteful habits15. New housing developments are often poorly oriented away from the sun and lack sustainable transport options. This makes our homes uncomfortable and expensive to live in and impacts our environment and climate. With rising utility, transport and food costs, and with homes and cities unprepared for climate change and extreme weather events, now is the time to redouble our efforts to make Victorian homes, cities and communities smarter and more sustainable.

Existing buildings built before sustainable design standards need to be retrofitted to reduce the cost of living for households and business, and reduce their environmental impact. This will create jobs in rapidly growing industries like the manufacture of insulation and double-glazed windows, the rainwater harvesting industry, and the growing home audit and retrofit sector. Community support for improving Victoria’s energy and water efficiency is extremely high. In a benchmark poll of 1100 Victorians undertaken by Essential Media Communications for Environment Victoria, energy and water efficiency outranked every other proposed environmental policy action at the state level. This no doubt also reflects voter concern about the rising cost of living. Energy and water efficiency is widely acknowledged as being good for the environment and good for the hip pocket. The way we manufacture and consume products is also changing in 21st century communities. The European Union has been closing the loop on production and consumption processes by ensuring that when products reach the end of their useful life they can be dismantled and recycled rather than being sent to landfill. Australia is beginning to follow suit with extended producer responsibility schemes for televisions, computers, and in some states, drinks containers. Victoria needs to be at the forefront of this manufacturing and resources recovery revolution.

• Increasing the penetration of solar water heating to 30% of Victorian households by 2024 would create 1500 new jobs in the industry and reduce Victoria’s emissions by 1.8 million tonnes each year.

The Action Plan: What the next Victorian government needs to do Key policies required in the Action Plan for Smart Homes and Communities 2.1 Improve the energy and water efficiency of Victoria’s housing stock to an average standard of 5 stars and 100L/person /day by 2025 Most Victorians live in homes built before the introduction of 5 star standards in 2004. The average star rating of these 1.9 million Victorian homes is 2 stars or less16. These homes are uncomfortable and expensive to live in and are poor for the environment and the health of their residents. Both the ALP and Coalition made commitments ahead of the 2010 election to improve the average standard of Victorian homes to 5 stars, though little progress has been made in the Coalition’s current term of government. Achieving the 5 star average will require improving the standard of new homes above the current 6 star requirement and progressively improving the efficiency of Victoria’s existing housing stock. The four fundamental policies to achieve this goal are: 1. A coordinated and funded comprehensive retrofit program for 1 million low income homes to be delivered by 2020. The One Million Homes program would provide a comprehensive

energy and water efficiency retrofit for concession card-holding low income households. Such a program would deliver emissions reductions of over 2 million tonnes annually, water savings of 32 billion litres annually, household energy bill savings of $300-$600 annually and create up to 6700 new trades and manufacturing jobs17, 18. It would make Victorian homes safer and more comfortable for sick and elderly Victorians. And it would save state government $2.5 billion over 20 years in energy concession payments19. The One Million Homes comprehensive retrofit program should be the main feature of the next Victorian government’s efforts to improve the sustainability of Victoria’s homes and communities. 2. Introduce minimum performance standards for energy and water efficiency for residential properties at the point of sale or lease by July 2016. This regulatory measure will deliver improvements beyond low income homes and can be delivered in tandem with expanded rebate programs such as the Victorian Energy Efficiency Target, reintroduction of solar water heating rebates and rebates for water efficient products. 3. Set a goal of achieving zero net carbon and water efficient new buildings by 2020, making new buildings climate safe and water smart. A cross-sector taskforce should be established by mid 2015 to define standards and develop pathways towards achieving this goal. As an interim measure, standards for new homes should

14 Alternative Technology Association for the One Million Homes Alliance, 2.5 billion reasons to invest in efficiency, September 2012. Available at http://www.ata.org.au/wp-content/uploads/2-5-Billion-Reasons_OMH-Report.pdf 15 http://www.theage.com.au/victoria/is-the-wally-back-melbourne-water-use-surges-20130117-2cwan.html 16 Alternative Technology Association ibid 17 One Million Homes Alliance State Budget submissions 2013-13, Available at: http://environmentvictoria.org.au/ newsite/sites/default/files/useruploads/2013-14_State_budget_submission_OneMillionHomes.pdf 18 One Million Homes Alliance, A 2010 Energy and Water efficiency campaign, July 2010, available at: http://environmentvictoria.org.au/library/one-million-homes-2010-energy-and-water-efficiency-campaign 19 Alternative Technology Association for the One Million Homes Alliance, 2.5 billion reasons to invest in efficiency, September 2012. Available at http://www.ata.org.au/wp-content/uploads/2-5-Billion-Reasons_OMH-Report.pdf

PRIORITY 2 An action plan for smart and sustainable homes, cities and communities be increased to 8 stars by 2015, including the installation of solar hot water or a water tank. This builds on the existing actions of leading builders that are already offering 7 star homes as standard and introducing 8 star homes to their range20. Standards for renovations or additions should also be increased. 4. Set a target for 30 percent of Victorian homes to have solar water heating by 2024. In 2011, just over five percent of Victorian households had solar water heating21 despite it being the most efficient form of water heating for most homes. While new home building regulations provide a stable demand for solar water heating, stopstart state and federal rebates have damaged the replacement market. Meeting the 30 percent target would require the installation of 57,000 systems annually, create 1500 new jobs in the industry and reduce Victoria’s emissions by 1.8 million tonnes each year.22

2.2 Permanently embed integrated water cycle management and water saving habits into our cities and communities Our cities have abundant stormwater and rainwater that can supply future needs and avoid expensive and environmentally damaging desalination plants and dams. We’ve also proven we can be amongst the world’s best water savers although this has lapsed since the drought lifted. The next government should extend the Living Victoria initiative to: •H arness recycled water, rainwater and stormwater to meet Melbourne’s future water supply needs and replace 200 billion litres of mains water by 2030; •H elp Victorians retrofit their homes and appliances for water efficiency to meet a 100 litres per person per day efficiency target (see 2.1);

•R educe stormwater runoff into urban rivers by 40 percent; •S et a target of zero net carbon emissions for the water industry by 2025; •C lose Gunnamatta wastewater outfall; •C hange water pricing to increase financial rewards for water conservation efforts by making consumption the basis of water bills.

2.3 Build livable suburbs and protect our green wedges Any expansion of Melbourne’s urban growth boundary into Melbourne’s green wedges should be abandoned and the green wedges protected for the future. Existing urban areas need to be consolidated with an emphasis on public open space, sustainable transport options, and local services and employment to reduce travel demand. New housing developments should be required to: • Be adequately served by public transport and local services before they are built; • Contain a minimum of 30-35 dwellings per hectare; • Orientate housing to allow for best possible use of passive energy design features.

2.4 Invest in sustainable transport Introduce an immediate moratorium on new major road projects. Re-focus annual transport expenditure in the state budget to allocate at least two-thirds to public and active transport and a maximum of one third to roads.

2.5 Reduce waste Set a target to recover 80 percent of total solid waste by 2016 and reintroduce public reporting on progress towards targets. Ban the disposal of organic material to landfill and build dedicated organic waste treatment

• Retrofitting one million low income households would deliver emissions reductions of over 2 million tonnes annually, water savings of 32 billion litres annually, energy bill savings of $300-$600 annually per household and create up to 6700 new trades and manufacturing jobs23, 24. And it would save State Government $2.5 billion over 20 years in energy concession payments.

A 2012 Essential Media poll of 1100 Victorians found that: Cost of living ‘ Cost of living’ was the equal highest-ranked concern of importance to voters (96%, equal to ‘health’).

Efficiency T he most popular climate policy action was ‘more energy efficiency’ (82% approval; 28% thought most effective way to deal with climate change, 20% thought second most effective way to deal with it).

facilities. These measures would deliver significant jobs growth in Victoria’s recycling and resource recovery industries.

2.6 Encourage producer responsibility Expand the Extended Producer Responsibility (EPR) scheme for televisions and computers to include other priority materials and products such as all other electronic waste, batteries, mobile phones, and compact fluorescent lightbulbs. Ban the disposal of any product covered by an EPR scheme to landfill. Introduce a container deposit scheme by 2015 – either through the establishment of a national scheme or joining forces with South Australia and the Northern Territory which have existing schemes.

Population

Transport

Two of the three highest ranked environmental problems of importance were population growth (44%) and urban sprawl (35%).

38% of respondents said ‘more public transport’ was the most important action to be taken to address environmental problems in Victoria – the highest number of any issue.

2.7 Develop and fund a comprehensive Victorian climate change adaptation strategy Such a strategy will protect communities and prepare for inevitable climate change. This would include: • State-wide mapping of climate vulnerabilities; • Incorporating climate change adaptation into the Environment and Planning Act and all planning provisions and building and engineering codes to ensure new buildings and infrastructure can cope with and limit climate impacts; • Reinstating planning schemes which prepare for sea level rise; • Ensuring emergency response services are resourced effectively to prepare for and respond to extreme weather events; • Identifying and assisting those in the community most vulnerable to climate change impacts.

20 Eg see http://www.burbank.com.au/victoria/news_files/08042011-tierra.html 21 Australian Bureau of Statistics, Household Water and Energy Use, Victoria, October 2011, http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/4602.2October%202011?OpenDocument 22 This is an extrapolation from a 2009 study by Environment Victoria- Victoria: The Green Jobs State, Solar water heating case study, which will be updated in 2013. Available here: http://environmentvictoria.org.au/index.php?q=library/victoria-green-jobs-state-siezing-opportunities 23 One Million Homes Alliance State Budget submissions 2013-13, Available at: http://environmentvictoria.org.au/ newsite/sites/default/files/useruploads/2013-14_State_budget_submission_OneMillionHomes.pdf 24 One Million Homes Alliance, A 2010 Energy and Water efficiency campaign, July 2010, available at: http://environmentvictoria.org.au/library/one-million-homes-2010-energy-and-water-efficiency-campaign

PRIORITY 3 An action plan for protecting and restoring Victoria’s nature The Problem

The Solution

Victorians love our environment. As well as supporting people and communities for thousands of years, Victoria is home to some of the most important places and species in the world.

21st century governments view nature as an asset that needs to be protected and restored, not a resource to exploit.

But this natural wealth – from the alpine meadows to the kelp forests – which supports every aspect of our physical, emotional and economic wellbeing, is at risk. Our rivers are over-allocated and in poor condition and climate change threatens their very existence. The most recent Index of Stream Condition found only one fifth of major rivers and tributaries in Victoria are in good or excellent condition while in 2011 all 10 Victorian basins in the Murray-Darling Basin were found to be in poor or very poor health25. Victoria is the most cleared state in Australia, yet we are still losing 4000 hectares of native vegetation each year26. We are experiencing a biodiversity crisis in Victoria with 44 percent of plants and 30 percent of animals threatened27. And our marine and coastal environments are poorly managed and underrepresented in our protected areas network. As the last Victorian State of Environment Report found, “Despite improved understanding of environmental issues and processes, the policies and initiatives implemented in recent decades, and extensive investment in the environment, the condition of Victoria’s natural environment has continued to decline.”28

They are developing conservation and restoration approaches tailored for land condition. This means protecting intact and high conservation value parts of the state from development pressures and threats like fire. Where nature has been fragmented and altered by settlements and production, they are repairing remnant natural areas and connecting them by creating conservation and wildlife corridors, turning isolated islands of wildlife habitat into the new beach-head for restoration and so reducing species loss. In production zones they are restoring natural assets by doing more with less - using natural resources efficiently and responsibly and taking into account nature’s need for that resource as well as human needs. Where current practice is clearly unsustainable they are retiring land from production and restoring ecological values. They are returning water to rivers that have been overallocated. Forward-looking governments are also recognising the health value of nature especially for our children as well as accounting for some of nature’s value to the economy and communities by putting a value on the free services provided by nature (such as clean air and water, fertilisation, pest control and carbon sequestration). This is done by shifting investment, subsidies and tax incentives from activities that harm nature to activities and industries that help restore it. Victoria needs a conservation and restoration agenda, with clear targets and timeframes for action. A conservation and restoration agenda will support regional jobs and investment, and help protect, connect and restore nature and the communities that depend on it.

The Action Plan: What the next Victorian government needs to do Key policies required in the Action plan for protecting and restoring Victoria’s nature: 3.1 Protect habitats, species and wildlife Victoria lacks a clear strategy to restore and protect biodiversity and inform investment priorities. Victoria also lacks consistent, coordinated and continual data collection to monitor environmental health29. Much of the legwork has already been done in preparing the Victorian Land and Biodiversity White Paper released in 2010. This White Paper should form the foundation of biodiversity targets and a state strategy, with funding provided to implement the strategy and develop a comprehensive monitoring framework. Other priorities for action, which the Victorian National Parks Association is developing detailed policy-asks around include: • Updated native vegetation protection legislation; •L egislative and institutional reform to protect threatened species; • A sustainable firewood future; • I nvestment in community action such as continuing the funding of the 68 Landcare facilitators and

regional and local government capacity to restore nature; • Strengthening the Victorian Environmental Assessment Council.

3.2 Protect Victoria’s rivers and river corridors by replacing Victorian Crown water frontage licences with riparian conservation licences The health of our inland waters was identified as one of five key environmental indicators in the 2013 State of Environment Report, highlighting that river health is a high order priority for environmental action. The river-side, or riparian zone provides a key function in improving water quality for all users and reducing erosion and sedimentation. Victoria’s public riparian land has been identified by government agencies, catchment management authorities (CMAs) and scientists as a major priority for action and better management. Stock access continues to damage rivers, decrease water quality, and impact upon threatened species, and in many catchments it has been identified as the key manageable threat to river health and water quality. The 2008 State of the Environment (SoE) report recommended that grazing licences on Crown water frontages should end. At present about 17,000 kilometres of the 22,000 kilometres of Crown frontages outside parks and forests are managed by the adjacent land holder under almost 10,000 agricultural licences.30 Necessary changes to riparian management include: •R eplacing Victorian Crown water frontage licences

25 MDBA (2011) Sustainable Rivers Audit 2 26 Commissioner for Environmental Sustainability Victoria, State of the Environment Victoria, 2008. 27 Commissioner for Environmental Sustainability Victoria, ibid. 28 Commissioner for Environmental Sustainability Victoria, ibid. 29 Victorian Catchment Management Council, Catchment Management and Condition Report 2012 30 DSE (2012) Draft Victorian Waterway Management Strategy p105

PRIORITY 3 An action plan for protecting and restoring Victoria’s nature at future renewal dates with Riparian conservation licences to protect the highest priority river reaches; • Identifying and completing strategic additions to the National Parks and protected areas system; • Initiating a voluntary conservation program for licence holders in lower priority river reaches;

• Commence a VEAC inquiry into the conservation status, management and protection of Victoria’s wetlands in 2015; • Ban the recreational shooting of waterbirds in Victoria.

• Initiating a Waterway Guardian/Stewardship Program to reward good practice; and

3.4 Contribute positively to the implementation of the Murray-Darling Basin Plan and meet sustainable diversion limits by:

• Requiring landholders making use of unlicensed frontages to either acquire a licence or fence off their land.

• Continuing the current level of funding to the Murray Darling Basin Authority;

3.3 Reverse the over-allocation of Victoria’s rivers and strengthen the Water Act In most of the state Victoria’s rivers are over-allocated meaning our rivers do not have enough water to keep them healthy. Key measures required to reverse the over-allocation and protect river health include: • Bringing the Victorian Water Act into the 21st century. A reform of the Water Act in 2005 set up the environmental water reserve (EWR) giving rivers and aquifers a legal right to a share of their own water. However so far the amount of water in the EWR has not been enough in either volume or reliability to protect our freshwater systems (above or below ground). Two fundamental changes, and a series of supporting reforms, are required to bring the Act into the 21st century: firstly ensuring the EWR has enough good quality and reliable water in it, and secondly establishing a ‘sustainable baseflow’ for Victorian rivers (i.e. a legally bound share of water that is set aside specifically to protect environmental values, before consumer demand is considered). It would vary from year to year, according to water flows into the ecosystems, but would be based on the ecological needs of each system. See Environment Victoria report “Bringing the Victorian Water Act into the 21st century” for detail.31 •R uling out any new on-stream dams on Victorian rivers. •M eeting all existing commitments made by successive governments to return water to rivers – for

example 8GL for the Thomson is still outstanding;

• Identifying and removing constraints on the delivery of environmental water to river systems, wetlands and the Red Gum National Parks progressively by 2020; • Aligning the Victorian water management framework with the Murray Darling Basin Plan’s requirements; • Rigorously assessing the environmental outcomes of any potential offset projects under the Murray Darling Basin Plan; • Assisting regional communities to adjust to a waterconstrained future through transition and regional development strategies and funding to retire unviable irrigation districts.

3.5 Protect and connect natural environments through investment in wildlife corridors A key strategy for addressing the impacts of landclearing and Victoria’s biodiversity crisis is to link and repair remnant vegetation to create wildlife corridors. Wildlife corridors allow species to migrate between areas, which will be increasingly important as climate change forces species migration. Restoration of native vegetation on private land can complement existing and new protected areas and the protection of public riparian land. To be successful, wildlife corridors should operate at a landscape-scale and require cooperation between public and private land managers to create a mosaic of landscape types that are close enough to each other to provide migration opportunities. To support the development of landscape scale wildlife corridors the next Victorian Government should:

Rivers

Grazing

Stock access

Habitat loss

Only one fifth of major rivers and tributaries in Victoria are in good or excellent condition.

The 2008 State of the Environment (SoE) report recommended that grazing licences on Crown water frontages should end.

Stock access continues to damage rivers and water quality, and impact upon threatened species, and in many catchments it has been identified as the key manageable threat to river health and water quality.

Victoria is the most cleared state in Australia, yet we are still losing 4000 hectares of native vegetation each year.

•P rovide seed funding to support flagship projects like Habitat 141 and the Central Victorian biolinks project and develop new proposals;

3.7 Building Victoria’s world class National Parks and Protected Areas estate

• I ncrease support for 68 community Landcare facilitators and for the Communities for Nature grants;

Environment Victoria supports the Victorian National Parks Association’s agenda for managing and completing Victoria’s protected areas estate.

• I nvest in the development of Eco-markets to provide ongoing support for biolinks and habitat restoration.

3.8 Healthy Bays, Coasts and Seas

3.6 End the logging of native forests Environment Victoria supports the conservation agenda being developed by The Wilderness Society and the Victorian National Parks Association to end native forest logging and transition the industry to harvesting plantation timber. In particular we support the declaration of the Great Forest National Park in the Central Highlands.

Victoria’s marine and coastal environments are highly biodiverse, with 90-95% of the species found in southern Australian waters found nowhere else on earth32. Coastal environments are also highly effective in capturing carbon33. Environment Victoria supports the Victorian National Parks Association’s detailed roadmap for marine and coastal protection.

31 Environment Victoria and Environmental Defenders Office, “Bringing the Victorian Water Act into the 21st century”, 2010, available at http://environmentvictoria.org.au/sites/default/files/Reforming%20the%20Victorian%20Water%20Act.pdf 32 Commissioner for Environmental Sustainability Victoria, State of the Environment Victoria, 2008 33 http://www.abc.net.au/news/2013-05-16/vital-coastal-carbon-capture-systems-under-threat/4692696

Level 2, 60 Leicester Street, Carlton VIC 3053 Telephone (03) 9341 8100, admin@environmentvictoria.org.au PMS 1615

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