Discovering a slab of coal in your Christmas stocking conventionally notions the idea that Father Christmas judges you more naughty than nice. However, could this tradition be an idea of the past as the nation, and the world, moves towards renewable energy?
Australia is amongst 20 countries, all of them major economies, who agreed on Monday to take a clean energy pledge. The investment program, titled Mission Innovation, is a promise to radically accelerate public and private global clean energy innovation. In specific, the cluster of countries, representing 80 per cent of global clean energy research and development (R&D) budgets, have dedicated to double their R&D investments over five years.
According to the Mission Innovation website, Australia’s spending on research and development for 2015 has been assessed at $100 million. To put it differently, by these standards the Australian government would finance $200 million in the field of clean energy research and development by 2020. Furthermore, the current combined country’s expenditure on clean energy is estimated at approximately $10 billion, which would be equivalent to $20 billion when it is doubled.
Certainly, energy generation in Australia is revolutionising as the Australian Government focuses on clean energy as a key element of innovation. Moreover, Australia is one of the largest energy exporters in the world and results from the 2015 Australian Energy Statistics reveal that renewable generation rose by 12 per cent in 2013–14. Hence, given our strong history in energy and as our importance as a global energy supplier continues to grow, Australia could certaintly play a fundamental role in the world’s movement towards renewable energy.
Indeed, the renewable technologies we have today, such as wind and solar, have created huge progress towards a zero-carbon energy future. However, as Bill Gates described in a statement, “given the scale of the challenge, we need to be exploring many different paths – and that means we also need to invent new approaches.”
Ultimately, innovation through research and development (R&D) is a crucial, facilitating component to the future energy portfolio due to the limited nature of the world’s fossil fuel resources. If your business is developing or commercialising new, emerging or alternative energy technologies and services, you may be eligible for funding and support. Numerous companies are not aware of the magnitude of their eligible undertakings, or if they are suitable at all. Swanson Reed provides specialist expertise transversely to a broad range of industries and has assisted many clients attain tax cash savings under the R&D regime. Contact one of our specialist R&D Tax consultants to find out if you’re eligible.