ABSTRACT
This chapter explores the most relevant policy options for promoting and guiding energy cropping. It overviews the main categories of policy instrument that can be used by policy-makers to promote sustainability. Market-based policy measures differ from command-and-control measures in that they are generally applied in a more flexible manner and seek to use economic incentives to influence behaviour rather than defining actions as legal or illegal. Most grants programmes targeted at bio-energy are run by government agencies, but other grants relating to social or environmental outcomes from land use activities may be offered by non-government organisations (NGOs). Auction approaches have also been used to improve the cost-effectiveness of grants for environmental benefits. The Carbon Pollution Reduction Scheme (CPRS) was progressed by the newly elected Labor Government through a 2008 White Paper and 2009 negotiations with the opposition Liberal/National coalition, almost making it through parliament before the coalition switched leaders to the anti-CPRS Tony Abbott.
