Victoria's climate policies will make no difference to achieving Australia's greenhouse emissions targets and will simply subsidise big industrial polluters, according to a State Government assessment.
A high-level ministerial brief, obtained by The Age, advises the Brumby Government to rethink policies and programs, including subsidies for solar farms and panels and a shift to a hybrid car fleet, arguing that they will not contribute to any additional greenhouse gas cuts under Prime Minister Kevin Rudd's proposed Carbon Pollution Reduction Scheme (CPRS).
The leaked brief reignites debate over the environmental benefits of billions of dollars in green outlays by households and government, from an individual choosing to spend more for an energy-efficient refrigerator, through to Mr Rudd's $3.9 billion for insulating homes as part of his economic stimulus package.
It adds weight to warnings by some economists and environmentalists that voluntary green actions outside the limited industrial scope of the CPRS will simply ease the pressure on big polluters to cut emissions, and save them money.
The confidential ministerial brief advises the State Government that it should now only bother with green measures if they are more cost effective than alternatives.
Concern about the role of voluntary action emerged last year as the shape of Labor's carbon-cutting strategy became clear.
Critics as diverse the federal Opposition, the Australian Consumers Association and left-leaning think tank the Australia Institute, have complained that actions such as the purchase of GreenPower, installing solar panels on roofs, and even catching public transport, would not achieve any additional emissions savings beyond the Federal Government's much criticised greenhouse targets.
This is because the scheme, scheduled for introduction in 2010 if it can get through the Senate impasse, would put a legally binding "cap" or limit on emissions and emission cuts.
In practice, Labor's plan to reduce Australia's carbon pollution by between 5pc and 15pc by 2020 means that any voluntary efforts to cut emissions will only reduce the price of permits to pollute, not actually achieve additional cuts.
That criticism is also repeated in the State Government ministerial brief.
The leaked report adds clarity to a debate dogged by political spin.
It is at odds with some comments by Climate Change Minister Penny Wong, who has denied that voluntary actions will be a subsidy to big polluters under the CPRS.
Not surprisingly, Labor states have been careful in their response to questions about their federal colleagues' climate change strategy.
But The Age believes there is frustration among the states about the failure of the CPRS to take account of government and household efforts to cut carbon.
Australia Institute executive director Richard Denniss said the leaked State Government brief had come as no surprise.
"The harder households work, the harder the Melbourne or Sydney city councils work, or the harder the state governments work to cut emissions, the less the big polluters have to work," he said.
Dr Denniss is pushing for changes to the proposed CPRS so that government and household carbon emission savings are counted and the number of pollution permits made available to industry is reduced accordingly.
He called on state governments to demand that the Commonwealth fix what he said were clear flaws in the scheme.
This month the Victorian Government announced it would spend $100 million on a new regional solar plant if matched by federal money.
While not referring specifically to the grant, the leaked brief says that spending on solar farms is a waste of money if it is intended to contribute to cutting emissions.
Victorian Environment Minister Gavin Jennings did not answer specific questions about the impact of the CPRS on initiatives such as solar grants, feed-in tariffs, or mandatory energy ratings for new homes.
"While the CPRS will be the main driver of emissions abatement, the (yet to be released) Green Paper will outline the role for the Victorian Government in driving innovation and the development of low carbon industries to make Victoria a leading green economy," said spokesman Nick Talbot.
"The Victorian Government will also continue to play a key role in helping households, communities and businesses adapt to climate change and the associated risks, including more extreme weather and greater fire risk."
Senator Wong did not respond in time for publication.
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