{"id":"F2008L03036","name":"Climate Ready Program Directions No. 1 of 2008","slug":"climate-ready-program-directions-no-1-of-2008","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":75064,"registerId":"commonwealth-F2008L03036-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Climate Ready Program Directions No. 1 of 2008","content":"ATTACHMENT C\n\nCommonwealth of Australia\n\nIndustry Research and Development Act 1986\n\nClimate Ready Program Directions No 1 of 2008\n\nI, Kim John Carr, Minister for Innovation, Industry, Science and Research, acting under subsections 18 (A), 19 and 20 (1) of the Industry Research and Development Act 1986, give the following directions to Innovation Australia (the Board).\n\nDated 22 July 2008\n\nSenator the Hon Kim Carr\n\nMinister for Innovation, Industry, Science and Research\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\nPART 1 - PRELIMINARY\n\nName of directions\n\n1.  These directions are the Climate Ready Program Directions No 1 of 2008.\n\nCommencement\n\n2. These directions commence 28 July 2008 or the day that the directions are published in the Gazette, whichever is the later.\n\nObject of these directions\n\n3. The object of this instrument is to give directions to the Board in relation to:\n\n(a) an additional function of the Board, namely the provision of technical assessments and merit ranking of eligible applications under the Climate Ready program.\n\n(b) the policies and practices to be followed by the Board in the performance of the function.\n\nInterpretation\n\n4. (1) In these directions, unless the contrary intention applies:\n\nagreed project activities means the activities that are specified in an agreement.\n\nagreement means an agreement between a recipient and the Commonwealth for grant funding under the program, as amended from time to time in accordance with the rules for the program.\n\napplicant means an entity that makes an eligible application.\n\n  \nClimate Ready program means the Climate Ready program, known informally as Climate Ready, which is a merit-based program that is administered by the Department to increase high quality innovation activities by small to medium enterprises in Australia that address the effects of climate change.\n\nClimate Ready Program Guidelines means the guidelines that are made by the Minister to the Department, as in force from time to time, for the delivery of the Climate Ready program.\n\nDepartment means the Department of Innovation, Industry, Science and Research.\n\nearly\\-stage commercialisation activities means the systematic work necessary for installing and establishing processes, systems and services that allow the new product, process or service to be produced to the stage where it can effectively be brought to market.\n\neligible activities means:  \n(a) research and development; and/or  \n(b) proof-of-concept; and/or  \n(c) early-stage commercialisation activities;\n\nthat are carried out in Australia.\n\neligible application means an application for grant funding under the program, that is an application that the Program Delegate has determined is eligible for technical assessment and merit ranking by the Board in accordance with the Climate Ready Program Guidelines.\n\neligible project means a project that:  \n(a) aims to produce, commercialise or establish the commercial or technical viability of a new, clearly identified product, process or service that will address the effects of climate change; and  \n(b) must involve eligible activities.\n\ninnovation means the process whereby ideas are transformed, through economic activity, into sustainable, value-creating outcomes. It can generate changes in output such as new products and/or processes and/or services.\n\nMinister means the Minister for Innovation, Industry, Science and Research.\n\nprogram refers to the Climate Ready program unless otherwise indicated.\n\nProgram Delegate means an employee of the Department who has been empowered by the Minister, or otherwise duly authorised, to carry out the relevant function in respect of the Climate Ready program.\n\nproof-of-concept activities means the steps necessary to establish the commercial and technical viability of a product, process or service.\n\n  \nproposed project activities mean all eligible activities that are proposed to be undertaken by or on behalf of the applicant.\n\nrecipient means an entity that is entitled to receive funding under the program pursuant to an agreement between the entity and the Commonwealth.\n\nresearch and development activities mean the systematic, investigative and experimental activities that involve innovation, technology transfer into Australia or technical risk.\n\n(2) In these directions, ‘may’ is permissive and not mandatory.\n\nPART 2 – ASSESSMENT AND MERIT RANKING OF APPLICATIONS\n\nProcedure\n\n5. (a) Subject to clause 6, the Board will assess eligible applications and provide a merit ranking of those applications to the Program Delegate.  \n(b) The Board must consider eligible applications as soon as practicable after those applications have been provided to the Board.\n\nBoard may decline to provide merit ranking\n\n6. The Board may decide to refuse to provide a merit ranking in respect of a particular applicant if it is not satisfied:  \n(a) with the level of merit of an eligible application in relation to one or more of the merit criteria; or  \n(b) that the activities described in the eligible application are eligible activities and the project is an eligible project.\n\nAssessment of applications\n\n7. Subject to clause 6, the Board must assess each eligible application on its merit according to the extent to which the application meets the merit criteria.\n\nMerit criteria\n\n8. The merit of eligible applications must be assessed against the following criteria:\n\nCriterion 1: Applicant management capability\n\nThe applicant may indicate merit by demonstrating:\n\n-   key management personnel have appropriate expertise and a solid track record in:\n    -   project management\n    -   commercialisation management, and\n    -   business management, including human resources and financial management;\n-   a core business directly relevant to the project;\n-   a company business plan which includes and supports the proposed project; and\n-   company stability and/or growth over the two financial years prior to lodging the application if the applicant is an established company.\n\n  \n\nCriterion 2: Project commercial potential\n\nThe applicant may indicate merit by demonstrating:\n\n-   key commercialisation personnel have appropriate expertise and a solid track record in commercialising and marketing innovative products, processes or services;\n-   a sound commercialisation strategy setting out a clear route to market for the project outcomes including:\n    -   an understanding of any trade barriers;\n    -   access to manufacturing; and\n    -   timeframe to commercial exploitation;\n-   a realistic estimate of market demand for the project outcomes; and\n-   a realistic understanding of the competitiveness of the project’s outcomes, including:\n    -   the competitive advantage(s) of the project’s outcomes compared to competing products, processes or services; and\n    -   the frequency of entry of new products, processes or services in the relevant market.\n\nCriterion 3: Project technical strength (including applicant technical capabilities)\n\nThe applicant may indicate merit by demonstrating:\n\n-   the technical capacity to undertake the project, including:\n    -   adequate infrastructure, facilities and equipment available to meet the short and long-term requirements of the project;\n    -   a good understanding of technical product development, testing and production start-up;\n    -   appropriately skilled technical staff and/or sub-contractors; and\n    -   a well-articulated project plan, including methodologies and milestones linked to a feasible timeframe;\n\n-   a strong track record in the project field;\n-   a project with an appropriate level of innovation; and\n-   the project will resolve technical risk, or build on prior work that has an appropriate level of technical risk.\n\nCriterion 4: Project National Benefits\n\nThe applicant may indicate merit by demonstrating how:\n\n-   the project will improve national productivity and contribute to economic growth;\n-   the project will result in social, community and/or environmental benefits;\n-   the project will address the effects of climate change; and\n-   Australia will get significant spill-over benefits through conduct of the project and/or commercialisation of its results, including:\n    -   diffusion of knowledge and skills;\n    -   diffusion of new products, processes or services; and/or\n    -   increased collaboration between businesses and/or businesses and research institutions.\n\n  \n\nCriterion 5: Impact of funding on project outcomes\n\nThe applicant may indicate merit by demonstrating a realistic project budget identifying that program funding is needed for the project to achieve its planned outcomes and\n\nthe applicant either:\n\n-   does not have the financial resources without grant assistance to complete the project or to complete the project in a competitive time frame; or\n-   requires grant assistance to leverage funding from commercial sources to complete the project or to complete the project in a competitive time frame.\n\nPART 3 – ASSESSMENT OF PROPOSALS FOR VARIATION TO THE AGREED PROJECT\n\n9. If a recipient has submitted a proposal to the Department for approval of changes to the project, including the addition of new activities, the discontinuance of activities, the substitution of new activities in the place of discontinued activities, a variation to funding, or a variation to the project’s timeframe, the Program Delegate may request that the Board assess the proposal.\n\n10. If the Board receives a request under clause 11, it must assess the proposal as soon as is practicable and provide the assessment to the Program Delegate.\n\n11. In undertaking an assessment of a proposal to change the project the Board will determine:  \n(a) the extent to which the changed project meets the merit criteria; and  \n(b) whether the change to the project would:  \n(i) significantly improve the outcomes of the project  \n(ii) be consistent with the policy objectives set out in the Climate Ready Program Guidelines  \n(iii) otherwise be appropriate in all the circumstances.\n\nPART 4 – OTHER TECHNICAL ASSESSMENTS\n\n12. The Program Delegate shall request the Board to provide an assessment of technical matters associated with applications, activities and projects, or on any other matter relevant to or impacting on a merit criterion, including:  \n(a) technical matters relating to the eligibility of applications, activities or projects against the definitions contained in these Directions;  \n(b) the progress reported by a recipient against the technical milestones for a project or compliance with agreement conditions that are of a technical nature;  \n(c ) matters pertaining to national benefits assessments;  \n(d) any other matter that pertains to technical merit or the technical assessment of compliance with the terms and conditions of the program or an agreement.\n\n13. In carrying out technical assessments pursuant to clause 12, the Board will take into account any relevant policies relating to the administration of the program that are issued under the Climate Ready Program Guidelines.\n\n14. If the Board receives a request under clause 12 it must conduct the assessment within a reasonable time and provide the assessment to the Program Delegate.\n\nPART 5 – BOARD TO PROVIDE ADVICE ON POLICIES AND OPERATIONS OF THE PROGRAM\n\n15. The Board may advise the Minister, or the Minister may request advice, on non-financial administration matters relating to the program, including program administration and the extent to which the program is meeting its objectives.\n\n16. The Board may collect and analyse data on the performance of the program, provide advice to the Minister on such performance, and will cooperate with any independent evaluation of the program.","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"These directions add an explicit, additional function to the Board: providing technical assessments and merit rankings for Climate Ready applications and advising on program operations (cl.3,5,12,15). The instrument therefore expands the Board's operational role (advice and technical appraisal) but leaves final eligibility and funding decisions with the Program Delegate and Department (cl.5,6,12)."},"complexity_factors":["Detailed multi-part merit criteria with sub-factors to be applied in assessments (cl.8).","Discretionary powers allowing the Board to refuse to rank applications if not satisfied about merit or eligibility (cl.6).","Split decision-making: Board provides assessments and rankings while the Program Delegate retains eligibility and funding decisions (cl.5,6,12).","Broad scope of technical assessments covering eligibility, project progress, compliance and national benefits, increasing factual and evidentiary demands (cl.12).","Cross-references to Climate Ready Program Guidelines and Department policies that shape assessment practice and can change over time (cl.3,13).","Vague timing standards such as \"as soon as practicable\" and \"reasonable time\", producing interpretive discretion (cl.5(b),14).","Procedures for assessing proposed project variations that require balancing merit, policy consistency and outcome improvement (cl.9–11).","Reliance on defined terms and program agreements to determine eligibility, creating interactional complexity between instrument, guidelines and grant contracts (cl.4)."],"plain_english_summary":"These directions instruct Innovation Australia's Board to assess and technical‑assess eligible *Climate Ready* grant applications and provide merit rankings to the Program Delegate, while the Program Delegate and Department retain funding and eligibility decisions (cl.5,6,12). Commonwealth grant funding is provided under program agreements to successful recipients.\n\nApplicants (mainly SMEs) are judged against five merit criteria — management, commercial potential, technical strength, national benefits and funding impact — and must meet eligibility and reporting requirements; the Board also advises on program operations and assesses proposed project variations (cl.8,9–11,15–16)."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation remains focused on its original purpose: establishing the administrative framework for assessing Climate Ready Program grant applications. The scope covers assessment procedures, merit criteria, and advisory functions — all directly tied to the program's stated objective of funding climate innovation by SMEs. No significant scope creep is evident."},"complexity_factors":["15 defined terms in the interpretation section (clause 4), including nested definitions where terms like 'eligible activities' and 'eligible project' cross-reference each other","Multiple conditional pathways: Board 'may' refuse (clause 6) vs 'must' assess (clause 7), creating permissive/mandatory distinctions that require careful parsing","Five detailed merit criteria with sub-bullets (Criterion 1-5 in clause 8), creating layered assessment requirements","Cross-references between this instrument and external documents: Climate Ready Program Guidelines (referenced 4+ times) and the Industry Research and Development Act 1986 (empowering provisions)","Procedural sequencing requirements ('as soon as practicable', 'within a reasonable time') that create soft obligations rather than hard deadlines","Clause numbering error in Part 3 (clause 11 references 'clause 11' instead of clause 9, suggesting drafting oversight)"],"plain_english_summary":"This instrument directs Innovation Australia on running the Climate Ready Program, a grant scheme funding SME R&D, proof‑of‑concept and early commercialisation for climate‑change solutions. It requires merit‑based assessment and ranking of applications against criteria such as team capability, commercial and technical strength, national benefit and funding need, plus rules for project changes, technical reviews, and advice to the Minister.\n\nIt affects SMEs seeking grants, Innovation Australia and relevant department staff, and aims to ensure taxpayer funds back sound, high‑impact climate innovation."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/climate-ready-program-directions-no-1-of-2008","history":"/api/acts/climate-ready-program-directions-no-1-of-2008/history","analysis":"/api/acts/climate-ready-program-directions-no-1-of-2008/analysis","conflicts":"/api/acts/climate-ready-program-directions-no-1-of-2008/conflicts","importantCases":"/api/acts/climate-ready-program-directions-no-1-of-2008/important-cases","documents":"/api/acts/climate-ready-program-directions-no-1-of-2008/documents"}}