Prime Minister Malcolm Turnbull's disastrous week-long spat over a climate-change policy review has culminated in a showdown with state premiers in Canberra, and criticism from the nation's chief business group.
Infrastructure, competition and family violence policies also provoked fights between the Prime Minister and state premiers at Friday's Council of Australian Government meeting.
Not happy, Mal!
South Australia's Jay Weatherill and PM Malcolm Turnbull continue their dispute over electricity policy at the post-COAG press conference.
But it was climate policy that dominated the COAG wash-up, with Mr
Turnbull accused of trotting out "infantile slogans" in place of
evidence-based policy by South Australian Premier Jay Weatherill.
WA Premier Colin Barnett argued a market-based carbon price mechanism had some role to play in reducing emissions and Victorian Premier Dan Andrews advocated a "proper" examination of climate policy that did not rule out anything - including an emissions intensity scheme - before the federal review was completed.
The COAG meeting capped an awful week for Mr Turnbull and the Coalition, which saw the government abandon plans following a backbench revolt to
examine the use of an emissions intensity scheme as part of its 2017
review of climate policy, and Environment Minister Josh Frydenberg -
who initially said the review would examine an EIS - thrown under a bus even as he reversed course and said there would be no EIS.
The Business Council of Australia, usually a rusted-on supporter of the Coalition, on Friday slammed it for ruling out any prospect of such a scheme being used to reduce carbon emissions.
"The categorical ruling out of mechanisms to achieve this transition [to a low emissions economy], or imposing arbitrary moratoriums on lower-emissions fuels such as onshore gas, constrains the discussion about how agreement can be achieved," chief executive Jennifer Westacott said.
"Both the preliminary report from the Finkel Review Panel and modelling by the Australian Energy Market Commission highlight clearly the options available to government and the costs of ruling particular policies in or out."
An EIS sets a limit on how much a power station can freely emit for every unit of power generated. Cleaner generators that emit less than the limit earn credits, and sell them to dirtier generators above the baseline.
Presenting an issues paper on the electricity market to COAG, chief scientist Alan Finkel cited evidence from the Australian Electricity Market Commission that it would be cheaper to use an emissions intensity scheme to help reach national climate targets than any other option considered, including doing nothing.
Fairfax Media revealed on Thursday that modelling for the commission found electricity bills for consumers and businesses would be up to $15 billion lower over the decade to 2030 if an emissions intensity scheme was in place than if there was no policy.
The modelling was released on Friday.
Defending his government after the meeting, Mr Turnbull ducked questions about the potential for an emissions intensity scheme to actually reduce prices and vowed their would be no carbon tax or emissions trading scheme under his government.
"Critical to maintaining our international competitiveness is energy prices and energy security. We need to ensure that energy is reliable, we need to ensure that it is affordable. We need, of course, to achieve the emissions target cuts that we have agreed to in the Paris treaty," he said.
"The most striking observation from Dr Finkel this morning was that in the last six years household energy prices have risen by 61 per cent, inflation has been 14 per cent . . . that is a massive increase in the burden on Australian households."
But Mr Weatherill suggested Mr Turnbull had misrepresented what an EIS would do and said it was mischievous to conflate it with a carbon tax or emissions trading scheme.
"It was disappointing to see earlier this week the Prime Minister rule out an emissions intensity scheme, he said, adding that the Mr Turnbull had reverted to the "infantile slogans" he had criticised before becoming Prime Minister.
"The whole point of [chief scientist Alan] Finkel's recommendation is this puts downward pressure on electricity prices," he said.
Dr Finkel told the COAG meeting the electricity grid was undergoing unprecedented change, and leaders had a once-in-a-generation chance to reform it during the inevitable shift to a cleaner supply.
Speaking after the meeting, Dr Finkel told Fairfax Media there was evidence an emissions intensity scheme was compatible with maintaining a reliable grid.
He said benefits included that it would encourage low emissions technology of any kind, whether baseload low-emissions gas or renewable energy.
While Mr Turnbull maintained Australia could meet its climate targets with existing policies, Dr Finkel said they were not consistent the 2030 goal set in Paris. "I don't think it's an impossible target to be achieved [but] we need to be methodical about how we get there," he said.
He stressed that the security of the electricity grid was not as strong as in the past, and investors had lost confidence and wanted a coordinated national approach to energy and climate policies.
And Dr Finkel said electricity prices were high – up almost 50 per cent in six years - partly due to network expansion, but also due to high gas prices. He called for more to be done to increase gas supply.
The big three Labor states - Victoria, Queensland and South Australia - all refused to sign up to competition and productivity reforms after the meeting, citing a lack of federal cash.
NSW Premier Mike Baird nominated infrastructure spending as his key priority for the meeting, citing the "sobering" drop in GDP growth on Wednesday and argued governments needed to set new infrastructure goals to drive new economic growth.
He argued for billions of dollars to be pumped into infrastructure, but Mr Turnbull responded bluntly: "We are not an ATM."
Premier Andrews expressed his disappointment that a national deal on family violence leave had not been reached.
The meeting's put off the issue until a decision by the Fair Work Commission, which is considering an application to include an entitlement of 10 days' leave in all modern awards.
Queensland Premier Annastacia Palaszczuk said waiting for the decision was a missed opportunity, and suggested COAG meet in regional Australia, where people were hurting in the two-speed economy.
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WA Premier Colin Barnett argued a market-based carbon price mechanism had some role to play in reducing emissions and Victorian Premier Dan Andrews advocated a "proper" examination of climate policy that did not rule out anything - including an emissions intensity scheme - before the federal review was completed.
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| Prime Minister Malcolm Turnbull during the COAG press conference at Parliament House. Photo: Andrew Meares |
The Business Council of Australia, usually a rusted-on supporter of the Coalition, on Friday slammed it for ruling out any prospect of such a scheme being used to reduce carbon emissions.
"The categorical ruling out of mechanisms to achieve this transition [to a low emissions economy], or imposing arbitrary moratoriums on lower-emissions fuels such as onshore gas, constrains the discussion about how agreement can be achieved," chief executive Jennifer Westacott said.
"Both the preliminary report from the Finkel Review Panel and modelling by the Australian Energy Market Commission highlight clearly the options available to government and the costs of ruling particular policies in or out."
An EIS sets a limit on how much a power station can freely emit for every unit of power generated. Cleaner generators that emit less than the limit earn credits, and sell them to dirtier generators above the baseline.
Presenting an issues paper on the electricity market to COAG, chief scientist Alan Finkel cited evidence from the Australian Electricity Market Commission that it would be cheaper to use an emissions intensity scheme to help reach national climate targets than any other option considered, including doing nothing.
Fairfax Media revealed on Thursday that modelling for the commission found electricity bills for consumers and businesses would be up to $15 billion lower over the decade to 2030 if an emissions intensity scheme was in place than if there was no policy.
The modelling was released on Friday.
Defending his government after the meeting, Mr Turnbull ducked questions about the potential for an emissions intensity scheme to actually reduce prices and vowed their would be no carbon tax or emissions trading scheme under his government.
"Critical to maintaining our international competitiveness is energy prices and energy security. We need to ensure that energy is reliable, we need to ensure that it is affordable. We need, of course, to achieve the emissions target cuts that we have agreed to in the Paris treaty," he said.
"The most striking observation from Dr Finkel this morning was that in the last six years household energy prices have risen by 61 per cent, inflation has been 14 per cent . . . that is a massive increase in the burden on Australian households."
But Mr Weatherill suggested Mr Turnbull had misrepresented what an EIS would do and said it was mischievous to conflate it with a carbon tax or emissions trading scheme.
"It was disappointing to see earlier this week the Prime Minister rule out an emissions intensity scheme, he said, adding that the Mr Turnbull had reverted to the "infantile slogans" he had criticised before becoming Prime Minister.
"The whole point of [chief scientist Alan] Finkel's recommendation is this puts downward pressure on electricity prices," he said.
Dr Finkel told the COAG meeting the electricity grid was undergoing unprecedented change, and leaders had a once-in-a-generation chance to reform it during the inevitable shift to a cleaner supply.
Speaking after the meeting, Dr Finkel told Fairfax Media there was evidence an emissions intensity scheme was compatible with maintaining a reliable grid.
He said benefits included that it would encourage low emissions technology of any kind, whether baseload low-emissions gas or renewable energy.
While Mr Turnbull maintained Australia could meet its climate targets with existing policies, Dr Finkel said they were not consistent the 2030 goal set in Paris. "I don't think it's an impossible target to be achieved [but] we need to be methodical about how we get there," he said.
He stressed that the security of the electricity grid was not as strong as in the past, and investors had lost confidence and wanted a coordinated national approach to energy and climate policies.
And Dr Finkel said electricity prices were high – up almost 50 per cent in six years - partly due to network expansion, but also due to high gas prices. He called for more to be done to increase gas supply.
The big three Labor states - Victoria, Queensland and South Australia - all refused to sign up to competition and productivity reforms after the meeting, citing a lack of federal cash.
NSW Premier Mike Baird nominated infrastructure spending as his key priority for the meeting, citing the "sobering" drop in GDP growth on Wednesday and argued governments needed to set new infrastructure goals to drive new economic growth.
He argued for billions of dollars to be pumped into infrastructure, but Mr Turnbull responded bluntly: "We are not an ATM."
Premier Andrews expressed his disappointment that a national deal on family violence leave had not been reached.
The meeting's put off the issue until a decision by the Fair Work Commission, which is considering an application to include an entitlement of 10 days' leave in all modern awards.
Queensland Premier Annastacia Palaszczuk said waiting for the decision was a missed opportunity, and suggested COAG meet in regional Australia, where people were hurting in the two-speed economy.
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