RET will come to a natural end as emissions intensity scheme can reach goal of 50% renewable energy by 2030, says Andrew Leigh
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| Australia’s shadow assistant treasurer said renewables accounted for the majority of new investment in electricity generation in the last decade. Photograph: Tim Phillips Photos/Getty Images |
Labor will abandon the renewable energy target after 2020 because an
emissions intensity scheme will be sufficient to reach the goal of 50%
renewable energy by 2030, Andrew Leigh has said.
On Sky News on Sunday the shadow assistant treasurer confirmed the opposition’s plan to reach the 50% goal without a hard target in comments that appeared to rule out extending the existing renewable energy target (RET).
“We’ve committed to getting 50% renewables but the mechanism that we’ve used in the past has been a renewable energy target. That comes to an end and we believe an [emissions intensity scheme] EIS can take us to the point of having 50% renewables ... without the RET,” Leigh said.
Asked to confirm that meant Labor would not support the RET when it expired in 2020, Leigh responded: “We believe that the emissions intensity scheme does that job ... without a RET.”
The environment minister, Josh Frydenberg, seized on the remarks, saying they “injected more confusion” into Labor’s policy.
“It is already apparent that Labor doesn’t know what its policy is
called, whether it will be legislated, how much it costs or what impact
it will have on power prices and energy security,” he said.
Frydenberg said Leigh’s comments were in contradiction to an adjournment speech on Tuesday by the shadow assistant minister for treasury, Matt Thistlethwaite, in which he said Labor intended to “boost the RET”.
When Labor announced its policy for emissions trading in the electricity sector and for heavy industries before the 2016 election, the opposition said it would consult on what extra policies might be needed to achieve the 50% renewables goal, with a further RET not the favoured option.
As Labor faced pressure on the cost of sourcing 50% of electricity from renewables, Bill Shorten clarified the figure is an “aspiration” and not a hard target to be achieved through an RET.
Leigh’s pronouncement echoes Malcolm Turnbull’s statement that the RET was “never intended to be perpetual”, indicating there could be bipartisan support to abandon it after 2020.
But unlike Labor, the Turnbull government has ruled out a carbon price or EIS to achieve Australia’s Paris targets of reducing emissions by 26-28% on 2005 levels by 2030.
Pressure has been mounting on the Finkel review to recommend a market mechanism. A string of peak bodies have already called for market mechanisms, including the National Farmers’ Federation, the Investor Group on Climate Change and the Business Council of Australia, which explicitly called for an EIS.
Leigh noted that an EIS was supported by experts across the field, including the Business Council of Australia and many energy regulators. He noted renewables account for the majority of new investment in electricity generation in the last decade.
“One of the government’s favourite backers, Bjørn Lomborg, not somebody Labor would usually support, says that every $1 invested in renewables gives you a pay back of $11.”
Leigh said that Nick Xenophon, who abandoned his demand for an EIS in return for support for company tax cuts in favour of a payment to pensioners and a number of energy measures, had been “sold a pup”.
The measures include fast-tracking a solar-thermal plant in South Australia already promised, a study of a gas pipeline connecting the state with the Northern Territory, and a new national energy policy.
“[Xenophon] said he could get an EIS, which would bring down household power prices by $200, instead he’s got yet another report, yet another study,” Leigh said.
Leigh said the government had “absolutely” conned Xenophon, because the deal would not bring down emissions and energy prices.
On an earlier interview on Sky News, the Business Council of Australia’s chief executive, Jennifer Westacott, called for an end to state renewable energy targets and moratoriums on gas exploration and production.
Westacott said the RET had been introduced at a time when energy demand was falling, causing prices to increase, and the energy mix had not balanced renewables with base load power.
Bipartisanship was needed to give business a signal to invest in electricity production and extracting gas resources, she said.
“Most companies are not going to be willing to put very large licks of money, billions of dollars for projects that will go for 30 years, if they do not have a sense of the policy environment they are facing,” she said.
“Everybody knows that at some point, because of the global agreements we’ve done, some kind of price signal is likely to be put into the market.”
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On Sky News on Sunday the shadow assistant treasurer confirmed the opposition’s plan to reach the 50% goal without a hard target in comments that appeared to rule out extending the existing renewable energy target (RET).
“We’ve committed to getting 50% renewables but the mechanism that we’ve used in the past has been a renewable energy target. That comes to an end and we believe an [emissions intensity scheme] EIS can take us to the point of having 50% renewables ... without the RET,” Leigh said.
Asked to confirm that meant Labor would not support the RET when it expired in 2020, Leigh responded: “We believe that the emissions intensity scheme does that job ... without a RET.”
The environment minister, Josh Frydenberg, seized on the remarks, saying they “injected more confusion” into Labor’s policy.
Frydenberg said Leigh’s comments were in contradiction to an adjournment speech on Tuesday by the shadow assistant minister for treasury, Matt Thistlethwaite, in which he said Labor intended to “boost the RET”.
When Labor announced its policy for emissions trading in the electricity sector and for heavy industries before the 2016 election, the opposition said it would consult on what extra policies might be needed to achieve the 50% renewables goal, with a further RET not the favoured option.
As Labor faced pressure on the cost of sourcing 50% of electricity from renewables, Bill Shorten clarified the figure is an “aspiration” and not a hard target to be achieved through an RET.
Leigh’s pronouncement echoes Malcolm Turnbull’s statement that the RET was “never intended to be perpetual”, indicating there could be bipartisan support to abandon it after 2020.
But unlike Labor, the Turnbull government has ruled out a carbon price or EIS to achieve Australia’s Paris targets of reducing emissions by 26-28% on 2005 levels by 2030.
Pressure has been mounting on the Finkel review to recommend a market mechanism. A string of peak bodies have already called for market mechanisms, including the National Farmers’ Federation, the Investor Group on Climate Change and the Business Council of Australia, which explicitly called for an EIS.
Leigh noted that an EIS was supported by experts across the field, including the Business Council of Australia and many energy regulators. He noted renewables account for the majority of new investment in electricity generation in the last decade.
“One of the government’s favourite backers, Bjørn Lomborg, not somebody Labor would usually support, says that every $1 invested in renewables gives you a pay back of $11.”
Leigh said that Nick Xenophon, who abandoned his demand for an EIS in return for support for company tax cuts in favour of a payment to pensioners and a number of energy measures, had been “sold a pup”.
The measures include fast-tracking a solar-thermal plant in South Australia already promised, a study of a gas pipeline connecting the state with the Northern Territory, and a new national energy policy.
“[Xenophon] said he could get an EIS, which would bring down household power prices by $200, instead he’s got yet another report, yet another study,” Leigh said.
Leigh said the government had “absolutely” conned Xenophon, because the deal would not bring down emissions and energy prices.
On an earlier interview on Sky News, the Business Council of Australia’s chief executive, Jennifer Westacott, called for an end to state renewable energy targets and moratoriums on gas exploration and production.
Westacott said the RET had been introduced at a time when energy demand was falling, causing prices to increase, and the energy mix had not balanced renewables with base load power.
Bipartisanship was needed to give business a signal to invest in electricity production and extracting gas resources, she said.
“Most companies are not going to be willing to put very large licks of money, billions of dollars for projects that will go for 30 years, if they do not have a sense of the policy environment they are facing,” she said.
“Everybody knows that at some point, because of the global agreements we’ve done, some kind of price signal is likely to be put into the market.”
Links
- Renewable energy spike led to sharp drop in emissions in Australia, study shows
- Bill Shorten to accuse Coalition of 'vandalism over pragmatism' on energy policy
- Turnbull ignored advice that renewable energy not to blame for SA blackouts
- Tony Abbott rebuffed after attacking Turnbull government on renewable energy target
- Emissions trading backflip a recipe for price rises, say business groups
- Australia needs two emissions trading schemes, Climate Change Authority says
- If energy ministers bow to gas industry they'll be deciding in the dark
- Renewable energy target still in limbo after Labor rejects biennial reviews
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