Exclusive: Draft implementation plan lacks electricity emissions trajectory, Paris agreement alignment and low-income subsidies
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| (L-R) Josh Frydenberg, Barnaby Joyce, Malcolm Turnbull and Scott Morrison meeting with energy company heads on 30 August. Photograph: Dean Lewins/AAP |
The climate ambitions of the Finkel review
appear to be being watered down by the government as it is implemented,
according to a draft Coag Energy Council implementation strategy
obtained by the Guardian.
The draft implementation plan removes a key recommendation for an agreed emissions trajectory for the electricity system, alignment with the Paris agreement and subsidised solar and batteries for low-income houses.
Sources tell the Guardian the document was prepared by the federal government and distributed to state and territory representatives on the morning of the meeting, leaving little time for state representatives to analyse it.
A final version of the document is expected to be delivered to Coag today.
The federal environment and energy minister, Josh Frydenberg, declined to comment on the document, saying: “It is not appropriate for any government to comment on draft documents of the Council of Australian Governments.”
Described by the prime minister, Malcolm Turnbull, as a “blueprint for the once-in-a-century transformation currently taking placing in Australia’s energy system”, the Finkel review presented 50 recommendations to the Council of Australian Governments (Coag).
Those recommendations were intended to solve the energy “trilemma” – delivering affordable and reliable electricity, while lowering emissions.
The review itself was widely criticised for lacking in ambition when it came to action on climate change, and failing to align with Australia’s commitments made in the Paris climate agreement.
The key recommendation of the review was a clean energy target, which Frydenberg has so far failed to get approved by the joint Coalition party room, which includes a number of climate change deniers.
But the party room agreed to the other 49 recommendations, which the Coag Energy Council is now advising heads of government on how to implement.
At a teleconference on Friday last week, state and territory energy ministers were presented with a draft implementation plan for discussion.
That document, obtained by the Guardian, appears to water down those recommendations in relation to climate change, and removes some altogether.
One key recommendation in the Finkel review that has been severely weakened in the draft implementation document is a change that would force the electricity market to align efforts to meet government emissions reduction commitments made as part of the Paris agreement.
Finkel’s recommendation said Coag leaders should agree to a new Australian Energy Market Agreement, which commits all parties to “a nationally consistent approach to energy policy that recognises Australia’s commitment in Paris to reduce emissions and governments’ commitment to align efforts to meet this target with energy market frameworks.”
But the draft implementation document removes the reference to international emissions reduction commitments, instead saying merely that the agreement will “reaffirm Australian governments’ commitment to the [national electricity market] and a national, integrated approach to energy and emissions reduction policy”.
Among Finkel’s key recommendation for an “orderly transition”, he called for three things: the clean energy target; a three-year notice of closure for existing large generators; and “an agreed emissions reduction trajectory”. All three moves were part of one recommendation, numbered 3.2.
The Coalition has not agreed to adopt the clean energy target but it has agreed to the three-year notice-of-closure rule, which appears in the implementation plan. However, the plan does not contain any mention of an agreed emissions reduction trajectory.
Frydenberg told the Guardian his view is that the Coag Energy Council did not agree to the emissions reduction trajectory because it is part of the clean energy target.
“The Coag Energy Council has agreed to implement the recommendations of the Finkel review except for the clean energy target, which includes the national electricity market emissions trajectory which the federal government is currently considering.”
It is unclear why the emissions trajectory is considered part of the clean energy target, since the Finkel review makes clear that there are a number of mechanisms that could achieve such a trajectory. Finkel modelled several such mechanisms, including an emissions intensity scheme.
Another Finkel recommendation calls for low-income households to be given subsidised access to “energy efficient appliances, rooftop solar photovoltaic and battery storage systems”.
Explicit references to renewable energy has been removed in the draft implementation plan and replaced with “energy efficiency and demand management technologies”.
Sources say representatives of the ACT raised the question of the trajectory being removed, and asked for it to be included. Representatives of Queensland and Victoria also apparently raised concerns about some of the other changes.
Sources said the document, which was prepared by the federal government, was circulated to state energy ministers only hours before the meeting was held, leaving little time for proper scrutiny.
The document is expected to be finalised and sent to heads of government today.
Links
The draft implementation plan removes a key recommendation for an agreed emissions trajectory for the electricity system, alignment with the Paris agreement and subsidised solar and batteries for low-income houses.
Sources tell the Guardian the document was prepared by the federal government and distributed to state and territory representatives on the morning of the meeting, leaving little time for state representatives to analyse it.
A final version of the document is expected to be delivered to Coag today.
The federal environment and energy minister, Josh Frydenberg, declined to comment on the document, saying: “It is not appropriate for any government to comment on draft documents of the Council of Australian Governments.”
Described by the prime minister, Malcolm Turnbull, as a “blueprint for the once-in-a-century transformation currently taking placing in Australia’s energy system”, the Finkel review presented 50 recommendations to the Council of Australian Governments (Coag).
Those recommendations were intended to solve the energy “trilemma” – delivering affordable and reliable electricity, while lowering emissions.
The review itself was widely criticised for lacking in ambition when it came to action on climate change, and failing to align with Australia’s commitments made in the Paris climate agreement.
The key recommendation of the review was a clean energy target, which Frydenberg has so far failed to get approved by the joint Coalition party room, which includes a number of climate change deniers.
But the party room agreed to the other 49 recommendations, which the Coag Energy Council is now advising heads of government on how to implement.
At a teleconference on Friday last week, state and territory energy ministers were presented with a draft implementation plan for discussion.
That document, obtained by the Guardian, appears to water down those recommendations in relation to climate change, and removes some altogether.
One key recommendation in the Finkel review that has been severely weakened in the draft implementation document is a change that would force the electricity market to align efforts to meet government emissions reduction commitments made as part of the Paris agreement.
Finkel’s recommendation said Coag leaders should agree to a new Australian Energy Market Agreement, which commits all parties to “a nationally consistent approach to energy policy that recognises Australia’s commitment in Paris to reduce emissions and governments’ commitment to align efforts to meet this target with energy market frameworks.”
But the draft implementation document removes the reference to international emissions reduction commitments, instead saying merely that the agreement will “reaffirm Australian governments’ commitment to the [national electricity market] and a national, integrated approach to energy and emissions reduction policy”.
Among Finkel’s key recommendation for an “orderly transition”, he called for three things: the clean energy target; a three-year notice of closure for existing large generators; and “an agreed emissions reduction trajectory”. All three moves were part of one recommendation, numbered 3.2.
The Coalition has not agreed to adopt the clean energy target but it has agreed to the three-year notice-of-closure rule, which appears in the implementation plan. However, the plan does not contain any mention of an agreed emissions reduction trajectory.
Frydenberg told the Guardian his view is that the Coag Energy Council did not agree to the emissions reduction trajectory because it is part of the clean energy target.
“The Coag Energy Council has agreed to implement the recommendations of the Finkel review except for the clean energy target, which includes the national electricity market emissions trajectory which the federal government is currently considering.”
It is unclear why the emissions trajectory is considered part of the clean energy target, since the Finkel review makes clear that there are a number of mechanisms that could achieve such a trajectory. Finkel modelled several such mechanisms, including an emissions intensity scheme.
Another Finkel recommendation calls for low-income households to be given subsidised access to “energy efficient appliances, rooftop solar photovoltaic and battery storage systems”.
Explicit references to renewable energy has been removed in the draft implementation plan and replaced with “energy efficiency and demand management technologies”.
Sources say representatives of the ACT raised the question of the trajectory being removed, and asked for it to be included. Representatives of Queensland and Victoria also apparently raised concerns about some of the other changes.
Sources said the document, which was prepared by the federal government, was circulated to state energy ministers only hours before the meeting was held, leaving little time for proper scrutiny.
The document is expected to be finalised and sent to heads of government today.
Links
- How Australia's climate policies came to be poisoned by pragmatism
- Analysis 13 ways Frydenberg sold 'climate policy' to coal-loving MPs
- Jay Weatherill renews warning Labor states could go it alone on energy policy
- Energy price rises due to policy uncertainty hurt poor most – report
- 'Too early to say' if Coalition will back clean energy target, Frydenberg says
- Finkel review: renewable energy to face new security and reliability regulations
- BlueScope Steel backs low emissions target as way to achieve energy balance
- Tony Abbott warns against low emissions target ahead of Finkel review
- Renewable energy spike led to sharp drop in emissions in Australia, study shows
- Shorten fails to specify cost of Labor's renewables policy when asked four times
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