The head of the expert board advising the federal Coalition on its signature energy plan says it would not be a "big drama" for the electricity industry if a future Labor government enforced far stronger cuts to greenhouse gas emissions.
Labor states say they will withhold final support for the Turnbull government proposal to merge climate and energy policy - known as the national energy guarantee - until they are assured a successive government will not be blocked from ratcheting up carbon savings.
'More work to be done' on energy: Frydenberg
With Labor state governments holding back support for Energy Minister John Frydenberg's energy plan, he's admitted there is still work to do.
Kerry Schott, the chair of the Energy Security Board, which is devising the policy, told Fairfax Media that such a change was "part of your normal course of business".> "If you are in the market and you have the mechanism there then you know you are always subject to changes in legislation, and you are also subject to changes in fuel cost and changes in technology," she said.
"Everybody knows that ... It's not a big drama."
The national energy guarantee would force electricity retailers to ensure minimum standards of emissions reduction and reliability of supply.
Environment and Energy Minister Josh Frydenberg on Friday won support from the nation's energy ministers for the Energy Security Board to keep developing the plan, which promises to end a decade-long political deadlock on energy policy.
However he is refusing to budge on key sticking points, including raising the emissions reduction target, which is in line with the Paris climate agreement - meaning the future of the policy is far from assured.
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| Dr Kerry Schott is advising the federal government on the energy plan Photo: Alex Ellinghausen |
The Turnbull government intends to lock into the policy a 26 per cent emissions reduction target by 2030, based on 2005 levels.
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| COAG is attempting to solve the energy trilemma of affordable power, a reliable grid and lower emissions. |
Electricity generators have themselves urged the government to make deeper carbon emissions reductions, saying they could do more to meet Australia's international climate change targets.
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| ACT Climate Change Minister Shane Rattenbury has been the most vocal opponent of the policy. Photo: Eddie Jim |
Victorian Energy Minister Lily D'Ambrosio said the scheme still required significant work to ensure "further more ambitious reductions [can] be deployed under a Commonwealth government".
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| Illustration: Matt Golding. |
"We've got great ambition in growing renewable energy, lowering carbon emissions, but importantly we know that the quicker we can build new energy supply the lower energy prices will be."
Queensland Energy Minister Anthony Lynham agreed that any future federal government must be able to upscale emissions targets, and said the policy must support jobs growth and put downward pressure on power prices.
The Commonwealth is responsible for setting the emissions target under the scheme. Dr Schott said the board would await details of the target, and the trajectory the government wants followed to meet it between 2020 and 2030.
She said the guarantee's draft framework was "received very positively" by energy ministers.
The Labor-Greens ACT government and Labor states are concerned that deep emissions cuts triggered by their strong renewable energy targets would count towards the national policy's overall target rather than being additional to it. They fear this would undermine their climate action efforts by allowing other states to do less.
ACT Climate Change Minister Shane Rattenbury said if the policy's architecture was not right then "the promise the Labor Party is making [on emissions cuts] cannot be delivered".
Federal Greens leader Richard Di Natale said it would be "irresponsible" and "an enormous risk" for federal and state Labor to support a poor policy with a promise to fix it in future.
Mark Butler, the Labor climate change and energy spokesman, on Friday slammed the government's intention to lock a 26 per cent emissions reduction target into the energy guarantee.
"The Turnbull government’s attack on renewable energy and refusal to take real action on climate change has once again been made plainly clear," he said in a statement.
"Industry, experts, scientists, states and federal Labor have all been clear that a pollution reduction target for electricity of 26 per cent reduction on 2005 levels by 2030 is woefully inadequate."
"He accused the government of "pass[ing] the buck on climate change action to our kids and grandkids".
NSW Energy Minister Don Harwin was among the most positive after Friday's meeting.
"We liked what we heard and what we saw ... It's a good basis for finding a way forward and getting a national solution," he said.
Links
- Phony peace? Challenges to energy plan sent back to modelling board
- Victoria Demands New Detailed Analysis On NEG After COAG Meeting
- Labor states urged to reject 'woefully inadequate' emissions reduction target
- Josh Frydenberg makes last-minute pitch to states to back Neg
- We must fix the foundation of our energy policy to get out of the current mess
- Turnbull renews pressure on NSW premier to approve Narrabri gas project
- Ending land clearing would compete with renewables for carbon abatement, analysis finds
- Victoria says Coag energy meeting a stunt to save 'Malcolm Turnbull's skin'
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