Don't touch renewables, business warns

Peak business lobby groups have teamed up to push back against conservative MPs urging Malcolm Turnbull to dump the renewable energy target.

Australia's top business groups have cautioned the government against making any more changes to the renewable energy target.

Prime Minister Malcolm Turnbull has resisted pressure from conservative backbenchers, including predecessor Tony Abbott, to dump the target.

"The RET is the result of hard-won compromise, rather than anybody's perfect policy and should be left alone," Australian Industry Group chief executive Innes Willox and Business Council of Australia chief executive Jennifer Westacott said on Wednesday in a joint statement.

"Additional changes to the existing RET would further undermine the credibility of national energy policy, damage investment and encourage state renewable energy schemes."

Further proliferation of "ambitious and fragmented" state schemes would cost people more than having a single, effective national policy.

The business groups said it was proper to have debate about other reforms to the energy market and climate policy since the RET had always been intended as one part of climate change policy.

Those pushing for the mandatory use of renewable energy to be dumped claim increased use of wind and solar power is behind recent spikes in electricity prices.

But Mr Willox and Ms Westacott said there was no reason to think any changes to the RET would reverse the shifts in supply and demand that were lifting prices.

"Australia needs a suite of durable, post-2020 climate change policies that are integrated with broader energy policy and are capable of delivering Australia's emissions reduction targets, at lowest possible cost, while maintaining competitiveness and growing Australia's future economy," they said.


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Source: AAP


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