Hope for compromise on climate policy ahead of Finkel report

SBS World News Radio: The federal Opposition has indicated it is willing to work with the government in an area that has seen a decade of bitter political debate: climate change.

Hope for compromise on climate policy ahead of Finkel reportHope for compromise on climate policy ahead of Finkel report

Hope for compromise on climate policy ahead of Finkel report

On the eve of a major report into the future security of Australia's electricity market, there are urgent calls for a national consensus on energy policy.

It has been ten years since then-Prime Minister John Howard's Coalition government made the first moves towards an emissions trading scheme in Australia.

In 2007, he declared: "I'll also be announcing a cap-and-trade emissions trading system that will help Australia substantially lower our domestic greenhouse gas emissions at the lowest cost."

In the decade since, Australia has welcomed and then repealed a tax on carbon, and seen constant debate about climate change policies.

That debate escalated sharply late last year when the entire state of South Australia - which relies heavily on renewable energy sources like wind and solar - lost power.

It led to the creation of an independent review into Australia's energy security by Chief Scientist Doctor Alan Finkel.

The head of Canberra energy company ActewAGL, Michael Costello, has told the ABC that review's results may cut through the dissension.

"This is the opportunity for our national leaders to come together and finally resolve this issue, provide some certainty for those who are going to invest big money in this for the future. If they don't, this problem will continue on and it won't be a matter of little local retailers, it'll be a matter of the country facing up to these problems."

ActewAGL recently announced gas prices for homes would rise by around $250 a year.

Mr Costello says it's because of ongoing political uncertainty about energy and climate policies.

"What has happened is the wholesale price of energy on the national electricity market has doubled in the last year. And why has it doubled? Because big investors in these very big investments - over 20 to 30-year investments worth billions of dollars - they're not going to invest in a climate of policy uncertainty at a national level."

The ACT Government also announced that average retail electricity prices would rise by almost 20 per cent - about $300 a year - from July.

It's not a problem confined to the capital and South Australia.

Wholesale electricity prices across the country have doubled in the last year.

Opposition Leader Bill Shorten says it's time to work with the government.

"I extended an olive branch because Australians want more from their political leaders than just the ongoing fighting and division over climate change."

It's believed the Finkel Review will recommend a Low Emissions Target to help secure Australia's energy supply and meet its international climate change targets.

It would be similar to the Renewable Energy Target scheme, where there's a financial incentive for homes and large power stations to use wind, solar and water power to reduce greenhouse gas emissions.

The difference would be a Low Emissions Target would be broadened out to include cleaner coal and gas-fired power.

Labor leader Bill Shorten is compromising and says it's a move in the right direction.

"Unless it has a price signal on emissions, it's a waste of time, but if there is a price signal which ensures we get investment going forward into our new sustainable forms of energy, which doesn't guarantee just repeated investment in new coal-fired power stations, then we think there's a deal to be done."

Health Minister and former Environment Minister Greg Hunt says the government is optimistic about a way forward.

"We think this is a chance for a bipartisan approach and we have been inviting the Opposition to drop their focus on higher and higher electricity prices and to support our focus on lower electricity prices coupled with stability."

Former Prime Minister Tony Abbott has continued to publicly agitate for coal power to be the source of Australia's cheap energy.

He's revealed how he'll judge the Finkel Review.

"There are two criteria. First of all, does it take the pressure off power prices and second, does it allow coal to continue? The demonisation of coal is wrong, just wrong."

Australia is one of the world's largest coal exporters and environmental conservatives in the Liberal Party say that justifies opening more coal power stations to meet the country's energy needs.

The Finkel Review will be presented to the Prime Minister and state leaders in Tasmania tomorrow.

 






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