Friday, July 27th, 2012
Opposition climate action spokesperson Greg Hunt is trying to reinvent economics and history to claim that a carbon price is unnecessary for the success of renewable energy in Australia and that the Renewable Energy Target will operate just as effectively without a carbon price.

Mr Hunt claimed yesterday that Government modelling shows there is no additional benefit to renewable energy from the carbon price.

He has not bothered to read Treasury's modelling which states that if there is no carbon price:

The Government's 20 per cent renewable target is not met in ROAM modelling. (Strong Growth, Low Pollution, page 70)

Or the Australian Energy Market Commission (AEMC) finding that:

Under the reference case [i.e. no carbon price], the level of renewable generation falls significantly below the LRET in the National Electricity Market over the outlook period. (Final report: Impact of the enhanced Renewable Energy Target on energy markets, page 22)

Or the Australian Energy Market Operator's conclusion that:

The Large-scale Renewable Energy Target is materially achieved in all scenarios except those with no carbon price. (2010 National Transmission Network Development Plan, page 7)

Or AEMC modelling which shows that with no carbon price – which is the Coalition's policy – the cost to electricity consumers of the Renewable Energy Target could increase by around $20 billion in 2010-11 dollars in the period to 2030.

The Renewable Energy Target was always designed to work with a carbon price in delivering renewable energy investment.

Hopefully the Coalition's energy spokesperson, Ian Macfarlane, can explain the contradictions in his colleague's position when he addresses the Clean Energy Council today.

Australians support renewable energy. They need to know that Tony Abbott's policy is to undermine growth of this sector.

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Mark Davis, Gia Hayne

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Renewable Energy Target



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