New law brings Australian renewables target into line with EU
Peta Hodge
20th August 2009
The Australian parliament has passed legislation committing the country to produce 20 per cent of its electricity from renewable sources by 2020 – but the Government has warned that more action will be needed if the rise in Australia’s carbon pollution is to be halted.
The 20 per cent renewable energy target is four times higher than that set by the previous Government in 2001, and brings Australia into line with targets set by the European Union.
Minister for Climate Change and Water, Senator Penny Wong said: “In 10 years time the amount of electricity coming from sources like solar, wind and geothermal will be around the same as all of Australia’s current household electricity use.”
The legislation was passed after the Government reached an agreement with the main opposition party on a number of issues. These included the level of assistance to be provided to emissions-intensive trade-exposed industries such as aluminium, and the protection of existing investment and jobs in industries like coal mining.
The legislation has been strongly criticised by the Australian Greens, not least because it failed to adopt the party’s amendment that would have prevented the emissions-intensive companies exempted under the new law benefiting from lower energy prices that the renewable energy technology is expected to deliver.
“The exemptions in the bill mean that polluters will benefit from the predicted lower wholesale electricity price without having to pay for the installation of the renewable energy that reduced the price,” the party said.
Deputy Leader, Senator Christine Milne, added: "It's a sad day when what should have been a celebration for renewable energy in Australia turns into another field-day for polluters."
The Leader of the Opposition, Malcom Turnbull, took a different view, saying the legislation “provides certainty to the renewable energy industry and gives the green light to further investment in this sector.”
But the Australian Government has acknowledged that the new renewable energy target will not on its own combat the problem of rising carbon emissions.
Wong said: “Even with the renewable energy target increasing renewable energy by four times, Australia’s emissions will still be 20 per cent higher in 2020 than they were in 2000.”
She said she looked forward to the Opposition returning to the negotiating table to agree the terms of a Carbon Pollution Reduction Scheme, without which, she warned, Australia’s carbon emissions would continue to rise.