8 December 2016, The Guardian, South Australia says states could go it alone after Turnbull rules out carbon tax. States could go it alone on a carbon scheme for the electricity sector after the federal government ruled one out, South Australia’s premier says. A report by the chief scientist, Alan Finkel, to be presented at Friday’s Council of Australian Governments meeting in Canberra, is expected to recommend an emissions intensity scheme. Jay Weatherill told ABC radio on Thursday he would be pressing for states to team up on their own scheme “in the absence of national leadership”. Weatherill would be discussing the idea with his counterparts before Friday’s formal meeting with the prime minister, Malcolm Turnbull. “Our first instinct is of course to seek a national scheme,” he said, but advice suggests it could be done without federal government support. Turnbull ruled out his government imposing an emissions intensity scheme following a backbench revolt over a review of climate change policy. He also left his environment minister, Josh Frydenberg, to explain why he said on Monday such a scheme would be looked at as part of the inquiry, only to deny mentioning it on Tuesday. On Wednesday, Frydenberg joined the prime minister in insisting one would not be introduced. Weatherill said power prices in his state would go down if an emissions intensity scheme was adopted. “It would clean up our energy system,” he said. Such a scheme would also encourage more base-load gas generation and increase competition. Finkel will brief premiers and Turnbull at the Coag meeting on Friday, after being commissioned to put together a national blueprint on energy security and reliability after blackouts across South Australia. Read More here
Category Archives: The Mitigation Battle
8 December 2016, The Guardian, Finkel review criticises climate policy chaos and points to need for emissions trading. Exclusive: Report warns investment in electricity has stalled, and existing policies won’t allow Australia to meet its Paris target. Australia’s chief scientist, Alan Finkel, has said investment in the electricity sector has stalled because of “policy instability and uncertainty” – and he’s warned that current federal climate policy settings will not allow Australia to meet its emissions reduction targets under the Paris agreement. In a 58-page report that has been circulated before Friday’s Council of Australian Governments meeting between the prime minister and the premiers, Finkel has also given implicit endorsement to an emissions intensity trading scheme for the electricity industry to help manage the transition to lower-emissions energy sources. While there is no concrete recommendation to that effect, the report, obtained by Guardian Australia, references the evidence from energy regulators that such a scheme would integrate best “with the electricity market’s pricing and risk management framework” and “had the lowest economic costs and the lowest impact on electricity prices”. Finkel also notes advice from the Climate Change Authority which says market mechanisms have the lowest average cost of abatement, and of the options modelled, an emissions intensity scheme “had the lowest impact on average residential electricity prices”. Read more here
7 December 2016, Climate Home, Full circle: 33 hours in Australian climate policy. It took just over a day for the suggestion of a carbon price to be stamped out by right-wing MPs who hold the prime minister in their thrall. If you have ever wondered how Australian climate policy was high jacked by a minority group of government conservatives, Monday and Tuesday are worth a review. For Malcolm Turnbull and his government, this is a very old dance. The name of the jig is carbon pricing, a policy considered politically mundane across much of the world. The World Bank records carbon pricing in 40 national jurisdictions and more than 20 cities, states, and regions. But in Australia the very notion has had party leaders of the left and right prancing and backflipping for years. This week’s rendition was as uptempo and gymnastic as has been performed yet. On Monday, energy and environment minister Josh Frydenberg was doing the early morning radio rounds. He was asked to fill in the blanks left by the terms of reference his department had released regarding the government’s scheduled 2017 review of climate policy. Would it include a form of carbon pricing? Not on the whole economy, said Frydenberg: that’s Labor’s thing. But he went on: “The review is explicit about looking at sector-by-sector approaches and given that the electricity sector is about one third of the total emissions across the economy it’s only appropriate to see if we’ve got the best mechanisms in place… A number of organisations have recommended an emissions intensity scheme but again this review still has a long way to go.” Analysis: China prepares for world’s biggest carbon market An emissions intensity scheme would necessitate placing a value on carbon. Frydenberg had opened the door and a whole flock of crazy was about to walk through. Read More here
6 December 2016, The Guardian, Australia’s energy transmission industry calls for carbon trading. Emissions intensity scheme is the least costly way of reducing greenhouse gases, Energy Networks Australia and CSIRO say. Australia’s electricity and gas transmission industry is calling on the Turnbull government to implement a form of carbon trading in the national electricity market by 2022 and review the scope for economy-wide carbon pricing by 2027. EnergyNetworks Australia warns in a new report examining how to achieve zero net carbon emissions by 2050 that policy stability and regulatory certainty are the key to delivering lower power prices and reliable electricity supply. While Tony Abbott once characterised carbon pricing as a wrecking ball through the Australian economy, the new report, backed by CSIRO, says adopting an emissions intensity scheme is the least costly way of reducing emissions, and could actually save customers $200 a year by 2030. The forceful intervention by the industry on Tuesday follows the Turnbull government on Monday flagging an emissions intensity trading scheme for the electricity sector as part of its scheduled review of its Direct Action climate policy. Some stakeholders also believe the Finkel review into energy security and Australia’s climate commitments may also float the desirability of an emissions intensity scheme for the electricity sector when it presents its preliminary fundings to Friday’s Coag meeting of the prime minister and premiers. But the difficulties for the government emerged immediately after the baseline and credit scheme was flagged by the energy and environment minister, Josh Frydenberg, on Monday when the chairman of the Coalition’s backbench committee, Craig Kelly, warned carbon trading was not Coalition policy and would not be accepted by the party room. Energy Networks Australia has been working for two years on what it calls a policy roadmap to achieve zero emissions by 2050. A report to be released on Tuesday argues that the goal can be achieved but only with an integrated policy approach.The report recommends that the government adopt an emissions intensity baseline and credit scheme for the electricity sector by 2022, and set a light-vehicle emissions standard policy to provide incentives for electric vehicle uptake. Read More here