Renewable Energy – A Crucial Weapon in Climate Change Battle

The Productivity Commission, in a report released yesterday, has underestimated both the challenge we face in dealing with climate change and the immediate action required in the stationary energy sector to begin transitioning to a cleaner economy. The Commission has recommended the discontinuation of industry development measures such as the 20per cent Mandatory Renewable Energy Target (MRET).

Industry development policies such as MRET continue to be highly successful in building future renewable energy capacity while simultaneously reducing greenhouse emissions in many jurisdictions around the world including the European Union, USA, China, India and Brazil.

Almost 50 per cent of Australia's greenhouse emissions come from the stationary energy sector with the burning of fossil fuels accounting for almost 90 per cent of our electricity production capacity.

"With energy demand growing at an alarming rate, in excess of $40 Billion AUD needs to be invested in the stationary energy sector over the coming 20 years to ensure the lights stay on and the wheels of business keep moving," said Pacific Hydro General Manager Australia/Pacific Mr Lane Crockett.

"Given what we know about the cause and impact of accelerated climate change, to continue to build new thermal power stations using today's technology would be irresponsible while hoping new "clean coal" technology alone will provide the answer is an unacceptable risk."

"In calling for a mild emissions trading scheme as they have in the past and the dumping of critical industry development policies like MRET, the Productivity Commission seems to be asking us to take that risk."

Governments around the world are pursuing a multi-faceted approach to addressing climate change; in particular they are focusing on specific capacity building policies such as MRET as a critical component of their approach to climate change policy. In many jurisdictions these policies are being pursued alongside an emissions trading scheme and are contributing to greater greenhouse gas abatement than otherwise would have occurred.

The Government's commitment to establishing a 20 per cent MRET by 2020 is welcomed by renewable energy companies and investors who stand ready to invest the $20 Billion AUD in zero emission generation capacity required to meet the target.

"Pacific Hydro is already gearing up to make multi-billion dollar investments in clean energy generation over the coming years as we seek to play our part in establishing a robust renewable energy industry."

"The Federal Government is to be congratulated on increasing MRET as it puts Australia on par with the rest of the world, builds a robust renewable energy industry and is a clear demonstration of the nation's commitment to addressing climate change."