Posts Tagged ‘Productivity Commission’

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Response to RET Review

19 December 2012

Today the Climate Change Authority (CCA) released the final report of its Renewable Energy Target review. It repeats all the same arguments I debunked in my response to the discussion paper released in October, and makes similar recommendations (though some of the details have been refined).

The RET Review fails to acknowledge that Australia and the world urgently need to phase out fossil fuel burning to avoid dangerous climate change, and the policies in place are completely inadequate to do so. Instead, on most matters it insists the status quo must be maintained to minimize policy uncertainty. But climate policy will be subject to uncertainty for the foreseeable future anyway, because it challenges powerful interests, so the best way to design the RET is to send the strongest signal possible to incentivize investment in renewable energy. The reason for the existence of a Climate Change Authority and regularly scheduled reviews is to provide regular opportunities to strengthen Australia’s climate policies and thus accelerate decarbonization over time. CCA’s rigid determination to recommend little change is creating the ludicrous situation where the body is making itself irrelevant.

CCA refuses to recommend increasing or strengthening the Large-Scale Renewable Energy Target (LRET). It recommends future reviews be scheduled at four-year instead of two-year intervals (though fortunately unscheduled reviews can be commissioned at any time by the Minister, the Parliament, or CCA itself). It envisages the 2016 review will consider the issue of post-2020 targets, and rules out consideration of accelerating renewable energy deployment before 2020 except “in the event of extenuating circumstances” (p. xi); it is unclear what would qualify as such a circumstance. The problem with this is that the RET is currently inadequate, a higher target is needed to incentivize new projects, and accelerating action cannot wait until 2016 or 2020. Read the rest of this entry ?

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Climate deregulation still on agenda

6 December 2012

It’s called the COAG Taskforce on Regulatory and Competition Reform, and don’t be fooled by the boring name: it could be the gravestone of Australian climate policies and environmental regulation. Today Prime Minister Julia Gillard meets with the unelected Business Advisory Forum (BAF), and tomorrow with the Council of Australian Governments (COAG), to advance this radical corporate-driven deregulation agenda.

I was going to write that the federal government intended to hand over its environmental approval powers to the states tomorrow. Fortunately that has been delayed following a campaign by the Greens and environmental groups, though it remains very much on the agenda. Instead this blog post will focus on another, even more important aspect of the COAG Taskforce program, which has received less attention but presumably rolls on inexorably toward an imminent conclusion: reviewing almost all climate policies with a view to axing them.

The process is completely opaque and undemocratic. Federal and state governments are advised by business lobbyists, with no comparable consultation of anyone else, and the public are not told what is happening apart from vague communiqués following decisions at BAF and COAG meetings.

It is not even clear why the BAF was created in the first place, though I can offer an unsubstantiated conspiracy theory. Throughout 2011, business lobbyists campaigned against the Gillard government for daring to rock the boat even slightly by introducing a carbon price (never mind that it was full of holes). Some supported the Liberals’ campaign for an election and no carbon price, and I imagine behind the scenes some supported Kevin Rudd’s leadership plot in return for Rudd’s promise to weaken the carbon price. When Rudd was decisively defeated, the Business Council of Australia called for “a renewed commitment to make Australia more competitive and productive” including “a regulatory environment that encourages business to invest, adapt, and innovate”. Within a week, Gillard announced the formation of the Business Advisory Forum. The whole thing had a vibe of Gillard desperately trying to win the support of business. And what better way to atone for the carbon price than to dismantle all other climate and environment policies? Read the rest of this entry ?