Fed: Govt backs down on climate and allows bill split

AAP General News (Australia)
08-16-2009
Fed: Govt backs down on climate and allows bill split

By Kate Hannon, National Political Editor

CANBERRA, Aug 16 AAP - Labor has backed down on its hardline on emissions trading and
will split the legislation allowing a vote on its renewable energy target as early as
this week.

The decision breaks the deadlock over the government's 11 bills introducing an emissions
trading scheme (ETS), which were defeated in parliament last Thursday and are not due
to be re-introduced until November.

With pressure for a split in the bills from the renewable energy industry, the opposition,
the Australian Greens and independent senator Nick Xenophon has forced the government's
hand to give the industry certainty by setting the renewable energy target (RET).

The opposition and the government have already started negotiating amendments to the
RET and industry has welcomed the backdown.

Clean Energy Council chief executive Matthew Warren said an expanded RET had overwhelming
public support and, together with other energy efficiency measures, would "unleash" $28
billion of new investment and 28,000 new jobs over the next decade.

"We welcome this important step towards delivering the RET bill by the end of the week.

We need the RET passed in three days, not three months," Mr Warren said.

As recently as Friday, the government was adamant the two could not be separated because
they share complementary compensation packages - even though the ETS will not begin until
mid-2011 while the RET starts in January.

Climate Change Minister Penny Wong announced the change of mind on Sunday, saying it
was "plan B" and a less than perfect way of dealing with the carbon pollution reduction
scheme (CPRS), or ETS, and the RET.

"This is about providing certainty to the renewable sector in the face of the opposition's
failure to do the responsible things, to pass both the CPRS and the RET," Senator Wong
said.

"If passed, it would lead to the largest increase in renewable energy in the country's history."

Opposition Leader Malcolm Turnbull declared the backdown a "victory for commonsense"

and suggested the government also sit down and negotiate with the coalition its ETS bills
too.

"The critical thing is that until today the government's position was that they weren't
talking to the opposition. In fact, the only advice they had for us was the very friendly
advice: `Get out of the way'," Mr Turnbull said.

"We want this legislation passed, but we want to make sure it's right before we vote for it."

The RET section of the ETS bills is designed to come into force from January with the
requirement that 20 per cent of electricity generation come from renewable energy sources
such as wind, geothermal or solar power by 2020.

The ETS, or carbon pollution reduction scheme (CPRS) would not come into force until
mid-2011 where its cap and trade permit system would begin reducing greenhouse gas emissions
by five per cent below 2000 levels by 2020.

Australian Greens deputy leader Senator Christine Milne welcomed the decision but said
she was concerned the proposed RET would let big polluters off too easily.

"It is an ominous sign that Minister Wong has chosen to brown down the renewable energy
target with the coalition and the polluters," Senator Milne said.

The Greens want to increase the RET to 30 per cent among a range of other amendments.

Senator Wong said the government-proposed interim arrangements to assist the renewable
energy industry would come into force only in the event the ETS legislation fails to become
law by January 1.

One of the country's largest installers of solar panels, Solar Shop Australia, said
the industry and its 4,000 employees were relieved the political stand-off had ended.

"This is a great day for the solar panel industry, for businesses and households wanting
to install solar panels, and most importantly, a big win for our environment as this new
program will result in thousands of tonnes of greenhouse gas reduction," managing director
Adrian Ferraretto said.

AAP keh/ht/cdh

KEYWORD: CLIMATE WRAP

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