Business and energy leaders warn Coalition's net zero abandonment won't cut power bills, demanding more detail
Business and energy industry leaders have issued a stark warning to the Coalition, asserting that abandoning the net zero emissions target will not lower power bills, thus undermining Sussan Ley's signature policy. This move has caused a rift within the Coalition, as traditional business allies distance themselves from the decision.
The opposition leader spent Monday defending the strategy, which includes scrapping the net zero target, dismantling climate policies, increasing gas supply, and extending the lifespan of coal-fired power stations. This approach has particularly angered moderate Liberals, as it would allow the capacity investment scheme, currently restricted to renewables and storage, to use taxpayer funds to subsidize coal-fired power.
On Monday, Ley claimed that her "technology-neutral" approach would reduce power prices, blaming Labor's policies for higher energy bills. She stated, "Power prices will come down under us, as downward pressure will be placed on power prices."
However, the chief executive of the Clean Energy Council, Jackie Trad, countered that abandoning the net zero emissions target "won't cut power bills or enhance energy security." Trad, a former Queensland state Labor minister, emphasized that without a plan to replace shutting coal units, households, businesses, and critical industries will face higher prices, more frequent outages, and growing system instability.
The Australian Energy Council's survey of chief executives from leading energy retailers, generators, and investors reinforced support for net zero, emphasizing the dominance of renewables and battery storage in the energy system. The council's CEO, Louisa Kinnear, highlighted that renewable energy with "firming" support would be cheaper than investing in coal-fired power, but the transition needed careful management.
Industry leaders, such as Andrew McKellar from the Australian Chamber of Commerce and Industry (ACCI), and Innes Willox from the Australian Industry Group, have expressed concerns about the Coalition's plan, citing a lack of detail and a potential contradiction with the 2015 Paris agreement. McKellar described the plan as a "bit of a plan not to have a plan," while Willox noted the industry's commitment to net zero by 2050 and the absence of investor interest in new coal-fired power stations.
Despite the criticism, the Minerals Council of Australia's CEO, Tania Constable, acknowledged the mining industry's ambition to achieve net zero emissions by 2050, emphasizing the need for all technologies to be considered.
