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Apr 27 2016

Labor's climate plan reveals real challenges ahead for decarbonising economy

Labor’s climate change plan is a step in the right direction towards the decarbonisation of Australia’s energy supply, revealing the significant investment and systemic challenges needed to deliver an efficient transformation, the energy industry said today.

Australian Energy Council Chief Executive, Matthew Warren, said the industry welcomed the Federal Opposition’s support for a market-based approach to emissions reduction and its recognition of more detailed planning needed to integrate higher levels of renewable energy into the grid.

“The energy industry has backed an efficient, national and market-based approach to emissions reduction for the past decade, and today’s plan is a step towards that objective,” Mr Warren said.

“Importantly, Labor’s climate plan recognises the need for all sectors of the economy to reduce emissions while recognising the specific sectoral needs of transforming the electricity system.

“There is still a lot of detail that needs to be worked through, and a number of specific proposals that require further clarification.

“We are already seeing in places like South Australia that the integration of high levels of renewable energy into the grid is a major technical challenge.  It’s one we must solve.

“Whatever the final design, this transformation will not be costless, requiring at least $230 billion in new generation investment by 2050, and a clearly thought through strategy to deliver the most efficient, durable and sustainable integration of renewable technologies into the grid.

“A successful climate strategy needs to provide clear and stable signals to allow the energy industry to sustain a substantial investment pathway for decades.  The sooner both major parties can agree on this pathway, the sooner we can deliver a sustainable, affordable and reliable energy system for all Australians.”


About the Australian Energy Council

The Council represents 22 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.

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