Credit: Dirk Ingo Franke/Wikimedia
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Voted in today, legislation giving Australia a 20 per cent renewable energy target also seems to be giving the country's biggest polluters a free kick.
Under a compromise deal with Malcolm Turnbull's Opposition, the Federal Government has put in place legislation requiring 20 per cent of Australia's electricity to come from renewable energy sources by 2020.
"This is to date the most significant piece of climate change legislation in Australian history," said Mathew Warren, chief executive of the Clean Energy Council.
"The Renewable Energy Target legislation will be the foundation of clean energy policy in Australia for the next decade."
The move will create many new clean energy jobs and is to be applauded, said the executive director of the Australian Conservation Foundation (ACF), Don Henry.
But it was also disappointing that under the legislation "more compensation has been granted to big polluters, the costs of which will be unfairly borne by households and small business," he said.
Indeed, the deal negotiated by the two major parties will effectively exempt Australia's biggest polluters from the 20 per cent target.
Under the Carbon Pollution Reduction Scheme, now holed up in the Senate and waiting approval in November, the most emission-intensive industries would get 90 per cent of their permits free.
Industries the next step down would get 60 per cent of their permits free.
The deal worked out between the Government and Opposition will see these industries not have to meet the target. Under the compromise, only a fraction of their electricity will come from renewable energy.
These industries include aluminium, carbon black production (which makes lubricants), carton board manufacturing, ethanol, flat glass and glass containers, integrated lead and zinc, magnesia, methanol, newsprint manufacturing, pig iron, paper, silicon, soda, titanium oxide and zinc.
Companies that will benefit include Rio Tinto, BHP Billiton, Alcoa, BlueScope Steel, BP, Nork Hydro, Royal Dutch Shell, OneSteel, Caltex, Exxon Mobil, Chevron, CSR, Woodside, Boral and Mitsubishi. Under this deal, they will only have to get one to seven per cent of their electricity from renewable energy sources.
Furthermore, there is a provision that could extend the exemptions to other industries, such as food production and pasteurised milk. If the price for renewable energy rises to a certain level, the Government will be able to refer it to the Productivity Commission to review.
Greens deputy leader Christine Milne said the big parties had provided a boost for big polluters.
"Under this deal between the big old parties, the polluters will get windfall gains from cheaper electricity without having to pay to install the renewable energy in the first place,'' Senator Milne said. "How is that fair or reasonable?
"[Both] parties have been using Australia's clever and clean renewable energy industry as a political football. Both...bend over backwards to sandbag the old polluters, but neither is willing to give priority to the renewable energy powerhouse that the Australian community wants."
She warned that the public will pay for the deal. "Every Australian should remember that this deal to exempt polluters from the renewable energy target puts the full bill for moving to the renewably-powered economy into the pockets of the community, letting polluters benefit from the shift while bearing none of the cost,'' she said.
"Will the Government and Opposition vote to give renewable energy credits to Gunns for their native forest furnace at the planned pulp mill?"
Senator Milne moved a raft of amendments to the renewable energy target legislation.
These included a requirement lifting the target to 30 per cent by 2020. As part of this, she sought an amendment that would have the target reviewed every two years. Another amendment sought to remove the exemptions for polluting industries.
Earlier this morning the Government and Opposition voted against the Green amendments.
The passing of the Renewable Energy Target bill now guarantees that the focus returns to the Emissions Trading Scheme. If that bill is defeated in November, it will likely become a trigger for an early, double dissolution election.
"The next major priority for our parliamentarians [then], in the months leading up to the crucial UN climate negotiations at Copenhagen in December," said ACF's Henry, "is to strengthen and pass the emissions trading legislation to show Australia is prepared to walk the talk on climate change action."
