A well designed Low Emissions Target (LET) could be the basis for the needed integration of climate and energy policy in Australia according to Canberra-based policy think tank The Australia Institute.
“The key will be to ensure any scheme accelerates the transition away from coal and does not lock in support for fossil fuel generators,” Executive Director of The Australia Institute, Ben Oquist said.
“The value in the Climate Change Authority proposing evidence-based solutions is again on display.
“The reality is we need a policy to integrate climate and energy policy in Australia. Without it, emissions will continue to rise and investment will dry up.
“As any economist will tell you, this uncertainty will result in less supply and lead to higher power prices.
“There are any number of policy options that could be used. Ultimately it is how these instruments are calibrated, not what they are called, that will matter. An EIS or a well-designed LET could fill the breach.
“More renewables and energy efficiency drive down energy costs. With fairer market design rules as recommended by the CCA, battery storage and demand management can solve the reliability issue once and for all,” Mr Oquist said.