Jul 16, 2012 - 11:13am
The Climate Institute is concerned about the process and scope of the COAG (Council of Australian Governments) Taskforce reforms, specifically the Taskforce’s proposals ‘to rationalise carbon reduction and energy efficiency policies and programs that are not complementary to a carbon price; or are ineffective, inefficient or impose duplicative reporting requirements on business’.
While The Climate Institute recognises the value in streamlining policies and programs, several key concerns remain:
- The imposition of further reviews on top of the existing review of the Renewable Energy Target risks further undermining investment in electricity generation.
- The criteria by which policies are determined to be complementary to a carbon price lack clarity as to the expected forward trajectory of the carbon price and the risks to its ability to achieve its objectives. If measures are to be judged against ‘complementarity to a carbon price’, these issues need to be clarified, or judgements made in due recognition of these uncertainties.
- The criteria by which policies are determined to be cost-effective lack clarity as to the appropriate timeframe over which cost-effectiveness should be measured. It is essential that determinations of cost-effectiveness take account of long-term benefits as well as short-term costs.
Below is a letter submitted to the Taskforce on 5 July 2012.