FOSSIL ENERGY MARKET BLOCKS CLIMATE ACTION
Friday, 09 October 2009 11:00
Australia’s highly inefficient and polluting energy system will continue to block climate change policies, Total Environment Centre (TEC) said today, in the wake of the Australian Energy Market Commission’s (AEMC’s) final report on the Review of Energy Market Frameworks in Light of Climate Change Policies.
The report, just released, shows that Australia’s Energy Ministers are failing to deliver on their mandate to foster environmental benefits for Australia, by not reforming the Energy Market.
“The Review has been a tepid tick-box exercise when what’s needed is a complete transformation of the energy market which is the single largest source of greenhouse gas emissions in Australia,” said Jane Castle, Senior Campaigner at TEC. “Martin Ferguson and his state colleagues must be called to account for the failure of greenhouse emissions reductions in the electricity sector.”
In August 2008 the Ministerial Council on Energy requested that the AEMC conduct the Review, but it has been hindered from the start by the narrow terms of reference and the lack of an environmental objective in the National Electricity Law.
“The Energy ministers are actively maintaining a status quo that restricts renewable energy, discourages energy efficiency, promotes poor investments and traps Australia in fossil fuel dependence,” Ms Castle said. “They are obstructing the development of energy solutions which would bolster the economy, create jobs and protect us from rising carbon costs.”
Castle said that the AEMC Report doesn’t address the fact that the energy sector emissions will double by 2020, despite a national emissions reduction target of 5 to 25%.
“Energy producers and distributors are currently rewarded for selling more electricity. That needs to be transformed into an incentive to boost energy efficiency and better manage demand. COAG must step over the Energy Ministers and initiate an overhaul of the energy market,'' said Castle.
Total Environment Centre has released The Role of The NEM In Responding To Climate Change Policies, a report by MMA Consulting that counters the AEMC’s conclusions.
