News that an 'in-principle' agreement has been reached on Australia's Renewable Energy Target (RET) has been overshadowed by the government seeking to maintain two yearly reviews of the target.
The agreement would slash the RET from 41,000 to 33,000 gigawatt hours of energy to be sourced from renewable energy by 2020.
Although the Clean Energy Council is keen to break the impasse and resolve the RET issue, it's CEO Kane Thornton will not back the proposal unless two-yearly reviews are scrapped.
Thornton said the reviews are the source of the problem because industry cannot attract long term investment with so much political uncertainty.
Earlier today, Environment Minister Greg Hunt invited Labor for more talks on the target predicting that a deal could be finalised quickly.
Green Building Council of Australia (GBCA) CEO Romilly Madew said slashing the RET puts Australia’s low-carbon future in jeopardy.
"We are disappointed that the RET was not retained at 41,000g GhW hours," she said. “Not only has the ongoing uncertainty around the RET damaged Australia’s renewable energy industry both locally and internationally, it has damaged efforts across the economy to reduce emissions, and impacted our global standing as a sustainable economy open to innovative technologies and solutions.
“The RET has supported investment in renewable energy solutions across the nation, reducing our emissions and energy bills for building owners and tenants alike. It has encouraged more than 15,000 businesses to invest in solar power, and supported more than 13,000 jobs, benefitting the economy and boosting our international competitiveness."
Analysis from Bloomberg New Energy Finance reveals that new investment in Australian large-scale renewable energy projects fell by 90 per cent over the year to March. Of the $206.9 million invested, $160 million came from government agencies – such as the Australian Renewable Energy Agency and the Clean Energy Finance Corporation – which the Coalition government wants to scrap.
Bloomberg argues that the dramatic drop can be attributed to policy uncertainty.
Electrical Trades Union assistant national secretary David Mier said thousands of Australian jobs in the renewable energy sector are at risk due to the ongoing failure of the government to find a suitable solution to the RET problem.
“The Abbott Government has already destroyed jobs, trashed Australia’s renewable energy sector, destabilised the industry and damaged its international reputation with its ideological crusade against renewable energy,” Mier said.
“It is time for the government to pull its finger out and come to the negotiating table on this vitally important matter, before further damage is done. In the interests of industry, workers and the country, they need to make a deal.”