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Sky News AU
7 days ago
- Business
- Sky News AU
Labor told 'implied carbon prices', fixing broken renewables approvals key to lowering emissions in Productivity Commission report
A new report from the Productivity Commission has called on Labor to introduce reforms which would produce a similar effect to an "enduring, national carbon price". The interim report, titled: "Investing in cheaper, cleaner energy and the net zero transformation", is part of a series requested by Treasurer Jim Chalmers ahead of the Albanese government's economic roundtable. In it, the Productivity Commission warns the government must move to address "the gaps and overlaps in emissions reduction incentives, speed up approvals for clean energy infrastructure, and create a resilience-rating system for all housing to meet our clean energy targets and adapt to climate change". By doing so, the report says Labor will be able to both lower the cost of cutting emissions, while also maximising the opportunities presented by the energy transition to boost the economy. The Commission places heavy emphasis on a market-based approach, arguing both the Renewable Energy Target and the Capacity Investment Scheme, both central to Labor's net zero agenda, be scrapped in favour of direct incentives in the electricity sector. It also calls for the creation of a new independent agency which would determine a set of "carbon values" against which all emissions reduction policies would be assessed. The agency would set "carbon values" based on the "implied carbon prices" needed to meet Australia's emissions. By doing so, the Commission argues Australia could meet its internationally agreed climate targets at the lowest possible cost. "Our recommendations align with many of the benefits conferred by a broad-based, enduring, national carbon price – a policy that many, including the PC, have consistently argued for," the report said. In addition to factoring in the price of carbon while assessing emissions reduction plans, the report also calls for major reforms to the approval process for renewables projects. "We need to build a large amount of clean energy infrastructure to meet climate targets and ensure reliable and affordable energy supply. But our sluggish and uncertain approval processes are not up to the task," Commissioner Martin Stokie said. "Getting to yes or no quicker on priority projects would meaningfully speed up the clean energy transition." The Commission argues for substantive changes to the Environment Protection and Biodiversity Conservation Act, including the introduction of national environmental standards, improved regional planning and clear rules about engaging with local communities and Aboriginal and Torres Strait Islander peoples. It also recommends the appointment of an independent Clean Energy Coordinator-General to work across government and break through roadblocks, as well as the creation of a "strike team" to rapidly asses priority projects. Other recommendations included in the report include an increase to the number of facilities covered by Labor's emissions reduction program for industry, the Safeguard Mechanism, and the abolishment of a fringe benefits tax exemption for electric vehicles.
The Advertiser
03-08-2025
- Business
- The Advertiser
Emissions reduction 'central' to boosting productivity
An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals.
Perth Now
03-08-2025
- Business
- Perth Now
Emissions reduction 'central' to boosting productivity
An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals.
The Guardian
13-02-2025
- Business
- The Guardian
Australia's investment in large-scale wind and solar hits six-year peak
Investment in large-scale wind and solar in Australia has reached its highest level in six years, with $9bn in capital committed to projects in 2024, new industry data shows. According to the Clean Energy Council, financial commitments were made for 4,346MW of new renewable capacity last year. This was the highest level of investment the sector had seen since 2018, when industry was delivering on the bipartisan Renewable Energy Target. The strong result was boosted by the final quarter, which saw seven large-scale projects – totalling 1,598MW of new capacity and $2.4bn in capital investment – gain financial commitment. The Albanese government has been criticised for not being on track to meet a target of 82% of electricity coming from renewable energy by 2030. But Kane Thornton, the chief executive of the Clean Energy Council, said last year was in line with the investment needed to achieve the government's target, and reflected clear policy signals and support from federal and state governments. Sign up for Guardian Australia's breaking news email 'These results show that clean energy investment is getting back on track and it's critical that we don't lose focus or change direction now on a strategy that is working,' he said. 'Investors need stable and predictable long-term policy settings to provide them with the confidence to invest their money in these critical infrastructure assets which Australia urgently needs.' According to the report, Australia needs about 1,500MW of new renewable energy investment each quarter – or 6,000-7,000MW annually – to reach the 82% target. The 585MW Goulburn River solar farm was among the projects securing investment in the final quarter of 2024, having earned a contract under the first round of the government's capacity investment scheme. The year also saw solid investments in energy storage, such as large-scale batteries, with 4,029MW of new capacity committed. The largest of these was the Woolooga battery storage system in Queensland, which can store 222MW of energy for nearly three hours. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Alison Reeve, the deputy energy and climate program director at the Grattan Institute, said in addition to maintaining high levels of investment, hitting the 2030 target would also require the rollout of new transmission lines and a 'tremendous amount of building'. 'What really matters here is that we get good at building this stuff on time and on budget,' she said, adding it was a challenging task given the high competition for trades and skilled workers due to their demand in housing and infrastructure. There was also international competition for solar panels and wind turbine blades to contend with. 'A whole lot of other countries are also trying to build a lot of stuff in a hurry,' Reeve said. The year also ended on a high for renewable electricity generation, with wind, solar and hydro power accounting for a record 46% of overall supply, while coal power dipped below 50% for the first time in the final quarter, according to the Australian Energy Market Operator. Reeve said the industry and investors appeared to have gained 'rhythm' now that such policies as the federal government's underwriting scheme were off the ground, but uncertainties remained. 'It's very unclear, if there was a change of government federally, what that would mean for the capacity investment scheme,' she said. 'The other risk that's on the horizon is that there's still a reasonable amount of uncertainty over when the coal-fired power stations are going to close.'
