Garnaut slams composition of RET review panel

Professor Ross Garnaut criticised the composition of the panel chosen to review the Renewable Energy Target, saying the members announced last week by the Federal Government did not have the independent status and capacity of the Climate Change Authority.

Speaking at a breakfast event in Perth, hosted by the Sustainable Energy Association (SEA) on Friday, the economist and former advisor to the Labor Government said that Climate Change Authority (CCA) is the body which should carry out the review.

“It is comprised of people who have neither the independent status, nor the professional capacity of the executive in the CCA,” Garnaut said of the new panel to be headed by climate change skeptic Dick Warburton, and supported by people who have a history of pushing against environmental legislation.

Professor Garnaut added that logic underpinning calls for the RET to be diluted is flawed.

“A lot of the pressure for change of the RET comes from political calls, along the lines that RET increases the cost of electricity,” said Garnaut. “From the generation industry the pressure was coming from those saying that the RET has caused an increase in the supply of electricity when consumption is falling and the wholesale price is too low.”

Speaking to Reneweconomy after the event, Garnaut said there remains considerable public support for climate change mitigation in Australia.

“I think there is substantial support within the community for action on climate change, in a head-to-head referendum between established policies and the government’s alternative Direct Action, I don’t have much doubt that the established policies would win.”

AProfessor Garnaut took a swipe at the government’s Direct Action approach to climate change mitigation, saying that market based mechanisms will deliver emission reductions at a lower cost and more effectively.

Garnaut told RenewEconomy: “This isn’t a conservative government in Australia. This is radical government. A conservative government would’ve wanted to conserve all the good things about Australian life wouldn’t be seeking to undermine the current climate policies.”

He noted the Australian government is committed to emission cuts between 15 per cent  and 25 per cent, not the 5 per cent target discussed since assuming office in September last year. These targets are based on the climate mitigation efforts being employed by other countries including China and the US, but also emerging economies like India, Brazil and South Africa.

“Australia’s emissions reductions targets are calibrated to fit into whatever world we find ourselves in,” said Garnaut. “Our official target, as committed to the UN by the previous government with bipartisan report and explicitly with the support of the Abbott opposition during the election campaign, is -5% whatever the rest of the world does, and -15% based on specified conditions of action of the rest of the world and up to -25% if the rest of the world is entering an agreement that will get us to the 2C (warming limit).”

The emission reduction targets are based on emissions levels in 2000. Garnaut said that Environment Minister Greg Hunt committed to this schedule of emission reductions during the 2013 election campaign.

“Members of the government and especially Greg Hunt were quizzed on this during the election campaign… and Hunt quite explicitly said that is the case depending on what the rest of the world is doing,” said Garnaut.

The new government intends to repeal the carbon price, and seeks to replace that with a series of mechanisms known as Direct Action to achieve its 5% reduction target. Few if any economists believe that the 5% target can be reached with the Direct Action mechanism, which is centred around emitters bidding to receive government grants, let alone a higher target.

Ross Garnaut described the efforts the US is taking, under the Obama Presidency, as representing a “muscular direct action”, saying that the country is committed to a 17% reduction of emissions, based on 2005 levels.

“Direct Action can work, but you actually have to do something,” Garnaut quipped.

Some of the efforts the US, and various states are taking, including emissions standards for the automotive industry and restrictions on emissions from coal power plants. The government agency the EPA has played a key role in enforcing these restrictions, with its mandate to do so being upheld in the US Supreme Court.

Turning to China, Garnaut said that the growth of hydro, nuclear and wind energy have vastly increased the amount of low emission electricity generation in China. He also pointed to regulations, in China’s current 5-year plan, in which greenhouse emissions from emissions-intensive industries have been curtailed. “Very large numbers of high emissions power generation plants and steel mills have been closed,” said Garnaut.

The story of China’s solar industry, which Garnaut described as being “most interesting”, has also played a role. He pointed to the massive expansion of manufacturing capacity in China as leading to cost reductions in solar PV enjoyed worldwide and how the industry, previously committed to supplying markets such as Europe and Australia, is now supplying China’s electricity generation demand itself.

Bloomberg New Energy Finance estimates that 12 GW of solar PV was installed in China in 2013, with it has been widely reported that China’s National Energy Administration (NEA) has increased the 2014 target for new solar PV capacity installations to 14 GW.

Garnaut expressed considerable optimism for a climate mitigation agreement to be reached in Paris in 2015. He said that developed countries like Canada and Australia, under its current administration, as potentially having a negative impact on the likelihood of such an agreement.

“The government has been as clear on the -5C, -15C, -25C commitment,” said Garnaut. “It will be as much a breach of faith with the Australian electorate for the government to seek to forget about the emission commitment as it was to wriggle out of the Gonski commitments. The Australian community should insist on the government honouring its commitments in this area as it insisted on the education commitments.”

Along side representatives from the renewable energy and construction industries, a number of federal politicians attended the Garnaut event. Member for Perth Alannah MacTiernan and Senator Louise Pratt both quizzed Garnaut when he took questions from the audience.

Senator Pratt will be re-contesting what will effectively be a Senate bi-election in Western Australia, after The Court of Disputed Returns decided that the original result nor the recount could stand. Garnaut said that the result of the election is crucial if climate mitigation policy and bodies are to be maintained.

“We had a 4 to 2 split in the WA Senate outcome in favour of parties that favour a repeal of carbon pricing. If it goes 4 to 2 the other way [in favour of the ALP and the Greens], you’d move from the government needing six of the eight independents and minor parties to requiring eight of the eight independents and minor parities – and that would be difficult to achieve. Seven of eight is harder than six of eight, so the detail of the outcome here would significantly effect the difficulty the government has in repealing the carbon laws in the Senate.”

Comments

4 responses to “Garnaut slams composition of RET review panel”

  1. Concerned Avatar
    Concerned

    What would you expect him to say?

    1. wideEyedPupil Avatar
      wideEyedPupil

      Oh I don’t know, make stuff up like so many other conservative economists.

  2. Chris Fraser Avatar
    Chris Fraser

    As an economist, he ought to say that he has an unbiased opinion on the use of fossil fuels from an economic perspective. He could say things he has mentioned before – that Australia is only a middle order country when it comes to taking action to increase its proportion of energy from clean sources. Or that investment in clean energy pays a dividend later when we will be forced to pay big sums for climate adaptation.

  3. howardpatr Avatar
    howardpatr

    Abbott, Hunt and the bulk of those in the Coalition Government will be pleased by Ross Garnaut’s comments – they must be on the track set for them by the fossil fuel interests if Garnaut sees fit to call the review for what it is; another stitch up by the Flat Earthers.

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