The Morrison Government must explain why it intervened on behalf of political donor and coal baron Trevor St Baker to commission a review of how coal power plants can receive funding under the Emissions Reduction Fund (ERF), the Australian Conservation Foundation (ACF) says.
Documents obtained under Freedom of Information (FOI) show that in December last year Environment Minister Melissa Price requested a key oversight committee review “the ways coal-fired power stations can earn credits under the [ERF facilities] method and seek advice on any changes that could be made to the method to improve its clarity and intent.”
This followed a decision by the independent Clean Energy Regulator (CER) ruling the Vales Point coal power station should not qualify for carbon credits and cash under the ERF for a project it had registered to upgrade parts at the plant.
This decision led to a flurry of aggressive lobbying, and even legal threats, from representatives for Mr St Baker’s Delta Electricity across the CER, Department of Environment, and the offices of Energy Minister Angus Taylor and Minister Price.
The release of the FOI documents comes as a project to upgrade generating units at Vales Point was included on a shortlist of power projects the Morrison Government is considering “underwriting”.
ACF has been researching the outcomes and operation of the ERF. In February ACF wrote to the Emissions Reduction Assurance Committee (ERAC) requesting a separate review of several methods, including facilities, due to concerns about adverse outcomes. The ERAC has confirmed a review of the facilities method will commence soon and ACF’s concerns will be considered as part of that.
ACF Chief Executive Officer, Kelly O’Shanassy, said: “On one hand we have an independent regulator that has made a clear decision. On the other we have a well-connected donor and coal baron throwing his weight around.
“Minister Price was well within her rights to call for a review. But the timing and focus on coal in the intervention raises significant questions about the influence of Mr St Baker and the government’s support for fossil fuels.
“I commend the Clean Energy Regulator, which these documents suggest has stood firm against intense lobbying. The Morrison Government could have similarly stood firm against Mt St Baker’s push and let matter sit with the Regulator’s ruling.
“This issue reinforces the importance of strong, independent regulators making decisions free from political interference. It again bolsters the case for the establishment of a national Environment Protection Authority to oversee stronger environmental laws.
“The Morrison Government needs to explain its relationship with Trevor St Baker, a major party donor who is seemingly pushing hard to get public money and institutional backing for his coal business.
“Australians are sick of big money and lobbyists trumping the public good.
“ACF has consistently called for new funding allocations to the Emissions Reduction Fund, now known as the Climate Solutions Fund, not to occur until the scheme is overhauled. Methods that allow payments to big companies to burn more fossil fuels should be immediately scrapped.
“ACF believes programs like the Emissions Reduction Fund or Carbon Farming Initiative have a role in a comprehensive climate change strategy to encourage farmers and other landowners to cut emissions, protect forests and restore landscapes.