Prime Minister John Howard today announced a proposed Clean Energy Target (CET) scheme that would aim to generate an additional 30,000 gigawatt hours of renewable and low emission energy by 2020.
The market-based scheme would be modelled on the federal Mandatory Renewable Energy Target (MRET) scheme, in which accredited generators create tradeable renewable energy certificates. However, unlike MRET, the CET scheme will also recognise low emission generators.
Technologies that emit less than 200 kg of greenhouse gases per megawatt hour of electricity will be considered low emission technologies. This would encompass fossil-fuel fired generators using carbon capture and storage.
The federal MRET scheme has not served as a significant incentive for investment in renewables for several years because its target of an additional 9,500GWh by 2010 proved less ambitious than anticipated. In 2004, the federal government rejected a recommendation made in a review of the scheme to increase the target to 20,000GWh by 2020.
Meanwhile, the Department of Prime Minister and Cabinet has released a discussion paper on abatement incentives prior to the commencement of emissions trading. The paper sets out proposals to ensure “early” abatement action taken from June 3, 2007, through to the introduction of trading is recognised once the scheme gets under way. Public comment on the discussion paper closes December 1.
Announcement of the CET scheme comes as Australia readies for an election that must be held before the end of the year . The opposition Australian Labor Party currently leads the ruling Liberal-National Party Coalition in opinion polls.
Fact Sheet – A National Clean Energy Target (Australian Government, September 23, 2007)
Abatement Incentives Prior To The Commencement Of The Australian Emissions Trading Scheme (Department of the Prime Minister and Cabinet, September, 2007)
