THE FEDERAL GOVERNMENT'S National Energy Guarantee (NEG) will not do enough to reduce carbon pollution and tackle climate change, with new government modelling on the policy confirming new investment in renewable energy would effectively grind to a halt.
Climate Council CEO, Amanda McKenzie expressed disappointment today with the Federal government's NEG scheme.
"The government's modelling shows that the scheme would only add 1% of renewable energy capacity over the decade above doing nothing. There is a real concern that the scheme will put the brakes on this growing industry in Australia while there is a global renewables boom".
"The Federal Government acknowledges that increasing low cost renewable energy is the only way to reduce rising electricity prices. However, this scheme doesn't effectively incentivise them.
"We live in one of the the sunniest and windiest countries in the world and yet Australians are missing out on the cost savings that come from more affordable supply - which can only come from renewable energy such as wind and solar."
McKenzie said Australia's pollution reduction targets are woefully low, meaning the Federal Government is actively sitting on its hands when it comes to tackle climate change.
"Ignoring our biggest opportunity to tackle climate change through cutting pollution in the electricity sector is very disappointing. It means we are actively accepting significant rises in global temperature, which will fuel further extreme weather events from supercharged storms, to severe heatwaves and bushfires."
"Australia desperately needs credible policy that cuts rising pollution levels, embraces the rollout of clean, affordable and reliable renewable energy and storage technology. No policy is perfect but the NEG is falling short across the board."
To view the independent economic modelling from EY, commissioned by the Climate Council on the NEG, highlighting its impact on energy sector jobs please view the full report here.