States warm to energy plan

THE Government’s cornerstone energy policy has passed its latest hurdle, with a commitment from states and territories to continue detailed design work.

It gives ministers who identified concerns with aspects of the National Energy Guarantee a four-month reprieve to push for changes before the Federal Government’s deadline for a decision in August.

Federal Energy Minister Josh Frydenberg went into the meeting of energy ministers in Melbourne with the recognition that more work needs to be done.

He anticipated talks would secure support for a more detailed framework, rather than the overall support he had originally hoped for.

The Energy Security Board will now continue to progress a more detailed design, expected to be released in July.

“I think there is a recognition that there is more work to be done, there is a recognition that there is a lot of goodwill from all sides of this debate and there is a recognition that we will need to get an outcome in August,” Mr Frydenberg said.

No state has spoken out against support for a detailed design, but none has offered full support for the plan yet.

NSW and the Business Council are urging ministers to get on board.

ACT Climate Change Minister Shane Rattenbury and Victorian Energy Minister Lily D’Ambrosio both identified major sticking points.

The biggest is the 26 per cent emissions reduction target for the electricity sector, at the lower end of Australia’s Paris Agreement commitment of 26-28 per cent reduction of 2005 level emissions by 2030.

Ministers are questioning the low target for electricity where abatement is cheaper and easier to achieve than in agriculture, industry and transport.