ACT Greens Submission to the RET Review

The ACT Greens have produced this submission on behalf of our members and supporters who
share a strong commitment to action on climate change and investment in renewable energy
both here in the ACT and around the country.

Australia is one of the sunniest and windiest countries in the world and has an extraordinary
capacity to strengthen and expand its renewable energy industry - creating jobs, cleaner air and
safeguarding our future.

Given the Governments intention to abolish the Australian Renewable Energy Agency (ARENA)
and further depriving the renewables industry of $1.3 billion in support, maintaining a strong
Renewable Energy Target (RET) is now more vital than ever. ARENA not only leveraged
billions in new project investment, it supported research and innovation that would have
stimulated job growth as well as driving reductions in emissions.

In the 2014/15 Budget the Government has reduced support for the emerging renewable energy
industry. This leaves the RET as the last form of support for large-scale renewable energy
investment.

The ACT Greens are disappointed and concerned with the political climate in which this RET
Review is being undertaken less than two years after an expert review was conducted by the
independent Climate Change Authority. The Howard Government introduced the RET in 2001 to
stimulate competition in the energy sector. The CCAs 2012 review demonstrated that the RET
successfully increased competition and lowered electricity prices for the Australian community
whilst contributing to an overall drop in greenhouse gas emissions from the stationary energy
sector.

The 2012 CCA RET Review found that:

This 2014 RET review would be unnecessary: the CCA recommended that the RET
be reviewed every 4 years, not every 2 years, to increase certainty and predictability for
industry
Changes to the large scale RET were not needed: CCA advised that to change the
LRET would risk damaging investor confidence.
The scheme works: between the time of the schemes introduction and the last report,
Australias renewable energy capacity had doubled and comprised approximately 10%
of Australias total energy production.
The whole country benefits: large-scale renewable projects had been implemented in
every state and territory.
RET is successfully reducing greenhouse gas emissions and about 90% of the
abatement achieved in the electricity sector can be attributed to the RET according to a
SKM MMA report.
Investment and employment in the renewable energy sector is booming with over $15
billion invested since 2001 at the time of 2012 report, supporting approximately 15,000
full-time jobs.

Less than 2 years ago it was clear that the RET was achieving its goals of reducing dangerous
greenhouse emissions, stimulating investment in the renewable energy sector and creating
jobs.

Now, its clearer than ever that Australias RET will be critical as we transition away from a
resource-dependent economy and towards a future powered by clean energy. The Government
has a moral, social and economic responsibility to protect the RET as an effective way to lower
greenhouse gas emissions and tackle dangerous climate change.
1. Reducing Greenhouse Gas Emissions

The ACT Greens were instrumental in securing a legislated 40% greenhouse reduction target
by 2020 for the Australian Capital Territory. The Australian Greens are the only major political
party that has consistently advocated for strong, urgent action on climate change consistent with
the advice and recommendation of scientists. Climate change is a global security issue, a health
and food security issue, and an issue of intergenerational justice. Reducing greenhouse gas
emissions by investing in renewable energy is essential for a clean energy future.

The Renewable Energy Target is working. As our electricity sector cleans up its act, our
greenhouse gas emissions have been steadily declining. The Federal Department of
Environments latest update of Australias National Greenhouse Gas Inventory recorded the
largest ever drop in annual emissions from electricity generation in Australia in 2013. This is a
result of a decline in energy consumption and a shift towards cleaner energy sources - largely
due to the success of Australia's RET. Cumulatively, generation from brown coal, black coal and
natural gas fell by 5.5% and renewable energy sources grew by 19.4% in 2013.
2. Stimulating investment & creating new jobs

The RET has driven billions of dollars into clean energy investment and created tens of
thousands of jobs around the country. Already, the RET has attracted over $20 billion in
investment and will attract an additional $14.5 billion by 2020
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if the scheme is not changed by
the Abbott Government. This new investment in clean energy is vital if Australia is going to keep
up with countries like China, India the US and Germany who are leading the world in clean
energy investment.

Additionally, according to the Clean Energy Council, over 24,000 Australians were employed in
the renewable energy sector in 2012 and over 18,400 jobs stand to be created by 2020 through

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http://www.cleanenergycouncil.org.au/policy-advocacy/renewable-energy-target/why-we-need-the-renewable-energy-target.html
the RET
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. In a world rapidly transitioning towards clean energy, where Australia has a
geographical competitive advantage, it would be irresponsible for any government not to
support the continuation of scheme that allows Australia to participate competitively in the global
economy and creates thousands of Australian jobs.
3. Affordable electricity for consumers

The RET saves Australians money. By avoiding new investment in poles and wires, and
providing a hedge against increasing fossil fuel prices; the RET suppresses increases in
electricity prices that would affect the everyday consumer. If the Abbott Government scrapped
the RET it would reduce the competition in the electricity market, forcing power prices up and
costing the average household about $50 more annually for electricity by 2020.

4. The integrity of the RET is important

The integrity of the RET is crucial to the schemes success. The Abbott Government has
committed to the reintroduction of native forest wood waste as an eligible energy source under
the Large-scale Renewable Energy Target. Logging is an enormous source of carbon emissions
and cannot by any reasonable or scientific measure by justifiably included in the RET. Native
forests also sustain unique regions of biodiversity that have evolved over thousands of year; by
their nature, they cannot be defined as a renewable resource.
The integrity of the RET requires that decisions regarding its scale and scope be founded on
science, not on the lobbying power of vested interest groups like the forestry industry. The ACT
Greens strongly advocate for the protection of the RETs integrity and the protection of our
native forests, and thus oppose the inclusion of native forest wood waste in the RET.
Conclusion

Climate change is one of the greatest challenges we face globally and here in Australia. It is,
and will continue, to impact every aspect of our lives - from health to energy, national security to
food and agriculture. The ACT Greens are committed to reducing greenhouse gas emissions,
taking strong action on climate change and investing in a clean energy future. We also note that
the ACT will continue with its legislated renewable energy target of 90% to continue to provide
certainty to the renewable energy sector.

There is overwhelming scientific consensus that dramatic and immediate cuts to greenhouse
gases will be necessary if we are to keep global warming at a safe level. The RET plays a vital
role in reducing Australias emissions whilst building investment and employment opportunities
in the clean energy sector.


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ibid.
The ACT Greens strongly advocate for the Government to take the only responsible course of
action and fully support the continuation of the Renewable Energy Target in its current form.

ACT Greens
Sophie Trevitt, ACT Greens Convenor
Email: convenor@act.greens.org.au
Phone: (02) 6140 3220
Havelock House, 23/85 Northbourne Avenue, Turner, ACT 2612