Media Statement - 30th October 2007
A Rudd Labor Govern ment will set a 20 per cent Renewable Energy Target for Australia to reach by 2020. This brings Australia into line with most developed nations including Europe, China and many American states.
A 20 per cent target is the equivalent of powering Australia’s 7.5 million homes for a year.
In a major step to tackle climate change, a Rudd Labor Government will significantly expand the use of solar, wind and geothermal energy, also known as hot dry rock technology. Reducing greenhouse gas emissions fro m the generation of electricity is one of the central challenges in tackling cli mate change.
Federal Labor’s 20 per cent Renewable Energy Target will ensure that the equivalent of at least 20 per cent of Australia’s electricity supply is generated fro m renewable sources by 2020. To achieve this, Federal Labor will increase the Mandatory Renewable Energy Target from 30,000 to 45,000 gigawatt hours (GWh) per year.
Federal Labor’s 20 per cent Renewable Energy Target by 2020 will:
- Increase the total number of gigawatt hours of renewable energy produced in Australia each year from the current Howard target of 45,000 to 60,000 gigawatt hours;
- Cut red tape and bring existing state-based targets into a single national scheme;
- Reduce emissions between 2010 and 2030 by 342 million tonnes; and
- Focus the target on renewable energy in order to significantly boost Australia’s solar, wind and geothermal energy industries.
The decline of renewable energy
under the
Howard Government
After 11 years under the Howard
Government, renewable energy contributes less to Australia’s electricity supply
(9.5 per cent) than it did in 1997 (10.5 per cent).
The Howard Government's consistent refusal to support the industry with policies that encourage clean energy sources, has led to many Australian companies moving off-shore to find opportunities to grow and to sell their locally developed technologies.
Mr Howard is now trying to take credit for the renewable energy capacity that will be generated from targets that the State Labor Governments have set themselves.
On the eve of the federal election and after years of inaction and false claims that any increase to the renewable energy target will cost jobs, Mr Howard announced a low emission target of 30,000 GWh that simply consolidates the state targets into a single national target.
Not only does Mr Howard’s target deliver no new renewable energy capacity, it allows the prospect that renewable energy will be squeezed out of his so-called ‘clean’ energy target by his plan for nuclear reactors.
The case for Federal Labor’s
target
Federal Labor has a long standing
commitment to introduce emissions trading to enable the market to set a price on
carbon, unleash innovation and cut
Australia’s emissions.
While the introduction of emissions trading will help bring renewable technologies into the market over time, an interim renewable energy target will accelerate their use, driving cost reductions with economies of scale – and achieving overall emission reductions at lower cost.
As emissions trading matures, however, a renewable energy target will no longer be required.
Modelling by McLennan Magasanik Associates (MMA) commissioned by the Renewable Energy Generators of Australia also shows that the broader economic impacts of a renewable energy target are small.
Economic modelling by MMA shows that a 20 per cent renewable energy target in operation alongside an emission trading scheme will:
- Have a negligible impact on real GDP when compared to a carbon price alone
- Be achieved at a net present value cost of around $600 million between now and 2050 at a low carbon price and around $200 million at a moderate carbon price. That is equivalent to an average total cost of $10-30 for every Australian over almost 50 years.
- A 20 per cent renewable energy target will deliver emission reductions of 342 million tonnes of greenhouse gases between 2010 and 2030 compared to just 219 million tonnes over the same period with a 15 per cent clean energy target.
Federal Labor’s comprehensive
plan to tackle climate change
Federal Labor’s renewable energy
target is part of our comprehensive approach to tackling climate change, which
includes:
- Immediately ratifying the Kyoto Protocol;
- Introducing practical measures to improve household energy efficiency including generous rebates for solar power systems and solar hot water and low interest loans for Australian families to undertake practical water and energy efficiency measures in their homes;
- Establishing an emissions trading scheme by 2010 to put a price on carbon and cut emissions;
- Committing $500 million to the development of clean coal and low emission technologies through the National Clean Coal Initiative;
- Encouraging the development of a strong vibrant Australian clean energy industry with a $15m Clean Energy Export Strategy and a $20m Clean Energy Innovation Centre;
- Establishing a $50 million Australian Solar Institute and a $50 million geothermal initiative; and
- Establishing a $500 million Green Car Challenge to help develop a cleaner Australian car fleet.