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Malcolm Turnbull has warned that Labor’s plan to nearly double Australia’s emissions reduction target would “significantly Âincrease the cost of electricity’’ as the nation heads for another election campaign fight over climate change.
Bill Shorten yesterday echoed Julia Gillard’s vow that there would be “no carbon tax†under a Labor government as he accused the Prime Minister of trying to “trump up a sort of rich man’s Tony Abbott scare campaign’’.
Mr Turnbull hit back, saying Labor’s plan to bring back an emissions trading scheme was “effectively another tax’’.
“This is yet another economic handbrake that Labor is putting on our economy, another restraint on jobs to add to all the other job-destroying measures that they’re proposing,†he said. To deliver the increased emissions target, Labor would have to “very significantly increase the cost of energy, the cost of electricity and all other powerâ€, he said.
The Australian Industry Group warned that Labor’s policy to raise the 2030 emissions Âreduction target to 45 per cent from the government’s 26-28 per cent would be a “big ask’’ and could cost nearly $20 billion. But the Business Council of Australia said the plan could provide a “platform for bipartisanship’’ on climate change and “build a bridge’’ from the Coalition’s existing regulatory frameworks to the first phase of Labor’s planned emissions trading scheme.
Greens leader Richard Di ÂNatale ridiculed Labor’s scheme as too weak, saying it would not be effective and would not drive change as it was a carbon price worth about “3c a tonneâ€.
The stoush erupted as Deputy Prime Minister Barnaby Joyce Âaccused Labor of trampling on farmers’ rights with its plans to Ârestrict landclearing as part of its climate change policy. It was an “inherently unfair†assault that would leave farmers feeling “belittled†in their communities, he said.
Mr Shorten’s promise to Âincrease the 2030 emissions reduction target from 26-28 per cent below 2005 levels to 45 per cent would push Australia above the average of developed nations of 36 per cent and ahead of the EU’s 34 per cent reduction target.
Australia’s target would match Germany’s 45 per cent but be lower than the 49 per cent promised by Britain based on 2005 Âlevels. Germany has pursued an aggressive policy on Ârenewable energy but this has been blamed for pushing up electricity prices 78 per cent since 2005.
Mr Turnbull said he took “climate change very Âseriously’’, adding that the government’s 26 to 28 per cent target was a “big number’’ because of Australia’s strong population growth and the fact it would mean per-capita reductions of more than 50 per cent.
He said if “one country strikes out on its own, it’s not going to make any difference. It has got to be a global effort.’’
Mr Shorten said Labor was Âdetermined not only to tackle Âclimate change but to make sure Australia was part of the renewable energy revolution. “There will be no carbon tax under Labor, there will be no fixed price under Labor,’’ he said.
The Liberals last night rushed out social media advertising contrasting Mr Shorten’s statement to Ms Gillard’s “there will be no carbon tax under a government I lead’’ on the eve of the 2010 election to declare Mr Shorten a “carbon copy’’ of Ms Gillard.
The Opposition Leader and his environment spokesman, Mark Butler, committed Labor to 50 per cent renewable energy by 2030 and flagged two emissions trading schemes: one for the electricity sector and a wider scheme that would have a cap but no carbon price and allow widespread access to international permits.
Labor would also tighten light vehicle emissions standards, reintroduce restrictions on land clearing and expand the investment mandate for the Clean ÂEnergy Finance Corporation.
Mr Shorten moved to quash a carbon tax scare campaign from the government and accused Mr Turnbull of being a “fraud’’ on climate change for having described Mr Abbott’s Direct Action policy as a “fig leaf’’ before taking Âoffice only to adopt his policies.
“Climate change is one of the greatest challenges to households, to our economy and to Australia in the future — not just our environment but indeed our cost of living,’’ Mr Shorten said.
Australian Industry Group chief executive Innes Willox described Labor’s targets as “very challenging and would require major changes across the economy’’. “The policy announcement raises big questions, including around electricity sector transition, electricity prices, and the scale of the task should not be underestimated,†Mr Willox said.
“The 45 per cent target would require around 570 million tonnes of additional emissions reduction cumulatively to 2030 beyond the billion tonnes expected to be needed to meet the existing 26 per cent target. That is equivalent to an entire year of emissions at current levels.â€
Climate Institute chief executive John Connor said: “The ALP’s stronger pollution reduction commitments would set Australia on a path toward the internationally agreed and bipartisan supported goal to limit global warming to 1.5C-2C.â€
Minerals Council chief executive Brendan Pearson said Labor’s climate policy would “inevitably pose the risk of significant electricity price rises with adverse consequences for the competitiveness of the export sector and the broader Australian economy’’.