Industry groups believe the implementation of a carbon tax is highly unlikely, despite Premier Alan Carpenter's announcement this week that he would consider all 14 recommendations laid out in the state’s Greenhouse and Energy Taskforce’s report.
Industry groups believe the implementation of a carbon tax is highly unlikely, despite Premier Alan Carpenter's announcement this week that he would consider all 14 recommendations laid out in the state’s Greenhouse and Energy Taskforce’s report.
The report calls on the government to improve pricing signals in energy markets through carbon pricing, working off a carbon price of $25 per tonne by 2020, and to continue working towards a national emissions trading scheme.
The report also sets a mandatory renewable energy target for the South West Interconnected System (SWIS) of between 15 and 20 per cent by 2020, and an indicative target to reduce greenhouse gas emissions to a level of 50 per cent below 1990 levels by 2050.
Mr Carpenter pointed to the high likelihood of some sort of carbon pricing mechanism being implemented, but an emissions trading scheme is looking the most likely option.
Chamber of Commerce and Industry WA policy and public affairs director, Bob Pride, said the chamber supported an emissions trading scheme as a carbon pricing mechanism on a global scale, not a solely national or state level.
Mr Pride also said the 20 per cent renewable energy target for the SWIS, as outlined in taskforce’s recommendations, needed to be supported by a properly managed electricity network as part of a formal and coherent energy policy.
“It’s not a big quotation of renewables, but we do see that any big shift to renewable energy would require a lot of adjustments to network capabilities in WA,” he said. “You can’t rely completely on renewable energy, you need to have a base load back-up.”
“Renewables provide a bonus and we’ve got to encourage it…but it has to be managed.”
WA Sustainable Energy Asso-ciation chairman Dr Ray Wills said he believed a trading scheme was a more beneficial outcome for business due to its consideration of emissions offset and abatement programs.
“A trading scheme is much better at allowing businesses to be flexible in their responses and to find the means that are most economic to respond to emissions reduction,” he said.
Dr Wills said that, while the report recommendations referred to emissions trading and carbon taxes, he didn’t expect the premier to implement a tax.
Dr Wills applauded Mr Carpenter for his initiative to buy 20 per cent of the government’s electricity requirements from renewable sources, saying it sent a strong signal to renewable energy providers.
“An incremental growth in renewable energy, as there has been to date, doesn’t give a strong enough signal to a business to say that it is worthwhile building a facility that generates renewable energy,” Dr Wills said.
Last month, Environment and Climate Change Minister Tony McRae voiced his support for a national emissions trading scheme, saying it was the most industry friendly way of reducing greenhouse gas emissions.
