Businesses in the energy and manufacturing sectors are challenging the Coalition's stance against Australia's 2030 climate targets, advocating for a significant increase in renewable energy rather than nuclear power. A coalition of 18 business, investment, conservation, and community groups emphasises that policy stability is essential for attracting the private investment needed to ensure a reliable, affordable, and low-emission energy future.
As Australia approaches a critical juncture in its energy policy, a coalition of businesses and community groups is urging the government to stick with its 2030 climate targets. This comes in the wake of the Coalition's proposal to pivot towards nuclear energy, a move that has sparked renewed debate over the nation's energy future.
In anticipation of a meeting between state and federal energy ministers, a joint statement has been issued by 18 prominent business, investment, conservation, and community organisations. The statement underscores the importance of policy stability to attract the private investment necessary for a reliable, affordable, and low-emission energy system.
The signatories, which include influential groups such as the Australian Industry Group, the Australian Steel Institute, the Australian Energy Council, and the National Farmers Federation, emphasise that the 2030 climate targets are essential for the energy transition. They also back the Australian Energy Market Operator's (AEMO) 25-year transition plan, which advocates for a grid dominated by renewables, supported by battery and hydroelectric storage, and supplemented by gas-powered generation.
According to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), renewable energy sources provide the cheapest electricity. In contrast, the construction of a nuclear power plant could cost up to $16 billion. This economic argument is a significant factor in the joint statement's support for renewables over nuclear energy.
Opposition Leader Peter Dutton has reignited Australia's climate policy debate by proposing the construction of seven nuclear power stations to meet the net-zero emissions target by 2050. This proposal includes abandoning the national target of 82% renewable energy by 2030. However, the AEMO's road map, which does not include nuclear energy due to its high costs and current federal ban, suggests that renewables are the most cost-effective path forward.
Major industry players have echoed the joint statement's sentiments. Woodside Energy, Australia's largest oil and gas company, has expressed support for the AEMO's plan, calling for a "certain, credible, and consistent policy framework" for the nation's energy systems.
Similarly, Rio Tinto, the largest energy user in Australia due to its aluminium assets, has highlighted the need for policy certainty to drive investment in new renewable energy assets. A spokesperson for the company stated that ensuring the availability of reliable and low-cost firmed renewables is crucial for both reducing emissions and securing the long-term future of their operations.
While the Coalition acknowledges the role of wind and solar power, it has not yet detailed its policy plans, however it has cautioned against relying predominantly on intermittent renewable sources, advocating instead for a balanced energy mix that includes nuclear power.
Image Credit: Emmelie Callewaert