Energy and Climate Change

The Business Council of Australia Energy and Climate Change Policy Principles govern its policy development in terms of energy and climate change.

The overarching principles are that:

• energy policy should support Australia’s future economic growth while recognising the need to transition the Australian economy to lower-emissions technology over the coming decades in line with international action on climate change

• energy policy and the operation of the energy market should efficiently address current and future demand in a technologically neutral manner and ensure reliable and competitively priced energy that is developed in an environmentally responsible manner.

Energy policies should:

• ensure the development of energy resources in response to global and domestic market demand in a manner underpinned by streamlined, transparent and timely environmental, exploration, planning and project approval processes that are designed to support the development of the resource in an environmentally responsible manner

• ensure the development of an effective and efficient energy market where assets are primarily privately owned and can operate on a level playing field

• ensure energy prices are a function of an effective and open market and not functions of poor policy design or price regulation

• manage the risks associated with climate change in a manner that supports lowest-cost responses

• minimise regulatory burden ensuring a regulatory framework designed to deliver the most affordable electricity to the consumer with a level of reliability that accords with a consumer’s willingness to pay

• support a positive long-term investment environment

• ensure technology neutrality and consideration of all possible energy technologies

• enable supply and demand-side participation and ensure that consumers are engaged and involved in markets, including through transparent and factual pricing and policy information

• ensure appropriate consumer protection measures are in place.

Within this framework, climate change policies should:

• ensure Australia acts as part of a global response that includes all major emitters of greenhouse gas emissions

• ensure Australia’s emissions reduction commitments are premised on both Australia’s contributions to global emissions and the possible impacts on Australia in the absence of global action

• contribute to a reduction in global greenhouse emissions relative to a business-as-usual outlook

• support market-based responses to enable lowest-cost outcomes

• include arrangements to fully offset the impacts on trade-exposed industries in the absence of policies in competitor countries placing equivalent costs on traded products

• facilitate the long-term and smooth transition of the electricity sector to lower-emissions technologies

• provide investment certainty to enterprises and investors

• support the research and development necessary to identify technology solutions – including low-emissions technologies
  

• support energy efficiency at the household and industry level

• build Australia’s adaptation capabilities.