"We are reassured that the Federal Government does not intend to alter the existing Renewable Energy Target, which was settled in a bipartisan decision less than two years ago," Australian Industry Group Chief Executive Innes Willox and Business Council of Australia Chief Executive Jennifer Westacott said today.
"The RET is the result of hard-won compromise, rather than anybody's perfect policy and should be left alone. It was always intended to be one part of a well-functioning energy and climate change policy framework, and not a total solution in itself. There is properly an active debate about other, better reforms to the energy market and climate policy to meet Australia's needs for competitively priced, reliable and clean energy.
"However, additional changes to the existing RET would further undermine the credibility of national energy policy, damage investment and encourage State renewable energy schemes. The proliferation of ambitious and fragmented State renewable energy schemes will bring higher costs than effective national policies.
"There is no reason to think that any changes to the RET would reverse the shifts in supply and demand that are lifting prices across the National Electricity Market. The Government is right to rule out further changes to the RET.
"Australia needs a suite of durable, post-2020 climate change policies that are integrated with broader energy policy and are capable of delivering Australia's emissions reduction targets, at lowest possible cost, while maintaining competitiveness and growing Australia's future economy," Ms Westacott and Mr Willox said.