“For years now, the Business Council has been calling for an energy policy that can endure the vagaries of politics while ensuring reliability, improving affordability and meeting the government’s emissions target. This approach, well implemented, can deliver those outcomes,” Business Council chief executive Jennifer Westacott said.

“We urge everyone involved in this debate to pause, examine the detail, and then engage in good faith about how we can make this scheme work in practice.

“We cannot afford to continue the stop-start policymaking that has undermined investor confidence in recent years. That itself will further spook investment.

“With the right design, this policy has the potential to provide greater investor confidence than a more complex Clean Energy Target may have.

“State and territory leaders should now demonstrate leadership by agreeing to the proposal and working through the detail to deliver the stability and certainty that the sector needs.

“We’re looking forward to comprehensive engagement with the Energy Security Board and regulators about getting the details right.

“This approach should form part of a comprehensive plan that also includes removing arbitrary state moratoriums on gas development and better market information, as recommended by Alan Finkel.”