Australia needs a comprehensive and coherent energy policy that maximises competitive advantage in energy through efficient markets and drives growth in our energy exports, while minimising Australia’s greenhouse gas emissions in line with global efforts.
Any policy instrument designed to address reductions in greenhouse gas emissions must be done within the context of a national energy policy.
In this submission, we outline the specifics of the BCA energy policy framework, and call on the government to integrate emissions reduction policies within this framework.
We outline why a successfully designed Emissions Reduction Fund would need to:
- support Australia in reducing global greenhouse gas emissions in line with global efforts using a single national approach, rather than a plethora of federal and state-based approaches
- support Australia’s future economic growth
- maintain the global competiveness of Australia’s industries
- provide for reductions in greenhouse gas emissions at lowest cost
- maintain the secure, reliable and competitively priced supply of energy
- support a stable, technology-neutral, long-term investment environment
- prevent market distortions and reduce regulatory complexity.
The submission also highlights the need for the government to consider the impact of any delay in the repeal of the carbon pricing mechanism, and canvasses other critical matters in the design of the emissions reduction fund and the safeguard mechanism.