Carbon - the more you emit the greater the subsidy!

NSW’s coal subsidies threaten to unravel the ability of the federal government to put a price on carbon. The rationale of making green energy more attractive through a carbon price will not be achieved with a $25 a tonne subsidy (the carbon price has been estimated at $25-$40 a tonne).

The new multi party Climate Change Committee chaired by Julia Gillard has both Rob Oakeshott and Tony Windsor as members. Interestingly the Coalition chose not send a representative. Rob Oakeshott’s commitment to the renewable sector was evident in the last parliament when he mirrored the Green’s Senate legislation to introduce a national renewable energy feed-in tariff.

The federal government has a 20 per cent renewable energy target by 2020. The only way this can be achieved is through major investment and with clear policy objectives, rather than ad hoc schemes. A national feed-in tariff is essential, as is some certainty for the solar energy sector do they can remain in business.

The solar industry is looking to these key independent MPs to remove renewable energy policy from its present basket-case status to the forefront where it must be.