"We have supported Australia's interim emissions targets as a guide path and glide path to meeting the global Paris Agreement goal to limit further climate change. Targets need to be credible to support investment. Credible targets are a balance between enough ambition to match our peers and contribute to the Paris goals, and enough grounding to be practically achievable with realistic effort. Targets aren't much good if nobody believes you can reach them," Innes Willox, Chief Executive of the national employer association Ai Group said today.
"Australia’s current 2030 target is in the balance – we are tracking in broadly the right direction and we have the tools to get it done, but it's looking more unlikely that Australia will build the new assets we need fast enough to meet the full 43% by 2030. Business is doing its bit towards 2030 and the longer journey to net zero by 2050 with transition planning, energy upgrades and major investments where those make sense. Business will be able to do a lot more if the factors that have slowed clean energy deployment are lifted.
"There have been major policy efforts at all levels of government to sort out the energy policy and financial blockers to get new energy resources, especially electricity transmission, built. That still leaves a challenge to deliver the skills we need and lift productivity growth to cut the cost of new builds and upgrades. But the biggest question mark is over planning approvals and social license. Opening tenders for new generation is great, but actual builds and connections have often been clouded in uncertainty over when or whether transmission will be approved and built. We're not getting far enough, fast enough unless we fix this.
"More than ever, industry needs affordable, reliable and clean power and an investable policy environment to meet customer needs and investor expectations. The forecast by government of weak overall business investment in the years ahead is a concern for the energy build too.
"It is short-sighted to rule out any technology that could help meet our goals. Right now, nuclear is looking costly, but who knows what may happen in the future? Technology is full of surprises and always progressing. In the meantime, we should build with the mix of technologies that makes best economic and environmental sense today. That means a lot of renewables, energy storage and smart demand-side resources; transmission to connect it all up, and flexible gas peakers to provide essential backup," Mr Willox said.
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