Unless the emissions reduction target is increased under the National Energy Guarantee, the policy risks failing to address investment uncertainty.
“Investors, energy companies and business groups have all acknowledged that the level of ambition under the National Energy Guarantee can and should be increased”, said Emma Herd, Chief Executive Officer of the Investor Group on Climate Change.
“While today’s go-ahead from COAG for the Energy Security Board to continue to work on the National Energy Guarantee is welcome, State and Federal Governments must increase the level of environmental ambition in the scheme to make it work”, said Herd.
“The current emissions reduction target of 26% by 2030 for the electricity sector is inadequate and is not consistent with the agreed goals of the Paris Agreement. Investors know this, energy companies know this, the whole market knows this”