Renewables programs key to effective climate response

Australia’s clean energy industry has welcomed the news of a price on greenhouse emissions from 2012, but warned that renewable energy programs will still be needed to deliver the cheapest transition to a de-carbonised economy.

Clean Energy Council Chief Executive Matthew Warren said the announcement was an important step forwards in locking in long-term investment certainty for both the clean energy industry and the power sector as a whole. “A carbon price must be the cornerstone of any effective climate change strategy,” Warren said.

“It’s important, however, that, consistent with approaches taken overseas, the committee ensure the evolution of other measures to support the development of an affordable, efficient and world-class, clean-energy industry.”

The Clean Energy Council welcomed the news that all revenue from the scheme would be reinvested in cleaner energy technologies, along with helping businesses and low-income houses make the transition to a low-carbon economy.

“It will take a few years before a carbon price gets to a level where it will singularly be able to drive the development of renewable energy such as solar, wind, bioenergy and hydro,” said Warren.

“Technologies like large-scale solar, ocean energy and geothermal are starting decades behind more conventional energy sources. They need accelerated assistance if they are going to make a significant contribution to the task at hand.”

Warren said that figures from Bloomberg New Energy Finance reported US$243 billion of new clean-energy investment globally in 2010, consolidating it as the biggest type of new energy investment.

“The world is moving and the time for Australia to make the transition is now,” he said.