Industry and business groups slam Greens’ energy block

The Australian Chamber of Commerce and Industry and the Australian Industry Group have both said that the Greens’ proposal would drive up electricity prices and cause blackouts as well as major economic penalties while impairing the ability of other countries to transition to a low-emissions economy.

“This is not the time for another climate war. Business urges the government to hold firm and reject this ideological wrecking ball,” ACCI chief executive Andrew McKellar said.

The safeguard mechanism legislation provides a pathway for industry to decarbonise and move towards Australia’s international obligations.

“Extremists won’t be satisfied until the lights go out for good. The government must stay the course and deliver the best possible outcome for Australia’s future,” Mr McKellar said.

“There is a pipeline of investment ready to deliver the next generation of energy production in Australia and the Greens are putting this at risk.”

Mr McKellar said only a bipartisan approach to energy policy will move us towards a net-zero future.

“No-one has proposed any other way to achieve emissions reductions goals in an efficient way. For the sake of certainty, and to meet emissions reduction goals, the safeguard mechanism must pass,” Mr McKellar said.

Innes Willox, CEO of the national employer association Ai Group, said with the Greens and the Coalition potentially scuttling the federal government’s safeguard mechanism, history is repeating.

“If that happens the cost would be more climate wars and less climate action,” he said.

“Industry has supported the Mechanism in part because, given its history, we thought it was a rational approach that would gain broad support. Instead, energy and climate policy is again being used as a political football, much to the bemusement of those who do the actual investing in and development of energy sources, and their consumers.

“The Coalition’s decision to vote against changes it had previously proposed and the reported Greens positioning once again make Australia look incapable of reaching agreement on how to utilise assets to build economic success. A form of political extremism is at play here. It has cost us before and it could cost us again.

“The Safeguard Mechanism requires Australia’s largest greenhouse gas emitters to keep their net emissions below an emissions limit (a baseline). We want this mechanism to work as it’s important to industrial investment and emissions reduction.

“This does not mean we are giving a blank cheque for any possible version of the Mechanism. How it deals with industry competitiveness is crucial. Durable solutions are needed to ensure that industries with a strong future in a net zero world are able to invest in that future here, rather than leaking jobs and emissions overseas.

“The flat-out blocking of any new coal or gas developments does not look sensible or likely. At present, the expected decline in production from our gas fields is already faster than the expected reduction in local demand as gas users lift efficiency, electrify or adopt clean hydrogen. Fossil production will shrink over time as local and global demand shifts away but we will still need to find and produce more gas for some years.

“The Greens are also critical of offsets within the Mechanism. Industry accepts that we will not be able to get to net zero with offsets alone and deep cuts will be needed over time. However, offsets are essential along the way to achieve the desired targets.

“Fortunately, the Greens positioning seems to be something less than an ultimatum. Hopefully, some sensible compromises can be found.

“Another decade of climate wars would see Australia pass up economic opportunity while other nations decide the future we will have to live with.

“Ai Group will consult deeply with our members to consider how we can work through this impasse because we do not want to go back to the future.”