Chief Scientist Alan Finkel responds as critics continue to slam energy security review

SENIOR Liberals had hoped the Finkel report would break a longstanding deadlock over energy policy, but Tony Abbott has blasted it, saying it represents a tax on coal.

Tony Abbott has criticised the recommendations of the Finkel Report. Picture: Stuart McEvoy

TONY Abbott has warned taxpayers or homeowners will likely bear the brunt of a Clean Energy Target being considered by the Turnbull Government.

The former prime minister has spoken out against the recommendation by Australia’s chief scientist Alan Finkel, calling the CET “effectively, a tax on coal”.

It puts Mr Abbott once again at odds with senior Turnbull government Ministers, who are touting Dr Finkel’s report as the “way forward” to end the political deadlock on climate and energy policy after almost a decade.

Former prime minister Tony Abbott has warned taxpayers or homeowners will bear the brunt of a proposed Clean Energy Target, which he says is “effectively, a tax on coal”. Picture: AAP Image/Mick Tsikas

Speaking to Sydney radio station 2GB today, Mr Abbott criticised news reports which framed Dr Finkel’s plan to reward low emission fuels while not punishing high emissions fuel as “a magic pudding”.

“We all know there’s no such thing as a magic pudding,” Mr Abbott said.

“If you are rewarding one type of energy, inevitably that money’s got to come from somewhere, either from consumers or taxpayers.

“If it’s from consumers, well it’s effectively a tax on coal and that’s the last thing we want.”

Mr Abbott’s warning is at odds with Dr Finkel’s finding that the CET or ‘Low Emissions Target’ will be the best scheme to force power prices down and bring stability to the energy market over the next three decades.

It also comes after Environment and Energy Minister Josh Frydenberg confirmed yesterday he had spoken to the former prime minister and other Liberal Party backbenchers to ask that they consider the report on its merits.

A number of Liberal backbenchers have raised concerns about how Dr Finkel’s CET will impact coal-fired power and electricity prices.

Meanwhile, left-wing politicians have slammed the report as a political fix that doesn’t tackle climate change.

“There’s no point having certainty if we lose the Great Barrier Reef, if we end up in a warming world where we see more extreme weather, heatwaves and cyclones and bushfires,” Greens leader Richard Di Natale told ABC today.

“That is the future that lies ahead of us so we need to make the transition and we need to make it rapidly.”

Australia's chief scientist Alan Finkel has responded to critics of his major report into the nation’s energy future as it continues to be slammed by conservative and left groups alike. Picture: Mathew Farrell

Dr Finkel has rejected warnings that power prices could rise as a result of the proposed changes however.

In his first interview since handing down the report on Friday, he also hit back at criticisms that his proposed CET would force out coal-fired power.

“There are many people who think that business as usual is the key to lower prices but there is no ­evidence of that,” Dr Finkel told The Australian.

“In fact, the evidence is to the contrary.”

Dr Finkel said in the absence of any guidance from government, his team conducted the review aiming for “a smooth trajectory that has to be accepted by all the governments”.

Australian Energy Minister Josh Frydenberg has spoken to colleagues, including Tony Abbott, urging them to consider the report on its merits. Picture: AAP Image/Lukas Coch

His review leaves it up to government to set the emissions intensity threshold of any CET (Clean Energy Target) that might be imposed.

The difference between thresholds of 0.6 or 0.7 tonnes “would not be substantial”, he said.

Dr Finkel also said ongoing claims that the CET would block coal or gas were wrong.

“There is no aspects of allowance or permission here,” he told The Australian.

“Permission comes from government. Permission is not decided by the clean energy target at all. “So it’s just not right when people say it’s not allowing something.”