Telstra not convinced on Labor’s renewables target

Telstra chief executive Vicki Brady says Labor may need to review its 82 per cent renewables goal, warning that the energy transition was proving “tough”.

Vicki Brady, chief executive and managing director of Telstra, addresses the National Press Club of Australia in Canberra Picture: NewsWire

Telstra chief executive Vicki Brady says Labor may need to review its 82 per cent renewables goal, as Anthony Albanese moves to manage expectations about his climate change plan by declaring a coming 2035 emissions reduction target would be “achievable” and not undermine energy reliability.

Amid widespread scepticism of the government’s ability to hit double renewable generation over the next 4.5 years, Ms Brady said the energy transition was proving “tough”, saying she was unsure whether the government could meet its goal.

With Telstra being one of the biggest energy users in Australia, Ms Brady said getting electricity prices down was key to attracting business investment.

“It’s a tough transition,” Ms Brady said at the National Press Club of Australia.

“I think as a country, we need to think about the timelines.

“This transition, it’s hard, not just for us, but for most countries around the world. Trying to get that balance of resilient, reliable energy at the right prices in a green way through this transition, I think it’s one of the most complex issues as a country that we’re having to face.”

Ms Brady said Telstra was “on track” to meet its own target of offsetting 100 per cent of its electricity consumption with renewable energy by year’s end.

With the Labor Environment Action Network on Tuesday reviving its push for the Albanese government to adopt a 2035 ­target above 70 per cent, Mr Albanese warned against pursuing a plan that would put energy reliability at risk.

The Prime Minister joined with other Pacific leaders in ­Honiara on Wednesday to establish a new Pacific Resilience ­Facility to mitigate climate impacts in the region, pledging $100m from Australia for the ­initiative.

Mr Albanese is set to announce the government’s new climate target as early as next week as it battles to win the right to host next year’s COP31 climate change conference in Adelaide in partnership with Pacific Island nations.

Mr Albanese said climate ­action was “the key to credibility” in the Pacific, but the target needed to be realistic.

Prime Minister Anthony Albanese at the Pacific Islands Forum Picture: PMO

“It’s not a matter of just plucking figures out of the air. We want to make a decision that is achievable .. and that takes into account the need for energy reliability,” he said.

Mr Albanese is coming under internal pressure not to allow the new target to fall below the 65 to 75 per cent range below 2005 levels on which the Climate Change Authority has been ­consulting.

The Australian understands Labor will not have a target at the higher end of the CCA’s consultation range, with senior figures arguing a 75 per cent target would have a detrimental impact on the economy.

Several Labor MPs told The Australian they had been lobbying for the party to be ambitious on the target and would protest against a commitment that fell below 65 per cent.

While many backbenchers are supportive of a high target, senior ministers believe it is important to find a balance between ambition and pragmatism.

LEAN co-convener John Della Bosca on Tuesday said Labor’s target should have a “seven in front of it”.

While business groups unanimously got behind Labor’s 43 per cent 2030 target, the Australian Chamber of Commerce and Industry says a 65 per cent 2035 target is too ambitious; the Business Council of Australia has said a target over 70 per cent would cost more than $500bn.

Grattan Institute energy program director Tony Wood said meeting a 65 per cent target would be a huge task.

“Even 65, let alone 75 which some people will ask for, means that you have got to do some pretty drastic things,” he said.