Government ‘out of touch’ on climate change, says NSW energy minister

NSW’s Energy Minister launches a stinging attack on his federal Liberal counterpart as climate change debate is shut down.

NSW Energy Minister Don Harwin has failed to secure the support of Liberal states and the Morrison government for a road-map to help achieve net zero emissions by 2050 as a deal was clinched to inject more reliable power into Australia’s energy mix.

Mr Harwin this afternoon attacked the federal government after the COAG Energy Council meeting denied — on procedural grounds — his bid to have the Energy Security Board provide advice on how to achieve a net zero emissions target by mid century.

The Australian was informed by insiders at today’s COAG meeting that the push by Mr Harwin was a “stunt”, with one source saying that state governments had not been consulted on the plan or given time to seriously consider it.

“I am very disappointed by the actions of the Federal Government at COAG Energy Council in Adelaide today,” Mr Harwin said in a statement.

“The refusal ... to let the vital matter of restoring an emissions obligation into national energy policy be discussed is extraordinary. NSW will continue to pursue this critical matter with COAG Energy Council.”

The position taken by Mr Harwin brings the NSW government into direct conflict with the Morrison government ahead of the state election in March amid concerns that voters will punish NSW Liberal Premier Gladys Berejiklian for chaos and division at the federal level.

A lack of action on climate change was seen as a key factor that led voters to abandon the party at the October by-election in the previously blue ribbon seat of Wentworth in Sydney’s eastern suburbs.

Speaking after today’s COAG meeting, Mr Harwin implored the Morrison government to revive the now dumped national energy guarantee which integrates climate and energy policy and which is seen by business as a means of restoring needed investor certainty to the electricity market.

The mechanism was dropped by Malcolm Turnbull in a desperate and unsuccessful bid to save his leadership in the final days of his prime ministership and is also supported by Labor to achieve its higher emissions reduction target of 45 per cent on 2005 levels by 2030.

“We’ve been very clear all year that we support the national energy guarantee but it goes even further and I have made this very clear not only today but in parliament: we supported the National Energy Guarantee,” Mr Harwin said.

“Our position hasn’t changed. It’s the federal government’s position that’s changed. And it’s not good enough. We want them to reconsider their position. We want Australia to move forward on climate change. Not stand still.”

Federal Energy Minister Angus Taylor chose not to enter into a slanging match with his NSW counterpart. He noted that emissions reductions in the national electricity market, covering the east coast and representing about 85 per cent of Australian electricity generation, were on track to meet the Paris targets eight years ahead of schedule.

“Our emissions target is 26 per cent by 2030, (but) we’ll be at 28 per cent reductions by 2023,” Mr Taylor said. “We are way ahead of target here, we are going to achieve it, and what that means is we can focus on getting prices down while we keep the lights on...we are focused on getting prices down and making sure Australians get a better deal.”

The NSW Minerals Council has been critical of the state government’s plan to achieve a target of net zero emissions by 2050 and today warned it would be “likely to send NSW into economic recession, costing thousands of jobs and hurting communities across the state”.

In a key outcome for the Morrison government, today’s COAG meeting saw the states agreeing to implement the “retailer reliability obligation” — a mechanism which will ensure more dispatchable generation.

The Energy Security Board has been tasked with drafting legislation giving effect to the shake-up for implementation on 1 July 2019 with Mr Taylor thanking it for its “hard work on this important reform”.

“Other changes agreed to will support priority projects in the Integrated System Plan, including streamlining regulatory processes,” Mr Taylor said. “This will support timely upgrades to transmission networks and investment in synchronous condensers to help keep the lights on in Queensland, New South Wales, Victoria and South Australia.”

Business Council of Australia chief executive Jennifer Westacott said COAG’s endorsement of the reliability obligation was an “important step forward in solving the policy paralysis that has plagued the energy sector for over a decade”.

“As more intermittent generation enters the system, ensuring the lights stay on and all Australians have access to reliable power is essential,” she said. “The obligation will incentivise investment in much needed dispatchable generation and we commend federal, state and territory governments on putting this obligation in place.”

Ms Westacott also commended Mr Harwin’s leadership for his pursuit of a “durable policy framework for emissions reduction in the sector”.