Sarah Henderson (Corangamite, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on an issue that is very important to a large number of my constituents in Corangamite—that is, renewable energy. That is why I am such a strong advocate for a strong, operative renewable energy target. The RET was introduced by the former Howard government to drive investment and innovation in renewables so vital for jobs, our local economy and the environment. The Warburton review of the RET, as required every two years under the legislation, found that the RET had encouraged significant additional renewable energy generation and had delivered a modest reduction in carbon emissions. It also found that the RET would result in an additional $22 billion in cross-subsidy to the renewable sector between now and 2030 and that it would encourage $15 billion of additional investment in new renewable energy generation capacity. The panel has proposed a number of options to wind back both the Small-scale Renewable Energy Scheme and the Large-scale Renewable Energy Target. Of course, the panel's work is a report to government, not a report by government. At this time our government is listening to the many views on this issue and considering its response.

When the expanded target of 41,000 gigawatts an hour for the LRET was legislated in 2010, it was intended that 20 per cent of Australia's electricity would derive from renewable sources by 2020. At the current trajectory, that is set to be some 26 per cent. Of course, it is so important to get the balance right, and I am not yet convinced that the options to change the RET, as proposed by the panel, would deliver investment certainty. Across Corangamite some 24 per cent of homes have either solar PV systems or solar hot water systems. The RET has been very important in driving this uptake in solar energy.

While I was sympathetic to the true 20 per cent position, after reviewing more of the evidence it is clear that a revised target of some 27,000 gigawatts an hour would still cause major investment uncertainty. Some companies could go under; others could be in breach of debt covenants. I do not think we can let this happen. On the other hand, there are good arguments to bring down the target and exclude, at least, the aluminium sector. On the current trajectory—because of the way this scheme was mishandled under Labor, which allowed the market to be flooded with excess renewable energy certificates—investment in renewables has stalled and it is doubtful that the legislated target will be reached, leaving, of course, power companies to pay the penalty price and the scheme in disarray. Whatever the decision made by the government, a continued bipartisan position on the RET, I believe, is fundamental.

I wish to reiterate that our government has a long-term commitment to renewable energy and carbon emissions reduction, and I will continue to be a passionate defender of renewable energy and the environment.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

Order! In accordance with standing order 193 the time for constituency statements has concluded.