One of Labour’s electoral promises on energy and emissions is to strengthen the existing cap-and-trade system, known as the safeguard mechanism, for big carbon emitters. Under this rule, large polluters must purchase or forfeit carbon credits to offset any direct emissions above an agreed baseline.Labour’s plan is Lower emissions baseline These transmitters over time. “Then the government will need to resist industry pressure to keep ambitions low,” Jotzo said, warning the industry would lobby hard to ease the baseline.
That’s exactly what happened after the coalition government established this cap-and-trade program.Companies are constantly pushing to adjust their baselines, eventually leading to 32% increase in the emissions they are allowed to produce.
Another pillar of Labour’s electoral platform is its national electric vehicle strategy. In 2020, less than 1.4% Of all light-duty vehicles sold in Australia, electric vehicles accounted for three-quarters of all light-duty vehicles sold in Norway that year. Overall, only 0.12% of all light vehicles in Australia are electric vehicles.Manufacturers such as Volkswagen delay entry into Australian market as lack of motivation for electric vehicles.
So into the election, Labour Commitment Some electric vehicle import tariffs and tax cuts will be canceled, and the construction of charging infrastructure will be accelerated. But they’re not enough, Jotzo said. “What they haven’t committed to do in many countries is the biggest driver of EV adoption, and that is to introduce fleet-wide emissions standards,” he said. All automakers are required to meet emissions targets across their entire range, encouraging massive investment in electric models to offset emissions from petrol and diesel models.
But the biggest issues in Australia’s climate action ointment are its fossil fuel reserves – particularly coal and gas – and how the country can safely and smoothly transition from domestic use and exports.
“Because it’s an extractive resource, the government owns it, it generates royalties for the government, and renewables don’t do that,” said Samantha Hepburn, a professor and expert in mining and energy law at Deakin University in Melbourne. In contrast, renewable energy projects generate very little revenue for the government. “When we talk about the energy transition, I don’t think the phrase really captures it — it’s a revolution.”
Renewable energy has made some progress during the coalition government.a long run renewable energy target Large energy producers are required to produce 33 terawatt-hours of renewable energy by 2020, which is easily achievable in 2019.But the lack of a new target has created an atmosphere of uncertainty in the renewable energy sector, which has followed less investment in a new project.
Labor’s “Powering Australia” policy now promises to upgrade the grid to better integrate renewables, invest in solar banks and community batteries across the country, and deploy low-emission technologies.
But the current global gas crisis, sparked by Russia’s invasion of Ukraine, has plunged Australia into a world of energy catastrophe largely of its own making. Its extensive East Coast natural gas reserves, which have no export controls, are now sold at staggering prices in international markets and not reserved for domestic use. As a result, domestic gas prices have skyrocketed, and renewables have not been enough to make up for the shortfall. Meanwhile, Australia’s ageing network of coal-fired power stations has been closing gradually over the past decade.