The Victorian Government has scrapped its commitment to a 20 per cent reduction on Victoria’s year 2000 emissions by 2020 and instead supported the federal target of a 5 per cent reduction.
Commenting on the Victorian decision, the Energy Users Association of Australia (EUAA) said sticking to the target would have increased electricity prices at a time when they have already increased significantly and are set to increase further due to known increases in network charges renewable energy subsidies and the carbon tax.
“However, I would also mention that the announcement will have little impact on these pressures for higher electricity prices and urge the Victorian Government to strongly support needed reforms in these areas too,” EUAA executive director Roman Domanski said.
“A state-based target will do virtually nothing to reduce global emissions,” he said.
“By setting themselves apart from other states, Victorians also risk bearing a disproportionate share of the costs of meeting our national emission target.”
The EUAA also welcomed a separate announcement by the Victorian Government that it would not proceed with a proposal to limit emissions from coal-fired power stations, noting that technologically oriented policies have a poor record with a carbon price being a more efficient way to provide incentives for lower emission power generation.
Just days after the Victorian Government decision, the New South Wales Government also called to abandon Australia’s 20 per cent Renewable Energy Target (RET).
The announcement was slammed by the Clean Energy Council who said the move would undermine a key state election commitment as well as put billions of dollars of renewable energy investment at risk.