Reports of the Government’s decision to step back from implementing the Clean Energy Target are concerning for investors and for business calling for greater regulatory certainty in the energy sector.
“Investors couldn’t be more clear – Australia desperately needs an effective climate change response for the energy sector. Without it, the investment strike will continue,” said Emma Herd, Chief Executive Officer of the Investor Group on Climate Change.
“The Government correctly identified reliability, affordability and emissions reduction policy as the three parts of the energy trilemma. Any policy which ignores emissions reductions risks becoming a two-legged stool.
“Business gets it. It’s very telling that on the same day the Government flags its intention to back away from a Clean Energy Target, over 250 investors are meeting in Melbourne to talk about how climate change is impacting investment risk.
“Investors are now calling on Government to clarify how Australia can achieve our national emission reduction commitments under the Paris Agreement without a carbon policy in the energy sector,” said Herd.