Climate Change – Page 3 – Global Power Law & Policy

Australian Renewable Energy Target (RET) – Revised RET deal finalised

May 18 2015

A bipartisan agreement on the revised Renewable Energy Target (RET) was finally reached between the Australian Government (represented by Industry Minister, Ian Macfarlane and Environment Minister, Greg Hunt) and the Opposition (represented by Mark Butler and Gary Gray) on the morning of 18 May 2015 in Melbourne. There have been reports that the agreement was reached with intervention from the Prime Minister Tony Abbott’s office.

As contemplated by the in principle agreement reached between the Government and the Opposition on 8 May 2015, the existing target of 41,000 GWh of large scale renewable energy by 2020 will now be reduced to 33,000 GWh. This reduction will be effected by way of legislative amendment to the Renewable Energy (Electricity) Act 2000 (Cth).
Australia is the first developed country to formally reduce its renewable energy target. There are suggestions the reduced RET will cause investment in Australian renewable energy projects to fall from an expected AUD20.6 billion by 2020 to AUD14.7 billion.

The Government has agreed not to pursue its proposal to continue reviewing the target every two years. This alleviates concerns over the retention of the two-yearly reviews of the scheme. These reviews have arguably been the predominant cause of the current investment freeze in the renewable energy industry. In lieu of the two-yearly reviews, annual statements detailing achievement towards meeting the RET and impacts on electricity prices will be provided by the Clean Energy Regulator.

Despite lack of support from the Opposition, the Greens and the renewable energy industry, the Government’s plan to include native forest wood waste in the range of energy sources that are eligible to contribute to the RET will be included in the relevant amending legislation which is expected to be presented to Parliament next week. The Government intends to pass this proposal with support from the Senate crossbench.

It is expected the revised RET should be passed by both the House of Representatives and the Senate before the winter recess on 25 June 2015.

The Opposition has indicated that it would increase the 2020 target if it wins the next election, which is to be held on or before 14 January 2017.

Australian Renewable Energy Target (RET) – in principle agreement reached on a revised RET

May 10 2015

After months of negotiations, Industry Minister Ian Macfarlane has confirmed that on 8 May 2015 the Australian Government and the Opposition have agreed in principle a revised Renewable Energy Target (RET) of 33,000 gigawatt-hours (GWh) of large scale renewable energy by 2020. Read More

Australian Government Announces First Emissions Reduction Fund Auction

Feb 19 2015

The Australian Government recently announced that the first Emissions Reduction Fund auction will occur in April 2015. The Emissions Reduction Fund provides proponents of carbon abatement projects with opportunities to enter into contracts with the Government, via the Clean Energy Regulator, under which the proponent receives payment for undertaking carbon abatement. In the reverse auction process project proponents will submit sealed bids for the Clean Energy Regulator to purchase (in the form of Australian carbon credit units) emissions reductions generated by their projects.

Successful auction bids will be those with the lowest price, and successful proponents will then enter into Australian Carbon Contracts with the Clean Energy Regulator. The first auction will be open from 9.00am (Australian Eastern Standard Time) on 15 April 2015 and close at 5.00pm on 16 April 2015 (Australian Eastern Standard Time). The auction will occur through the online bidding platform Austender.
Read More

Australian National Electricity Rules Adopt a More ‘Cost Reflective’ Approach to Network Pricing

Dec 24 2014

The National Electricity Amendment (Distribution Network Pricing Arrangements) Rule 2014 No. 9 (Rule Change) came into effect on 1 December 2014, amending the Australian National Electricity Rules (NER) by introducing a more ‘cost reflective’ model for network pricing. Under the new regime, distribution tariffs must comply with several new pricing principles, with the objective that the network prices that a Distribution Network Service Provider (DNSP) charges each consumer should reflect its efficient costs of providing network services to that consumer.

To read the full alert, click here.

Australia’s Emissions Reduction Fund Legislation Receives Royal Assent

Dec 02 2014

On 25 November 2014 the Carbon Farming Initiative Amendment Act 2014, which puts in place the Emissions Reduction Fund (ERF), received Royal Assent and is now law. The ERF is the cornerstone of the Australian Government’s Direct Action Plan climate change policy for the reduction of greenhouse gas emissions. It will provide $2.55 billion in financial incentives over four years for companies to voluntarily reduce emissions. The Government says its Direct Action Plan climate change policy will mean that Australia will meet the 5 percent emissions reduction target by 2020.

Emissions Reduction Fund passes Senate in Australia

Oct 31 2014

On 31 October 2014, the Australian Senate passed the Carbon Farming Initiative Amendment Bill 2014 (Bill) which puts in place the Emissions Reduction Fund (Fund). The Fund is the cornerstone of the Australian Government’s Direct Action Plan climate change policy for the reduction of greenhouse gas emissions. It is comprised of $2.55 billion over four years to provide financial incentives for companies to voluntarily reduce emissions. The Government says its Direct Action Plan climate change policy will mean that Australia will meet the 5 percent emissions reduction target by 2020.

As last minute amendments were made to the Bill before being passed, the Bill will now return to the House of Representatives for approval before it is presented to the Governor-General for assent.

A White Paper on the Fund was released on 24 April 2014 with the intention of providing details and policy decisions regarding the Fund. Please refer to our earlier Legal Insight dated 19 May 2014.

Release of Expert Panel Report on the Renewable Energy Target in Australia

Sep 03 2014

On 28 August 2014, the Expert Panel on the Renewable Energy Target (RET) released its long-awaited Report on the RET scheme in Australia, recommending that both the Large-scale Renewable Energy Target and the Small-scale Renewable Energy Scheme be modified through a number of proposed options. Under the more drastic of these proposals, the Panel recommended that the LRET be closed to new entrants, and that the SRES be abolished immediately.

To read the full alert, click here.

Implications of EPA Emissions Rules for Renewables

Jun 05 2014

Renewable energy will play a major role in EPA’s latest proposal to cut greenhouse gas emissions from electric generating facilities. On June 2, 2014, EPA Administrator Gina McCarthy proposed a new regulation for cutting carbon pollution from existing electric generating units (EGUs). This rule is perhaps the most significant action to date in the President’s Climate Action Plan announced last year. The rule will require EGUs to reduce their CO2 emissions by 30% by 2030 from 2005 levels. EPA assigned a CO2 goal for each state but lets states choose how best to meet the goal. Read More

Conclusions or Delusions? EU Aims To Set 2030 Renewable Energy Targets

Feb 03 2014

In an announcement awaited by industry, the European Commission has proposed the non-binding objective of increasing the share of renewable energy to 27% of the EU’s energy consumption in 2030. However, at the same time, an ambitious and binding target emerged: for the EU to reduce by 2030 domestic greenhouse gas emissions by 40% below the 1990 level. An extraordinary target or a disappointment?

Australian Government Releases Further Details of its Direct Action Plan to Reduce Australian Greenhouse Gas Emissions

Jan 10 2014

The Australian Federal Government (Government) released a Green Paper on Friday 20 December as part of its Direct Action Plan on climate change policy. The Green Paper outlines the Government’s preferred design for an Emissions Reduction Fund and invites further input from business and the community on the design elements outlined in the Green Paper by 21 February 2014, before a White Paper is released in early 2014. To read the full alert, click here.

Catagory:Climate Change