Energy Networks Australia welcomes the announcement of the terms of reference for the review of carbon policy in 2017.

ENA chief executive John Bradley says the scope of the review was sufficiently broad to allow a comprehensive and evidence-based review of Australia’s carbon policy framework.

“We welcome the focus in the Review on the outcomes which are important to customers – achieving least cost carbon abatement without compromising energy security,” he says.

“After the last decade, the most important design feature of Australian carbon policy is stability – a volatile carbon policy means higher costs or less reliable supply.

“It’s important that Australia achieves a stable, enduring carbon policy which minimises unnecessary risk for investors in energy infrastructure, including long life grid assets, innovative new technologies and distributed energy resources.”

John says the proposed approach to sector-by-sector analysis would highlight the significant role of cleaner transport solutions in reducing Australia’s emissions.

“Cleaner vehicles such as compressed natural gas, electric or hydrogen fuel-cell vehicles can make a significant contribution to reducing emissions in the transport sector, which is Australia’s second largest source of emissions.”

John says ENA welcomed the proposed assessment of a potential long-term emissions reduction goal post-2030.

“A long term goal and integrated national carbon policy will help to reduce the cost of our energy transition, particularly as many energy infrastructure investments have lives of 30 to 80 years,” he says.

“Fragmented policy across the country will cost customers hundreds of dollars more per year without benefits in reducing global warming.”