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FED: Renewable energy target scheme passes lower house


Tue Aug 18 03:33:16 EST 2009
Subject: [Fwd: FED: Renewable energy target scheme passes lower house] name="FED: Renewable energy target scheme passes lower house.eml" filename*0="FED: Renewable energy target scheme passes lower house.eml" Subject: FED: Renewable energy target scheme passes lower house FED: Renewable energy target scheme passes lower house Eds: 2nd Climate Wrap to follow shortly.

CANBERRA, Aug 17 AAP - Federal Labor's renewable energy target (RET) scheme has passed the lower house with the government using its numbers to defeat a raft of coalition amendments.

The draft laws require 20 per cent of Australia's electricity to come from renewable sources by 2020. It's a separate scheme to emissions trading.

Political insiders think the Senate is likely to pass the RET later this week.

It works by forcing electricity companies to buy a certain portion of their electricity from renewable sources. Clean energy is more expensive than coal, so power bills will rise.

"The government doesn't support any of the amendments proposed by the coalition," junior Climate Change Minister Greg Combet said before the vote.

However, the government has given ground by moving 23 of its own amendments - which the opposition agreed to.

The scheme has been separated from the failed ETS and waste gases from coal mining will now be treated as a renewable energy source.

The burning of methane from coal mining to generate electricity will earn credits under the RET.

Opposition environment spokesman Greg Hunt claimed the backdown was a victory for the opposition. Including waste coal gas in the scheme would save jobs, he said.

"Today's decision is not perfect," he told parliament.

"(But) we thank the government for the two concessions they have made.

"We believe they are important concessions and go some part of the way towards ensuring passage of this bill."

However, Mr Hunt said there remained "critical elements on which we are still to agree and critical elements which will determine the final position in the Senate".

"There are still fundamental critical concerns which need to be addressed in relation to (compensation for) emissions intensive trade-exposed industries, the aluminium sector, heat pumps, food processing and the reservation of a portion of the new renewable energy for the great emerging sectors."

Mr Combet said the government was "unmoved" on those issues.

Amendments moved by independent MP Rob Oakeshott were also rejected by the government.

He said waste coal mine gases (WCMG) were clearly not a renewable energy source.

"How are members of the community not to see this as once again a browning down of legislation from the government," Mr Oakeshott said.

Mr Combet agreed WCMG weren't renewable but were rather an "eligible" energy source under the scheme.

The measure was a "transitional" one which would save some 300 jobs, he said.

The Renewable Energy (Electricity) Amendment Bill 2009 and the Renewable Energy (Electricity) (Charge) Amendment Bill 2009 now go to the Senate.

AAP jcd/cdh =0A

FED: Renewable energy target scheme passes lower house