The Coalition today announced a new direction in energy and emissions policy that puts affordable power at the heart of Australia’s economic future, backed by responsible emissions reduction that does not punish families, our industries, small businesses or the regions.
The Leader of the Opposition Sussan Ley said under the plan, the Coalition will deliver a practical and balanced approach that uses all of Australia’s energy strengths to bring down prices and support industry, while continuing to act to reduce emissions.
“Our plan secures Australia’s energy future by putting affordability first,” the Opposition Leader said.
“I know what it is like to be a young mum at the kitchen table wondering how to stretch the family budget far enough.
“And now, as a grandmother, I think about the world we are leaving to the next generation. Right now we risk handing our children and grandchildren worse living standards than we inherited.
“We have a duty to fix this, to get energy costs down and to play our part in reducing emissions in a way Australians can afford.”
The Leader of The Nationals David Littleproud said the Coalition’s approach restores common sense and community involvement in a cheaper, better, fairer way.
“Our plan puts Australians first, with cheaper electricity and secure jobs, while still lowering emissions,” Mr Littleproud said.
“This isn’t a debate about science, this is a debate about economics and we believe there is a cheaper, better, fairer way.
“Families are hurting, businesses are under pressure and regional communities are watching productive farmland and bushland being carved up for projects that make no sense.
“We need to bring some balance back into this debate. Our plan puts Australians first with cheaper power, stronger regional jobs and responsible emissions reduction.”
The Shadow Minister for Energy and Emissions Reduction Dan Tehan said the focus is on outcomes that Australians can sustain.
“We will make energy more affordable and continue reducing emissions responsibly. This is an energy plan built for Australians, not one that punishes them.”
THE PLAN TO SECURE AUSTRALIA’S ENERGY FUTURE
Affordable Energy
The Coalition will:
- Pursue energy abundance including by ensuring no premature closure of coal plants, by removing the prohibition on zero-emissions nuclear technology, and by using all our natural resources, including by adding uranium to the critical minerals list.
- Deliver a technology-neutral Affordable Energy Scheme over the near term which:
- Supports both new and existing generation (including gas, hydro, batteries, coal and renewables in the right place) with modest, targeted underwriting to keep prices down and ensure investment happens when and where it is needed.
- Brings on new supply faster by giving investors certainty across all technologies.
- Prevents early closure of reliable generation until replacement capacity is ready, avoiding reliability gaps, price spikes and the risk of blackouts.
- Fixes market failures without central planning by crowding in private capital, stabilising the system and putting consumers at the centre of every decision.
- No technologies will be treated in a disadvantageous way.
- At the first meeting of the National Cabinet, we will move an amendment to the National Electricity Objectives, with consequential impacts to AEMO, to ensure that the focus of our energy market is in the long-term interests of consumers with respect to price, quality, safety, reliability and security of supply - not emissions reduction objectives.
- Create a long-term technology-neutral reliability mechanism for new and existing generation, such as a technology-neutral capacity mechanism, exclusively focused on delivering affordable and reliable power.
- Support more gas supply by unlocking investment in new gas supply and infrastructure, streamlining regulations and committing to an annual offshore acreage release. We will also establish an east coast gas reservation scheme, provided that scheme guarantees supply to Australian consumers, protects contracts with our trading partners, and puts downward pressure on prices. Finally we will sunset the Gas Code and Heads of Agreement and strengthen the Australian Domestic Gas Security Mechanism as a last resort measure.
- Lift the moratorium on zero emissions nuclear energy so Australia can consider technologies already used in other advanced economies.
- Establish a Code of Conduct for electricity infrastructure developers that requires a social licence and protects prime agricultural land and native habitats. Compliance with the Code would be required for developers to access federal funding, and the Code will be embedded in State Energy Deals and inserted in the Climate Change Act 2022.
Lower Emissions
The Coalition will:
- Pursue a technology led approach focused on a suite of priority low emissions technologies, including carbon capture and storage, commercial and industrial rooftop solar, low emissions metals, soil carbon, biofuels and next generation nuclear.
- Use the Clean Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency to support scalable, breakthrough low emission technologies. The definition of low emission technologies will maintain the CEFC’s Investment Guidelines of March 2021, while amending them to include carbon capture and storage and nuclear. These enable all legal types of electricity generation that achieve an emissions intensity of less than 50 per cent of the existing generation system to qualify.
- We will establish a voluntary market under the Accountability and Baseline Credits Scheme which:
- Ensures accountability for major emitters through transparent reporting without Labor’s forced decline rates or punitive costs.
- Rewards real reductions by allowing facilities to earn, bank and trade credits when they cut emissions below their baseline.
- Drives least cost abatement by letting industry choose the most efficient way to cut emissions rather than imposing a one size fits all rulebook.
- Protects jobs and competitiveness by removing Labor’s carbon taxes by stealth.
- Supports private investment and existing corporate climate commitments through a stable, market-based framework that encourages long term investment in new technologies, rather than short term measures.
- Scrap as punitive mandates under the Safeguard Mechanism.
- Remove Labor’s 43 per cent 2030 emissions reduction target and its net zero by 2050 target from the Climate Change Act 2022, and legislate to make affordable energy our number one priority.
- Scrap Labor’s arbitrary 82 per cent renewables by 2030 target.
- Oppose any Carbon Border Adjustment Mechanisms (CBAM).
- Scrap penalties under the National Vehicle Emissions Standard.
- Scrap Labor’s wasteful FBT exemption policy for electric vehicles.
- Remain committed to the Paris Agreement and to doing our fair share to reduce emissions in a way that protects household budgets and keeps our economy strong. Emissions will be reduced:
- On average year on year, for every five year period of Australia’s Nationally Determined Contribution;
- In Australia’s national interest by doing our fair share considering the real performance of OECD countries; and
- As fast and as far as technology allows, without imposing mandated costs on families or industry.
- Whilst it is not our policy to set long-term targets, Net Zero would be a welcome outcome, if achieved through technology, choice and voluntary markets.
THE CONTEXT: LABOR’S FAILED APPROACH
Under Labor, electricity bills have surged nearly 40 per cent and Australian families and small businesses are being asked to pay more while seeing no progress on emissions.
Labor has spent more than $75 billion and has delivered higher prices, stalled emissions and uncertainty for households, industry and the regions.
Labor’s proposed 2035 target would require up to $530 billion in additional spending in the next decade. That is equivalent to $50,000 per household.
The Leader of the Opposition said Prime Minister Anthony Albanese’s promises have fallen apart.
“Labor promised a $275 cut to power bills. Instead families are paying up to $1,300 more than promised. They missed their 2025 price target, so how can Australians trust their 2030, 2035 or 2050 targets?”
Mr Littleproud said rural and regional Australians have borne the brunt of Labor’s planning failures.
“Transmission lines pushed through paddocks, communities ignored and higher power bills for everyone. Labor has forgotten who keeps Australia moving.”
Mr Tehan said the Coalition’s plan delivers what Labor has failed to provide.
“Labor gives Australia targets it cannot meet and bills Australians cannot afford. The Coalition will deliver affordable energy and responsible emissions reduction without putting families or jobs at risk.”
This is the Coalition’s vision for Australia’s energy future: affordable power, responsible emissions reduction and a practical, balanced path that strengthens the country.
More information here.