States won’t support the NEG unless conditions are met

8 Aug 2018

The Victorian and ACT state governments have provided the list of changes they need to see in the National Energy Guarantee before they agree to support it in the lead up to Friday’s meeting with energy minister Josh Frydenberg.

The state and territory governments have issued their demands for change to the current draft of the NEG, designed to protect it from any roll-back of renewable energy or reduction of emissions target. The Victorian government laid out four new demands, including a requirement that the emissions target be set by regulation instead of having to win approval in a potentially hostile Senate and “never go backwards”.

Victoria’s energy minister, Lily D’Ambrosio, has also insisted on the establishment of a transparent registry, with access by regulators and governments to ensure the NEG is working in the best interests of consumers. 

“We can still get this right – but only if Malcolm Turnbull stares down the climate-crazies in his party and puts a workable scheme on the table that doesn’t hurt local jobs and households,”

Victorian Energy Minister, Lily D’Ambrosio
Source: Simon Holmes a Court @simonahac

The ACT has proposed a review of emissions once they get to 24% (which, according to the government’s modelling by the Energy Security Board will be 2021), as the biggest dispute in the NEG is the 26% emissions reduction target that is locked in for 10 years.  

“Recognising that you do not wish to increase this target, I would like to suggest another option for your consideration,” 
“My suggestion is that the target is reviewed no later than 2024, and that the final design of the Neg includes a mechanism to initiate a review immediately should electricity sector emissions reach a 24% reduction on 2005 levels.”
“I believe this is a position that can address concerns of some stakeholders and I am happy to discuss this with you further.”

The ACT’s climate change minister, Shane Rattenbury in a letter to Josh Frydenberg.

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