Clean energy subsidies should be replaced with ‘market-based incentives’ from 2030, Australia’s Productivity Commission says

There are concerns that the Labor government will not reach its 2030 climate targets, which include 82% of energy production from renewable sources. Photograph: Bloomberg/Getty Images

The Productivity Commission says clean energy subsidy programs should not be extended beyond 2030, and that “market-based incentives” should guide investment in the clean energy transition over the coming decades.

The commission’s interim report on investing in cheaper, cleaner energy and the net zero transformation is one of five which will be released over two weeks and which set out a series of reforms to reinvigorate Australia’s productivity.