Coal-fired power stations including Eraring should be forced to pay carbon costs if they operate past their agreed closure dates, Smart Energy Council chief executive David McElrea has argued.
The council's push to accelerate the clean energy transition comes weeks after the federal government launched a review of the policy, and after extensions to operations at several coal-fired power stations, including Eraring.
Eraring was initially due to close in 2032 before its closure date was brought forward to 2025 in 2022. The closure date has since been extended twice.
While the plant is now scheduled to close on April 30 2029, there is speculation that it will remain open beyond that.
Under the Smart Energy Council's proposal, any coal-fired power station that continued to operate past its proposed closure date would have to account for all of its emissions under the Safeguard Mechanism.
Its owner would need to use Australian Carbon Credit Units for each tonne of emissions produced after that date.
The proposed change would not force a power station to close, Mr McElrea said, but would remove its pollution allowance.
"Keeping ageing coal operating is not free," he said at the council's Brisbane conference on Tuesday.
"If a coal station remains necessary beyond its earlier closure date, it can continue to operate, but extending its life should not also extend its right to pollute for free."
The change would provide greater certainty for companies considering renewable energy investments, Mr McElrea said, and the regional communities affected by them.
"Every time a coal closure date is pushed back, that (renewable energy) investment becomes harder to finance," he said.
"That delays new generation, delays jobs and creates worker uncertainty, and leaves consumers exposed to the cost and unreliability risks of ageing coal."
All coal-fired power stations would receive a zero-emissions allowance by 2035 under the council's proposal.
Eraring directly employs about 220 workers. Another 200 contractors also work at the site.
The Net Zero Economy Authority applied to the Fair Work Commission earlier this year to establish an Energy Industry Jobs Plan (EIJP) for workers affected by the plant's closure.
If the commission implements the jobs plan, workers at businesses will be able to access transition support from their employer.
While some employers already have transition supports in place, such as Origin Energy's Future Directions program, the EIJP will help to provide certainty, structure and enforceability for workers to access the supports they need.
The government could use closure deadlines in the Australian Energy Market Operator's Integrated System Plan, Mr Buckley said, and the change could be introduced gradually to allow all parties to plan ahead.
"They could do it in a slow, measured way, consistent with the Safeguard Mechanism review, which would mean it doesn't kick in until 2030 or thereafter," he said.
"It could provide a clear policy signal that's going to disincentivise them constantly kicking the can down the road."
The Safeguard Mechanism consultation will continue until September 18, with a report due in early 2027.
