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Crikey
Crikey
National
Marion Rae

Net zero by 2050 not enough, Labor says

Labor has accused the Morrison government of having an unambitious and two-faced climate policy, saying one thing in coal-rich regions and another in city suburbs.

“Net zero is the basic starting point of climate policy,” Labor energy and climate spokesman Chris Bowen told an energy conference in Sydney on Thursday.

“It’s necessary, but far from sufficient.”

Elements within the coalition have said net zero emissions by 2050 is “dead” and a “scam to deindustrialise the west”, but Prime Minister Scott Minister insists the commitment is government policy.

“But of course, they say one thing in the Hunter, and another in Hunters Hill,” Mr Bowen said.

Regional towns and suburbs could go fully electric under a pilot program proposed by Greens leader Adam Bandt, speaking on a panel alongside Labor at the Smart Energy Council expo.

Under the $235 million “electrify everything” scheme, homes and businesses would get an electric vehicle, rooftop solar and batteries to test the benefits.

Mr Bandt said the project would suit a suburb in a regional town or city, and could support the rebuilding of areas hit by climate disasters, such as Lismore or Ulmarra in the NSW Northern Rivers.

The pilot aims to show that by 2025 it will be cost effective and cleaner for homes and cars to be powered by a combination of rooftop solar, home batteries and neighbourhood shipping container-sized systems.

Labor and the Greens have electric car subsidies as part of their election pitch, and research from motoring group NRMA shows fleet-running businesses are gearing up for the transition.

The annual NRMA business survey issued on Thursday found more than a third (36 per cent) would consider EVs when upgrading, and expect to make the change in the next two to three years.

The NRMA is calling for a tax review, including altering the fringe benefits tax to focus on emissions not price, extending FBT exemptions to include novated leases used in salary packages to attract employees, and exempting battery EVs from the luxury car tax.

“With the cost of petrol heavily impacting bottom lines, further incentives from government could encourage businesses – big and small – to transition to electric earlier,” spokeswoman Emma Harrington said.

Amanda Cahill, chief executive of the non-profit consultancy The Next Economy, said regional Australians want an “honest conversation” with the federal government about what the changing energy system means.

“They want to see a clear plan and support so they can manage these changes,” she said.

Mr Bowen reiterated that Labor would support industry through that change with up to $3 billion from a National Reconstruction Fund and a new Powering the Regions Fund.

Hosting international climate talks here would “send the message to the world that Australia is under new management when it comes to climate” and had economic opportunities as a renewable energy powerhouse. 

Labor would put Australia’s 215 biggest emitters on a trajectory to net zero by 2050, in line with the commitment that two-thirds of them had already made.

Industry would get so-called safeguard mechanism credits for abating emissions, tweaking a mechanism already used by the federal government.

Critics say the mechanism sets generous baselines for heavy emitters and does not do enough to reduce pollution.

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