Australia just ditched its Clean Energy Target for a new plan, and it's terrible for renewables

Last week, a former Australian prime minister and climate change denier delightfully dubbed global warming "beneficial."

Now Australia's gone and dumped its Clean Energy Target for a so-called "plan" that removes subsidies for renewable energy and hands the mic to coal power.

Great work, guys. 

The country's government has announced a scheme to abandon the country's Clean Energy Target (CET) in favor of a new plan that's made some seriously question the country's commitment to the Paris Climate Agreement, which went into force in 2016. The agreement requires nations to cut their greenhouse gas emissions in order to limit global warming to less than 2 degrees Celsius, or 3.6 degrees Fahrenheit, above the preindustrial average.

The government's decision to ditch the CET, proposed by chief scientist Alan Finkel, in favor of a National Energy Guarantee (NEG), is ostensibly aimed at improving the reliability of the country's electrical grid. The NEG requires energy retailers (primarily coal) to meet a "reliability guarantee," offering on-demand power when needed, to avoid crises like blackouts.

This so-called reliability guarantee will be imposed by the government on providers to deliver on-demand energy from ready-to-use sources such as coal, gas, pumped hydro and batteries needed in each state.

Each energy provider must also adhere to an "emissions guarantee," which will be set to meet Australia’s international commitments to reducing emissions.

The Turnbull government reckons they can lower prices for consumers by creating a power surplus, encouraging investment and, importantly, removing subsidies for renewable energy suppliers.

"Unlike previous approaches, we are not picking winners, we are levelling the playing field," said the government's press release.

“These guarantees will ensure there is a place for all power sources in the nation’s future energy mix — solar, wind, coal, gas, batteries, pumped hydro,” Turnbull said in a video posted on Facebook. “Our plan has no subsidies, no certificates and no tax.”

The government's new Energy Security Board estimates typical household bills would fall by an average of $110-$115 per year over the 2020-2030 period.

The government insists it still will meet the national emissions reduction targets set in the Paris Agreement, by lowering Australia's greenhouse gas emissions to 26 to 28 percent compared to 2005 levels by 2030. However, any plan that incentivizes the increased use of coal, which is the most greenhouse gas intensive electricity source, will make this more difficult.

The leader of the Greens, Richard Di Natale, was having none of it, accusing the prime minister of having “effectively pulled out of the Paris Agreement." Natale said the new plan amounts to "throwing coal a lifeline," and that he was "leading the most pro-coal, anti-renewables government in the nation's history."

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One member of Australian parliament was particularly happy -- former prime minister and current MP Tony Abbott, a steadfast climate change denier who recently gave that bizarre, inaccurate speech on climate science.

Others were divided.

"This government appears to be hellbent on destroying renewable energy," Shadow Minister Climate Change and Energy Mark Butler told reporters.

Liberal MP Andrew Hastie said the package would prevent Australia from becoming a "banana republic" — something Hastie thinks would happen if the country used more renewable energy.

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The government and the ESB now need to convince state governments to implement the National Energy Guarantee.