Lack of certainty leaves firms dangling

The Age

Thursday December 3, 2009

By TOM ARUP

THE rejection of the emissions trading scheme will cause uncertainty for business and threaten investment in low-emissions technology, industry groups and major power companies are warning.The Australian Industry Group, the Business Council of Australia and the Clean Energy Council all yesterday called for policy certainty in the wake of the Liberal Party's dumping its support for the Government's emissions trading scheme."The failure today of the Senate to pass the carbon pollution reduction scheme will prolong, if not compound the uncertainty for business," Ai Group CEO Heather Ridout said.Clean Energy Council Matthew Warren told The Age that while uncertainty existed on a carbon price, renewable energy companies would have a hard time attracting investment to major projects. "The Senate has just stalled comprehensive investment in a decarbonised economy for two years," he said.Major energy companies AGL and Origin joined the call for an emissions trading scheme to be passed. A spokesman for AGL said the decision to reject the bill was disappointing adding, "we believe that without a firm decision on climate change, business will continue to face investment uncertainty".Australian Chamber of Commerce and Industry chief executive Peter Anderson said that while some companies that would have made money from a carbon market would be disappointed, most would be relieved their power bills wouldn't go up."This is not a 'get out of jail free' card for industry," he said. "It is an opportunity to get our scheme design right, whilst maintaining research and investment in new technologies, and noting that there are no cost-free policy options."Minerals Council of Australia chief executive Mitch Hooke said the rejection of the bill gave the Government a chance to create a scheme that protected the competitiveness of Australia's export industries.The head of the National Farmers Federation, David Crombie €” who called for the emissions trading bill to be passed last week after agriculture was excluded €” said the rejection of the bill would not stop farmers investing in reducing their emissions.

© 2009 The Age

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