Can Australia still meet its emissions target with changes in the RET?
The recently released Renewable Energy Target (RET) Review Expert Panel Report recommends two options for reducing the role of renewable energy in meeting Australia’s emissions reduction target. Both options involve reducing the subsidies to renewable generators. The Expert Panel acknowledges that these recommendations will make it harder for renewable generators to compete in the market for new investments, which would make the task of reducing emissions harder. The Panel estimated that Australia’s cumulative abatement task to 2020 would rise by between 39-58 MtCO2-e by 2020 under its recommended changes, all else being equal. However, scope of the review meant that the Panel did not go so far as analysing how likely it would be that Australia would still meet its 2020 emissions target if either of their recommendations were adopted.
This note from Frontier (Australia) analyses the implications of a modified RET on the likelihood that Australia would meet its emissions reduction target.