New briefing – Price impacts of deeper emissions cuts
A gap remains between Federal Coalition Government and Federal Labor ambitions for emissions reductions. Labor is attempting to bridge the divide (or wedge the Government) by adopting the mechanism that the Government developed and then abandoned: the National Energy Guarantee (NEG). We project that Labor’s 45% emissions reduction target will result in prices that are about the same as the Federal Government’s current policy of achieving an emissions reduction of 26% by 2030. Importantly, we also find that the Government’s costly Snowy 2.0 proposal does not deliver any price or emissions benefit. It is a waste of money.