AGL is supportive of the commitment taken by energy ministers to align emissions reduction and energy policy objectives. Over several years AGL has consistently advocated for more comprehensive action to integrate energy and climate policies. Steps to align Australia’s climate ambition with policy action in the energy sector are welcome.
Key to the approach put forward by the AEMC is the proposal to consider emissions as a class of market benefit, to be used as a tool for use in processes such as regulatory investment tests and investment planning frameworks.
In our view, the development of this value is a significant step forward which will have implications for the broader direction of public policy across Australia, not just for the energy sector.
Although globally there is increasing acknowledgment that governments should consider a value of emissions in setting public policy, the way that government bodies should make administrative decisions with respect to this value is less clear.
AGL has made a submission discussing some of these issues with reference to the AEMC’s proposal. A copy of that submission is available here.