Climate Change Minister Greg Combet’s claims that the Australian economy will suffer if we refuse to sign up to an Emissions Trading Scheme (ETS) or commit more money to renewable energy is based on hollow green promises and what he thinks countries MIGHT commit to in the future, Senator Ron Boswell said today.

“Greg Combet has clearly been out in the sun too long if he believes that investing millions of dollars of taxpayers’ money in unviable, costly and inefficient renewable energy schemes will automatically boost our economic competitiveness. 

“It is a bizarre statement to say the least,” Senator Boswell said.

Tony Concannon, Director of International Power Australia, the largest private investor in power stations in Australia, has put the cost of renewables including wind and solar between $150-$200 per megawatt hour. This compares with coal fired energy at $40 per megawatt hour. This does not include the $2.5bn–$7bn to connect the grid to wind farms or $9bn for peaking generators to cut in when the wind doesn’t blow or sun doesn’t shine.

How can you increase production of the economy by using inefficient and expensive power?  The Labor Government’s renewable energy schemes will see the cost of renewables potentially quadruple with wind only delivering electricity 30% of the time.

Mr Combet says that China leads the world in renewable energy investments. However in 2010 China obtained only 1.1% of its energy from renewable energy compared with Australia 1.9%, Germany 6.5%, Japan 0.2%, UK 1.8% and US 1.3%.

If Australia shut down all coal fired stations overnight, any potential reduction in greenhouse gas emissions would be wiped clean in 6 months at the rate China was increasing its energy consumption.

An ETS has been rejected by US, India, China, Japan, Canada, Korea and Russia as well as many other countries. Why would our Government potentially commit us to a course of action which will depress economic activity and increase farm and household costs?

Mr Combet said it doesn’t matter what the US Government does, as 10 States out of 50 are going ahead with an ETS and renewable energy.  However Mr Combet may not realise that New Mexico has since pulled out and California is near bankrupt, with its scheme held up in the Federal High Court.

Rural Australia and our primary industries have much to lose if Australia adopts an ETS and sends more taxpayers dollars down the river in an inefficient and costly renewable energy scam.

“The mining industry is already coming out of the blocks in opposition to the proposed ETS. Farmers and graziers should be talking to their peak bodies and finding out exactly what impact an ETS and renewable energy will have on their industries and their hip pocket,” Senator Boswell said. 

ENDS