Victoria's economic prosperity is tied to its 500-year supply of brown coal, a relatively competitive and reliable energy source that is vital to Victorian industry and the maintenance of significant jobs and investment, says VECCI.

 

According to VECCI Chief Executive Officer Neil Coulson, this is the central finding of VECCI's Energy TaskForce, chaired by eminent former resources executive, Sir Roderick Carnegie, which will report its findings in detail at the Victoria Summit at Parliament House in Melbourne on 8 November 2005.

 

"The TaskForce also found that Victoria's energy needs are expected to grow by at least 20 percent in the next decade and that, over this period, renewable energy supplies are not expected to be able to meet this demand growth on a competitive basis. 

 

"While greenhouse is an issue that needs to be tackled, it is also increasingly clear that it is a long-term issue that requires long-term solutions – there are no 'quick fixes'.

 

"Furthermore, it is widely acknowledged that technological improvements will play a lead role in delivering significant reductions in emissions and that major Federal and State Government investments are required.

 

"Internationally, much faith has been put in the Kyoto Protocol as a means to reduce global greenhouse emissions.  While the Protocol has come into force it imposes no requirement on the developing countries to contain greenhouse emissions.  This is despite the fact that these countries actually contribute about half of all global greenhouse emissions, a proportion projected to rise rapidly into the future.

 

"Among the excluded countries are China and India, which respectively are the second and fifth highest emitters of carbon dioxide globally.  This compares with Australia which emits between one and two percent of total global emissions.  Victoria emits less than half of 1 percent of global emissions.

 

"Consequently, greenhouse abatement measures must:

• Be phased in over a reasonable time
• Be implemented in a way that minimises and distributes the costs and adjustment burden equitably and transparently; and
• Provide certainty for all long-term investments, whether current or new.

 

"In light of this, the TaskForce's recommendations emphasise that:

• Funding should be focussed on technologies that will deliver the highest greenhouse abatement for a given cost, rather than targeted at specific energy types, e.g. renewables
• Accelerated depreciation allowances, tax credits and/or direct funding should be introduced to encourage the faster diffusion of lower emission technologies
• Interval meters should be rolled out across all States to facilitate demand management
• The enhanced Federal Government Greenhouse Challenge Plus program should continue to be supported by Government and industry
• Governments should ensure that all sectors of the economy share the burden of greenhouse abatement
• Governments should assist in reducing the stock of inefficient household appliances by facilitating the establishment of appliance collection points and by introducing rebates for the replacement of inefficient appliances.

 

"Victorian industry has responded to increased awareness by the community of greenhouse issues.  Many businesses are already well progressed in containing greenhouse emissions through changes to business practices and the adoption of lower-emissions technologies.

 

"The challenge for policy makers is to recognise that economic development and environmental sustainability are not competing objectives and that balanced and well considered policy responses can create 'win-win' outcomes consistent with community expectations for enhanced social, environmental and economic conditions.

 

"Conversely, poorly designed policy responses that raise energy prices will put at risk significant current investment in energy production and employment.

 

"They also have the potential to damage the competitive position of Victorian industry and the efforts of firms to compete in export and import-replacement markets", says Mr Coulson.