Combet Right to Urge States to Change
Combet is right to urge the states to move out of their various climate schemes as the federal government’s carbon pricing regime comes into place. Business suggests there are over 200 such schemes and compliance costs are high.
In his speech yesterday at the National Press Club Greg Combey said:
I will be having discussions with my state counterparts [in a “select council” of COAG environment ministers] in coming months about this issue, and I think as the dust settles and the carbon price legislation is passed, and we start to do the implementation, we intend advancing the argument that it (the market mechanism) is the most efficient, least-cost way of reducing pollution in our economy…
The minister is right. The argument is simple: put a price on carbon and the market will drive the adjustment. The market will settle on wind, solar, gas or hot rocks. These should not be the subject of itsy-bitsy subsidy schemes to pick winners. Once we have an overall carbon pricing mechanism the market will be able to do the job and we will reach that 20 percent renewables target faster.