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The AFR reports that the Federal Government is moving away from a CET

According to an article published by the Australian Financial Review earlier today, the Federal Government has given notice that it is moving away from a Clean Energy Target (CET). If the government chooses to move away from a CET, the market will continue to suffer from increased policy uncertainty. Policy uncertainty is having detrimental impacts on the development of new energy generating resources, particularly when securing capital. Without access to affordable capital new energy resources are less likely to be constructed and consumers are likely to incur further increases in energy prices.

In a timely release from the Australian Energy Market Commission (AEMC), today released a discussion paper on the strategic priorities for the Australian energy market. In this paper the AEMC outlines priority actions for governments and energy market bodies to support the delivery of secure and reliable electricity and gas to households and businesses at the lowest possible cost, while also meeting emissions reduction commitments. One of the key areas covered in the goals is “The integrations of energy and emissions policy, underpinned by a long-term national emissions reduction target”. The identification of emissions reductions policy by the AEMC further enforces how important long term policy commitment from the Federal Government is for the secure and reliable delivery of energy.

The Federal Government is yet to formally announce when it is planning on committing to an emissions reduction policy. Recent comments suggest that a commitment will not be made in the near future.