Energy needs to be the next priority

Adelaide Advertiser
Friday 2/2/2007 Page: 20

LAST week the Prime Minister delivered a landmark address on Australia's rural water crisis. Imagine the word "water" replaced with "energy" throughout the speech and you would have a framework for a bold national approach to another challenge - climate change.

The use of energy, particularly burning coal in electricity generation, is Australia's biggest source of greenhouse pollution. Like the leaky channels along the Murray, every day Australia wastes vast amounts of energy (and money) unnecessarily.

Improving energy productivity in businesses and households could save between 10 and 30 per cent on energy costs and reduce our energy bill by $5-$15 billion. More efficient homes, appliances, offices and industries could, over the next 20 years, avoid using as much energy as would be contained in nearly 300 Happy Valley Reservoirs filled with oil.

Like the Prime Minister's water plan, climate policy requires sensible pricing and long-term incentives for investment in major infrastructure projects. The energy industry says cutting emissions by 30 per cent by 2030 would need clean energy investment costing $70-80 billion over the coming decades. With decisive, effective policy this is achievable.

By world standards, Australia has a weak clean energy program and even this has recently generated about $1 billion in investment in the renewable energy sector alone. Much of this has been in SA where wind power now accounts for about 15 per cent of the state's electricity supply.

However, while industry can pollute the atmosphere for free we will never see large-scale investments in clean energy. Only through effective price signals will governments reward businesses for switching to clean energy alternatives. Economic analysis has shown this action on climate change is affordable for the economy and households.

This brings us to putting aside parochial interests. Like water, climate does not respect state or even national borders. Climate change may halve Murray- Darling basin river flows within the lifetime of this generation. This will be driven by the actions of people, business and governments across Australia and indeed the world. Australia should join the Kyoto Protocol and drive the global clean energy boom.

South Australian Premier Mike Rann has played a significant role in getting the issue of climate change on the national agenda. With SA having so much to lose, Premier Rann now has a crucial role to play in encouraging the Australian Government to commit to a clean energy plan to ensure new electricity generation is from clean energy sources.

Australia has abundant clean energy resources and could be a world leader in tackling climate change but not without the Australian Government introducing strong climate change laws, ratifying the Kyoto Protocol and rewarding business for investment in clean energy technologies.

As the Prime Minister has said: "with the resilience, adaptability and boldness Australians have shown in the past" Australia can overcome the challenges it faces. A bold, ambitious climate change policy framework could start to switch Australia to clean energy today. The health and well being of current and future generations of Australians demands nothing less.

Erwin Jackson works as independent adviser to the Climate Institute Australia and business and research organisations.