We need a price on carbon: AGL chief

Adelaide Advertiser
Saturday 1 July, 2010 Page: 76

THE head of renewable energy company AGL Energy Ltd says a price on carbon is needed to guarantee the security of Australia's energy future. AGL Energy chief executive Michael Fraser says Australia's resource and energy-focused economy means business and political leaders have to consider the impact of climate change. Ignoring the issue risks being caught out by changes in global energy consumption patterns, he says.

"Any change to the energy sources the world consumes will have a significant impact on our economy, both from an export perspective and from a domestic consumption perspective," he told an American Chamber of Commerce luncheon in Sydney yesterday. "We cannot simply assume the world of today will continue."

He said it was "almost inevitable" climate change and energy security would drive a reduction in the consumption of high, emission energy sources globally, Mr Fraser said continuing global demand for Australia's energy resources would rely on the supply of lower carbon intensive products, "It is my firm view that a broad-based cap and emissions trading scheme is the best way to deliver least-cost solutions for reducing emissions."

Mr Fraser said the Federal Government should implement such a scheme as soon as community consensus can be achieved, The introduction of an ETS would encourage the replacement of coal-fired power stations with gas and the conversion of motor vehicles from petrol to renewable electric. He estimated it would cost $60 billion to $90 billion, or 1% of GDP over the next decade, to construct gas-fired power stations, replace cars with electric vehicles and meet the 20% renewable energy target by 2020.