Australian Industry Group calls for nuclear power to be part of ... - The Australian Financial Review

Australian Industry Group calls for nuclear power to be part of Labor’s 2035 carbon target

Labor’s 2035 carbon target should include nuclear, says industry

Jacob Greber Senior correspondent

Labor’s push to develop a comprehensive sector-by-sector 2035 emissions reduction plan should make room for the “intriguing potential” of nuclear power, says the nation’s top industry group.

Energy and Climate Change Minister Chris Bowen on Tuesday announced the government would work with companies and unions to develop six detailed sectoral plans to cut emissions, expanding Labor’s focus on electricity and industrial carbon pollution targets to transport, agriculture and waste management.
Chris Bowen has slammed nuclear power in Australia as a “fantasy story”. Oscar Colman

The government’s 18-month review, which aims to ultimately determine the scale of Australia’s internationally binding 2035 emissions reduction target, needs to pursue fresh thinking and “move on from many old failings”, said Australian Industry Group chief executive Innes Willox.

“Nuclear energy is a fraught subject but too important to be left to empty fights over symbolism,” Mr Willox said.

“New nuclear technologies combine intriguing potential with formidable delivery and economic challenges.

“It makes little sense to continue simply banning them, but mere legalisation is no substitute for a comprehensive and investable climate and energy policy for all technologies to compete under.

“Putting all your eggs in one basket is a bad idea for any side of politics.”

The comments fly in the face of Mr Bowen’s staunch opposition to nuclear energy because of cost and social licence doubts.

Speaking at a clean energy conference in Sydney on Tuesday, Mr Bowen lashed out at Opposition Leader Peter Dutton’s support for nuclear energy as a “fantasy story”.

Small modular reactors are “tracking to be up to five times more expensive than firmed wind and solar in 2030”, he said.

Opposition climate change and energy spokesman Ted O’Brien said Mr Bowen’s announcement showed Labor does not have a plan to decarbonise the economy.

“It took the minister over 12 months in office to decide he should put together a plan to achieve the targets he legislated last year. Meanwhile, no one knows what he wants to do, how much it will cost and who will pay,” Mr O’Brien said.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar said the sectoral plans need “clear milestones to measure progress”.

“The additional level of detail will assist in providing greater vision and certainty to business.”

‘It’s not optional’

Australia has promised the world it will cut emissions in 2030 by 43 per cent from 2005 levels. Since 2020, the lion’s share of the national reduction has been driven by the electricity sector, where the rollout in renewables is expected to halve emissions by early next decade. Industrial emissions are set to fall by about a quarter.

By contrast, government forecasts suggest transport and agricultural emissions will remain largely unchanged, even though combined they account for about one-third of the national total.

Business Council of Australia chief executive Jennifer Westacott said plans for each sector of the economy is the only way to “effectively build up to nationally determined contributions for 2035”.

“A national net-zero 2050 plan is needed to inform communities, investors and all governments about how Australia is going to address the complexities and challenges we face and capture the economic opportunities available to us as we transition,” she said.

“The scale, breadth and complexity of the transition to net-zero has been described as the next industrial revolution by some commentators and equated with world war mobilisation efforts by others.”

Mr Willox said the Commonwealth’s 2035 target would likely be a significant step up from the 2030 one.

“Our prospects for achieving that will be strongest with a national strategy that ties together sectoral insights with whole-of-economy coherence, backs technology with robust policy, and keeps a close eye on trade competitiveness.

“It’s a tall order, but this is not optional.”

Low Emission Technology Australia chief executive Mark McCallum said achieving net-zero emissions by 2050, which is supported by both sides of politics, is not possible without “substantial” investment in carbon capture and storage.

“By actively investing in and supporting the deployment of CCS infrastructure, Australia can significantly contribute to global emission reductions while safeguarding its industrial base,” Mr McCallum said.

“We urge the government to prioritise research and development in other critical low-emission technologies, such as low-carbon hydrogen and ammonia production.

“Investing in a diverse range of innovative solutions will create a resilient and adaptive environment, fostering economic growth and clean jobs for the future.”

Jacob Greber writes about politics, economics and business from Canberra. He has been a Washington correspondent and economics correspondent. Connect with Jacob on
jgreber@afr.com

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