Carbon pricing vital for financial stability: Westpac

Banking giant Westpac says the federal government must play a role in developing a price on carbon if the financial risks of climate change are to be understood and mitigated.

Michael Chen, the bank's head of sustainability and prominent player in the Australian Sustainable Finance Initiative (ASFI), said without mitigation the effects of climate change would threaten the financial system's stability.

"Central banks and regulators around the world are saying climate risk is financial risk, but the financial system hasn’t adequately priced in environmental and social risk, and this is a risk for the financial system’s stability," Mr Chen told The Australian Financial Review.

Read the story from the Financial Review by James Fernyhough - “Carbon pricing vital for financial stability: Westpac.”

Coal’s days are numbered, top government adviser says

The federal government's top energy adviser Kerry Schott says the plunging cost of renewables will force Australia's remaining coal plants to close even earlier than planned, as mining giant BHP renewed calls for a price on carbon to urgently slash national emissions.

Respected energy chief Kerry Schott.CREDIT:

The Morrison government's failure to produce an emissions reduction plan for the electricity sector and general inaction on climate change have been credited with helping to drive a massive negative swing in the Wentworth byelection, which is expected to cost it the seat and force it into minority government.

The nation's energy ministers are due to meet in Sydney on Friday to discuss the Morrison government's bid to lower prices and improve reliability. Efforts to cut greenhouse gas emitted by electricity generators are not on the agenda.

Read the story from The Age - “Coal’s days are numbered, top government adviser says.”

Productivity Commission fuels energy war by calling for carbon price

Productivity Commission
chairman, Peter Harris.

The Productivity Commission has thrown a spanner in the Turnbull government's attempts to settle Australia's intractable climate wars, calling the policy landscape a "regulatory mess" and calling for a price on carbon.

It comes a week after the government released its much-anticipated energy blueprint, the national energy guarantee, which was designed to quell debate and meet Australia's international emissions obligations without a carbon price.

The independent Productivity Commission released its five-year productivity review on Tuesday. It was commissioned by Treasurer Scott Morrison.  

The review said immediate action was needed to manage the looming risk of summer blackouts, however there was a real danger Australia's longer-term electricity needs would not be met if "the regulatory mess persists”.

Read the story in today’s Melbourne Age by Nicole Hasham - “Productivity Commission fuels energy war by calling for carbon price.”

Pressure mounts on Finkel energy review to consider price on carbon

The Liberal New South Wales government, major energy users, manufacturers and businesses including BHP Billiton have urged the Finkel review of the electricity market to consider a price on carbon or a market mechanism.

 The Australian Industry group says the Finked
 review should focus on modernising the
electricity system.

The submissions, released on Friday, add further pressure on the review to recommend a market mechanism to price greenhouse gas emissions, such as an emissions intensity scheme, despite the fact the Turnbull government has ruled out a carbon price or EIS.

A string of peak bodies have already called for market mechanisms, including the National Farmers Federation, the Investor Group on Climate Change and the Business Council of Australia, which explicitly called for an EIS.

Three years ago some of the same groups urged the parliament to get out of the way so that Tony Abbott could repeal the Gillard government’s “carbon tax”.

In its Finkel submission, Australian Industry (AI) group, representing manufacturers and other industries, supported a carbon market mechanism, saying the electricity system urgently needed a clear, efficient and durable climate policy to underpin new investment. 

Read The Guardian story - “Pressure mounts on Finkel energy review to consider price on carbon.”