‘Not a big drama' for electricity industry to slash emissions, says scheme architect

The head of the expert board advising the federal Coalition on its signature energy plan says it would not be a "big drama" for the electricity industry if a future Labor government enforced far stronger cuts to greenhouse gas emissions.

Dr Kerry Schott is advising the federal government on the energy plan.

Labor states say they will withhold final support for the Turnbull government proposal to merge climate and energy policy - known as the national energy guarantee - until they are assured a successive government will not be blocked from ratcheting up carbon savings.

Read the story by Nicole Hasham and Peter Carey from today’s Age - “‘Not a big drama' for electricity industry to slash emissions, says scheme architect.”

‘Big issue': Turnbull government's energy plan may curb state ambition

The Turnbull government is set for showdown with states and territories over its signature energy policy after new details of the plan revealed any additional efforts by the states to curb carbon emissions would not count towards the national target.

The emissions intensity of the power sector is on the increase.

A key policy design paper circulated among the states at the weekend and obtained by Fairfax Media appears to  recommend a review of the emissions reductions target only every five years and provides for exemptions of trade-exposed companies that constitute as much as a fifth of demand.

The exemption will be welcomed by manufacturers such as steelmaker Bluescope, but critics of policy regard aspects of the plan including the five-year reviews as inflexible at a time when the energy market is changing quickly.

Read Peter Hannam’s story from The Age - “‘Big issue': Turnbull government's energy plan may curb state ambition.”