PM’s energy plan slammed by SRI group

By Rebecca Evans

THE Ethical Investment Association (EIA) has condemned the Federal Government’s energy plan, Securing Australia’s Energy Future.

The blueprint was unveiled by Prime Minister John Howard last week, and according to EIA spokesperson James Their it was nothing short of a “great disappointment” to the investment community.

Howard says although production and use of energy comes with a major environmental challenge, he has stopped short of widening the Mandatory Renewable Energy Target (MRET) scheme.

“Expanding MRET would impose substantial new costs on the economy and would benefit too few technologies. A better path is to directly promote the development and demonstration of a broader range of low emission technologies and tackle the impediments to the uptake of renewable energy,” Howard says.

EIA’s Their rejects this claim and says by not supporting a stronger MRET, the investment industry has no certainty and therefore is unlikely to direct more investment into the renewable energy sector.

“The investment industry was looking for clear market signals from the Government. A more constructive and longer term approach to energy policy by the Government would have increased the MRET, provided a price signal for carbon emissions and required listed companies to disclose their greenhouse gas emissions in financial reports.”

Their also says the Government has failed to identify climate change as an emerging risk management challenge to investors.

“Without a price on pollution, investors can’t easily assess the long-term investment risks,” he says.