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Rudd's Clever Accounting Threatens Clean Energy Industry

Australian PM Kevin Rudd.
by Staff Writers
Canberra, Australia (SPX) Aug 13, 2009
The federal government's emission trading scheme threatens hundreds of millions of dollars worth of investment into climate-friendly electricity generation, say sustainable living and environment groups.

The Alternative Technology Association, Environment Victoria and Total Environment Centre joined calls for the federal government to amend their emissions trading legislation, due to be introduced into the senate this week, or risk millions of dollars of investment in renewable energy.

"One million Australians who currently purchase climate-friendly GreenPower will see their money go to waste due to a design flaw in the federal government's Carbon Pollution Reduction Scheme (CPRS)," says Damien Moyse, Energy Policy Manager for the ATA.

"We could see thousands of people pulling out of paying for clean electricity because clever accounting by the Rudd government means households that invested in GreenPower before 2009 will be helping free up permits for the big polluters."

In March 2009, there were 984,024 GreenPower customers and by the end of 2009 it is estimated that one million households and businesses will be purchasing GreenPower.

"At this rate, by 2012, GreenPower could deliver 20 per cent more clean electricity, than government's current targets. This represents over $130 million worth of additional investment in the wind, solar, and other renewable technology sectors," says Jeff Angel, Director of Total Environment Centre.

"Under the Rudd government's policy, household and business investment in GreenPower is helping the big polluters to pollute more, and at a lower cost, instead of helping reduce the threat of climate change."

"The purchase of GreenPower, carbon offsets, and the installation of solar panels and solar hot-water systems saves 6 million tonnes a year in greenhouse gas emissions, and supports economic activity and green jobs to the tune of nearly $150 million each year," says Mark Wakeham, Environment Victoria's Campaigns Director.

This failure to account for emissions reductions achieved by the millions of Australians who voluntarily purchase GreenPower or use solar electricity, means the large polluters will have an extra 6 million tonnes worth of permits-to-pollute available to them, say the groups.

"The Rudd Government is sending a message to Australian families and businesses that they cannot be part of the solution to climate change," say Mr Wakeham.

"Little did households know when they first purchased GreenPower, that despite paying up to 30% more for electricity, their money would actually end up helping the nations biggest carbon emitters."

The groups are calling on the government and opposition to ensure that all GreenPower investment helps to tighten CPRS caps.

"The federal government must rectify this problem by reducing our emissions target by the same amount that GreenPower sales reduce emissions."

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