AREEA welcomes the public release of proposed adjustments to the Renewable Energy Target (RET) as recommended by the Warburton Review.

“The resource industry and members of the wider business community have long raised concerns about the RET and its impact on energy competition, consumer prices and Australia’s competitiveness as an attractive place to invest and do business,” says AREEA chief executive Steve Knott.

“Our nation needs an effective approach to the role of renewables in our economy.

“Such an approach must sensibly seek to integrate renewables into our energy-generating sectors with greater consideration of global competitive pressures as well as changing domestic energy demands and economic circumstances.”

Mr Knott particularly welcomes the flagged adjustment of the RET to reflect energy demand growth trends, which he says would be a sound platform for renewable energy subsidy if such a policy must be pursued.

However, he notes there is also a strong argument to scrap the RET altogether and instead allow market-driven investment into cleaner energy sources to reshape how our nation powers its households and industry.

“Australia’s emergence as a world-leader in natural gas extraction is the best example of how market-driven opportunities can simultaneously provide jobs, economic growth and cleaner energy sources,” Mr Knott says.

“It is vitally important the RET has minimal impact on the rapid development of our nation’s $200 billion LNG sector.”

Click here to read about the Review of the Renewable Energy Target, led by Chairman of Westfield Retail Trust and former RBA board member, Richard Warburton AO.