Exclusive: Lily D’Ambrosio says state governments could band together to enforce Finkel review recommendation, leaving commonwealth out on its own

This article is more than 3 years old

This article is more than 3 years old

Willing state governments could band together to implement a new clean energy target consistent with the central recommendation of the Finkel review if the Turnbull government can’t deliver the required national leadership on a post-2020 scheme.

Victoria’s climate and energy minister, Lily D’Ambrosio, told Guardian Australia that state governments going it alone was a real possibility if the Turnbull government couldn’t determine a position on the clean energy target in time for a meeting of energy ministers on Friday.

She said if states emerged from Friday’s meeting with no clear resolution on the clean energy target, “willing” states could ask the Australian Energy Market Commission to provide advice about how the scheme envisaged by the chief scientist could be implemented by state government action.

“The willing states are looking at the real prospect of potentially having to go it alone,” she said.

Coal dinosaurs arguing against the Finkel review clearly don't understand it | Michael Slezak Read more

D’Ambrosio said state governments having to work around commonwealth indecision or intransigence on energy policy was not unprecedented, and when it came to the challenge of implementing a clean energy target post-2020, states moving in the absence of leadership by the Turnbull government was “a real option”.

“This is not the first time the states have had to lead the way,” she said. “In two and a half years’ time, we will no longer have the federal renewable energy target.

“Investors, industry, businesses are now desperately seeking a policy steer on what happens post 2020.

“They need policy certainty and clarity. We can’t continue to be on this terrible rollercoaster ride of policy uncertainty.”

Energy ministers will meet on Friday to consider the Finkel review of the national electricity market and other related policy issues in the energy sector.

The federal energy minister, Josh Frydenberg, told his state counterparts late last week there would be no resolution on the clean energy target at this week’s meeting of the Council of Australian Governments energy council because his government was yet to determine a position on it.

Some states are frustrated by the delay. D’Ambrosio said the non-decision from Canberra was “appalling”.

“We are running the risk that come Friday, a number of states will be making a decision, and the commonwealth will be sitting outside the room,” she said.

“That’s how this is shaping up, figuratively. They are missing.”

Frydenberg said on Wednesday he would happily hear arguments from the states about the clean energy target, but Canberra would not rush to any decision.

Renewables roadshow: how Canberra took lead in renewable energy race Read more

D’Ambrosio said the Victorian Labor government remained committed to its renewable energy target, which runs out to 2025, but there was an urgent need to provide a clear national signal for what happens after the federal renewable energy target ends in 2020.

She said the Victorian government was not interested in pursuing a new coal-fired power station in the state, despite the closure of the Hazelwood plant, and despite frequent calls from conservative MPs and Nationals in Canberra to build more coal into the system.

Clean coal technology was a “fantasy” and the Victorian government’s clear priority was bringing clean energy into the system to replace ageing coal assets, she said.

“The time has gone for fantasies of what can be achieved with clean coal when it comes to energy generation.

“We are very clear that there is no place for any new built coal-fired generation in Victoria, and there ought not be a place for that around the country.”

Frydenberg has been highly critical of the Victorian government’s restrictions on both coal seam and conventional gas exploration, arguing the moratorium is restricting supply, which is pushing up energy prices.

D’Ambrosio said the community had spoken “loud and clear” on coal seam gas and fracking: “People don’t trust it, and that matter is closed.”

But she hinted the Victorian government may move on the moratorium on onshore conventional gas in the lead-up to 2020.

“Work is under way to consider a range of matters in terms of what should happen when we got closer to the expiry date of the moratorium.

“Our resources minister has work under way and that work is based on science and community engagement. There will be more to say on this as we get closer to the expiry of that moratorium date.”