Tasmania's aluminium smelters look set to be exempted from the Renewable Energy Target under a deal between the federal government and opposition.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The federal government and opposition will meet later this afternoon to discuss a proposal to keep the target at a "real" 20 per cent of Australia's energy use, but exempt trade-exposed industries, including aluminium.
It is understood the deal would save Bell Bay Aluminium $8 million a year.
Industry Minister Ian Macfarlane said the deal was the best way forward for the scheme.
“It is a plan which will provide the confidence to the renewable energy sector that they need,” he said at the National Press Club today.
“If the Labor party and the coalition are able to negotiate an outcome, then the industry can go forward and invest confidently. If we can’t, it’s the renewable energy industry that will get hurt.”
The legislation specifies the target as 41,000 gigawatt hours. But the government says changes in Australia’s energy use mean that gigawatt-hour figure is likely to represent much more than 20 per cent by the end of the decade and will be costly over time for business and households.
Greens Leader Christine Milne called on Labor to reject the deal.
"Abbott Govt set to destroy Renewables (RET) with reduction to 'real' 20% + exemptions for aluminium and copper smelters. Labor must say NO," Senator Milne said on Twitter.