Australian energy firms join calls for carbon price

Australia's leading energy companies today added their voices to calls for the next government to introduce a carbon pricing mechanism as soon as possible, joining a coalition of civil society groups which yesterday issued a statement demanding the introduction of a new climatye change bill.

Today's fresh call for action came in the form of an open letter from The Clean Energy Council, which represents most mainstream energy retailers in Australia, including AGL, TRUenergy and Origin, as well as smaller renewable energy firms.

The Council's chief executive Matthew Warren said Australians wanted action on climate change and cheaper clean energy while business required clarity over future climate change policy in order to increase investment in clean energy projects and jobs.

"An emissions trading scheme is widely recognised as being the most efficient way of reducing emissions across the economy," he said. "It is a policy that has been supported by Professor Ross Garnaut, former Prime Minister John Howard, former Coalition Leader Malcolm Turnbull, the Greens and the Labor Party."

The letter said a price on carbon is required if Australia is to meet its target of reducing greenhouse gas emissions to five per cent below 2000 levels by 2020.

The statements are intended to put pressure on the two major parties and three rural independents who are in ongoing negotiations to determine who will form the next government.

Independent MPs Robert Oakeshott, Tony Windsor and Bob Katter are expected to decide whether to lend their support to either the ruling Labor party or the Liberal-led coalition early next week.

Their decision will ultimately determine the future of Australia's climate change policy with Labor having promised the introduction of a climate change bill that introduces a price on carbon and the Liberals having said they would reject any carbon pricing mechanism.

Oakeshott has previously expressed a desire for tougher action to address climate change, while Katter today released a 20 point wish list for any deal, top of which was the creation of a national energy grid to give Australians continuous access to solar, wind and geothermal energy, and create jobs in rural areas.

The Clean Energy Council said the independents were proving to be powerful advocates for action on climate change. "We welcome and congratulate the role the independents are taking in ensuring climate change policy remains on the radar of the major political parties," Warren said. "Renewable energy is also great for rural and regional Australia - it will create growth, greater economic diversity and help drought-proof farms and regions."

The news comes as Australia's Green Party this week signed a deal formalising their support for Julia Gillard's Labor Party as part of a deal that would see Labor introduce an independent climate change committee if it forms the next government.