(MENAFN– The Conversation)
Australia now aims to transition to net zero emissions quickly. The government and parliament want to position Australia as a renewable energy leader in the carbon-free global economy. However, policy uncertainty from removing carbon pricing in 2014 hampers progress.
Australia can make some headway towards this goal without changes to current constraints, but significant progress is limited. Effective energy policy is essential for sustainable growth post-pandemic.
Establishing a balance between state intervention and market competition is crucial for economic success. Fostering a competitive private sector is key to unlocking Australia’s potential as a renewable energy superpower.
Introducing a green premium for zero-carbon energy is vital for expanding the renewable energy sector. Carbon pricing is the most efficient tool for implementing this premium and achieving net-zero targets.
Regional cooperation with countries like Indonesia, East Timor, and Papua New Guinea can help create a unified approach to carbon pricing and revenue generation.
Alternatives to carbon pricing may lead to inefficiencies in energy and climate policies. Economy-wide carbon pricing is necessary for striking a balance between government intervention and market forces.
This summary is based on Ross Garnaut’s book, “Let’s Tax Carbon: And Other Ideas for a Better Australia.”
