By Mark Stone
VECCI welcomes the State Government’s decision to repeal the 20 per cent emissions reduction target for Victoria. With the national emissions target and the impending carbon tax, we were in danger of having two targets, two burdens on business that would have put jobs and investment at risk.
VECCI has long held concerns about the existence of a state-based emissions reduction target on top of the operation of the national target under the Commonwealth’s Clean Energy Future legislation.
Victoria needs to do its fair share in contributing to the emissions reduction task but the operation of both state and national targets would have meant Victoria shouldered a disproportionate burden.
With Victoria’s reliance on brown coal as an energy source and our concentration of energy intensive, trade-exposed industries like automotive manufacturing and aluminium smelting, business was exposed to a significant cost impost.
At a time when economic conditions are fragile and many of our key industries, such as manufacturing and retail, are grappling with the impact of a higher Australian dollar and rising costs, the State Government’s decision is good news for Victorian business.