A group of Coalition backbenchers who believe Australia needs new investment in coal-fired power will meet with powerful business lobby groups in Canberra this morning, as the energy minister seeks unity within the government on energy and climate policy.
Energy minister Josh Frydenberg set up the meeting in a bid to convince the backbench group, which includes former prime minister Tony Abbott, not to cross the floor to vote against the Turnbull government’s National Energy Guarantee (NEG).
Last week, Mr Abbott told 2GB Radio he hoped not to cross the floor, but could not be expected to “support a policy that will continue to drive prices up”.
Mr Frydenberg has long argued the NEG, which would force energy retailers to meet carbon reduction targets while also meeting “reliability” benchmarks, has the backing of the business community.
He is urging the backbench bloc to listen to the groups meeting them in Canberra today, which include the Business Council and the Minerals Council.
“This is a chance we cannot miss,” Mr Frydenberg told reporters at Parliament House on Tuesday morning, ahead of the meeting.
“My colleagues do support the national energy guarantee, it's already been through the party room.”
“There has been extensive debate and today is another opportunity for my colleagues to hear first-hand from some of the biggest employers in the country why this is such an important reform.”
This is a chance we cannot miss.
Mr Kelly said he was not trying to “scupper” the policy, but warned the “devil is in the detail”.
“I’m not comfortable because I do not understand how that reliability guarantee works,” he said.
But Mr Kelly said if the business groups could “explain” how they would not suffer any financial harm from the policy, he would support the NEG.
“[If] they can explain to the backbench committee how this reliability guarantee won't adversely affect them, I'm sure that it will have enormous support.”
Mr Kelly denied his support was conditional on a government-subsidised coal-fired power station.
“I’m not sure the government would need to subsidise a new coal-fired power station,” he said, arguing more policy “certainty” could be enough to encourage private investment.
Labor leader Bill Shorten said the opposition’s more ambitious clean energy targets would encourage investment in renewables and “put downward pressure on gas and electricity bills”.
Liberal Member for Hughes Craig Kelly. Source: AAP
Greens MP Adam Bandt said prime minister Malcolm Turnbull was under pressure from pro-coal “dinosaurs” on the Coalition’s backbench.
“We need to close down the equivalent of one coal-fired power station every year between now and 2030, and replace it with renewables if we have any hope of meeting the Paris targets.”
