With proposed carbon trading options encouraging increased use of natural gas, Australia’s gas transmission industry today called for clarity and certainty in carbon trading policies proposed by government.
The Australian Pipelines and Gas Association’s Chief Executive, Cheryl Cartwright, warned that there is a danger consumer demand for energy might not be met if an increased demand for natural gas (particularly for electricity generation) is hampered by lack of transmission capacity.
“There is little point in introducing an emissions trading system which could encourage increased use of natural gas – as an alternative, lower CO2 fuel to coal – if the infrastructure is not available to meet the demand,” Ms Cartwright said.
“It is essential that, as demand for natural gas increases, gas transmission infrastructure has an appropriate policy environment within which to expand its capacity.
“This means that there needs to be a regulatory system for gas transmission that encourages investment and there needs to be clear government policy with regard to carbon trading so that there can be certainty in investment in such infrastructure.
“Of course the government will want to consider the report of the PM’s Emissions Task Force, but it should not delay a decision – in the interests of climate and in the interests of investment in the nation’s energy future.”