Energy Policy
Today’s Media has published two damming criticisms of government policy on global warming and, in particular, its predictions that NEG will result in falls in power prices. These come after yesterday morning’s seemingly desperate attempt by Frydenberg to support NEG including by his astonishing recourse to “experts” picked by Turnbull and himself viz “we are absolutely confident that prices will come down because that’s the best advice of the Energy Security Board which represents the best experts in the field … This is no subsidies. No taxes. No trading schemes. No carbon price”. It’s using existing market mechanisms involving “contracts exchanged for physical electricity”. One pertinent comment I received (from a different expert) is that NEG is similar to a plan by Lenin!
A Victory for Turnbull?
The week-end’s Media assessment of Turnbull’s New Energy Guarantee (NEG) is generally favourable, but withTerry McCrann predicting an extremely unfavourable outcome for the Coalition viz
“Malcolm Turnbull and Josh Frydenberg have made a deliberate decision to lose the next election and to lose it badly. The rest of the joint party room voted to endorse the decision, an indeterminate number of Liberal and National members voting for an early retirement. This is the irresistible and even more the irredeemable political consequence of the Turnbull-Frydenberg decision to opt for a policy of (only trying) “to keep the lights on” over a policy of significantly and quickly cutting both electricity and gas prices. Far less, the third, but first-best, option — the option, begging to be embraced by a half-rational government that had the most minimalist understanding of political dynamics — of aggressively aiming to deliver both more and more reliable power and cheaper and sustainably cheaper power”.
Assessing Turnbull’s New Energy Policy
Various developments emerging since yesterday’s Commentary suggest that the quick decision to establish a new National Energy Guarantee (NEG) may largely reflect concerns by Turnbull about his continued poor polling and that “something needs to be done” to repair that.
Energy Policy and Abbott’s Leading Role
It will take time to assess the detail of the forthcoming new Energy Policy of the Turnbull government, but the forward hints in the media leave much to be desired.
Where Can Turnbull Go Now?
My Commentary of last Thursday reported that the (scientist) President of the US SEPP group had described Abbott’s address on Daring to Doubt as “one of the best talks given by a politician in decades”. I also reported that the US EPA head had announced the repeal of the Clean Power Plan initiated by Obama but rejected by the US Supreme Court. Here in Australia, leading journalist Terry McCrann had described Abbott’s address as “seminal”.
More Responses on Abbott
This morning I received a message on Tony Abbott’s London address from the President of The Science and Environmental Policy Project, Ken Haapala, in the US. It was brief but important because Ken is a scientist and an expert on climate change whose weekly messages report on the latest developments in analysing climate changes, including those theses which he judges to be “off the planet”. This message to me was a response to the full text of Abbott’s address which I sent him as an attachment to my Commentary on Tuesday 10 Oct and which I suggested to him is important “both politically and “scientifically”.
Response to Abbott & US Repeal of Obama’s Clean Power Plan
As expected, the London address by Abbott has led to many critiques, including some that attempt to present his analysis as ridiculous partly be being selective in quotes. I respond to some of these critiques below. Suffice to say here is that the response so far by Turnbull and Frydenberg is basically limited to saying “well he didn’t say that when he was PM” (see Frydeneberg’s Critique of Abbott). Turnbull has refused to comment on Abbott’s address but has rejected any withdrawal from the Paris agreement (see Turnbull to Stick to Paris) But the responses by some backbenchers indicate that Abbott has stirred the possum –and on more than one tree. He has also reinforced (without actually saying it) the problems with Turnbull. In The Australian, Simon Benson points out that the government led by Turnbull has created a policy vacuum and “when the government does finally dump the CET, Abbott will doubtless be there congratulating them for finally listening to him” (see Benson on Turnbull).
Abbott’s London Address & Turnbull Back-Track
My Commentary yesterday accurately predicted that the scheduled AFR Energy Summit and Abbott’s address in London would spark active discussion on energy policy, which necessarily involves environmental policy too. The address at the AFR Summit by Environment Minister Frydenberg indicates that the Turnbull government seems to have made a start at determining what its policy will be, although even after the many statements that “it’s coming” it seems it will not be finalised until the end of the year.
Newspoll Shows Coalition Stuck on Low Rating
The (normally) two weekly Newspoll on 25 September showed the Coalition’s TPP had fallen by 1 percentage point to 46/54. Today’s Newspoll is a quarterly one that shows the TPP at 47/53 but this is the same as the previous two quarterly ones and, while Turnbull’s performance improved from 33 to 35 “satisfied”, Shorten’s “satisfied” also improved (from 32 to 34). Turnbull’s rating as PM fell fractionally to 43 (from 44) while Shorten’s stayed at 32.
Gas and Political Crises
The further fall (down to a 46/54 TPP) in the Coalition’s Newspoll last Monday might have been expected to produce a swathe of comments as to either the possible replacement of Turnbull or possible major changes in Coalition policies. Surprisingly, few did so.