Australia should take “credible” emissions reduction targets to the international climate change negotiations in Paris at the end of the year.
That’s according to Matthew Warren, Chief Executive of Energy Supply Association of Australia.
He said it is clear an internationally accepted target is critical to reverse the “continued uncertainty” about the direction of the nation’s climate change policy.
The country aims to reduce carbon emissions by 5% by 2020.
He added: “Climate change is a risk management issue and effective, efficient, credible and durable climate policy is needed to manage and reduce this risk.
“The target adopted by the Australian Government is an important step towards this.”
Mr Warren went on to say a target which was not seen as credible by businesses and the international community would simply prolong uncertainty as investors would delay action.
He said: “The government has already committed to making a strong contribution to the post-2020 targets and process, which would take into account the actions of our trading partners and other major economies.
“Most major developed economies have already made significant commitments which match ambition with reality.
“The real test of a credible Australian commitment is it will enable, rather than defer, investment and result in the important public debate about how we manage this major economic reform.”