Climate Change Authority Proposes A More Stable Future For RET Scheme

In an investment setting characterised by capital-intensive projects and uncertain returns, the RET scheme plays a crucial role in ensuring the economic viability of renewable energy projects. To ensure that projects are delivered, investors and financiers need reasonable confidence in expected returns; something which the RET scheme has arguably failed to deliver since its introduction in 2001.

Since that time, no fewer than five policy reviews and two legislative amendments have been undertaken in relation to the RET scheme, which is hardly conducive to delivering the stable policy setting investors and financiers require.

In its 2012 review, the Climate Change Authority has shown it understands the importance of predictability for investors and risks of shifting policy. The recommendations in its October discussion paper seek to minimise future policy uncertainty.