The government has moved to hose down speculation that it will scrap the renewable energy target saying it remains committed to the policy.
Subscribe now for unlimited access.
or signup to continue reading
Finance Minister Mathias Cormann said on Monday that the government's position was to "keep the renewable energy target in place" amid speculation Prime Minister Tony Abbott and senior frontbenchers were moving to dump it.
It comes after The Australian Financial Review reported on Monday that Mr Abbott had asked the chair of a review of the RET to do more work on the option of abolishing the target.
Until now, it was considered that the review, led by climate sceptic businessman Dick Warburton, was more likely to recommend the target be scaled back rather than abolished altogether.
Environment Minster Greg Hunt is reported to be unhappy with moves by Mr Abbott, Treasurer Joe Hockey and Senator Cormann to abolish the RET under a scenario that would close the scheme to new entrants.
ON ABC radio on Monday, Senator Cormann would not confirm that such a plan was afoot, but he said the government intended to keep the target in place.
"Our position is to keep the renewable energy target in place," he said.
"The government remains committed to the renewable energy target, that is our policy.
"We are currently waiting for the results of a review which is on the way and obviously we'll make decisions once that review is received in an orderly and methodical fashion."
Shadow assistant treasurer Andrew Leigh told Sky News on Monday that the government should keep the target, which he said had enjoyed "bipartisan support since its inception".
The Australian Chamber of Commerce and Industry is among the business groups that have written submissions to the government in favour of abolishing the RET.
Other business groups have demanded the so-called "true" 20 per cent scenario, which would cut the target back to about 27,000 gigawatt hours of renewable energy production by 2020.
The current RET of 41,000 GwH, originally estimated to represent 20 per cent of Australia's power supply by 2020, is now estimated to be closer to 27 per cent.
An analysis by environment groups published on Monday found that reducing the RET would generate $10 billion in extra profits for the owners of coal and gas-fired power plants over the next 15 years.
