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In Australia, Can Renewable Energy Get Over the Tea Party Blues?

Dan Cass
October 27, 2011  |  11 Comments

"It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things."

Niccolò Machiavelli

Australia’s government is trying to initiate a new era of clean energy and facing such powerful opposition that some renewables companies that will benefit from the policy are scared to proactively campaign for it.

The debate around Australia’s new Clean Energy Future legislation has seen conservative parties here — as in the USA — take a stance that is not just oppositional, but dangerously radical. They now oppose traditional conservative measures such as carbon trading and corrections to market failure and a substantial minority are vocally anti-science.

“We can repeal the tax, we will repeal the tax, we must repeal the tax. This is a pledge in blood. This tax will go,” says opposition leader Tony Abbott.

What Abbott is calling ‘the tax’ is a comprehensive suite of measures, the Clean Energy Future package. If implemented, the CEF it will stimulate tens of billions of dollars of investment, create jobs and increase Australia’s long-term energy security. But Australia’s conservatives have seemingly abandoned their traditional role as advocates of effective markets and technological progress.

The Washington Post’s Brad Plumer blames Rupert Murdoch’s News Corporation for undermining Australia’s progress towards market-based, technological solutions to climate change;

On many of the underlying structural dynamics, Australia resembles the United States pretty closely. Coal and agricultural interests wield a lot of clout. Per-capita carbon emissions are high. There’s a well-developed network of climate denialism — the country’s best-selling newspaper, the Australian, regularly gives voice to skeptics of global warming.

As in the U.S., Australian conservative parties have been the target of a take over by self-styled Tea Party radicals in recent years. In the past, the intellectual leadership in conservative politics came from smart executives and well-educated professionals. 

Conservatives are increasingly led by a more shrill, less educated set, who are more likely to be small business owners or from the resource sector. To these climate denialists, renewable energy is part of a global conspiracy to destroy prosperity and Western values. Solar and wind, whether they like it or not, are being defined as a politicised brand in Australia, wrongly associated with radical green values.

Unsurprisingly, some think tanks on the conservative side of politics are now linked with the notorious climate denial and astroturf efforts of the Koch brothers.

A new low point was reached recently, when Australia’s opposition finance spokesman, Andrew Robb, made an uninformed attack on the integrity of the clean technology sector. In an interview with the Age, Robb accused the clean technology sector of being “white-shoe salesman” and “vested interests.”

Robb alleged that corrupt deals have been struck between renewable energy companies and the Labor Government and the Australian Greens. He is pursuing “what backdoor promises and commitments have already been made and to whom," in an ill-advised witch hunt against some of America’s and the world’s smartest technology companies.

The practical implication for investors and technology companies is that he reiterated the opposition’s determination to axe the $10 billion Clean Energy Finance Corporation, which is a centerpiece of Australia's whole climate legislation package.

Informed commentators are almost unanimously in favor of the corporation and the rest of the package. The Guardian’s Bryony Worthington praises the policy, writing ‘This is very good news. It has been an uphill battle, with the opposition and business lobby all but claiming that the sky would fall in should the bill be passed.’

Worthington says that the Clean Energy Finance Corporation and related measures are not just good policy but also good politics;

It will also be used to stimulate investment in new clean energy technologies leading to new jobs and increased inward investment. Hopefully over time this will boost Labour and the Greens' popularity, so ensuring that the policy is protected – despite opposition leader Tony Abbott's "blood promise" to repeal the legislation.

Global warming is forcing conservatives in America and Australia to declare their hand. They a have to make a choice between the interests of the economy as a whole or the politically dominant fossil fuel sector of the economy. Australian conservatives have chosen to back coal, oil and gas interests, to the detriment of the Australian economy.

For more than a century, parties such as the Opposition’s Liberal and National Parties have been clearly aligned with the interests of capital against parties of the left, that were aligned with the interests of the working class or a broader, social majority. Big business supported the conservatives at most elections during the 20th century.

Over the past 10 to 20 years, Australian society has undergone social and technological transformations that make the old alliance between conservatives and business problematic. Enter the inconvenient truth of global warming and the system is pushed to a breaking point.

It is too early to say where these shifting tectonic plates will come to rest, but the political landscape is new. Every day there is a new innovation or major deal in the clean tech space internationally and Australia’s conservatives are left further behind.

Multinational technology and renewable energy companies now get a better hearing from the Australian Greens than the Liberal Party. This is despite the fact that the Greens are associated with the progressive values of the Occupy Movement and constantly under attack from Rupert Murdoch’s climate denial mouthpiece, the Australian.

Smart companies are political pragmatists. They are finding ways to exploit the new situation and forging working relationships with the Greens, because it benefits their economic interests. This is a foretaste of the emerging political economy, where the relationship between business and politics is more open and flexible than in the past.

In Australia, the best option for the renewable energy sector is to ‘man up’ as Sarah Palin would put it. It needs to define the agenda in the media and shape its political relationships. Something like 90 p[ercent of the Australian public supports renewable energy so if the industry wants to have electoral clout, it just has to get organized.

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

11 Comments

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Dan Cass
Dan Cass
November 1, 2011
@solar_people: That's not correct. PV is at residential grid parity now, which is a world first. Australia is the first country where PV electricity costs the same as conventional electricity for the residential consumer.

The issue now is not about rebates but about finance and access.
Aaron Smith
Aaron Smith
November 1, 2011
I think what Australia is doing at the moment with the Solar Rebates is helping a lot more than the Carbon tax will, really once the Solar rebates cease, no one will get Solar as it is was too expensive. They tried to do the same with the Insulation rebates - but that was a whole different story - what a flop.
Matthew Crouse
Matthew Crouse
November 1, 2011
Thank you Steve. I have developed renewable energy projects since the 90s. Pragmatic and/or practical are both good
Dan Cass
Dan Cass
October 30, 2011
@Bill Bugbee: The fossil fools who pull the strings in the USA are a clearly well organised bunch!
Geoffrey Gunning
Geoffrey Gunning
October 30, 2011
To Bill Bugbee: Beautifully put!
Bill Bugbee
Bill Bugbee
October 29, 2011
Part 2-A coherent energy future for North America will be (note, we are not there yet) based on a national strategy and regulatory policies which do more than promote, but commits to an Apollo program style effort that others have already advocated, and one which will enable the full and complete transition off of fossil fueled feed stocks as primary energy sources, couple to building a truly smart national grid system. If there ever was a jobs engine, this is it.

Obstacles to a transition of this scale are not technological or even economic, rather they are orchestrated by the legacy clout of dirty energy industries of coal, oil, and yes, natural gas (the so-called clean energy option). The Citizens United (Koch brothers-funded lawsuit)and resulting Supreme Court (5-to-4) decision in favor opened the flood gates of unlimited funding for campaigns and candidates by shadow front organizations. It also doesn't help the cause of transitioning to a clean energy economy with a 24x7 mis-information machine called Fox News.

With these obstacles flying in the face of reality, are the ever present economic and environmental costs of fossil fuel extraction, consumption and emissions - and the blood and national treasure spent on defending foreign energy supplies.

As we entered the 21st century, most of the world was already at the point deficit energy spending on fossil fuels. For every btu of energy expended in the supply-chain, less the btu of energy returned, there is the intrinsic and escalating cost of consumption (emissions) on the planet, and the corresponding economic impacts of global warming on industries, consumers, and society.

Clearly, policy and politics of vested interests supporting an obsolete model based on fossil-fueled economics is NOT sustainable, and remains a serious obstacle towards achieving a global economy based on clean, sustainable, and renewable energy sources. With 7 billion consumers and growing, the time for debate has passed.
Bill Bugbee
Bill Bugbee
October 29, 2011
Part 1-Today, we see the emerging forces of business-as-usual vs. progress in the supply and consumption of energy, each engaged in a titan struggle which resembles more of a David and Goliath face-off that will likely decide the direction and future of energy supply and demand in America, and perhaps the world. Each side recognizes the role that policy and politics play in the availability of investment capital, making this much more than the banter of election cycles.
The Koch brothers represent one of several and formidable organized groups serving as a firewall to progress. Together, they fund millions in global media campaigns, are engaged in effective and a carefully orchestrated strategy of political deceit and the placement of candidates at state and federal offices who are little more than indirect employees of the Koch agenda. The Brothers, however, are not alone. Every industry connected with the fossil fuel supply chain have turned up the political heat by funding candidates, PACS, and well-funded media campaigns via organizations like the American Petroleum Institute. It's difficult not see a nightly TV commercial of well-crafted talking points and graphics aimed at convincing the voting public and consumers the only option for creating American job growth and solving our energy problems is by placing oil, coal, and natural gas at the top of energy pyramid.

The other side of the battle between myth and reality is a somewhat fragmented clean tech and emerging renewable energy sector offering less effective, if not absent, messaging. Clean tech, however, has its allies. Increasingly hammered by losses due to global warming-driven weather events, the P&C insurance industry is calling for action to reduce carbon emissions. In the absence of a coherent national policy on transitioning to clean energy, California, Oregon, Washington states have allied their efforts to make a renewable and environmentally friendly energy economy work.
Geoffrey Gunning
Geoffrey Gunning
October 29, 2011
To Dan J. Cass: Thanks for your response Dan. Politicians and media moguls have always been a dubious bunch of blaggards in the main, but what mystifies me is how they have all become so corrupt, greedy and self-seeking everywhere at the same time. Whether you live in the USA, Britain, continental Europe or apparently, Australia, we find the same phenomena – everybody out for what they can get during their short lives on this earth. All political decisions seem to be based on staying in power or getting elected at the next election - "to hell with the earth and its people, it's all about me." Short-termers all of them. As for Murdoch, he's a prime example of how the dastardly media attempt to shape and control our lives through misinformation. Sadly, most of the population is unaware that they are being manipulated.

I feel that we are, in stockmarket terms, undergoing a "blow-off top" in greed and corruption. When a stock or commodity price goes exponential, there is only one result – collapse. I expect the Western World collapse will take longer than we think and it's going to be painful. Perhaps it will lead to a more benign world where we are in balance with nature, population growth, resources etc. One can only hope.

I'm sure you are familiar with Exxon's ploy to bribe scientists into refuting Global Warming. To those that don't, here's a Guardian report:

http://www.guardian.co.uk/environment/2007/feb/02/frontpagenews.climatechange

Beware of any attempt by oil companies to muscle in on solar energy under the guise of "being green" (e.g. B.P.) – it is most likely an attempt to control and stifle it.

(P.S. I lived in Australia for 3 years (40 years ago!) and drove all the way round it and down the middle. Amazing country. If ever a country was ripe for solar energy, Australia is it.)
Dan Cass
Dan Cass
October 29, 2011
@geoffrey-gunning-39130: Thanks for the comments and excellent quote.

I appreciate the rage you feel when you see stupidity win so often in public life, on such important issues.


@steve-buchholz-141503: HA ha, if we were in the same City we could have a good argument about global warming!

I agree with you that a pragmatic approach to the opportunity/cost of renewables favours vigorous investment, such as Australia's Clean Energy Future policy.

You have touched on a key issue for me about the decline of conservative thinking in Australia.

Contemporary conservatives fail to take a cautious, pragmatic approach to issues if they can instead find some political 'angle' to grind their opponents with. Its so tedious and irrational!
Steve Buchholz
Steve Buchholz
October 28, 2011
While there are signs that "global warming" is real, I happen to be one of the skeptics of "anthropogenic global warming." That said, I am more pragmatic in my strong support for alternative energy development. Nations who become technological leaders in alternative energy will be better off than those who do not. It is clear that China understands this concept. Incentivizing the development of alternative energy sources will accelerate development and lead to reduced costs sooner, which eventually will make it possible to modernize the areas of the world that currently do not have a regular supply of electrical power. Even though such technology development may not be a solution to a "life or death" problem, it does lead to conservation of coal and oil, which means that they will be available for a longer period.
Geoffrey Gunning
Geoffrey Gunning
October 28, 2011
The anti-renewable energy brigade will have to be dragged, kicking and screaming into the 21st. Century. They are in denial of the problems that face this world i.e. rapidly expanding population, rapidly expanding industrial base (China/India), depletion of earth's resources and very strong possibility of global warming - just to mention a few. Call me extreme if you like, but I don't there should be anyone in charge of energy policy (and perhaps many other government departments) that does not have at least a Bachelors Degree in Chemistry, Physics, Geology, Biology or Biochemistry. Unless you have a good idea of how nature and science 'works,' then your opinion is just froth, background noise - call it what you will.

To quote philosopher Bertrand Russell: 'The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.'

Nothing changes.

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Dan Cass

Dan Cass

Dan Cass is a strategy advisor and Registered lobbyist for the renewable energy industry in Australia. He is the Director of Hepburn Wind. Dan has experience in the environmental movement (20 years), the Australian Greens party (15 years)...
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