Economic Freedom

Australia’s Deindustrialisation

High energy prices are causing Australia to deindustrialise. Last week the Australian reported that mining giant Glencore’s chief Peter Freyberg called for the abolishment of the renewable energy target, stating, “If heavy industry is to continue operating in Australia, it will have to be exempted as it is currently bearing the brunt of the crisis given the high percentage of energy within its overall cost structure,” Over the last Australia’s energy prices have gone from being one the cheapest in world to one the highest. This is unfortunate since many of Australia’s competitive export industries are dependent on cheap energy.

At present Australia has a renewable energy target (RET)  of 24% to be achieved by 2025. The recent Finkel report recommended this be increased to 42% by 2030. Australia generates 14% of its electricity through renewable energy and already consumers have seen energy prices increase dramatically. This has has Read the rest

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