The Finkel Review at a glance

The long-awaited report from Chief Scientist Alan Finkel into Australia’s National Electricity Market was released today.

The key recommendation is the adoption of a Clean Energy Target. This mandates that energy retailers provide a certain amount of their electricity from “low-emissions” generators – sources that produce emissions below a threshold level of carbon dioxide per megawatt.

Crucially, Dr Finkel has not made a recommendation as to the precise threshold or the number of certificates to be issued, saying:

The Panel acknowledges that the specific emissions reduction trajectory that should be set for the electricity sector is a question for governments.

At a minimum, the electricity sector should have a trajectory consistent with a direct application of the national target of 26-28% reduction on 2005 levels by 2030, as per Australia’s international obligations under the Paris Agreement.