Energy Minister backtracks on emissions intensity scheme comments amid carbon price debate
Updated
A possible new price on carbon has been taken off the table by Energy Minister Josh Frydenberg, after a backlash from some government backbenchers.
"I'm not contemplating that scheme because what I'm focused on is how to keep down electricity prices," Mr Frydenberg said.
The moves comes two days after he announced an energy review, which included how power companies could pay for carbon emissions.
"I didn't mention an emissions intensity scheme, its not in any document that the Coalition has put out, in relation to this review," he told 3AW on Tuesday.
"The Turnbull Government is not contemplating such a scheme ... we're not advocating for such a scheme," he said.
But on Monday he said an emissions intensity scheme was being considered in an interview on the ABC.
"We know that there's been a large number of bodies that have recommended an emissions intensity scheme, which is effectively a baseline and credit scheme, we'll look at that," he said.
His backtrack came after Liberal Senator Cory Bernardi and fellow backbencher Craig Kelly hit out against the review.
Senator Bernardi told Sky News there would be political costs.
"The only thing it's going to do is cause division, it might make us lauded by the Greens and the Labor Party and the rent seekers but this is one of the dumbest things I've heard in politics in recent times," he said.
Mr Kelly said the Government should be more focused on the cost of electricity.
"If it pushes electricity prices up, this is the real concern I think that every member of Parliament should have," he said.
"We've already seen electricity prices substantially increase in this country."
Carbon price review 'business as usual' for Liberal Party: Turnbull
Prime Minister Malcolm Turnbull said earlier on Tuesday he did not support a carbon tax, amid unrest within the Coalition about a review of climate change policies.
But former Liberal treasurer Peter Costello said a price on carbon was the same as a carbon tax.
"I don't think that we'll go back to a carbon tax or a tax by another name, which is pricing, I think the Liberal Party's been through that. Been there, done that," he told ABC's 7.30.
Mr Turnbull also said plans for the review dated back to when Tony Abbott was leader of the Liberal Party.
"This is absolutely part of our policy," he said.
"It's part of the policy we took to the election in 2013 and 2016 and, indeed, we took to the election in 2010. So, this is business as usual."
Topics: government-and-politics, federal-government, liberals, environmental-policy, environment, australia
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