Leader of the Opposition

The Hon Malcolm Turnbull MP

Prime Minister
Parliament House
CANBERRA ACT 2600

Dear Prime Minister

I write regarding the imminent release of the Independent Review into the Future Security of the National
Electricity Market being undertaken by the Chief Scientist Dr Finkel.

Labor looks forward to the release of the report, and understands that it will make clear that the current
lack of national energy and climate change policy is not a sustainable long-term way forward for
Australia. Reform is needed to provide energy security, improve affordability and reduce pollution in a
cost-effective manner.

As you would be aware, wholesale power prices have doubled in the past four years, and we are
experiencing a damaging investment strike due a lack of national policy certainty. At the same time,
pollution is increasing.

Labor, along with nearly all business groups and experts, has advocated for an Emissions Intensity Scheme
to provide an important price signal in the energy sector, put downward pressure on power prices and
reduce pollution. Arguably there is a consensus on the policy direction required, with the exception of your
Government which has short-sightedly ruled out this mechanism.

As you have often said, the best way to deliver stable, low pollution energy at the lowest cost is a
comprehensive market mechanism that drives investment in renewable energy.

In this vein, its encouraging that some of the options being mooted, including a well-designed Low
Emissions Target, have as their central design feature a market mechanism that drives investment in
renewable energy to set Australia up for the move to a clean energy future.

After a decade of toxic politics surrounding energy and climate change policy, Australians are looking for
both major parties to co-operate on a way forward.

My party is determined to approach Finkels final report with an open mind to achieve an outcome that is
in the national interest.

We will not be shifted from our principles and our strong belief in the need for effective action on climate
change. But we will consider alternative models and schemes, such as a well-designed Low Emissions
Target, against a number of important pre-conditions for enduring, stable energy policy. These include
considerations around system security, affordability and pollution reduction.

PO Box 6022 Parliament House, Canberra ACT 2600 Tel:(02) 6277 4022 Fax:(02) 6277 8592
The most effective policy for investment certainty in the energy sector is bipartisanship.

Given energy is the lifeblood of the economy, and investment decisions are taken over 20 and 30 year
horizons, we believe it is time to put an end to the climate wars that have thwarted sensible energy policy
over recent years.

As such, Labor calls on the Government to work with us in a bipartisan approach to put in place the right
energy policy for our nations clean energy future.

To this end, I would ask that you provide access to officials and Dr Finkel following the release of the report
to enable Labor to scrutinise the recommendations and come to a considered assessment of the proposals
against our key principles. In addition, I ask that Labor be consulted on any subsequent work
commissioned by your Government on specific design options for a Low Emissions Target or similar
mechanism going forward.

Its regrettable that for too long this nations energy and climate policy has been hostage to a small handful
of climate sceptics in the Liberal Party while power prices have gone up, pollution has gone up and
investment has stalled.

Continuing this approach is unsustainable it risks jobs and Australias economic future.

Yours sincerely

Bill Shorten MP
Leader of the Opposition
Shadow Minister for Indigenous Affairs and
Aboriginal and Torres Strait Islanders

7 June 2017