Abbott passes more wind war

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From Fairfax:

Tony Abbott has dramatically escalated his war on wind power, creating a new cabinet split and provoking a warning he is putting international investment at risk.

Fairfax Media can reveal the government has ordered the $10 billion Clean Energy Finance Corporation not to make any new investments in wind power projects.

…The decision is another blow for the multibillion-dollar wind industry, which has just started to recover from the uncertainty created by the government’s Renewable Energy Target review. Analysts say $8.7 billion is expected to be invested in wind power in the next five years, while the corporation has invested about $300 million in wind projects to date.

A major international renewable energy company told Fairfax Media the decision would add to perceptions Australia was not a safe place to do business.

And more:

According to media reports, the government’s order also applies to small-scale solar technology, such as rooftop panels. At the moment, one-third of CEFC funding goes to solar projects, most of which are small-scale.

…Prime Minister Tony Abbott believes it will provide certainty for the sector.

“But while it exists, we believe we should be investing in new and emerging technology – certainly not existing wind farms,” he told reporters in Darwin on Sunday.

Hear, hear. This is a part of Australia’s front line economic defense against the external shocks developing in Greece and China. This five cornered shield for the economy comprises:

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  • the Grocery Code of Conduct;
  • Andrew Robb’s FTAs;
  • the Q&A ban;
  • development of a local flag manufacturing industry, and
  • gutting renewable investment to ensure that it does not displace the Grocery Code of Conduct, FTAs of flags on Q&A.

It is model economic management.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.