Topics: Net zero policy, Coalition future, Paris Agreement

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CHRIS KENNY: Let's bring in Liberal Senator Dave Sharma, who was in that meeting today. Dave, was it all sweetness and light, and you've all come out a happy, united team?

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DAVE SHARMA: Look, it was a good discussion, Chris. Everyone got to have their say. I think there's a large number of areas of agreement, which Dan Tehan has identified. I think we all agree that Labor's energy transition is failing. It's pushing up prices, it's worsening reliability, and it's not bringing down emissions, and we're all agreed that energy prices need to be brought down, not only for households, but for the economy to be more competitive. So, I think the Liberals are united around that. There's still a bit of work to do though, and there's still a Shadow Ministry meeting tomorrow which will actually adopt a policy.

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CHRIS KENNY: Yeah. So yeah, you're forgetting these targets like 2030 and net zero by 2050 crucially, but staying in Paris. So how does it work in the global diplomacy if you stay in the Paris Agreement, but don't sign up to any hard, fast targets?

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DAVE SHARMA: Well, look, the Paris Agreement commits each country to submit what's called nationally determined contributions every five years. So, if we're in the Paris Agreement, we will be having emissions reductions targets. We will need to be submitting emissions reduction targets. But I think we would all be... I think we're of agreement in the Liberal Party room that Labor's current reductions target, for instance, for 2035 of 62% to 70% is completely unrealistic and will break our economy and our energy system. The 2030 target looks unattainable at this stage as well. So, I think we will be putting forward responsible emissions reduction targets.

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CHRIS KENNY: Now, obviously, I haven't been privy to the detailed discussions you have had, and we'll all see more policy today. But from my quick reading of this document and the principles, let me just pick out what I think is a really important policy point, and then a very important political one. Policy-wise, I think the, the priority here is just key. As we just had in that discussion with Aidan Morrison, where the priority will clearly be on energy affordability and reliability. That's the number one goal. Emissions reductions come second. That's a sort of a flipping of Labor's priorities, isn't it? And a crucial one going forward.

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DAVE SHARMA: Well, I think Labor has been pursuing, emissions reductions at all costs, and they haven't been particularly successful in getting any emissions reductions. I mean, emissions now are roughly where they were when Labor took office, so they haven't come down at all. The coalition was able, when last in government, to bring down emissions and also bring down price. That's what we'd like to see happen again. And we think Labor has completely lost any focus or priority on the cost of electricity. Instead, we've got them taking taxpayer money and bailing out consumers, or trying to relieve their energy price burdens with these one-off cash handouts, which is no way to run a government.

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CHRIS KENNY: Now, the other policy point that I think has got real political opportunities here for you is the... is the eighth principle, and it's about scrapping carbon taxes, tariffs and mandates. And you say that the Liberals are going to oppose the mandated decline in the safeguard mechanism, a kind of a de facto carbon tax that Labor has. You're going to get rid of the penalties and the national vehicle emissions standard and the fringe benefit tax exemptions for electric vehicles and oppose any other carbon border adjustment mechanisms. I mean, this gives you the chance to actually promise tax cuts that are out there, the spending that Labor is throwing around on net zero related programs.

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DAVE SHARMA: Look, what we're saying is let's let different forms of energy compete on their own terms and on their own merits. So, if renewable energy is cheaper and more affordable and households want to install it, good luck to them. If people would prefer to drive an electric vehicle and charge it at home, they should be free to do that. But what we should stop doing is to keep trying to subsidize or interfere in the market in a way that props up certain forms of energy and punishes others in a way that's completely distorted all market mechanisms. And as a result, we have a very expensive energy transition that's not actually transitioning us anywhere at the moment.

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CHRIS KENNY: It is common sense, therefore, it is music to my ears. Thanks so much for joining us, Dave. I appreciate it. Dave Sharma there, Liberal Senator for New South Wales.

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[ENDS]