APA chairman warns of ‘upheaval’ amid failing climate targets

afr.com:

APA Group chairman Michael Fraser wants “realistic” energy policies to avoid blackouts and higher prices for consumers, warning of “political and economic upheaval” if climate targets are too ambitious.

Mr Fraser will tell the gas pipeline owner’s annual shareholders meeting that policymakers need to be aware of the significant challenges involved in reducing emissions while ensuring energy remains reliable and affordable.

APA Group CEO Adam Watson (left) and chairman Michael Fraser ahead of last year’s AGM in Sydney. Michael Quelch

“It seems abundantly clear that even with the industry’s best endeavours and most optimistic view of the road ahead, there are several factors at play that will inevitably delay the achievement of Australia’s renewable energy targets and hence emissions reduction targets,” Mr Fraser said in his address released ahead of the AGM in Sydney on Thursday.

The comments reflect mounting doubts that Australia can reach its goal of 82 per cent renewable energy usage by 2030 requiring emissions fall by 43 per cent from 2005 levels. Multiple factors are delaying the build-out of new clean energy generation, including slow planning approvals, community opposition and rising costs.

Mr Fraser said competition for skilled labour, critical minerals and equipment across the world would also hinder meeting the targets. He highlighted inflationary pressures “that are significantly impacting project costs” as well as the “glacial” pace of approval processes. “Increasingly interventionist” energy policies across Australia have also rattled investment confidence.

Mr Fraser, a former chief executive of AGL Energy, warned of the risk of losing public support for the switch to low-carbon energy if supply becomes