Bring Obama's Energy Plan To Oz

Author: NRMA MediaDate: 23 January 2009

The Australian Government should follow the lead of US President Barack Obama and outline a strategy to wean Australia off its dependence on foreign oil.

NRMA President Wendy Machin said the current period of cheaper petrol prices could not last forever and the Government should use this opportunity to replace Australia's fossil-fuel dependent industry with greener fuels and technology developed here in Australia.

"Barack Obama said in his inauguration speech that he will wean the United States off its dependence on foreign oil, yet there has been little progress here at home," Ms Machin said.

"Australia has to develop greener fuels and technology - we can either make progress now or pass on a much bigger problem to the next generation."

In the past four years Australia's dependence on foreign oil has grown by 30 per cent and if nothing is done, the nation will have an oil trade deficit of $25 billion by 2015, causing enormous inflationary pressures on the economy and further damage to the environment.

Last year the NRMA launched the Jamison Group's report: A Road Map for Alternative Fuels in Australia: Ending our Dependence on Oil.

The Jamison Group was established by the NRMA following the company's Alternative Fuel Summit and comprises four scholars in the fields of energy and transport - David Lamb, Mark Diesendorf, John Mathews and Graeme Pearman.

The report outlines a 12 step road map to improve Australia's fuel consumption standards, reduce Australia's dependence on fossil fuels through the development of alternative fuels and replace Australia's fleet with electric cars running on renewable energy sources.

Many of the initiatives outlined in the Jamison Report are mirrored by policies that President Obama has said he would adopt.

"The Government has outlined a carbon trading scheme which effectively taxes the amount of pollution we create, but little has been done to end our dependence on the fuels that create the pollution," Ms Machin said.

"Australians are currently enjoying the lowest petrol prices in more than three years, but once the global economy picks up demand for crude will increase again and so too will the price of petrol at the bowser.

"We must not waste this opportunity - the groundwork has already been done for the Australian Government, all that is needed now is for the work to begin."

The Jamison report's 12-step Road Map:

1. Federal Government announce a national goal of reducing oil dependence by 20 per cent by 2020; 30 per cent by 2030; and 50 per cent by 2050
2. Promote and develop natural gas, bio-fuels and electric vehicles as alternatives to fossil fuels
3. Introduce compulsory fuel consumption standards to be on par with the European Union and Japan
4. Further compulsory emissions standards to be on par with European and Japanese standards
5. Mandate the production of alternative fuels and energy to set targets of five per cent by 2010, 10 per cent by 2015 and 20 per cent by 2020
6. Introduce tax incentives to stimulate demand for vehicles running on alternative fuels or propulsion systems
7. Introduce tax incentives to grow new alternative fuels and to build the infrastructure needed
8. Identify the subsidies paid to reinforce current oil dependence and wind them back
9. Use the Green Car Fund to rebuild Australia's automotive industry to meet the needs of t\he new carbon-conscious 21st century
10. State Governments to play their role by reforming their tax arrangements to ensure drivers of low consumption vehicles pay lower registration charges than drivers of higher consumption vehicles
11. Use the Emissions Trading System to build an alternative fuels industry
12. Drastically improve public transport with a focus on inner city rail, urban fast metros, light rail and mixed-mode transport