Smart Energy Council proposes carbon costs for extended coal operations

The Smart Energy Council is proposing that coal-fired power stations, such as the Eraring Power Station, be required to pay carbon costs if they continue to operate beyond their agreed closure dates.

Under this proposal, any coal station operating past its scheduled shutdown would lose its pollution allowance and be required to account for all emissions under the Safeguard Mechanism. This would necessitate the use of Australian Carbon Credit Units for every tonne of emissions produced after the deadline.

Smart Energy Council chief executive David McElrea stated that while the policy would not force stations to close, it would ensure that extending the life of coal assets does not include the right to pollute for free. He argued that delaying coal closures makes renewable energy investments harder to finance, delays new generation, and creates uncertainty for workers and consumers.