The energy plan released by chief scientist Dr Alan Finkel to the Council of Australian Governments meeting in Hobart on Friday has been greeted positively by the industry and investment sectors and given qualified support by environmentalists.

“The policy framework set out in the Blueprint provides a useful pathway forward and should help smooth out the transition currently sweeping through the energy sector,” said Emma Herd, CEO of the Investor Group on Climate Change.  

 “The final report of the Finkel Review is a strong vision for an energy system that supports Australia’s competitiveness, and provides a firm foundation from which all stakeholders and sides of politics should work together to put comprehensive reform into action,” Australian Industry Group Chief Executive Innes Willox said today.

“Getting Australia’s energy and climate change policy settings right is crucial to attracting the investment required to maintain a secure and affordable supply of energy to Australian homes and businesses, as we continue the transition to a low-carbon economy,” said Frank Calabria, CEO of energy supplier Origin Energy.

“The important work now begins as industry and governments work together to translate recommendations into actions.” Mr Calabria said.

Australian Conservation Foundation CEO Kelly O’Shanassy said “we agree with Dr Finkel that Australia should become a zero emission economy, but we disagree with him that nuclear power could be part of the mix.

Dr Finkel said households would be about $90-a-year better off under a his plan for a clean energy target which gets around political opposition to emissions trading schemes and a carbon price.

The plan is a “once-in-a-generation” opportunity to reshape the national electricity market; take advantage of technological change; improve the security and reliability of the system; reward small and large consumers who reduce electricity demand and meet a 26-28 per cent emissions reduction target by 2030, Fairfax reported.

The reduction target is a key recommendation aimed at helping Australia reduce its greenhouse emissions while keeping power prices down.

Dr Finkel said his plan would mean households would be 10 per cent better off over 30 years, and heavy industrial power users would be 20 per cent better off.

“Participation is based on low emissions, not technology type,” Dr Finkel said in the report.

“There are no prohibitions, just incentives. It puts downward pressure on prices by bringing that new electricity generation into the market at lowest cost without prematurely displacing existing low-cost generators,” Dr Finkel said,

Prime Minister Malcolm Turnbull told reporters the government would look at the clean energy target “very favourably”.

Mr Turnbull said the two benefits were its neutrality in terms of technology and the fact it would smoothly follow on from the existing renewable energy target.

There was nothing in the target to prevent a new coal-fired power station from being built, however “it would provide an incentive for lower emissions technologies”.

Labor climate spokesman Mark Butler said the opposition would carefully consider the report and seek to work with the government on a bipartisan energy policy.

Greens leader Richard Di Natale it would “keep polluting coal and gas burning for another 50 years”.

The plan is expected to help the energy sector move to a more low emissions footing, ACSI believes.  “Investors expect to see continuing closures across ageing coal fired generation and more investment flooding into renewable energy and other low technology carbon solutions,” Ms Herd said. 

ICGG has 60 members with over $1 trillion in investments including major superannuation funds.

Investors still consider a carbon price to be the most effective policy mechanism. A carefully designed, market-based Clean Energy Target which accurately reflects market and technology pricing could provide the basis for an orderly industry transition,” Ms Herd said. 

“Getting the design right will be crucial to avoid inefficient or unwarranted subsidies for carbon intensive fossil based generation.”