Talks between Labor and the Coalition on the fate of the Renewable Energy Target (RET) have collapsed as Labor walks away from negotiations. The Labor Party won’t accept ‘deep and devastating cuts to the sector’ and the Coalition will do anything to cripple the sector.

Labor’s environment spokesman, Mark Butler, wrote to the industry minister, Ian Macfarlane to say that their two stances are too far apart and Labor was not prepared to compromise that far. The letter said, “Labor will not stand by and watch billions of dollars of investment in the Australian renewable energy sector – along with thousands of jobs – go overseas because of deep cuts in the target.”

Abolishing the RET will result in billions of investments being lost, increased unemployment, business moving overseas and higher electricity prices for all. The result would be the same for a lowered RET. Already, with the uncertainty surrounding the RET investment has fallen around 70%.

“The ALP rightly concluded there was no prospect of a reasonable outcome that could offer the industry the certainty it needs,” said Australian Solar Council CEO John Grimes. “Because supporters of the existing RET are in the majority in the Senate, any attempt by the government to change the law will be defeated. So, Tony Abbott will not be able to deliver the big win to the fossil fuel industry and big power companies that he dearly wanted.”

It has been said that Labor walked away from negotiations now in order to embarrass the Coalition leading up to the G20 that is currently happening. Australia is already the only country to dump a carbon tax while every other nation is trying to establish one. If the Coalition is successful, Australia will be the only country to dilute a renewable energy target while all other nations are ramping their targets up and reducing dirty coal / fossil fuel use. Australia should be embarrassed. We are going backwards while everyone else is going forwards.

Click here to see the full letter from Mark Butler to Ian Macfarlane.