As far as I can see from the report, it is against the scheme on purely economic grounds, and there is no doubt that there is no justification for the scheme on economic grounds. And the power industry and unions are strongly opposed to the model of distributed power generation that the scheme encourages.
But the alternative to this sort of ad hoc scheme is for the carbon price to be set high enough to reduce carbon emissions to the desired level using economic methods - and no government has seen the slightest interest in doing this, as it would inevitably mean a massive increase in the price of power in particular (a large proportion of Australian power is coal generated), and the export of a large number of jobs in the coal industry and energy intensive industries such as aluminium, cement, steel, just to mention a few. 
I personally do not see any possibility of the world's carbon emissions being reduced by the amount claimed to be needed except in the very unlikely event of a high carbon price being set over most of the world (to prevent export of energy intensive industries) . And any action taken by Australia will make no significant difference to world emissions; but the Government wants to be seen to be doing something, and various ad hoc schemes such as this one are doing "something".
John
				
			 
			
		 
			
				
			
			
				John
JDNSW
1986 110 County 3.9 diesel
1970 2a 109 2.25 petrol
			
			
		 
	
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