Mr. Noel Cahill:

The targets are very challenging. If we continue existing policies there will be a substantial gap in meeting our targets, and it is projected that non-emissions trading scheme emissions, which are a national responsibility, will fall by 3% rather than 20%. The Environmental Protection Agency has another scenario with additional measures, which is based on achieving stated Government policies and targets. It assumes we will achieve fully the national energy efficiency plan and the renewable action plan. If those can be achieved, emissions would fall by 11%. That would bring us close to the target. In the early years of the period there are set targets and we could be below them, meaning credits could be carried forward. If the additional measures could be implemented, we would come very close to meeting the targets. Nevertheless, it would be very challenging to implement all of them.

The more likely outcome is there will be some gap. If all the cost-effective opportunities could be implemented, we would be able to meet our targets. There is also an option of buying credits. We should initially seek to go as far as we can to meet these targets and there are options to make up a shortfall.