Mathias Cormann has suggested Australians keep an open mind to nuclear power, saying there isn’t “anything inherently partisan” about the energy source.
The Paris-based Organisation for Economic Co-operation and Development (OECD) secretary-general also backed the Albanese government’s current 2030 emissions reduction target as “well on track” and urged it to adopt an economically responsible and “globally effective” 2035 target.
He also cautioned the Reserve Bank of Australia against cutting official interest rates too fast and far, given ongoing fears about inflation.
Labor is on the cusp of announcing its next internationally binding climate target, and there is fierce debate over how ambitious it should be.
Emissions are down 28 per cent on the baseline year of 2005, which is little changed from three years ago. The current 2030 target is for a 43 per cent reduction.
Mr Cormann backed the Albanese government’s current 2030 emissions reduction target and said it was “well on track”. (ABC News: Matt Roberts)
The former Coalition finance minister and WA senator was unwilling to be drawn on the Liberal Party’s current internal woes, but suggested the Coalition stick to its international climate promises, including the Paris Agreement signed under Tony Abbott.
“Australia signed on to that commitment back in 2016. We’re part of a global effort to tackle climate change,” Mr Cormann told 7.30 on Thursday.
“We need to do that in a way that is globally effective and economically responsible.
“And I mean, I think the very important public policy choices to be made along the way to ensure that we meet climate objectives in a way that preserves economic opportunity for people across Australia and all around the world.”
Nuclear debate ‘always open’
On nuclear power — which was Peter Dutton’s signature energy policy at the May election — Mr Cormann said “there’s no doubt” it would remain “part of the conversation as it has been internationally over the last several years”.
“I don’t think it’s a debate that’s ever closed. I think the debate is always open.”
After one of the heaviest defeats in Australian political history, the Coalition under Sussan Ley and David Littleproud has undertaken internal reviews of its positions on net zero and nuclear energy.
The Coalition has been divided over its net zero policy. (ABC News: Callum Flinn)
“I’m not getting involved in a partisan debate here,” Mr Cormann said, before adding: “I don’t think that there’s anything inherently partisan about nuclear energy.
“In countries around the world, there are governments of different political persuasions who are pursuing increasing nuclear capacity.
“We’re having the conversation now and certainly in the context of wanting to preserve international competitiveness, wanting to ensure energy security and reliability, affordability, and meeting climate objectives.”
Warning over rapid rate cuts
On potential Reserve Bank rate cuts and government budget decisions, Mr Cormann urged caution, suggesting the OECD does not believe a large number of rate cuts are needed.
Mathias Cormann says there is a risk inflation could remain inflated for longer than expected. (Reuters: Benoit Tessier)
“In a general sense, what we would say is that it’s appropriate for monetary and fiscal policy to remain prudent in the current global economic context,” he told 7.30.
“I mean, there is a risk that inflation could remain elevated for longer than previously anticipated.
“And so in that sense, I’m sure that the Reserve Bank in Australia is reviewing all of the data very carefully and making appropriate decisions at the appropriate time.”
Mr Cormann was reappointed as OECD boss for a second five-year term in July.
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