March 29, 2021 Read More →

AGL Energy deals with emissions by creating separate entity to not deal with emissions

Medium:

At AGL Energy’s big ‘Investor Day’ event, the company announced a long-expected plan to deal with rising scrutiny of their extremely high emissions -splitting the company out into two halves and not changing emissions at all. The first, a retailer named ‘New AGL’, and the second, a generation company burdened with the country’s worst, most polluting coal-fired power stations.

It was a confirmation of what many had feared — AGL Energy is dropping the ball and opting out of climate action. Clever corporate structuring won’t change the significant emissions impact of the company. 

Corporate restructures do absolutely nothing to change this.

This is because the wholesale price of electricity in Australia is dropping fast. That is screwing up the economics of big coal plants, which means they may close early, even if their owners don’t want them to, and they may operate at far lower levels before they close (further worsening the economics).

In a joint report from Institute for Energy Economics and Financial Analysis (IEEFA) think thank and advisory Green Energy Markets, the likely pathways for this trend are outlined. 

[Ketan Joshi]

More: AGL’s restructure does next to nothing for its climate problems

Posted in: IEEFA In the News

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