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Smart energy bosses could sue Australia

Marion RaeAAP
Legal action may ensue if the government uses green bank to invest taxpayer money in fossil fuels.
Camera IconLegal action may ensue if the government uses green bank to invest taxpayer money in fossil fuels. Credit: AP

An energy industry body representing thousands of companies may sue the Morrison government if it uses Australia's green bank to invest taxpayer dollars in fossil fuel technology.

"Our sector is now at the point where if you just roll over on these things it's just never ending," Smart Energy Council chief executive John Grimes told AAP on Thursday.

"This has been an ideological attack from the outset and you've just got to call it for what it is."

The federal government's technology road map requires grants for carbon capture and storage, steel and aluminium made using renewable energy, soil as a carbon sink, wind and solar storage and hydrogen.

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On Wednesday it faced down a second attempt to block new regulations to expand the remit of the green bank, but it many now head to the courts.

"It contravenes the Act, the Act is really clear about the definition of renewable energy," Mr Grimes said.

"We are absolutely right now talking to legal representatives and our intention is if it has a good prospect of success we would launch legal action."

Other industry groups say the expanded remit, now confirmed by the Senate, sends a positive signal to investors to back critical low emission technologies.

The federal government redrafted regulations to expand the remit of the Australian Renewable Energy Agency after a first attempt was stymied two months ago by Labor and the Greens.

"ARENA has become a vital institution in Australia's efforts to drive emissions reduction and combat climate change," Minerals Council chief executive Tania Constable said

Industry group Low Emission Technology Australia chief executive Mark McCallum said pragmatic policy decisions such as broadening ARENA's investment scope will help achieve targets.

"The more we can encourage investment, the faster we can bring these technologies to commercial scale, reduce costs and transition to a low carbon economy," he said.

Energy Minister Angus Taylor expects more than $80 billion in private and public investment over the next decade in the government's preferred technologies to reduce and remove emissions.

The regulations which survived Wednesday's vote will allow ARENA to invest in low emissions technologies including carbon capture and storage and hydrogen made with using fossil fuel generated energy.

"If minister Taylor thinks this is over he is wrong," Greens leader Adam Bandt said.

"This regulation is unlawful and the government is just trying to deliver for fossil fuel donors."

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