AGL split ‘not going to fly’ after Labour: Cannon-Brookes win

But Mr Hunt said the split “represents a decisive move towards decarbonisation”.

It would enable coal-focused Accel Energy and retailer AGL Australia to “responsibly accelerate the decarbonisation of Australia’s energy system, faster than a single company could have”.

“AGL shares the ambition for decisive action on climate while ensuring affordable energy, and looks forward to working with the Albanian government to achieve this,” said Mr Hunt.

“AGL Energy is committed to our clear unbundling plan that is the best path for the company, for shareholders and for Australia’s orderly and responsible energy transition – supported by the Grant Samuel Independent Expert report

Cannon-Brookes, who owns his stake in AGL through his company Grok Ventures, wants the country’s largest electricity producer to close all of its coal-fired power plants by 2035, shortening the life of the giant Loy Yang A lignite power station in Victoria by up to 10. year.

He says an accelerated exit from coal is needed to meet the climate goals of the Paris Agreement and limit global warming to 1.5 degrees.

AGL argues that a faster exit from coal is not possible without jeopardizing Australia’s electricity security and driving up electricity prices.

Mr Hunt on Friday, Grok’s alternative proposal for an integrated AGL described as a “think bubble”and “irresponsible”.

This was an election won and lost on climate.

Mike Cannon Brookes

Mr. Cannon-Brookes warned this month that AGL Energy’s near-total disregard of the need to decarbonise in the documentation for its demerger would convince many institutional shareholders to vote against the demerger.

Superannuation giant HESTA, which owns 0.36 percent of AGL, has already said: that it could vote against the split unless it would ensure a reduction in emissions in line with the Paris Agreement and a fair transition for the affected workers.

Mr. Cannon-Brookes then pointed to last year’s AGL when: more than 52.5 percent of proxy votes supported a resolution by an activist group calling on the company to establish coordinated goals in Paris, again referred to that vote on Sunday after Labor’s victory.

“This was a won and lost election on climate,” he said.

“Australians want action and demand a stronger stance – just like AGL shareholders who voted for a Paris Agreement-aligned future last year.”

Stronger target

Labor has a much stronger target for emissions reductions by 2030, of 43 percent by 2030, compared to the coalition’s long-standing 26-28 percent reduction target, and appears to be coming under pressure from the Climate 200-backed teal independents who won seats on Saturday to be more ambitious on climate.

Mr Hunt said decarbonization at AGL “must be done in a way that protects and enhances system stability, affordability and reliability for customers and shareholder value, and addresses the just transition for our employees and communities.”

“AGL Australia and Accel Energy have made firm climate commitments, including net-zero target dates and the development of new renewable and flexible generation capacity,” he said, pointing to AGL’s deal this month with Global Infrastructure to invest up to $2 billion in new ones. renewable energy projects.

Mr Hunt said the country’s energy transition should be seen in the context of how Australia and the energy system as a whole are moving to net zero, and from there what each individual company’s contributions should be.

“We’ve moved forward our coal cutoff dates and committed to review and report system readiness every year to see if we can take them further,” he said.

But Mr Cannon-Brookes said the split would mean that AGL would “fall behind” in the energy transition and miss huge opportunities.

Most of AGL’s institutional shareholders have yet to announce how they will vote on June 15, and proxy advisors have yet to make their recommendations to clients.

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