Minister for Climate Change and Water Penny Wong said the decision to increase the target to include waste coal mine gas had not been taken lightly. She said the amendment guaranteed there would not be a single MWh of renewable energy replaced by waste coal mine gas generation.

“Waste coal mine gas is not a renewable energy source and is not intended to contribute to the 20 per cent target for renewables in 2020,” Ms Wong said.

The details of the amendment follow the Government's initial announcement that changes would be made to the RET legislation to decouple it from the Carbon Pollution Reduction Scheme.

The amendment will allow existing waste coal mine gas generation projects to be included in the RET, as a transitional assistance measure. This will apply from 1 July 2011 until 31 December 2020.

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To clearly differentiate waste coal mine gas from renewable energy sources, the amendment creates a new concept of an 'eligible energy source' that comprises the current list of eligible renewable energy sources, and separately, eligible waste coal mine gas.

To ensure the inclusion of waste coal mine gas under the RET does not crowd out renewable energy generation, the amendment will increase annual targets under the expanded RET scheme for the years 2011 to 2020.

Eligibility will be limited to waste coal mine gas-fuelled power stations currently in operation, with annual limits placed on these power stations' ability to create RECs based on their 2008 output levels.

The Opposition is seeking other amendments to the bill, including broad assistance for food processing under the scheme, caps for commercial heat pumps, and also that a portion of the renewable target be reserved for emerging renewable technologies.

Addressing Parliament earlier yesterday, Shadow Minister for Climate Change, Environment and Water Greg Hunt said “If the government does not accept the principles of these amendments today as we enter into negotiations then we will show good faith by allowing the legislation to pass the House. But we will reserve our position in the Senate subject to completion of negotiations there. We will reserve our final Senate position subject to resolution of these issues, but we will negotiate in good faith.

“We want this legislation to pass,” he said.