A report commissioned by the Australian Chamber of Commerce and Industry, Minerals Council of Australia and the Business Council of Australia has claimed the cost of the 2020 Renewable Energy Target will include 5,000 lost jobs and $28 billion to the economy.
The ABC reports the Deloitte Access Economic research finds that keeping the current 20 per cent target will also see energy prices increase after 2020.
This contradicts findings prepared by ACIL Allen consulting prepared for the RET review.
"What it shows is that the effective cost of carbon abatement to the GDP as a result of the RET is $103 per tonne which is four times the cost of the carbon tax," Kate Carnell from the ACCI told The ABC.
"What this is showing is that in its current form, the RET is expensive to the economy, it costs jobs and puts power prices up.”
Carnell will be presenting the findings to the Palmer United Party leader Clive Palmer, urging him to support the adoption of a “true 20 per cent target”.
Fairfax notes that based on current predictions, the 2020 target will mean renewable energy will contribute more like 28 per cent of the total. This is due partly to the decline in energy-intensive manufacturing, such as aluminium.
According to the report, a "true" target would mean a cost to the economy of $14 billion instead of $28 billion.
There is strong support for a shift to the “true” target by 2020 among Coalition backbenchers, who are also arguing for aluminium smelters to be exempt.
Russell Marsh from the Clean Energy Council said the Deloitte report was flawed.
"It's not just other studies that have been done by groups like ourselves that have shown a different answer to this modelling - I mean the Government's own modelling by ACIL Allen has come out with a very different answer to the modelling put out by today," he said.