Home Energy system Mike Cannon-Brookes says AGL split ‘won’t fly’ after Labor victory

Mike Cannon-Brookes says AGL split ‘won’t fly’ after Labor victory

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

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

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

“AGL Energy is committed to our clear plan for separation which is the best path for the company, for shareholders and for Australia’s orderly and responsible energy transition – backed by Grant Samuel’s independent expert report “.

Mr Cannon-Brookes, who owns his stake in AGL through his company Grok Ventures, wants the country’s biggest power producer to shut down all of its coal-fired power plants by 2035, representing a shortening of the lifespan of the giant Loy Yang A brown coal generator in Victoria up to 10 years.

He says an accelerated coal phase-out is needed to align with the climate goals of the Paris Agreement and help limit global warming to 1.5 degrees.

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

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

It was an election won and lost on the climate.

— Mike Cannon Brookes

Mr. Cannon-Brookes has already warned this month that AGL Energy’s near total disregard for the need to decarbonize in its spinoff documentation will persuade many institutional shareholders to vote against the split.

Pensions giant HESTA, which owns 0.36% of AGL, has already said it could vote against the split unless it achieves an emissions cut in line with the Paris Agreement and a fair transition for the workers concerned.

Mr Cannon-Brookes then referred to AGL’s annual general meeting last year when more than 52.5% of proxy votes backed a resolution from an activist group calling on the company to set targets aligned with Paris, and again referenced that vote on Sunday after the Labor Party victory.

“It was a win-and-lose election on climate,” he said.

“Australians want action and are demanding a tougher stance – just like AGL shareholders who voted for a future aligned with the Paris Agreement last year.”

stronger target

Labor has a much stronger 2030 emissions reduction target of 43% by 2030, compared to the Coalition’s long-standing 26-28% reduction target, and looks set to take the pressure independents backed by Climate 200 who won seats on Saturday to be more ambitious on the climate.

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

“AGL Australia and Accel Energy have made strong climate commitments that include net zero target dates and the development of new renewable and flexible generation capacity,” he said, highlighting AGL’s agreement. this month with Global Infrastructure to invest up to $2 billion in new renewable energy. 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 goes to net zero, and from there what each company’s contributions should be individual.

“We have advanced our coal shutdown dates and are committed to reviewing and reporting on system readiness each year to see if we can bring them forward,” he said.

But Mr Cannon-Brookes said the split would mean AGL would be “left behind” by the energy transition, missing out on huge opportunities.

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