What does Al Gore have to do with the Australian RET review?

The Renewable Energy Target (RET) is currently being reviewed amidst speculation Abbott plans to axe the scheme.

However, the latest plot twist reveals an inconvenient truth.

Politician Clive Palmer has since joined up with ex-US Vice-President and environment activist Al Gore to issue an ultimatum to Abbott.

The Palmer United Party has pledged to support the RET when the legislation goes through parliament.

Modelling by Bloomberg indicates keeping the RET could result in lower electricity prices for households and businesses, so Mr Palmer's decision could be an important one.

However, in an ultimatum he has promised to help repeal the carbon tax, so long as it is replaced by an emissions trading scheme with global links.

This has left Abbott out in the cold as he is now completely isolated on climate policy, according to an article in the Guardian published on June 25.

Despite Palmer being one of the largest coal barons in the country, he has declared support for renewables with this decision.

This will give a "titanic" boost to the industry, according to Clean Energy Council Deputy Chief Executive Kane Thornton.

How can the RET be kept?

Legislation to repeal the RET needs to first go through the senate before it becomes law.

In order for it to be rejected, the Labor Party, Greens and three out of eight independent senators need to vote against it, according to the Australian Solar Council.

Now that Palmer has changed his tune, there is a stronger chance the RET changes will be overturned, according to the Solar Council.

The Palmer United Party controls three independent senators and the Greens have already declared their support for the RET.

However, the Labor Party has yet to indicate support.

If Palmer manages to gain this support, the RET will stay unchanged until the Federal Election of 2016.

"The Abbott Government should now end the sham Review of the Renewable Energy Target and simply allow the existing Renewable Energy Target to do its job," said Australian Solar Council chief executive John Grimes in a statement.

What will an Emissions Trading Scheme (ETS) mean for Australia?

Palmer's decision also heralds in changes for the emissions sector, as he has promised to bring in an ETS.

However, this is subject to an ETS being introduced by our major trading partners.

This policy is still being formulated by the Palmer United Party and an amendment to force power price reductions is also being considered, according to June 26 article in the Guardian.

However, an article published on June 30 in the Australian Financial Review quotes Mr Palmer saying an ETS will become law in the next 12 months.

He said the motivation for this scheme was not on protecting the environment but formed a way to fire proof the economy against any trade fallout that could occur when our trading partners start similar schemes.

"That revenue will go to the country that's receiving that export [from Australia]," Mr Palmer told AFR Sunday.

"If that does happen we've got to make sure that revenue goes to Australia".

Posted by Liam Tunney.