Australia's renewable energy target and carbon pricing system is hurting manufacturers and threatening the competitiveness of local industries, Origin Energy CEO Grant King says.
In his latest criticism of the Government's clean energy efforts, King said the cost of carbon was around six times higher in Australia compared to Europe.
He also said Europe was starting to realise the mistake in hiking costs for businesses, and the Australian Government would most likely come to the same conclusions.
“I am of the opinion carbon prices will come down no matter what and I think there will have to be a review of renewable energy targets because it is placing a substantial and increasingly relative disadvantage across Australian manufacturing and the Australian economy,” he said.
Despite concerns about carbon pricing hitting the hip pockets of Aussie manufacturers, some analysts have tipped the move toward clean energy to be a boon for companies targeting the emerging sector.
The Government has also used funds generated from the carbon tax to provide grants to the local manufacturing industry.
The latest recipient of such funding was Adelaide Ice Services, which was awarded a $90,000 grant earlier this week from the Clean Technology Food and Foundaries Program.