The Victorian government has withdrawn legislation to wind up the Victorian Energy Efficiency Target, with Environment Victoria labelling the back down an โ€œembarrassing defeatโ€.

โ€œThe Premierโ€™s action is clearly designed to park an unpopular decision that puts polluters interests ahead of the public interest until after the state election,โ€ Environment Victoria chief executive Mark Wakeham said.

โ€œThe Coalitionโ€™s failure to scrap the scheme in parliament this week means that the target will be maintained at 5.4 million tonnes of emissions reductions for 2015.โ€

The Red Tape Reduction Bill would have set the 2015 target at two million tonnes, which Energy Minister Russell Northe said would work to wind back the scheme โ€œin an orderly mannerโ€.

Mr Wakeham said if the current government were re-elected, they would scrap the scheme, leading to the loss of 2000 jobs.

โ€œThe one thing we know for certain now is that if the Coalition is re-elected, 2000 workers who have been working to weatherproof our homes and businesses, install solar hot water and efficient lighting and manufacture energy saving products will be out of a job in 2015.โ€

Mr Wakeham said one of the Coalitionโ€™s key reason to scrap the scheme was that it affected the profitability of Victoriaโ€™s existing electricity generators and retailers.

โ€œIt is extremely disappointing that the Coalition is acting to protect vested interests with a polluting business model instead of the public interest,โ€ he said.

โ€œNow that we know Coalitionโ€™s intentions to destroy the energy efficiency industry it is critical that the ALP and other parties outline their specific policies for energy saving programs, including VEET, if they are elected.โ€

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