Australian laws to promote up to $22 billion of renewable energy investment were postponed until August recently, angering the industry and government, which is hampering to pass its climate change agenda.  In a likely predicted to the result for the government’s emissions trading scheme, parliament’s opposition-dominated upper house Senate voted to delay the renewable energy laws until August, dashing government hopes of passing the laws coming week.

The long-expected legislation aims a 20 percent goal for renewable energy by 2020 in Australia’s coal-reliant electricity supply, and would unlock up to $22 billion worth of investment in solar and wind projects.

“Clean energy companies around Australia will now put hiring plans on hold and in some matters be forced to start shedding staff,” said Clean Energy Council Chief Executive Matthew Warren, adding the laws should have been passed a year ago.

Power companies closely watching the legislation include Origin Energy Ltd, AGL Energy, TRUenergy, owned by Hong Kong-based CLP Holdings and Pacific Hydro, owned by a group of Australian pension funds. 

The renewable energy laws set a statutory aim of 9,500 gigawatt-hours (GWh) from renewable electricity sources in 2010, increasing to 45,000 GWh in 2020.

Renewable sources provide only 6.5 percent of Australia’s present energy requirements, with the rest generated from coal, oil and gas, making the nation one of the worst per capita polluters.

The delay risks government rebates for people who install solar power at their homes. Climate Change Minister Penny Wong stated payments would be outdated once the legislation passes.

The laws were introduced in parliament on Wednesday and had not yet been debated in the Senate, but Wong stated the Senate had been given ample of time to take into regard the package and the emissions trading scheme laws, which face almost certain defeat next week.

“We are doing this because climate change is with us and because it will worsen in the lives of our children and those who come after them,” Wong told reporters.

“It is the responsible thing to do, and we will keep pressing forward with both these bills, with our renewable energy legislation and our carbon pollution reductions scheme, because it is the right thing to do.”

Greens Senator Christine Milne said the opposition and independents had bowed to pressure from major polluters and the aluminium industry, which said the renewable energy target would cost it more than A$100 million ($79 million) a year.

The government also faces a Senate roadblock next week over its plans to introduce an emissions trading scheme by July 2011, with the government seven votes short of the numbers it needs in the Senate to pass the laws.

The emissions trading scheme and renewable energy target are the centre-left government’s key strategies to curb greenhouse gas emissions, blamed for global warming, and fight climate change.