Investments in gas-fired power plants may double and reach close to $15 billion in the near term if Australia starts to implement a stiff price on carbon emissions, Fitch Ratings said.

Fitch Ratings said in a report analysis given to clients, the higher investments in gas-fired plants will come about with or without the carbon pricing targeted by the Australian Parliament.

Most Australian companies will invest in these facilities either through debt or equity sale.

"The expectation of carbon pricing seems sufficiently high to deter large-scale investment in new coal-fired plants," according to the Sydney-based Fitch analysts.

Climate change

According to Climate Change Minister Mr. Greg Combet, carbon pollution emissions will soon come with a price to compliment the country's bid to meet ecological standards amidst increasing demand for the fuel to power manufacturing and various other industries.

Australia's industries derive close to 80 percent of its power generation from coal.

"Last Friday, the government released the report of the Prime Minister's Task Group on Energy Efficiency. The report reinforced the government's strategy and the need for a price on carbon," Mr. Combet said in his speech at a conference in Melbourne Tuesday.

He said that Australia need not do the change overnight, but it is important that it be started soon.

"The Australian economy is deeply dependent on energy sources that generate carbon pollution. The carbon intensity of our national electricity supply is one of the highest in the world. To deliver one kilowatt of electricity to a household, we emit about 1kg of carbon pollution," he noted. "The responsible path is to take measured steps towards reduced dependence on carbon pollution."