Climate, Climate change, Policy, Renewable Energy Target, Renewables

Australia’s ministers vote to integrate energy and climate change policies

Australia’s federal, state and territory ministers have voted to make emissions reduction a focal point of the nation’s energy goal as part of the National Electricity Objective, writes Joel Smith.

On Friday, 12 August, 2022, the energy ministers assembled in Canberra to vote on the much-needed inclusion of emissions into the objectives, which guide decisions on Australia’s electricity, retail energy and gas framework.

The deal is the first change to the National Electricity Objective in 15 years, meaning Australia’s energy market, its institutions and governance are now aligned and moving in the same direction to deliver the nation’s climate change targets, a significant development in the transition from fossil fuels to renewables.

Dissatisfied with slow progress being made in this area by the Energy Security Board, the ministers will now drive policies to deliver a net-zero energy system that is affordable and reliable, and they will be held accountable for it.

“This is important as it sends a very clear direction to our energy market operators that they must include emissions reductions in the work they do,” said Minister for Climate Change and Energy Chris Bowen after the meeting.

“Australia is determined to reduce emissions, and we welcome investment to achieve it and will provide a stable and certain policy framework.

“This is the first change to the National Electricity Objective in 15 years. Australia is open for business and determined to reduce emissions. We welcome investment to achieve it.”

With the Federal Government committing Australia to an emissions reduction target of 43 per cent by 2030, much work needs to be done to achieve this given that a report by climate change and human rights advisory firm Ndevr Environmental indicates the nation is not currently on track to meet this obligation, in large part due to the energy required to prepare fossil fuels such as coal and gas for export.

However, this decision on the National Electricity Objective is a critical step forward and will ensure future priorities and reform of the Australian energy market, recognise the need to reduce emissions, and more actively manage the transition to clean energy.

The ministers also voted to adopt a National Energy Transformation Partnership that will identify and accelerate transmission works of national significance; analyse regional planning scenarios, workforce, supply chain and community needs; enhance the role of demand side initiatives; and adopt a First Nations clean energy strategy.

“The clean energy industry applauds the decision by energy ministers to reform the National Electricity Objective and to commence work on a National Energy Transformation Partnership,” says Clean Energy Council chief executive Kane Thornton.

“We’re seeing a clean, green light for low-cost renewable energy from hydro, solar, wind and storage to become the dominant source of Australia’s energy needs through an orderly transition away from costly, dirty and failing fossil fuel sources.

“These decisions provide clean energy investors further confidence that was certainty missing through years of inaction and neglect [from the previous Coalition government].”

The unanimous support at all levels of government demonstrates Australia is heading in the right direction to deliver a clean energy future.

“The message could not be more explicit: Australia’s governments are united in accelerating [clean energy],” says Thornton.

“The clean energy industry has been calling for this reform for more than 15 years. This decision, combined with the clear unity and collaboration of energy ministers across the country, heralds a new and exciting chapter of leadership for Australia.”

The Clean Energy Council has also welcomed the ministers’ commitment to a framework that delivers adequate capacity, ensures orderly transition and incentivises new investment in renewable energy.

“The clean energy industry looks forward to working closely with officials to ensure these options ultimately deliver the price signals necessary for new investment and to manage the phase-out of fossil fuel generation,” says Thornton.

“We also welcome and look forward to working on the First Nations Clean Energy Strategy, the integrated energy infrastructure and regional planning scenarios and important consideration of the workforce, supply chain and community needs associated with the accelerated transition of the energy system.”

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