Emissions reduction target welcomed by electrification advocates

Electrical advocacy organisations have responded positively to the federal government’s 2035 emissions reduction target and associated funding, announced on 18 September by Prime Minister Anthony Albanese.

The Energy Efficiency Council (EEC) welcomed “foundational” new investments in energy efficiency and electrification, which it said would be essential to achieve the government’s plan to reduce emissions by 62–70% by 2035.

“62–70% is a very broad range,” said Luke Menzel, CEO of the Energy Efficiency Council. “Getting to a number with a seven in front of it will come down to how quickly we can deploy existing technologies.

“The good news is that the Albanese government’s Net Zero Plan recognises that and makes important down payments that boost existing programs that support efficiency and electrification.”

The government has announced $85 million in new spending to:

• modernise the Greenhouse and Energy Minimum Standards (GEMS) Act, which sets minimum efficiency standards for appliances and has saved households at least $12 billion to date;
• expand the Nationwide House Energy Rating Scheme (NatHERS) to cover existing houses, to help Australians understand how efficient their home is and what they can do to improve it;
• invest in the National Australian Built Environment Rating System (NABERS), which gives commercial building owners information about the efficiency of their building;
• expand the Commercial Building Disclosure (CBD) program beyond offices to provide a market driver for efficiency and electrification in buildings across the economy; and
• task AEMO with producing a new Demand-side Statement of Opportunities that properly quantifies the role of efficiency, electrification and energy flexibility in driving down the cost of energy for households and businesses.
   

Menzel said these investments provide a solid foundation for the government’s energy performance agenda.

“Home energy ratings will help build momentum for a wave of renovations that put many more Australians in efficient electric homes. Expanding the Commercial Building Disclosure program will give many more businesses the tools they need to get off gas.”

Menzel added: “A Demand-side Statement of Opportunities will ensure at long last that we properly quantify the opportunity of harnessing efficiency, electrification and energy flexibility in our energy transition, the reforms we need to unlock this opportunity, and make it actionable for Ministers.”

However, Menzel noted there was more to do.

“While these announcements are welcome, this isn’t a job done. The Energy Efficiency Council and Climateworks Centre analysis found that energy efficiency and electrification alone could deliver an average [reduction] of 44 Mt CO₂-e a year between 2026 and 2035. Achieving those sorts of numbers will require further effort that builds on the foundations laid down today.”

Rewiring Australia also welcomed the government’s focus on electrification of homes, transport and industry in its plan to lower emissions.

“Electrification is the key to reaching this target, and Australians are already well on the way to achieving it through everyday decisions about household energy and transport,” Rewiring Australia CEO Francis Vierboom said.

The government has announced $2 billion for the Clean Energy Finance Corporation, $5 billion for a Net Zero Fund to assist industries in decarbonising, and $40 million to accelerate the rollout of kerbside and fast charging for EVs.

“We welcome further investment towards electric transport,” Vierboom said. “More EV charging on our streets is a great step. The existing EV tax break and the NVES are helping too, but with the opportunity to save millions a day on fuel imports while cutting emissions, we continue to call on the government to increase their ambition for the switchover to cleaner, cheaper, zero-pollution electric vehicles.

“Going faster on EVs is something we need to do to hit the higher 70% end of the target range.”

Vierboom added that Treasurer Jim Chalmers’ statement about the economic opportunity the plan presented was backed up by Rewiring Australia’s research. “We can create jobs in Australia, shore up energy independence, and become more resilient to our changing climate,” Vierboom said.

“The faster we can help households — including renters and those in social housing — electrify, the sooner we can reach this target. It’s better for the environment, and better for our hip pockets too. We look forward to working with the federal government to electrify everything as quickly as we can.”

Image credit: iStock.com/Scharfsinn86