Victoria’s interim emissions reduction target big step forward- stretch needed, 3 May 2021

Victoria’s interim emissions reduction targets set a realistic trajectory to net zero by 2050 but are not enough to ward off a 1.5 Degree Celsius temperature increase. The government needs to have clear levers to pull in between five-yearly reviews to instigate a major ramp up in ambition. This will be needed, because as the cost of cleaner technologies and fuels drop, we can do much more in the next five years.

“The Victorian government is to be highly commended for its interim emissions reduction targets of 28-33% by 2025 and 45-50% by 2030 based on 2005 levels,” said president of the Energy Savings Industry Association (ESIA), Rod Woolley.

“COVID-19 has delayed this announcement by over a year and the energy efficiency industry has been waiting nervously to provide certainty to invest in jobs, technologies and innovative business models which will contribute significantly to delivering on the target.

Energy efficiency is a major plank in meeting the targets.

Victorian Energy Upgrades (VEU) is the state’s largest energy efficiency program with its targets aiming to reduce Victoria’s energy demand by 7% by 2025, according to the climate change strategy, and delivers energy bill savings to all Victorians. The VEU provides financial incentives to households and businesses to invest in more energy efficient products and services. The VEU’s targets to 2022-2025 were announced in late December with an increased ambition welcomed by industry. Determining 2026-2030 targets in 2025 will provide opportunity for increased ambition to 2030 to support the interim emissions reductions target through more climate smart households, businesses and communities.

The Victorian government’s energy affordability package announced in December as part of the 2020 budget, totalling $797 million, is providing additional support for energy efficiency under three flagship programs:

  • Small Business Energy Saver (SBES), managed by Sustainability Victoria.
  • Energy Efficient Social Housing (EESH), managed by Homes Victoria.
  • Energy Efficient Heating and Cooling (EEHC), managed by Solar Homes Victoria.

The ESIA is engaging with government to explore opportunities to maximise financial incentive stacks and compliance frameworks across these new initiatives and the VEU. Some energy upgrades will attract incentives under one or more of these programs, in many cases with the same electricians, plumbers and engineers installing these upgrades across Victoria, including:

  • air conditioning;
  • weather sealing;
  • lighting; and
  • refrigeration cabinets.

… Ends Media contact: Jessica Lynch, M 0417 539 377,

Reference sites

Victoria’s climate change strategy:

Government media release:

Victorian Energy Upgrades program (VEU):

Small Business Energy Saver (SBES):

Energy Efficient Social Housing (EESH):

Energy Efficient Heating and Cooling:

Energy Savings Industry Association:

(PDF Media release)



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