All Australians are yet to access the benefits of energy savings schemes
Australia does not have a national energy savings scheme.
The establishment of energy savings schemes in all jurisdictions across Australia has been recommended by independent national agencies and peak bodies including the Climate Change Authority, Energy Efficiency Council, Australian Sustainable Built Environment Council and the ESIA.
National initiatives are beginning to recognise the major significance of energy efficiency’s role in policy settings, although measurable targets are limited primarily to the energy savings schemes established in Vic, NSW, SA and ACT.
Australia has dropped in International energy efficiency ranking from 16th to 18th in 2018 (ACEEE Report, June 2018).
Emissions Reduction Fund (ERF) and Safeguard Mechanism
Commenced: ERF came into effect 13 December 2014
Commitment date: Will conclude when funding is complete, $2.55 billion currently committed with further funding to be considered in future budgets.
Administrator: Clean Energy Regulator
Regulator: Clean Energy Regulator
Policy framework responsibility: Australian Government, Department of the Environment
Ministerial responsibility: Federal Environment Minister
ERF Energy efficiency successful projects and participants: Visit CER website auction results)
The ESIA is advocating for an adjustment to the ERF to:
- complement the current market-based energy savings schemes;
- make access easier to facilitate greater uptake of energy efficiency projects;
- ensure that these projects are treated on a level playing field with other project types as there has been little support to date;
- significantly tighten baselines as they are currently fairly weak; and
- improve and expand methodologies to make them more relevant for energy efficiency upgrades.
Some ESIA Members are scheme participants under the ERF.
National Energy Productivity Plan (NEPP)Target
On 4 December 2015, the National Energy Productivity Plan 2015-2030 (NEP) & Target was released by the Council of Australian Governments (COAG) Energy Council. The ESIA determined that energy efficiency was factored in to deliver one-third of the 2030 emissions savings target within the NEPP 2015-2030. (See EECCA Media Release - 7 Dec 2015 for source data and analysis.)
The ESIA is advocating for the NEPP to:
- further recognise the contribution that energy efficiency can make to Australia's emissions savings target with more impetus needed to maximise the potential that market-based energy efficiency schemes across the nation can make for further reductions. (See Australian Government Emissions Reductions Fact Sheet 2015-2016.) In a chart included: Indicative Emissions Reduction Sources 2020 to 2030, the projected 160 million tonnes of carbon dioxide emissions abatement could actually be delivered solely by the market-based energy efficiency schemes in Victoria and New South Wales over the period 2016-2020. (See EECCA Bulletin December 2015 - Paris landmark accord puts pressure on Australia's emissions reductions projections released 25 Nov 2015.)
Other relevant agreements, policy measures and programs
- CCA Towards a climate policy toolkit: Special Review on Australia’s climate goals and policies, Aug 2016
- COAG Energy Council 5th Meeting Communique, COAG, 19 Aug 2016
- Energy Efficiency Policy Handbook 1st Edition, EEC, July 2016
- ASBEC Summary Report: Low Carbon, High Performance, ASBEC and ClimateWorks Australia, May 2016
- Australia’s 2030 Emission Reduction Target, Aust Govt DFAT, 2015
- National Energy Productivity Plan (NEPP) 2015, COAG, 4 Dec 2015
- NEPP 2015 – Work Plan, COAG, 4 Dec 2015
- Emissions Reductions Projections Fact Sheet 2015-16, Aust Govt Dept Enviro, 25 Nov 2015
- National Strategy on Energy Efficiency, COAG July, 2009