Energy efficiency can deliver while Rudd flounders on climate

Thursday, 06 May 2010 12:16

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Energy efficiency is Australia’s greatest opportunity to immediately reduce greenhouse gas pollution while saving money and improving national productivity, said Total Environment Centre (TEC) today, in response to the Prime Minister’s Task Group on Energy Efficiency Issues Paper.

“The shelving of the emissions trading scheme now leaves energy efficiency as the only viable option for climate change action until Australia gets an economy-wide carbon price,” said TEC director Jeff Angel.

“Kevin Rudd faces real political strife, with electorate trust at a serious low. Clearly Australians want to see climate change addressed immediately, and it is energy efficiency alone that can achieve the reductions we need in the next three years.”

The International Energy Agency estimates 65 per cent of global emission cuts by 2020 will come from energy efficiency. Even without the climate benefits, over a billion dollars in savings per year can be saved in Australia through energy efficiency, based on the Commonwealth Energy Efficiency Opportunity program figures and recent research by McKinsey & Company. This would also help offset the energy price rises being driven by the massive and inefficient network infrastructure expansion that governments have approved.

TEC’s submission to the Task Group points the way for a timely and orderly transition to a low-carbon economy, and outlines key energy efficiency actions areas:

Set a mandatory national energy efficiency goal of zero new demand growth by 2020 with an annual 1.5% reduction to 2030 and beyond
Establish a National Energy Savings Scheme, based on the NSW model, expanded to include a peak demand management mandate on distribution networks
Align energy policy goals with climate policy goals by merging these two portfolios
Fix the National Electricity Market to remove barriers to energy efficiency and demand management
Accelerate the national roll-out of smart meters and fix network and retail regulation to ensure these are utilised to their full potential
Build energy efficiency trade skills and workforce capabilities through national training programs
Create strong incentives and regulatory drivers for energy efficiency in industry, commercial buildings and households
Mandate stringent vehicle fuel efficiency standards and provide incentives for sustainable transport
Recognise the contribution from recycling and materials resource efficiency
Require best-practice energy efficiency in government operations