Australia cannot wait 15 to 20 years for “clean coal” or nuclear power.
We have a small window of opportunity to make the deep cuts needed to avoid dangerous climate change. We must act now to fundamentally decarbonise our economy.
The Democrats advocate an aggressive push on energy efficiency right now, while using fossil fuels strategically and sparingly as we shift to renewable energy in the near future. |
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Energy Efficiency – it’s our choice
The Democrats say the answers are already there through energy efficiency. Energy efficiency can be as simple as fitting your home with energy efficient appliances or installing solar hot water. Energy efficiency stimulates innovation and new markets.
Doing nothing is not an option. Dangerous climate change threatens our very existence.
Australia is the biggest waster of energy in the world.
Australia’s demand for electricity is growing unchecked at almost 2.5% per cent per annum and driving a need for an annual investment of $6 billion in infrastructure - money that would be available to be better spent in other areas if we achieved even modest levels in energy efficiency. |
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Energy efficiency can make deep and cost effective cuts in our fossil fuel use, our greenhouse gas emissions and reduce these high levels of energy waste.
If our energy demand continues to grow unchecked then renewable energy and clean energy development chase a receding target. Just one percent energy efficiency target reduces the need for 8 coal fired power stations and could permanently defer the need for nuclear power stations.
The European Union have just set a 20% energy efficiency target by 2020. If Australia adopted this target we could permanently defer the need for any nuclear power stations, reduce our greenhouse emissions, pay less on our electricity bills and cost effectively transfer to renewable energy. Not only that but energy efficiency increases jobs, lowers inflation and improves the economy
"Negawatts" (or avoided energy consumption through energy efficiency) has become the single most important energy resource and is more secure than clean coal technologies and nuclear power. It is essential that our potential of energy efficiency is realised as both a frontline climate change action and good economics.
Our Private Members Bill
For the compelling reasons listed above, the Democrats have proposed a Private Members Bill, the National Market Driven Energy Efficiency Target Bill 2007, which aims to drive energy efficiency and put a stop to energy waste.
How does it work?
Energy efficiency trading would work in much the same way as the Mandated Renewable Energy Target. Certificates would be awarded – in this case for innovation in energy efficiency. One certificate would equal roughly one tonne of CO2 and one MWh of electricity use ‘avoided’ or saved.
This approach works hand in hand with regulatory requirements for minimum energy performance standards for buildings and appliances and is a way of achieving aggressive levels of energy efficiency. Regulation will only affect new buildings and new appliances and not drive hard to get at actions such as retrofitting buildings and industrial processes.
For more information refer to Op Ed - the most boring subject on earth
Terms of Reference
The Australian Democrats Private Members Bill: National Market Driven Energy Efficiency Target Bill 2007 has been referred to the Economics Committee for consideration.
The Senate Secretariat are calling for submissions.
For more information refer to Inquiry into the National Market Driven Energy Efficient Target Bill
No matter how general or specific - we would like your comments.
The Bill is to establish an energy efficiency certificate trading scheme, where certificates are awarded for energy savings above activities that are required by regulation.
If you are in a position to make more detailed submission, please consider addressing the following questions relating to the provisions of the bill.
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Is current energy efficiency policy adequate to deliver cost effective energy efficiency outcomes? Is there a need for additional action by government around energy efficiency policy? If yes, why and what form should this energy efficiency policy take? Does this Bill sufficiently address these gaps? |
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What is the potential for energy efficiency improvement in Australia? |
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Is there sufficient up to date and reliable data and information on energy efficiency? Is the Australian government collecting sufficient data on how and where we use energy to sufficiently inform policy and commercial investment decisions? |
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This Bill proposes an energy efficiency certificate trading scheme, how should this scheme interact with other policy initiatives (rebates, regulation and information provision) to avoid costly or perverse outcomes? |
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Is the definition of energy efficiency activities as defined in the Bill adequate? |
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What is an appropriate level for the scheme target and why? |
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What is an appropriate duration of the scheme as a whole? |
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Should the scheme cover all sectors of the economy and energy efficiency opportunities? |
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Should all wholesale purchasers of electricity be liable parties or should minimum thresholds of energy use be set to determine relevant entities under the provisions of the Bill? |
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Which activities should initially be included as eligible energy efficiency activities on the deeming schedule and why? Which activities should be excluded and why? |
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What key lessons can be learnt from monitoring and verification of energy savings? |
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