Representatives of Australia’s energy industry have together agreed that addressing emissions and reliability are not only critical in their own right but are essential parts of achieving cost reduction as soon as possible.
Some of the companies involved include the Clean Energy Council, Energy Networks Australia, Energy User Association of Australia and the Investor Group on Climate Change.
Electricity costs are a key part of the “energy trilemma”, together with reliability and emissions reductions. Reducing electricity costs requires investment in electricity supply and unlocking this investment requires credible and stable policy. Investors will only view policy as durable if it effectively addresses all parts of the trilemma, including meeting emissions reduction commitments.
The participating companies support Australia’s full participation in the Paris Agreement and the deployment of effective, efficient and equitable plans in energy and the rest of the economy to deliver on Australia’s Paris commitments. Continuing bipartisan commitment to Paris sends a clear long-term signal to investors and contributes to the global solution needed to minimise climate change.
A major global transition towards lower emissions and ultimately net zero emissions is both necessary and inevitable, and in Australia’s electricity sector a low emissions transition is already underway.
They agree that this transition will benefit Australians overall, but also note that it could also have uneven impacts on some groups such as low income households; displaced workers and their communities; and emissions-intensive trade-exposed industries (EITE) and their employees. These groups will likely require specific measures as the energy trilemma is addressed.
Durable agreement on sound policy frameworks and the direction of change can deliver a smoother, fairer and even more prosperous transition. The companies call on all sides of politics to deliver stable policy and investment certainty by addressing all parts of the energy trilemma—cost, reliability and emissions reduction.