Table 2 Australia’s main emissions reduction policies Policy Application Details Estimates of emissions reductions Emissions Reduction Fund (ERF) National Covers all sectors Voluntary emissions pricing scheme where the Government buys emissions reductions from eligible projects (Box 4) 93 Mt CO2-e of future emissions reductions contracted in two auctions held in 2015. Contracts run for up to 10 years (CER 2015). ERF safeguard mechanism National Covers facilities emitting over 100,000 t CO2-e per year Regulation that requires covered facilities to stay below specified baseline emissions levels (Box 4) Safeguard not yet operational; will start in July 2016 Renewable energy targets National Covers electricity sector Mandatory scheme that requires liable entities to buy renewable energy certificates. The scheme supports and renewable energy generation (Box 5). The Renewable Energy Target (RET) is projected to reduce emissions by about 200 Mt CO2e (cumulatively) between 2015 and 2030 (CCA calculation based on ACIL Allen Consulting 2014). State-based (ACT, South Australia, Queensland and Victoria) Covers electricity sector Targets at state level for the use or production of renewable energy. Policy methods to achieve these targets vary. For example, the ACT scheme uses a feed-in tariff and long term contracts (awarded through auctions) to meet a 2020 target of 90% for electricity generated from renewable sources. Not available scale based
Energy efficiency target schemes Schemes operate in NSW, Victoria, South Australia and the ACT Covers electricity sector Mandatory price-based schemes that require electricity retailers or suppliers to meet an energy savings obligation, often by undertaking activities to improve energy efficiency or buying certificates that represent energy savings. Each scheme has an energy savings target. NSW scheme is estimated to have reduced emissions by about 2.8 Mt CO2e between 2009 and 2013 (NSW Government 2015) Victorian scheme is estimated to have reduced emissions by about 8 Mt CO2-e between 2009 and 2012 (DSDBI 2014) SA scheme is estimated to have reduced emissions by about 0.64 Mt CO2-e between 2009 and 2011 (Pitt & Sherry 2013) ACT scheme is estimated to have reduced emissions by about 0.24 Mt CO2-e in its first year (Jacobs 2013) Energy efficiency regulations and standards National Applies to electrical goods and building construction Regulations setting: minimum energy standards for appliances, lighting and electrical equipment energy efficiency for buildings in the National Code The Greenhouse and Energy Minimum Standards program (which encompasses standards and labelling requirements for appliances, lighting and electrical equipment) is projected to reduce emissions by 60 to 70 Mt CO2-e between 2014 and 2020 (Databuild 2015) . Energy efficiency labelling National Applies to appliances Information program requiring energy rating labels on appliances showing energy performance information See
As discussed in chapter 1, the Authority encourages interested parties to make submissions on this options including on the proposed framework for policy evaluation and the relative merits of the various policy options canvassed, including the various forms of ETSs. The due date for submissions is 19 February 2016. These submissions will inform the Authority’s deliberations ahead of it releasing the final report of the Special Review by 30 June 2016. As required by the terms of reference, the Authority will also be examining the operation of ETSs and equivalent schemes in selected countries. The final report will recommend what action Australia should take to implement the outcomes flowing from the Paris climate conference, including whether Australia should introduce an ETS as part of its suite of emissions reduction policies.