News
better business decisions
Posted 1 year ago | 2 minute read
Emissions reduction embedded in national energy rules
The Australian Energy Market Commission (AEMC) has officially incorporated emissions reduction considerations into the national energy rules. The decision represents a substantial shift in regulations toward achieving a net-zero outcome.
The change will aid electricity networks in providing investment clarity and certainty as the energy sector transitions to net zero. The final rules allow networks and gas pipeline operators to propose expenditure that would contribute to meeting emissions reduction targets, which was not possible under the previous rules.
It has been set out in a final determination following rule change requests from energy ministers to “harmonise” the electricity and gas rules with recent amendments to the national energy objectives, so market bodies can consider emissions reduction in their planning and decision making.
The final rules take effect from today, 1 February 2024.
The completion of this rule change also marks an important milestone as it implements recommendations made in the AEMC’s Transmission Planning and Investment Review – Stage 3 report, published in May 2023.
AEMC has also updated the targets statement to include a new 2035 emissions target for New South Wales to reduce net greenhouse gas emissions in by at least 70 per cent from 2005 levels by 30 June 2035. It was introduced by the Climate Change (Net Zero Future) Act 2023 of NSW.
White Paper Global Energy trends 2024 -Targets, trajectories and temporalities | Contextualising net zero
In this White Paper, which is the 2023-24 edition of our Global Energy Trends series, we look at the reality of, expectations for, and pathways towards net-zero, evaluate whether we on the right track? Explore how the gaps can be bridged by action and technology? And ask what can be done by policy-makers, regulators and industry to move the energy transition from target and trajectories to net zero.
Learn more