Market Update | 1 December

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Written by AngusTaylor 04 Dec,2023

Government in state and federal spheres have brought the transition to scaling renewables into even sharper focus with a historic bill being passed in NSW cementing emissions reduction targets and Chris Bowen providing the second annual climate change statement to Parliament ahead of COP 28.
Origin chair falls short on call for gas ban with CCA
Parallel to the Ministers rhetoric made last week on the future of the RET, LGCs have rallied after the dust on the markets premature reflex settles.

Chris Bowen’s Key Statements on Australia’s Climate Policy

As part of the second annual climate change statement, Minister for Climate Change and Energy, Chris Bowen, discussed Australia’s progress toward its emission reduction targets and addressed key policy decisions. Some highlights from the interview following the statement with 7.30’s Sarah Ferguson (ABC):

Emission Reduction Progress:
- Australia is on track for a 42% reduction in emissions by 2030, nearing its 43% target.
- Achievements credited to policies promoting 82% renewable energy in the grid and safeguards reforms for big industries.
Transport Emissions and Fuel Efficiency:
- Acknowledges rising emissions from cars, utes, and SUVs, emphasising the need for a transport sector plan.
- Confirms plans for fuel efficiency standards.
Phasing Out Gas Connections:
- Rejection of a national plan for phasing out gas from homes, emphasising state-based responses and promoting choice.
- Highlights a $1.7 billion program to assist households and businesses in transitioning to renewable energy.
Australia’s Role in Global Climate Action:
- Affirms support for strengthening global action and a commitment to sensible steps at COP.
- Stresses Australia’s ambition to become a renewable energy superpower, emphasising green hydrogen and renewable energy.
Global Shift Away from Fossil Fuels:
- Addresses the inevitability of a global phasedown of fossil fuels, emphasising the importance of a flexible approach in international negotiations.
Future Outlook:
- Anticipates a challenging COP in a tense geopolitical environment but expresses confidence in achieving positive outcomes.
- Emphasises the need for a united approach with like-minded ministers to build on the agreements reached at previous conferences.

Gas ban falls flat amid CCA recommendations

In an interesting turn of events, the Climate Change Authority (CCA) has put forth a compelling recommendation, led by its chair Grant King, the former CEO of Origin Energy. King, renowned for stewarding Origin Energy’s significant interest into LNG, has backed the call for a ban and gradual elimination of home gas connections. The proposal comes as part of the CCA’s 42 comprehensive recommendations recently made to the federal government, spanning various sectors, notably including an extension of small-scale renewable targets to encompass household batteries and electric vehicle chargers.

However, both this recommendation and the call for a national fuel efficiency standard have been rebuffed by Bowen.

NSW Passes Landmark Climate Legislation

In a historic move, the New South Wales (NSW) Parliament has unanimously approved legislation to solidify the state’s commitment to climate action. The Climate Change (Net Zero Future) Bill 2023 establishes ambitious targets, including a 70% reduction in greenhouse gas emissions by 2035 and achieving net-zero emissions by 2050.

The legislation also creates an independent Net Zero Commission to monitor progress transparently, with a focus on addressing climate change impacts in rural communities. The passage of this bill marks a significant milestone, showcasing bipartisan support for climate action in Australia.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.

Angus Taylor | Business Development Manager, Energy & Carbon Services
Angus specialises in ESS activities including Heat Pumps, Air Conditioning, and Commercial Lighting.