The Council of Australian Governments (COAG) today took a major step forward towards Australia's low pollution future.
COAG today endorsed the design of the expanded Renewable Energy Target and agreed to the introduction of new 6 star standards for houses and strengthened energy efficiency standards for commercial buildings.
As a result of today's decisions, work will immediately commence on five key measures to drive growth in the number of highly energy efficient homes and commercial buildings across Australia:
* Increasing the stringency of energy efficiency requirements for all classes of commercial buildings in the Building Code of Australia from 2010;
* Phasing in the mandatory disclosure of the energy efficiency of commercial buildings and tenancies from 2010;
* Increasing energy efficiency requirements for new residential buildings to six stars, or equivalent, nationally in the 2010 update of the Building Code of Australia, as well as introducing new efficiency requirements for hot-water systems and lighting;
* Phasing in mandatory disclosure of residential building energy, greenhouse and water performance at the time of sale or lease, commencing with energy efficiency, from May 2011; and
* Reforming current building energy efficiency standard and assessment processes to achieve consistency across the nation.
These represent the first measures under the National Strategy on Energy Efficiency that will be finalised by COAG in mid-2009.
By ensuring a coherent and unified approach to energy efficiency policy, the Strategy will provide a clear complement to the Commonwealth Government's Carbon Pollution Reduction Scheme - helping households and businesses reduce energy costs, improving productivity of our economy and reducing the cost of greenhouse gas abatement.
It will build on the Commonwealth Government's existing commitments to energy efficiency such as the Energy Efficient Homes package: a $3.9 billion package to install ceiling insulation in 2.7 million Australian households.
COAG also endorsed the final design of the expanded national Renewable Energy Target which will see 20 per cent of Australia's electricity being generated from renewable sources by 2020.
This endorsement will provide certainty for investors, driving substantial investment and employment in the renewable energy sector.
It will help transform the electricity sector and drive the low-pollution electricity generation that we need to tackle climate change.
The RET scheme will increase the renewable energy target by over four times, to reach 45,000 gigawatt-hours (GWh) in 2020. To provide renewable energy investors with even greater legislative certainty, the 45,000 GWh target will be maintained until 2030.
The expanded national RET scheme includes ‘Solar Credits' to assist with the upfront costs of installing small-scale renewable energy systems, including household solar photovoltaic (PV) systems.
COAG also agreed to provide partial exemptions to emissions-intensive, trade-exposed industries. COAG recognised the impact of the RET on trade-exposed industries in the context of the CPRS and the additional pressures these firms are experiencing as a result of the global financial crisis.
Emissions-intensive, trade-exposed industries will continue to support renewable energy, as exemptions will only apply above the existing Mandatory Renewable Energy Target of 9,500 GWh.
Legislation to implement the expanded target design will be in introduced by mid-2009, with new targets due to commence in 2010.
Details of the draft National Strategy on Energy Efficiency and the RET are now available on the COAG website (http://www.coag.gov.au).