MEDIA RELEASE: Efficiency, electrification investments essential to hitting high end of 2035 target 18 September 2025
The Energy Efficiency Council (EEC) has welcomed foundational new investments in energy efficiency and electrification from the Albanese Government, which will be essential if Australia is to hit the top end of its new 62-70% 2035 emissions reduction target.
Luke Menzel, CEO of Energy Efficiency Council said, “62-70% is a very broad range. Getting to a number with a seven in front of it will come down to how quickly we can deploy existing technologies.”
“The good news is that the Albanese Government’s Net Zero Plan recognises that and makes important down payments that boost existing programs that support efficiency and electrification.”
Today, the Government announced $85 million of new spending to:
- Modernise the Greenhouse and Energy Minimum Standards (GEMS) Act, which sets minimum efficiency standards for appliances and has saved households at least $12 billion dollars to date;
- Expand the Nationwide House Energy Rating Scheme (NatHERS) to cover existing houses, to help Australian families understand how efficient their home is and what they can do to improve it;
- Invest in the National Australian Built Environment Rating System (NABERS), which gives commercial building owners information about the efficiency of their building;
- Expand the Commercial Building Disclosure (CBD) program beyond offices to provide a market driver for efficiency and electrification in buildings across the economy;
- Task AEMO with producing a new Demand-side Statement of Opportunities that properly quantifies the role of efficiency, electrification and energy flexibility in driving down the cost of energy for households and businesses.
Mr Menzel said these investments provide a solid foundation for the Government’s energy performance agenda.
“Home energy ratings will help build momentum for a wave of renovations that put many more Australians in efficient electric homes. Expanding the commercial building disclosure program will give many more businesses the tools they need to get off gas.”
“A Demand Side Statement of Opportunities will ensure at long last, that we properly quantify the opportunity of harnessing efficiency, electrification and energy flexibility in our energy transition, the reforms we need to unlock this opportunity, and make it actionable for ministers.
Mr Menzel noted there is more to do.
“While these announcements are welcome, this isn't a job done. The Energy Efficiency Council and Climateworks Centre analysisfound that energy efficiency and electrification alone could deliver an average of 44Mt CO2-e a year between 2026-2035. Achieving those sorts of numbers will require further effort that builds on the foundations laid down today.”
Mr Menzel said key priorities include supporting households by extending and expanding the Small-scale Renewable Energy Scheme to include more demand side technologies, reform of network regulations to shift investments from new poles and wires to smart technologies that bring down costs for consumers, and a big new push to support manufacturers and food processors that rely on gas to electrify and improve their energy productivity.
-ENDS-
For further information, please contact:
Coralie Redden / Gabriel Wong
Positive Good for Energy Efficiency Council
Mobile: 0413 163 099 / 0432 177 005
Email: coralie@positivegood.com.au / gabriel@positivegood.com.au
About Energy Efficiency Council
The EEC is a not-for-profit membership association for businesses, universities, governments and NGOs. The EEC works to build sophisticated markets for energy management products and services that deliver a prosperous, net zero Australia with:
- Affordable, reliable energy;
- Healthy, comfortable buildings; and
- Productive, competitive businesses.