MEDIA RELEASE: Labor victory sets stage for ambition on efficiency, electrification 04 May 2025
The Energy Efficiency Council has congratulated the re-elected Albanese Government on its comprehensive victory in the 2025 federal election, and said it set the stage for a big ramp up in ambition on emissions goals, efficiency and electrification.
EEC CEO Luke Menzel said, "The Albanese Government's first term was marked by some significant wins on energy and emissions, including the reformed Safeguard Mechanism, vehicle efficiency standards and the Capacity Investment Scheme.
"However as we look ahead to the Government's second term, a bunch of no-brainer policies on efficiency and electrification are still sitting on the to-do list. Acting on them quickly will be critical to drive down energy bills and ramp up Australia's emissions reduction effort."
Mr. Menzel said with the nation's trajectory to a high penetration renewable energy system now locked in, any additional cuts in carbon emissions will need to come from the demand side.
"Almost all the emissions reductions we're expecting between now and 2030 are being delivered through renewables replacing aging coal capacity. Post 2030, that way of cutting carbon will be largely tapped out."
"Any sort of ambitious 2035 target will need to be delivered by the demand side, especially energy efficiency and electrification."
Mr. Menzel nominated electrification of homes, manufacturers and food processors as low hanging fruit.
"We have the technology to pair efficiency and electrification to decarbonise vast swathes of the Australian economy, but we're yet to see the serious policy and investments we need to get it done."
"We need an ambitious 2035 target, substantive sectoral decarbonisation plans and a raft of new policies and programs to make sure Aussie homes and businesses are set up for a net zero economy."
"As we look forward to the opportunity to host the world at COP31 in November 2026, we have an unprecedented chance to put Aussie ingenuity and leadership on the global stage."
"We're looking forward to working with the Albanese Government to get it done."
The Energy Efficiency Council has set out a comprehensive list of urgent actions for the incoming government:
- Upgrade homes for health, comfort and efficiency
Supercharge social and community housing retrofits, implement minimum rental energy standards, and roll out a national home energy rating system. - Support business energy upgrades
Expand financial incentives and regulatory support for businesses to boost their energy productivity through investment in energy efficiency, electrification, and demand flexibility. - Modernise energy governance
Reform energy governance frameworks to prioritise demand-side measures including establishing a national energy performance agency.
- Strengthen the role of the demand side in the electricity market
Reform existing incentives for demand management and ensure new capacity mechanisms incentivise flexible demand capacity. - Set national energy performance targets
Establish targets for energy efficiency and flexible demand to better match energy use with renewable generation, reducing costs and improving reliability. - Align and modernise retailer energy efficiency schemes
Re-align schemes to focus on optimising the energy system, reducing peak demand, and shifting energy use to periods of high renewable generation. - Accelerate commercial building efficiency
Expand the Commercial Building Disclosure (CBD) program and implement stronger policies for energy efficient commercial buildings. - Develop a skilled workforce
Invest in workforce training, upskilling, and certification to ensure Australia has the skilled professionals needed for efficient electrification and the energy transition. - Improve energy literacy
Launch a national energy efficiency awareness campaign to help households and businesses cut energy costs through informed choices. - Boost research and innovation
Increase investment in energy-related research and development to drive practical solutions for a net zero economy.
For more, visit Our 2025 recommendations for energy efficiency and electrification of Australia’s homes and businesses
Media Contact:
media@eec.org.au
0433 237 293