Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
NATIONAL MARKET DRIVEN ENERGY EFFICIENCY TARGET BILL 2007
Senator Allison
EXPLANATORY MEMORANDUM
National Market Driven Energy Efficiency Target BILL 2007
GENERAL OUTLINE
The purpose of the National Market Driven Energy Efficiency Target Bill
2007 is to amend the Renewable Energy (Electricity) Act 2000.
This Bill is introduced to drive greater energy efficiencies and cost
effective greenhouse gas abatement by the introduction of an environmental
market for energy savings from investment in energy efficiency activities
which are additional to actions required by regulations such as Minimum
Energy Performance Standards.
The government has not satisfactorily prioritised energy efficiency as an
important component of Australia's energy policy. Indeed the commitment of
the government to develop a strategy for nuclear power industry in the
absence of an equivalent strategy for energy efficiency will leave the
government open to criticism on the grounds of energy security, economic
and environmental management.
This Bill is introduced as a means to address the recognised barriers and
the failure of the market to deliver cost effective energy savings. This
Bill will realise improved productivity and environmental benefits through
the increased uptake of energy efficiency and reduce energy waste.
Schedule 1 - Amendment of the Renewable Energy (Electricity) Act) 2000
As energy efficiency is an important productivity measure as well as a low
and cost effective greenhouse reduction action, these amendments propose to
create a market for energy efficiency through commoditising quality energy
efficiency savings.
This is achieved through issuing tradeable certificates for quality and
verifiable energy efficiency savings from activities which are above and
additional to those activities currently required through legal or
regulatory arrangements such as Minimum Energy Performance Standards. A
demand for these certificates is created through the setting of a national
energy efficiency target and requiring certain purchasers of electricity
(called liable entities) to surrender a specified number of certificates.
The definition of liable parties is the same as defined through the
Renewable Energy (Electricity) Act.
FINANCIAL IMPACT
The amendments in this Bill have no financial impact on Government revenue.