As part of the National Energy Efficiency Strategy CoAG has agreed to develop, subject to a regulation impact statement, national legislation for appliance energy performance standards and labelling to simplify enforcement and ensure consistency. This will aim to reduce transaction costs for business and accelerate the rollout of new standards and labels for products.
The roles and responsibilities for energy efficiency policies and programs are to be agreed by the end of this year, with implementation of the strategy to be finalised by June 2009. This is to ensure that programs assisting households and businesses to reduce their energy costs are in place prior to the introduction of the CPRS.
Prime Minister Kevin Rudd said “This is important, always referred to in the public debate as the low hanging fruit of the climate change agenda, [it is] the best way, the most effective way and the earliest way of bringing down greenhouse gas emissions and we intend to do so. Our objective is to have that national energy efficiency strategy agreed by year’s end.”?
The Australian Chamber of Commerce and Industry (ACCI) has welcomed CoAG’s response to the need for energy efficiency. “The proposed National Strategy for Energy Efficiency has the potential to be a practical measure to help small and medium businesses respond to the national and global challenge of moving to a lower carbon emitting economy,”? an ACCI spokesperson said.
The Clean Energy Council also applauded the agreement to implement the scheme, stating that the timetable for the scheme is achievable and will clear the way for billions of dollars of investment in a transition to a low carbon economy.
“Realising the full potential for energy efficiency is particularly important in buying time, cushioning the price impacts and risks associated with the introduction of a CPRS is key to making the transition from a high to low carbon economy,”? said Council National Policy Manager Vikki McLeod.
The proposal of the National Energy Efficiency Strategy follows a Memorandum of Understanding (MoU) signed with the Clinton Climate Initiative of the William J Clinton Foundation in late September.
Under the MoU, Australia and the Clinton Climate Initiative will work together to tackle climate change, including the design of collaborative policies in conjunction with large cities and other organisations on improving energy efficiency.
The Government said that it will draw on the Clinton Climate Initiative experience in working with large cities and other organisations on improving energy efficiency in the drafting of the strategy.
Australia and the Clinton Climate Change Initiative will also explore opportunities for collaboration in the energy efficiency area across government, business and the community.
The National Energy Efficiency Strategy will be discussed further when CoAG holds its next meeting in Canberra on 17 November 2008.