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Energy Policies of IEA Countries Australia

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Energy Policies of IEA Countries Australia Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at http://www.iea.org/ termsandconditionsuseandcopyright/ Energy Policies of IEA Countries Australia 2012 Review Energy Policies of IEA Countries Australia Australia enjoys the benefit of abundant and diverse energy resources; it is the world’s ninth-largest energy producer and is one of only three net energy exporters in the OECD. Its substantial conventional energy resource base includes coal, natural gas, oil and uranium. The country also enjoys extensive wind, solar and geothermal resources as well as large biomass and ocean energy potential. The energy sector is a significant contributor to the Australian economy. Exports have more than tripled over the past decade and surging economic and social expansion in relatively nearby emerging economies such as China and India has driven significant demand for Australian energy and mineral resources. This boom is widely forecast to continue in the coming decades. Late in 2011, the Australian government released a draft energy white paper, which sets out a comprehensive strategic policy framework to guide the development of the energy sector. Also in 2011, the Australian government announced a climate change plan including a wide-ranging package of clean-energy proposals and the introduction of a carbon price mechanism accompanied by significant levels of financial support for innovation in clean-energy technologies. The scale of Australia’s energy policy ambitions is enormous and very costly even for a resource-rich nation. Significant investments will be needed for the clean-energy transition and building the infrastructure necessary to expand the domestic resource base. This review analyses the energy-policy challenges facing Australia and provides critiques and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future. -:HSTCQE=V\U\W]: (61 2012 01 1P1) 978-92-64-17072-8 €75 Energy Policies of IEA Countries Australia 2012 Review INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 28 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. Improve transparency of international markets through collection and analysis of energy data. Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy effi ciency and development and deployment of low-carbon technologies. Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic © OECD/IEA, 2012 Spain International Energy Agency Sweden 9 rue de la Fédération Switzerland 75739 Paris Cedex 15, France Turkey www.iea.org United Kingdom Please note that this publication United States is subject to speci c restrictions that limit its use and distribution. The European Commission The terms and conditions are available online at also participates in http://www.iea.org/termsandconditionsuseandcopyright/ the work of the IEA. Table of contents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS .......................................................................... 7 Executive summary ...................................................................................................................... 7 Key recommendations ............................................................................................................... 11 PART I POLICY ANALYSIS .......................................................................................................13 2. GENERAL ENERGY POLICY...................................................................................................................... 15 Country overview ....................................................................................................................... 15 Economy ..................................................................................................................................... 15 Government ............................................................................................................................... 16 Supply and demand ................................................................................................................... 16 Institutions ................................................................................................................................. 19 Energy policies ........................................................................................................................... 22 Energy security ........................................................................................................................... 26 Critique ....................................................................................................................................... 28 Recommendations ..................................................................................................................... 31 3. CLIMATE CHANGE .................................................................................................................................. 33 Overview .................................................................................................................................... 33 Emissions from fuel combustion ................................................................................................ 35 Institutions ................................................................................................................................. 35 Policies and measures ................................................................................................................ 37 Critique ....................................................................................................................................... 43 Recommendations ..................................................................................................................... 46 4. ENERGY EFFICIENCY ............................................................................................................................... 47 Overview .................................................................................................................................... 47 Final energy use ......................................................................................................................... 47 Institutions ................................................................................................................................. 49 Policies and measures ................................................................................................................ 50 Sector policies ............................................................................................................................ 52 Critique ....................................................................................................................................... 61 Recommendations ..................................................................................................................... 65 2012 3 IEA/OECD, © Table of contents PART II SECTOR ANALYSIS .....................................................................................................67 5. RENEWABLE ENERGY ............................................................................................................................. 69 Supply and demand ................................................................................................................... 69 Institutions ................................................................................................................................. 71 Policies and support measures .................................................................................................. 72 Renewable electricity generation .............................................................................................. 78 Heating and cooling ................................................................................................................... 83 Transport ...................................................................................................................................
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