Home Blog energy policy Australian Government Targets National Energy Guarantee


The Turnbull government in Australia is set to curb carbon emissions under the National Energy Guarantee (NEG). As a part of the global Paris agreement, Australia land is focusing on cutting down its carbon footprint by 2030 in comparison to the 26% contribution in 2005.

The main point of conflict between the Federal and State governments of NSW, VIC and QLD is whether they will benefit from the National Energy Guarantee. According to reports, the national government has made it clear that State targets will not affect the National Efforts. This means that if one State exceeds the target then another may fall short without penalty. Dylan McConnell, a research fellow at Melbourne University’s Australian-German Climate and Energy College, feels that it’s going to be a big issue.

Addressing these issues, a spokesman for Energy Minister Josh Frydenburg, said they are willing to adjust guidelines if it’s in conflict with the State’s interests. Although the ACT and State governments are trying their best to reach a point of consensus, the decision of considering State emissions a part of the national plan is still uncertain. A definitive decision with respect to the carbon emissions permissions on states will be reached after the 12-page Commonwealth Design Elements paper will be examined closely.

Rising prices, unpredictable changes and shutting of major coal powered stations like Liddell, Delta, Bayswater by 2050 are all factors that will affect the NEG.

Many commentators have argued that a 26% target in energy is insufficient as there is no plan to reduce emissions from the remaining 2/3 of emissions, particularly those in agriculture and transport that are more difficult and costly to reduce.

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