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During the period under review Australia reviewed, inter alia, its future energy needs, passed a comprehensive package of clean energy proposals including a 3carbon price mechanism (repealed in 2014), and set mandatory minimum efficiency performance and energy rating label requirements. A new coherent and integrated approach to energy policy is under consideration. (...)

(…) During the review period competition-related legislative amendments included: the Telecommunications Legislation Amendment (National Broadband Network Measures—Access Arrangements) Act 2011; the Carbon Credits (Consequential Amendments) Act 2011; the Clean Energy (Consequential Amendments) Act 2011; the Clean Energy Legislation (Carbon Tax Repeal) Act 2014; and the Australian Energy Market Amendment (National Energy Retail Law) Act 2011. (...)

During the review period, efforts to update the energy policy framework were undertaken. A comprehensive draft Energy White Paper (EWP)2 was published in November 2011, seven years after the release of the previous EWP. The draft energy policy provided an assessment of future energy needs to 2030 and set out a policy framework to guide the further development of the sector. The draft EWP2 set three clear policy objectives: the provision of accessible, reliable and competitively priced energy for all Australians; enhancement of domestic and export growth potential; and the delivery of clean and sustainable energy. It also identified four priority areas for future action and outlines a set of initiatives to advance this agenda: strengthening the resilience of the energy policy framework; reinvigorating the energy market reform agenda; developing critical energy resources – particularly its gas resources; and accelerating clean energy outcomes. The final EWP2 was to be published in late 2012. However, the current Government committed to develop a new Energy White Paper in light of changed market conditions and policy. As at December 2014, an Energy White Paper was under development. The new Energy White Paper is to set out a coherent and integrated approach to energy policy to reduce cost pressures on households and businesses, improve Australia's international competitiveness and grow its export base and economic prosperity. An Energy Green Paper, the precursor to the Energy White Paper, was released for public consultation in September 2014. Consultation closed in early November 2014 and submissions are being used to inform the development of the Energy White Paper.

A July 2011 comprehensive package of clean energy proposals, the Securing a Clean Energy Future – the Australian Government's Climate Change Plan, aimed to consolidate existing policies and strengthen them with new initiatives contained in four key pillars: the introduction of a carbon price mechanism (repealed on 1 July 2014, section 3.4.1.3) [70]; the update of renewable energy (section 4.3.2.1.3); the improvement in energy efficiency; and action on the land. The Plan is accompanied by proposals to provide significant levels of financial support for innovation in clean energy technologies, including through: investments in renewable energy; the creation of a new $A 10 billion commercially oriented Clean Energy Finance Corporation (CEFC), which would invest in renewable energy, low‐emission, and energy‐efficient technologies ; as well as the creation of a new institution, the Australian Renewable Energy Agency (ARENA), which would separately administer $A 3.2 billion in government funding for existing research and development, demonstration and commercialisation of renewable energy. Legislation to establish ARENA was passed in 2011 and the Agency commenced operations on 1 July 2012. ARENA's funding was reduced and re-profiled as an element of the legislation repealing the carbon price mechanism, and further savings were announced in the 2014 Budget, along with a proposal introduced to the Australian Parliament to close the Agency, and move management of ARENA commitments and functions to the Department of Industry. Furthermore, many of the measures under the Plan were transposed into Commonwealth law through a Clean Energy Legislative Package, passed on 8 November 2011. According to the OECD, the scale of Australia's energy policy ambitions is enormous and very costly even for a resource-rich nation (section 4.3.2.1.3).

[70] Repealing the carbon tax and the Clean Energy Package was designed to: reduce the cost of living; lower retail electricity by around 9% and retail gas prices by around 7%; boost Australia's economic growth, increase jobs and enhance Australia's international competitiveness by removing an unnecessary tax; reduce ongoing annual compliance costs for around 370 liable entities by almost $A 90 million per annum; and remove over 1,000 pages of primary and subordinate legislation. For more details on the impact of this repeal, see Department of the Environment online information. Viewed at: http://www.environment.gov.au/topics/cleaner-environment/clean-air/repealing-carbon-tax.

(…) The Fuel Tax Credits Scheme remains in place to reduce or remove the incidence of excise and excise equivalent customs duty, and covers liquid, gaseous and blended fuels for business use including for: all off-road business activities, including for electricity generation and aviation fuel, prior to the repeal of the carbon tax in July 2014, where the business was in the Opt-In Scheme. [114] (...)

[114] The Opt-in Scheme under the Clean Energy Act 2011 allowed liable entities and large users of liquid petroleum fuels (e.g. diesel, petrol, aviation fuel) to take on an emissions liability for that fuel under the carbon pricing mechanism rather than paying the equivalent carbon price "indirectly" through the fuel tax or excise systems (Clean Energy Regulator online information. Viewed at: http://www.cleanenergyregulator.gov.au/Carbon-Pricing-Mechanism/About-the-Mechanism/liquid-fuel-opt-in-scheme/Pages/default.aspx; and Energetcis online information. Viewed at: http://www.energetics.com.au/insights/latest-news/climate-change-matters/opt-in-scheme-for-liquid-fuels-regulations-finalis).

(...) Concessional loans are available under the Clean Energy Finance Corporation, the Export Finance and Insurance Commission, the Farm Finance Concessional Loan Scheme, the Drought Concessional Loan Scheme and the Infrastructure Growth Package programmes (sections 1.2.1, 3.3.5, 4.2.2.2. 4.3.2 and 4.5.7). (...)

(…) Companies receiving over $A 20 million from the Clean Energy Finance Corporation (section 4.3.2) may be required to prepare and report on an AIP (Australian Industry Participation) plan as a condition of investment. (…)

(…) Since 1 July 2012, summaries of AIP (Australian Industry Participation) Plans have been published on line to increase transparency. Companies receiving over $A 20 million from the Clean Energy Finance Corporation (section 4.3.2) may be required to prepare and report on an AIP Plan as an investment condition. (...)

Australia is richly endowed with natural energy resources (uranium, coal, natural gas); it is the world's ninth largest energy producer, accounting for around 2.7% of global energy production and a major supplier to world markets (it is one of only three OECD countries that are net energy exporters). In 2012/13, petroleum-based productions (including crude oil, diesel, and liquefied petroleum gas (LPG)) accounted for 37.7% of Australian energy consumption, followed by coal (33%), gas (23.6%) and renewables (5.6%). Domestic use of nuclear power is not envisaged in the near future. As a result, inter alia, of a surge in investment in large and lumpy infrastructure projects, rising (evening) peak versus average demand for electricity, and a move to less polluting but higher cost production technologies, the average MFP growth rate for electricity, gas, and water supply activities rose slightly from minus 4.8% (2003/04-2007/08) to minus 4.5% (2007/08 2011/12), the second lowest after that of mining (section 4.3.1).

(...) In addition to its clean energy policy, Australia supports the sustainable expansion of fossil fuel exploration, production and utilisation (sections 4.3.1, 4.3.2.1.3, and 4.4). Coal is a key contributor to the Australian economy and continues to be an important part of the country's energy mix. Australia, which is the second largest coal exporter in the world, has taken a global leadership role in efforts to reduce emissions from coal combustion and coal mining, including establishing the Global Carbon Capture and Storage Institute. Domestically, Australia has world-leading Carbon Capture and Storage (CCS) projects underway and is developing new processes for converting coal mine methane into energy. Development proposals that will have, or are likely to have, a significant impact on matters of national environmental significance, including those related to coal mining development, must be referred for assessment and approval by the Commonwealth Minister for the Environment.