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A July 2009 National Strategy on Energy Efficiency aimed at developing a nationally consistent approach to energy-efficiency policy, reducing red tape, and helping businesses and households invest in modern cost-cutting technologies remains in place. It involves: legislation on appliance energy ratings and labels; mandating all new homes to achieve energy rating standards in the future; and accelerating the phasing-out of inefficient lighting, including a ban on incandescent light bulbs. (...)

(...) Under the Greenhouse and Energy Minimum Standards Act 2012 (GEMS Act), the Commonwealth Government can set mandatory minimum efficiency performance standards (MEPS) and energy-rating label (ERL) requirements for electrical equipment and appliance products. These requirements are set out in legislative instruments called GEMS determinations, which now cover: rotary clothes-dryers; clothes washing machines; dishwashers; household refrigerating appliances; double-capped fluorescent lamps; transformers and electronic step-down converters for ELV lamps; ballasts for fluorescent lamps; compact fluorescent lamps for general lighting services; incandescent lamps for general lighting services; electric water heaters; external power supplies; digital television set top boxes; commercial refrigeration products; power supply transformers; air conditioners; liquid chilling packages; gas water heaters; electric motors (2 phase); and televisions/computers/computer monitors for personal, domestic or household use.

(…) Mandatory energy consumption labelling requirements affect appliances such as refrigerators, freezers, clothes washers/dryers, dishwashers, room air-conditioners, mains-pressure electric-storage water heaters, and motor vehicles. (…)

The majority of Australia's electricity was produced from coal, which accounted for 63.9% (76.3% in 2007/08) of total electricity generation in 2012/13, followed by natural gas (20.5%), and renewable and oil product sources (10.2% (of which hydro and wind account for 7.3 and 2.9 percentage points, respectively)). As a result, carbon dioxide emissions per unit of output are high by international standards. (...)

(…) The Renewable Energy Target (RET) scheme, consisting of the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES) that is aimed at increasing renewable energy generation and reducing greenhouse gas emissions from the electricity sector, remains in place. It is designed to deliver the equivalent of 20% of Australia's electricity from renewable sources by 2020, and will cease in 2030. As at 31 December 2013, there were 394 power stations accredited under the LRET with a combined capacity of approximately 18,600 megawatts. Under the SRES, there are over two million small-scale installations that have the capacity to generate or displace approximately 6,882 gigawatt hours of electricity annually. An independent review examined the operation and costs and benefits of the Renewable Energy (Electricity) Act 2000 and related legislation and regulations, and the RET scheme which is constituted by these instruments. The report was released on 28 August 2014.

Australia's electricity prices in 2010 and 2011 remained low (or at the mid-range on a purchasing power parity basis) compared with most other OECD countries, reflecting, inter alia, Australia's abundant and low-cost coal supplies. Nevertheless, over the past five years, they have been rising as a result of network capital expenditure to meet increasing peak demand, environmental policy requirements, the carbon tax, green and renewable energy schemes (e.g. RET, feed-in tariff schemes), as well as a cyclical increase in the replacement of electricity assets in some states, thus resulting in higher average fixed energy costs per user. (...) According to a 2012 OECD survey, enhancing the efficiency of the energy market would boost growth, while preserving the environment; price controls remain an important area of unfinished business in energy reform as electricity tariff caps reduce supply side signals for investment. (...)

(...) Despite the lack of a nationally mandated programme, most Australian jurisdictions operate feed‐in tariff (FiT) schemes, which provide owners of small renewable‐energy systems with guaranteed fixed rates for the sale of electricity fed into the grid (e.g. Victoria). During the review period, several schemes (e.g. ACT FiT scheme, South Australian solar FiT scheme, and Residential Net FiT for Western Australia) were closed to new participants.

In late 2011, the Commonwealth Government released its Strategic Framework for Alternative Transport Fuels that sets out a long-term strategic framework to support the market led development of alternative transport fuels in the context of maintaining liquid fuel security while moving toward a low emission economy. [109] (...)

[109] Alternative transport fuels include biofuels (such as ethanol and biodiesel), gaseous fuels (compressed natural gas, liquefied natural gas and liquefied petroleum gas) and synthetic fuels (coal to liquids, gas to liquids, biomass to liquids and shale to liquids).

(…) Under the 2002 Ethanol Production Grant (EPG) Programme, which in June 2011 was extended until 30 June 2021 with a review after that date, the government subsidy to producers remains equal to the fuel excise of 38.143 cents per litre. This is equivalent to budgetary assistance of $A 108.9 million in 2012/13 ($A 115.3 million in 2011/12, $A 124.7 million in 2010/11), meaning that E10 petrol is effectively excise free for the ethanol component (which is 10%). The Energy Grants (Cleaner Fuels) Scheme also provides 38.143 cents a litre for the domestic use of biodiesel and renewable diesel. According to the 2014 Budget, as of 1 July 2015 the EPG and the Cleaner Fuels Scheme will cease and the excise rate for ethanol and biodiesel will be set at zero. From 1 July 2016 onwards, excise will be progressively phased-in on ethanol and biodiesel over a five year period based on a discounted energy content until it reaches 12.5 cents per liter for ethanol, and 50% of the energy content equivalent tax rate for biodiesel. The excise equivalent customs duty for imported biodiesel will continue to be taxed at the full energy content equivalent tax rate. No comments were provided by the authorities on this matter.

Several general and industry-specific programmes, most of which are discussed in other sections of this report (section 3.4.2 and below), contributed to achieving the programme's objectives during 2012/13. They included: (...) Buy Australian at Home and Abroad [124]; Clean Technology Focus for Supply Chains Program; (...) Clean Business Australia – Green Building Fund; Clean Technology Food and Foundries Investment Program; Clean Technology Investment Program; (...)

[124] The $A 58 million Buy Australian at Home and Abroad initiative assists firms to enhance their competitiveness and link with new business opportunities, particularly on major projects through the following activities: Australian Industry Participation Plans for major Commonwealth Procurement (section 3.2.8); Supplier Advocates; Resources Sector Supplier Advisory Forum and Envoy; Supplier Access to Major Projects (SAMP); and, Clean Technology Focus for Supply Chains (Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education online information. Viewed at: http://www.innovation.gov.au/INDUSTRY/BUYAUSTRALIANATHOMEANDABROAD/Pages/default.aspx).