The Energy Efficiency Council has this week endorsed the Federal Government’s plan to allocate $600 million towards industrial decarbonisation, in an effort to reduce carbon emissions.

The $600 million will go towards trade-exposed businesses and regions and assist them in utilising sustainable technologies. The government has also slapped a $75 per tonne price tag on carbon emissions to give clarity to businesses.

Energy Efficiency Council CEO, Luke Menzel, believes the investment is a smart move from the Albanese Government.

“We have entered a new era with two key features: high energy prices around the globe, and an ever increasing focus on cutting the emissions intensity of the products we use every day,” he says.

“In this new landscape, working with our most emissions intensive industries to decarbonise as quickly as possible is the best way to secure their long-term competitiveness.”

Australia’s energy efficiency policies have been a global concern in recent past. Menzel believes an improvement in efficiency and a switch to renewables will ensure Australia is on target to net zero.

“Investing in improving the energy performance of our largest energy users is a no-brainer – it will reduce emissions, reduce exposure to volatile gas markets, and help transition Australian industry to a net zero future,” he says.

The recent reforms to the Safeguard Mechanism, which will see reduced emissions limits and called baselines, are also on the right path.

“A well-designed and well-implemented Safeguard Mechanism reform package will send a clear signal to industry to invest in decarbonisation within Australia. Energy efficiency is one of a number of pathways with huge potential to help us reduce emissions quickly.”

Menzel believes quantitative and qualitative limits on the use of offsets are important to ensure companies invest in decarbonisation on their own sites. Menzel is also complimentary of the government’s plans to reform the Emissions Reduction Fund framework.

“There’s still work to be done to unlock our lowest-cost source of emissions reduction”, he says.

“Improved energy performance will lower emissions and reduce energy bills, and the time is right to deploy it at scale.”