The electricity sector can deliver emissions reductions across Australia’s economy, ensuring we meet our Paris commitments at the lowest cost possible.
The electricity sector is well placed to deliver cost-effective emissions reductions well beyond a proportionate share of the 2030 target. Climateworks’ research, as well as other work by our peers in this space, shows that the electricity sector plays a key role in achieving net zero emissions. The technical potential exists today to decarbonise the electricity sector by 2050. Research by the Joint research by the Universities of Melbourne, Monash and German institutions shows that future electricity costs in a fully renewable system are similar or lower than today’s (and much lower if Australia develops a green hydrogen industry).
In this report, Climateworks has modelled four scenarios. Each has differing levels of emissions reductions undertaken in the electricity sector. The report explores the implications and effort for other sectors to then meet net zero emissions by 2050.