Climateworks Centre supports the creation of the National Energy Performance Strategy (NEPS).
Climateworks modelling shows the importance of energy performance improvements.
Net zero emissions can be achieved most cost-effectively by unlocking the opportunities from the significant levels of energy savings available in the Australian economy – particularly in buildings and industry.
There is a clear role for government to improve energy performance with its multiple benefits to unlock wider social benefit and address market failure.
The market is currently not driving energy savings in line with Climateworks’ modelled 1.5°C and 2°C scenarios. The market is also not yet unlocking potential levels of energy management – such as demand reduction and matching demand to the times of peak supply. This loses economic opportunities and creates greater cost for energy consumers.
The government has the opportunity to design the NEPS to support Australia’s climate policy priorities, emissions reductions targets, and long-term goal of net zero emissions in line with the Paris Agreement.
This is especially urgent given the window to keep global warming within 1.5 degrees is still open, but narrowing.
Climateworks’ submission to the Department of Climate Change, Energy, the Environment and Water’s consultation on the National Energy Performance Strategy details a number of recommendations on the design and implementation of the NEPS.