Key highlights
100% Renewables welcomed the Department of Planning, Industry and Environment’s Net Zero Plan Stage 1: 2020–2030[1], released on 14 March this year, along with the release of two additional Renewable Energy Zones in regional NSW.
While the Plan’s release has been understandably overshadowed by the Covid-19 global pandemic, it is nonetheless a big milestone that sees the first of three clear, 10-year plans released that will set a pathway to net zero emissions by 2050.
It takes an aspirational 30+ year goal and brings it back to tangible actions, cross-sectoral measures, and a range of funded programs that will help governments, business and householders in NSW play their role in moving NSW to a low carbon economy.
From our reading of the Plan, there are a number of key highlights:
- Action is grounded in science and economics, and a central focus of the Plan is about jobs that will be created and about the lowering of energy costs for consumers. Emissions reductions are a by-product of good investments in new technologies over the long term that boosts overall prosperity. Too much of the negative commentary on decarbonisation is about jobs that will be lost, and more focus is needed on the jobs that will be created, what they will be, and importantly where they will be.
- We already have many of the technologies to drive significant abatement. Investing in breaking down barriers to these technologies is the simplest and shortest path to accelerating investment in these technologies, like:
- energy-efficient appliances and buildings,
- rooftop solar panels,
- firmed grid-scale renewables,
- electric vehicles and
- electric manufacturing technologies.
Electrification and switching to renewables are core short, and medium-term decarbonisation strategies of many of our clients and this focus can help accelerate this transition.
- The Plan provides certainty to investors that NSW is a place to invest in renewable energy, efficient technologies and sustainable materials. It also signals that NSW aims to lead in the development of emerging technologies that create new opportunities, whilst being flexible to re-assess and re-prioritise efforts during the Plan period.
- Reducing our emissions by 35% by 2030 and to net-zero by 2050 is a shared responsibility, and the Plan clearly sets out the expectation that all business sectors, individuals and governments must play their part.
- A broadening of the focus of abatement efforts to encompass low-carbon products and services, integrating these into existing and new initiatives, and providing consumers with more information to influence decisions is welcome.
- Clarity on some of the funding, targets and programs that will help drive this change, such as:
- $450 million Emissions Intensity Reduction Program
- $450 million commitment to New South Wales from the Climate Solutions Fund
- $1.07 billion in additional funding via both NSW and Commonwealth Governments in a range of measures
- Development of three Renewable Energy Zones in the Central-West, New England and South-West of NSW to drive up to $23 billion in investment and create new jobs
- Establish an Energy Security Safeguard (Safeguard) to extend and expand the Energy Savings Scheme
- Expanded Energy Efficiency Program
- Expanded Electric and Hybrid Vehicle Plan with the Electric Vehicle Infrastructure and Model Availability Program to fast-track the EV market in NSW
- Primary Industries Productivity and Abatement Program to support primary producers and landowners to commercialise low emissions technologies
- Target of net-zero emissions from organic waste by 2030
- Development of a Green Investment Strategy, with Sydney as a world-leading carbon services hub by 2030
- Enhancement of the EnergySwitch service by allowing consumers to compare the emissions performance of energy retailers
- Advocate to expand NABERS to more building types, and improve both the National Construction Code and BASIX
- Establishment of a Clean Technology Program to develop and commercialise emissions-reducing technologies that have the potential to commercially out-compete existing emissions-intense goods, services and processes
- Establishment of a Hydrogen Program that will help the scale-up of hydrogen as an energy source and feedstock, and the setting of an aspirational target of up to 10% hydrogen in the gas network by 2030
- Aligning action by government under GREP with the broader state targets through clear targets for rooftop solar, EVs, electric buses, diesel-electric trains, NABERS for Government buildings, power purchasing and expansion of national parks
We believe that the Net Zero Plan Stage 1: 2020–2030 is a good start in the right direction for NSW. We are looking forward to helping NSW organisations to set and reach their renewable energy and abatement goals, and to avail of available information, support and incentives that help them achieve their goals.
We will be keeping track of the Plan as it is rolled out and evolves over time, and will keep clients informed about opportunities that are aligned with their needs and objectives.
[1] © State of New South Wales 2020. Published March 2020
100% Renewables are experts in helping organisations develop their renewable energy strategies and timing actions appropriately. If you need help with developing emission scenarios that take into account policy settings, please contact Barbara or Patrick.
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