The Australian Energy Market Commission (AEMC) will now apply an emissions reduction objective to its rule-making and review processes with the South Australian Parliament passing legislation to add emissions reduction to the national energy objectives.
The Emissions Reduction Objectives Bill 2023 was tabled in the South Australian parliament on 14 June 2023, and with that legislation now passed and assent gazetted, the AEMC can consider the new emissions reduction component alongside the existing criteria for price, quality, safety, reliability, and security.
To support this change, the AEMC has today released its guide on how it will apply this new objective in its rule-making process, and when making recommendations in reviews.
Following consultation with jurisdictions, the Commission has also released a targets statement, which is a list of jurisdictional targets to be considered by the three market bodies, and others, when applying the national energy objectives.
Chair, Anna Collyer, said the release of the guide and targets statement will help stakeholders understand what the changes will mean for those new and existing rule changes and review projects.
“This change presents a significant opportunity for us to formally consider emissions reduction in our work, helping to manage the transformation towards a net zero future, as we continue to protect the long-term interests of consumers,” Ms Collyer said.
“We consulted extensively on our guide, as our stakeholders’ insights and perspectives are invaluable in shaping our processes, and we are proud to release it today, to be transparent about how we will achieve this welcomed change.”
The AEMC has received two rule change requests from energy ministers to ‘harmonise’ or align the electricity and gas rules with the emissions objective.
These steps are required to allow emissions to be transparently considered in network and pipeline expenditure and planning and investment rules.
This is consistent with recommendations delivered in the AEMC’s recent review on transmission infrastructure investment and planning.
The AEMC has begun consulting on these rule changes.
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