The Australian Energy Market Commission (AEMC) is seeking public feedback on a draft framework that outlines how we would apply an emissions reduction objective to our rule-making process.  

The development follows steps taken by energy ministers to fast-track a plan to embed emissions targets in the national energy objectives that guide our work around electricity, retail energy and gas.  

Chair, Anna Collyer, says the AEMC will use this guide during its rule-making responsibilities and when it provides recommendations in reviews. Importantly, it will help stakeholders understand what the changes will mean for those new and existing rule changes and review projects. 

“This decision represents a significant step forward when it comes to managing the transformation towards a net zero future and underscores our commitment to considering the needs of consumers with emissions reduction efforts.  

“We encourage all stakeholders to participate in this consultation process, as your insights and perspectives are invaluable in shaping the future of our nation's energy landscape,” Ms Collyer said. 

The AEMC will consider all feedback on its consultation paper before a final guide is delivered later this year. 

The AEMC has also 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 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. They will be the first rule changes to apply the new emissions component of the national begun energy objectives.  

Visit the project page for more information about the AEMC's draft framework for the emissions objective.

For more information about the rule changes to 'harmonise' the electricity and gas rules with the emissions objective, visit the project pages here and here.

Background:  

An emission reduction objectives bill was tabled in South Australian parliament on 14 June 2023 and if legislation passes later this year, emissions reduction will be added to the energy objectives and the AEMC will be required to consider emission targets in making future decisions. 

Emissions reduction would represent a new addition to the objectives, alongside existing criteria for price, quality, safety, reliability, and security. All of these would need to be considered in the long-term interests of energy customers. 

Media enquiries: Jessica Rich | 0459 918 964 | media@aemc.gov.au