Federal Government releases its third Annual Climate Change Statement
In late November, the Federal Government released its 2024 Climate Change Statement, which reports on the progress of Australia’s climate change and energy initiatives in meeting its climate goals; in particular, the 2030 emissions target. Current projections put Australia’s greenhouse gas emissions in 2030 at 42.6%, falling just 0.4% short of the 43% goal.
With recognition that transformation of the electricity sector is vital to achieving near term emissions reduction, the statement highlights the progress to date:
- Renewable sources will contribute 40% to electricity demand in 2024
- Almost a quarter of the required transmission upgrades over the next decade have started construction or are complete
- Emissions in the electricity sector will continue to decline, halving between now and 2030
- A new record of 75.6% renewables contribution to demand occurring at 1pm on 6 November
The statement notes a number of policies progressed in 2024, including Rewiring the Nation and the expanded Capacity Investment Scheme, that aim to ensure the trajectory towards 2030 is continued.
The Australian Energy Regulator releases its 2024 State of the Energy Market report
| In early November, the Australian Energy Regulator released its annual review of the Australian energy and gas markets. For the National Electricity Market (NEM), the report notes that whilst over the past year prices were down from the highs of the energy crisis, extreme weather conditions throughout 2024 resulted in significant price volatility – with both hot and cold weather, and extreme storms, driving higher pricing at times. Conversely, record lows in minimum demand and prevalence of negative pricing periods continue to grow as the roll out of behind the meter rooftop solar generation reduces demand from the grid during the middle of the day. Whilst the entry of new grid scale capacity slowed over the past year, this was largely due to delays, with a significant 6.4GW of new capacity expected over the next year. The report also highlights the need for continued investment and support for renewable generation and transmission in the near term, as the market looks to the retirement of Eraring Coal power station in 2027, the largest single power station in the NEM. |
UN Conference of the Parties (COP) 29 in Baku
| The 29th Conference of the Parties (COP) was held in Baku in late November, with its most significant agreement being on new climate finance commitments. The key pillar of the agreement is a 2035 goal of $300 billion in annual funding for developing nations to cut emissions and address the impacts of climate change. Whilst some hailed this as an important first step, for many attendees the amount was seen as insufficient. With limited other outcomes from the conference, countries failed to reach a consensus on whether or how to acknowledge the call for a transition away from fossil fuels that came out of the previous COP 28. The next COP, in Belem, Brazil in 2025 will require nations to provide their Nationally Determined Contributions (NDCs) for 2035, and ideally strengthen their 2030 targets – it remains to be seen if the Federal Government will announce these updates before the next Federal election. The opposition has promised to cut the current 43% target. |
