Tackling climate change and energy affordability for low-income households
Certainty in climate change and energy policy can lower emissions and reduce energy prices, taking the pressure off energy-stressed households.
At a glance
This report modelled the impacts of four different emissions reduction targets on energy affordability, particularly for low-income households.
It found a more ambitious emissions target represented better value. A 65% target would lower residential electricity bills by 15% and nearly triple the electricity emissions reductions of Australia’s current target.
This report draws on modelling that examined the impacts that different emissions reduction targets, and the exclusion of Energy Intensive Trade Exposed industries, would have on residential retail electricity prices and carbon emissions.
The modelling demonstrates that with the right settings, an emissions reduction mechanism (a National Energy Guarantee or similar mechanism like an Emissions Intensity Scheme) could drive rapid emissions reductions in the electricity sector and put downward pressure on energy prices.
Most compelling was the finding that a higher emissions reduction target (65% below 2005 levels by 2030) provides more ‘bang for your buck’, resulting in significantly greater emissions reductions than business as usual, and savings to residential electricity prices.
The analysis was undertaken by an independent energy market expert and the report produced by ACOSS and BSL.
Last updated on 10 March 2020