INDC costs and experiences in removing low-carbon technology barriers: Australia

Abstract

Australia's emissions increased in recent years and are projected to continue. The increase has been driven by land clearing, increased coal mining, and increased production of Liquefied Natural Gas (LNG). The electricity sector is the major contributor to the total emissions. Coal has been and continues to be a major source of low-cost energy and foreign income source. Nevertheless, Australia's renewable energy resources have the potential to meet the total energy requirements of the country. Hydroenergy is the largest source of renewable energy used for electricity generation. Government policies, both at the Federal and State levels, have increased the use of wind and solar power in recent years. Despite this, Australia's electricity supply will remain dominated by fossil fuels. Australian Government energy policy has been to keep a balance between environmental and economic concerns. There are efforts being made to reduce emissions from coal and gas using carbon capture and storage (CCS). There are some impediments to Australia's increasing the renewable energy supply in the short-to-medium terms. These include rigidities in the National Electricity Market and in financial, legal, and regulatory frameworks.