The fastest, cheapest way to cut emissions

Energy efficiency has been proven as a simple, cost-effective way to reduce carbon emissions and is available now using safe, existing technologies. Implemented on a large-scale, energy efficiency could provide Australia with 55% of its greenhouse gas abatement by 2050, much of it at an economic benefit.

But Australia’s energy efficiency potential is still waiting to fully realised and continues to face on-going challenges

Why energy efficiency works

Energy efficiency offers many more benefits than just reducing greenhouse gas emissions.

Energy efficiency can:

• cut electricity bills, saving money for all energy users – small and large
• decrease demand on electricity networks during peak periods
• reduce the need for costly network infrastructure
• be implemented now using existing technologies
• ‘buy time’ for other carbon reduction solutions to be developed

Energy efficiency statistics

• The International Energy Agency’s World Energy Outlook 2009 estimates that energy efficiency measures will provide 65% of world emissions abatement to 2030.

• A 2007 ABARE study estimated energy efficiency would directly account for 55% of Australia’s abatement by 2050, much of it at an economic benefit.

• McKinsey’s 2008 analysis estimates that by 2030 up to 100Mt of mostly energy efficiency measures (about 1/6 of Australia’s 2005 total emissions) could be delivered at zero or negative cost.

• The Australian Sustainable Built Environment Council’s 2008 building sector analysis estimates that approximately 60Mt of abatement (over 10% of Australia’s 2005 total emissions) is available from energy efficiency in the building sector alone to 2030, at a profit of $130 per tonne.