Scaling Direct Action for a 15% target by 2015

RepuTex analysis indicates that Australia’s 5% emissions reduction target is at the lower end of the global scale, with the national target needing to increase by at least 10% to match other Annex I countries. While a more stringent target is not currently on the cards in Australia, as consultation begins on Direct Action we analyse the prospects for a 15% target to be adopted in 2015, and examine the mechanics for Direct Action Plan to scale up in the medium term.

KEY FINDINGS:

  • While the government has stated that the CCA’s pending Caps and Targets review will have no bearing on policy, the report will set expectations for the next emissions review in 2015.
  • To fulfil Australia’s 5% emissions reduction target will require an average improvement of 20 Mt p.a, increasing by 39% if Australia shifts to a 15% target.
  • Australia is the only developed country proposing a ‘grant-based’ scheme in place of a ‘market-based’ ETS.
  • The majority of developed countries have committed to emissions reduction targets of between 15-30% from 1990 levels.
  • The emissions targets of Australia, the US and Canada need to be increased to better match targets in other Annex I countries.
  • The scalability of the government’s Direct Action Plan is likely to become a critical medium term issue for market participants.
Restricted Access

This is a subscriber report. Please login to access this content.

Not a subscriber?

To learn more about our research services for the Australian energy and emissions markets, click the button below, or email our subscriptions team.

Sign up for regular insights

LATEST UPDATES

  • The King Review: Government steps toward a ‘grey’ baseline and credit scheme

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The federal government today released the findings of its Expert Panel review (the King Review), […]

    Analyst Alerts, Research Insights | May 19th, 2020
  • UPDATE: Australia’s Expert Panel Climate Policy Review – What to Expect?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    2020 is shaping up as (another) key year for Australian climate policy, with the government’s […]

    Research Insights | May 13th, 2020
  • Where to for wholesale electricity prices under a 1.5-2°C “Step Change” scenario?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    In part two of this two-part series we discuss our long-term expectations for wholesale electricity […]

    Research Insights | April 28th, 2020
  • OUTLOOK: NEM wholesale electricity and LGC price forecast 2020-40 (Q3 FY20)

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Dear Subscriber, Our Q3 FY19-20 Australian Electricity Outlook (AEO) for medium- and long-term price development […]

    Research Insights | April 17th, 2020
  • Could COVID-19 pandemic create a ‘perfect storm’ for wholesale electricity prices?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    In part one of this two-part series we discuss our medium-term expectations for the National […]

    Analyst Update, Research Insights | April 16th, 2020
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone
  • Quick Navigation

  • Electricity

    Learn more about our modelling and price outlooks for the NEM
  • Renewable Energy

    Learn more about our services for wind and solar developers
  • Carbon Market

    Learn more about our Australian carbon price and market analysis
  • Latest Insights

    View our latest articles, white papers, reports and publications