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

  • Could LGCs boost carbon offset liquidity, and support renewable energy investment?

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

    The Large-scale Renewable Energy Target (LRET) requires liable entities to meet their compliance obligations by […]

    Insights, Research Insights | October 13th, 2020
  • WEBINAR: Wholesale electricity price forecast for the National Electricity Market

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

    In this event, we discuss the outcomes of our latest quarterly Australian Electricity Outlook (AEO) […]

    Research Insights, Webinars | September 14th, 2020
  • Perfect storm drives down NEM wholesale electricity prices, but “the only way is up”?

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

    In this update, we discuss our expectations for wholesale prices in the National Electricity Market […]

    Research Insights | August 25th, 2020
  • OUTLOOK: NEM wholesale electricity and LGC price forecast 2020-40 (Q4 FY20)

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

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

    Outlook, Research Insights | August 21st, 2020
  • WEBINAR: Where to for Australian carbon offset prices under current policy?

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

    As the federal government considers changes to its climate policy framework, including new Safeguard Mechanism […]

    Research Insights | July 13th, 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