Nexa Advisory welcomes the opportunity to respond to the Climate Change Authority’s (the Authority) fourth Annual Progress Report (APR) under the Climate Change Act 2022.
The electricity sector plays a pivotal role in achieving Australia’s decarbonisation goals, comprising about a third of Australia’s emissions – or approximately 150 Mt CO2-e in the year to March 2025.
An ambitious emissions reduction target – with clear alignment around the role of the electricity sector – is critical to build and maintain momentum for the clean energy transition. Any retraction from an ambitious target risks slowing the transition and undermining investor confidence built around these signals. Maintaining and strengthening ambition consistent with Australia’s legislated 2030 economy-wide target (43% below 2005) and the national goal of 82% renewable electricity by 2030 is critical.
Ongoing misalignment in government priorities – particularly around the closure of coal-fired power plants – have resulted in an ongoing electricity reliability risk. This perceived risk is resulting in knee-jerk reactions from state governments, such as support for the extension of coal-fired power plants. This is ultimately driving up the cost of the transition and delaying decarbonisation of the electricity sector and resulting in high energy bills.
Nexa urges the CCA to strengthen emissions reduction ambition and focus on translating this to practical delivery of key nation-building projects which advance the energy transition. This should recognise the role for the electricity sector to contribute to economy-wide decarbonisation, getting the transition back on track and delivering electricity reliability and affordability.
Delivering on this agenda will allow Australia to close ageing coal units on time and in an orderly way and significantly improve Australia’s emission goals. By accelerating and coordinating transmission, streamlining planning and connection approvals, crowding in private capital, unlocking non-network and demand-side solutions, governments can ensure replacement capacity is built ahead of exit.
We propose the following recommendations for the CCA and Federal Government to get Australia’s clean energy transition back on track:
- Set ambitious economy-wide emissions reduction targets, clearly highlighting the role of the electricity sector
- Provide certainty to investors to ensure we mitigate capital flight, ensuring coal can be closed on time
- Accelerate transmission buildout
- Leverage the untapped potential of Consumer Energy Resources
Read our submission here: Nexa Advisory – Submission to CCA 2025 Annual Progress report Issues Paper