Business implementation of energy efficiency measures helps keeps lid on inflation

06 May 2008Archived News Energetics in the News

Media Release: 6 May 2008. The Government is being advised to rapidly introduce laws to drive energy savings in the next 2 - 3 years including the adoption of incentives to drive business energy efficiency as a key strategy to avoid the inflationary impact of emissions trading on vulnerable sections of the community.

 

The advice comes from Energetics, Australia’s leading climate change and energy solutions company, which has driven some of the biggest energy savings in corporate Australia over the last 20 years.

The company’s recent submission to the Garnaut Review argues that new energy efficiency measures need to be introduced as a matter of priority in order to reduce the impact of higher energy prices on the poor.

"The impact of emissions trading on energy prices will be made worse because we are using more and more energy. We currently have 2% annual growth in energy use in Australia," said Anna Reynolds, Principal Consultant, Carbon Markets and Government Policy

The Energetics submission argues that new measures to drive efficiency in the years before the introduction of the scheme will have a positive impact on the introduction and operation of an emissions trading system.

"Energy efficiency incentives are anti-inflationary as they reduce the operating costs for companies which implement them. If companies target energy efficiency improvements we can stabilise energy use within 3-5 years and then a 20% reduction by 2020. This will require regulation, incentives and a range of other measures," said Ms Reynolds.

"The concerns expressed recently about emissions trading adding to inflationary pressure through an increase in electricity and fuel bills are valid. But if new energy efficiency laws can be introduced now then the higher prices that may come after 2010 will have less impact", Ms Reynolds said.

"Australia’s emissions trading scheme does not have to hurt vulnerable communities if we use the next few years wisely - by the time prices start to rise, Australians will be spending less on their energy bills."

"Its crucial that the Government recognizes what can and can’t be achieved by an Emissions Trading Scheme, and acknowledge that additional and complimentary measures will be needed."

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