An affordable solution to climate change
AGL, Frontier Economics and WWF-Australia have completed a pragmatic economic evaluation of how to achieve emission reductions in the Australian electricity sector.
This is an executive summary of the study, which modelled the cost to Australian society of using low and zero greenhouse gas emission electricity generating technology to achieve a realistic target by 2030 consistent with the greenhouse gas reductions advocated by climate scientists.
It shows that Australians could pay as little as $250 each to achieve a 40% reduction in greenhouse gas emissions from the country's electricity generation industry by 2030.
If we act now, Australia could afford to significantly reduce emissions from the electricity sector by 2030.
The study shows that:
- A 40% reduction from current emission levels (7% reduction from 1990 levels) can be achieved in the electricity sector by 2030.
- This result can be achieved with today's electricity generation technology and knowledge about energy efficiency.
- Growing industrial and household electricity demand can still be met.
- There are costs to the Australian economy, but these can be minimised and managed by staging the emission reduction pathway carefully during the next 24 years.
- If energy efficiency measures were introduced, this cost could be reduced to a one-off payment of $252 NPV per person, or just $0.43/week per person if it was paid over 24 years.
- The development of new low and zero emission technologies could further reduce the costs.
- Adopting an emission target for 2030 would be a significant step towards achieving the 60% cut in greenhouse gas emissions by 2050 advocated by the CSIRO and the international scientific community.
The full report is also available for download.
