Joint Media Release
The Hon Lindsay Tanner MP
Minister for Finance and Deregulation |
Senator The Hon Penny Wong
Minister for Climate Change and Water |
The Hon Peter Garrett MP
Minister for the Environment, Heritage and the Arts |
29/2009
12 May 2009
The Australian Government will invest $64.6 million over four years as part of its contribution to the National Strategy on Energy Efficiency to help Australians choose more energy efficient appliances, homes and buildings, and make residential and commercial buildings more energy efficient.
Environment Minister Peter Garrett said the new suite of measures demonstrated the Government’s commitment to encouraging action on energy efficiency across all sectors of Australian society.
“This investment builds on the Government’s $3.9 billion Energy Efficient Homes program, driving further energy efficiency across Australia,” Mr Garrett said.
“The expansion of energy efficiency labelling and minimum performance standards will help consumers buy more energy efficient appliances, reducing household energy bills and encouraging innovation in smart, cost-saving technologies.
“Australians will also be able to make meaningful comparisons when assessing the environmental performance of buildings. Whether you are buying a home or leasing a large commercial building, energy performance ratings will be made available to help you factor in the benefits of energy efficiency as part of the decision-making process.
“Improvements to the 2010 Building Code of Australia will increase energy efficiency requirements for homes and commercial buildings.
“Collectively, these measures lay the foundation for a nationally consistent approach to energy efficiency, helping households, businesses and the community to lower their energy use and save money. By becoming more efficient, we will help to reduce the energy intensity of the Australian economy overall, which is critical in our transition to a low pollution future,” Mr Garrett said.
The eight energy efficiency measures announced as part of the National Strategy on Energy Efficiency in the 2009-10 Budget are:
Appliances and equipment
- Implementing enhanced energy efficiency labelling – $18.3 million over four years.
- Expansion of minimum performance standards for appliances and equipment - $16.6 million over four years.
Residential buildings
- Increasing energy efficiency requirements for residential buildings – $8.7 million over four years.
- Disclosure of energy performance of residential buildings – $7.8 million over four years.
Commercial buildings
- Disclosure of commercial building energy efficiency – $5.3 million over four years.
- Improvements to the Building Code of Australia requirements for commercial buildings – $3.3 million over four years.
- Commercial building rating tools – $2.6 million over four years.
- Improvements in heating, ventilation and air conditioning systems – $2.0 million over three years.
These measures build on the unprecedented support Government has committed to improving energy efficiency since the 2008-09 Budget, including the $3.9 billion Energy Efficient Homes program.
This package of new and streamlined measures has been developed in response to the recommendations made in the Strategic Review of Australian Government Climate Change Programs, which has been released today with the Government’s response to the recommendations.
The Review, led by Mr Roger Wilkins AO, was commissioned by the Government to assess the efficiency and effectiveness of existing Commonwealth climate change programs. It provides a thorough evaluation of whether existing programs are complementary to the Carbon Pollution Reduction Scheme.
“Streamlining climate change programs is an important part of the Government’s climate change strategy. It will ensure the community receives value for money and the challenge of addressing climate change is dealt with effectively and at the lowest cost to the economy,” Minister for Climate Change and Water, Senator Penny Wong said.
The Review considered 58 active climate change programs. It made recommendations about whether they align with the Rudd Government’s broader climate change strategy or should be considered transitional programs.
“This will ensure the best use of taxpayer funds, with expenditure being focused on better targeted programs to combat climate change,” Minister for Finance and Deregulation, Lindsay Tanner said.
“I would like to thank Mr Roger Wilkins AO for his expertise, time and effort in conducting this Review. The Government welcomes his views on its climate change programs and his broader recommendations on climate change policy,” Minister Tanner said.
A copy of the Strategic Review of Australian Government Climate Change Programs report is available at www.finance.gov.au/publications/strategic-reviews/index.html.
The Government’s response to the Review is available at www.environment.gov.au/minister/wong
SUPPORTING INFORMATION
IMPLEMENTING ENHANCED ENERGY EFFICIENCY LABELLING
Why is this important?
- This program is a significant expansion of the current energy labelling program.
- The program continues the development of energy rating labelling for an expanded range of products. At the moment Energy Rating Labels must be displayed on six products – fridges, dishwashers, washing machines, freezers, clothes driers and air conditioners. Under the new program, labels will start to appear on a wider range of home appliances. The biggest energy users will be prioritised.
- The expansion of the six-star rating system to 10-stars will continue, helping consumers identify ‘super efficient’ appliances and providing manufacturers with an incentive to continually improve products.
- Activities will be refocused to provide additional consumer and retail information to extend knowledge and understanding of energy efficient appliances and to assist consumers make informed purchasing decisions.
- This new program incorporates some of the activities that used to form part of the Action on Energy Efficiency program as well as the phase-out of inefficient lighting and hot water systems.
Who will benefit?
- Families who replace broken or outdated appliances with energy efficient appliances will benefit from reduced energy costs.
What funding is the Government committing to the initiative?
- The Government is committing $18.3 million to this initiative.
Timeframe for delivery, ie when will the initiative commence and conclude?
- Program delivery will be over four years, ending on 30 June 2013.
EXPANSION OF MINIMUM PERFORMANCE STANDARDS FOR APPLIANCES AND EQUIPMENT
Why is this important?
- The Minimum Energy Performance Standards Program (MEPS) is a highly successful collaboration between the Australian Government, the states and territories and New Zealand to improve the energy efficiency of appliances and equipment sold in the Australian and New Zealand markets. It covers products such as fridges, air conditioners, electric motors, and transformers.
- This measure supports expanding MEPS to a wider range of energy consuming products, including computers, televisions and other home entertainment equipment.
- Busy consumers may not have the time to examine all the savings opportunities from using higher energy efficiency appliances, but even small savings in all of Australia’s eight million households add up to considerable savings for the community as a whole.
- More efficient products also significantly reduce the demand for energy supply and often help reduce peak loads which are very expensive for energy suppliers to meet.
- Regulation is set at levels that ensure a high degree of consumer choice is still available and minimum disruption to industry. For example, the average household refrigerator is about 40 per cent more efficient than when first regulated in 1999. This improvement in efficiency has not lowered consumer choice nor placed undue burden on industry.
- The program will also support the introduction of national legislation for implementing MEPS, including Greenhouse and Energy Minimum Standards.
Who will benefit?
- The program protects consumers from the worst performing products and lowers the cost to consumers of operating energy-using appliances.
- The program will deliver a nationally consistent MEPS approach, replacing the current system of state-based MEPS which can vary in their implementation between jurisdictions. This will provide consistency and certainty to industry and consumers.
What funding is the Government committing to the initiative?
- The Government is committing $16.6 million to this initiative.
Timeframe for delivery, ie when will the initiative commence and conclude?
- Program delivery will be over four years, ending on 30 June 2013.
INCREASING ENERGY EFFICIENCY REQUIREMENTS FOR RESIDENTIAL BUILDINGS
Why is this important?
- Energy use in Australian homes is responsible for approximately 10 per cent of national greenhouse gas emissions.
- The program will improve the energy efficiency of new homes to help deliver on the Government’s commitment to tackle climate change and deliver more sustainable housing.
- The program will help increase the energy efficiency requirements for new residential buildings and major renovations in the 2010 Building Code of Australia (BCA).
- The energy efficiency requirements within the BCA will increase to a ‘six-star’ level or equivalent for both houses and apartments, with specific requirements subject to regulatory impact analysis. Specific performance requirements for hot water systems and artificial lighting will also be added.
- This measure has been supported by the Council of Australian Governments as a key element of a new National Strategy on Energy Efficiency.
Who will benefit?
- This will deliver more energy efficient housing to the Australian community, allowing households to save on their heating and cooling costs.
- Businesses specialising in energy efficient house design, construction and assessment will also benefit.
What funding is the Government committing to the initiative?
- The Government is committing $8.7 million to this initiative.
Timeframe for delivery, ie when will the initiative commence and conclude?
- This program will increase the energy efficiency provisions of the 2010 Building Code of Australia to be implemented by May 2011.
- Program delivery will be over four years, ending on 30 June 2013.
DISCLOSURE OF ENERGY PERFORMANCE OF RESIDENTIAL BUILDINGS
Why is this important?
- Energy use in Australian homes is responsible for approximately 10 per cent of national greenhouse gas emissions.
- This measure will assist consumers in making informed choices when purchasing or leasing by providing information on the sustainability performance of houses.
- The program will phase-in a requirement to publicly disclose the energy, greenhouse and water performance of residential buildings at the time of sale or lease, with specific requirements subject to regulatory impact analysis.
- It will apply to houses and apartments, with the initial focus being on energy efficiency.
- This measure has been supported by the Council of Australian Governments as a key element of a new National Strategy on Energy Efficiency.
Who will benefit?
- Consumers will be able to make more informed decisions regarding the potential energy, greenhouse and water performance of houses.
- Businesses specialising in energy efficient house renovations and assessment will indirectly benefit from this measure as more houses are upgraded.
What funding is the Government committing to the initiative?
- The Government is committing $7.8 million to this initiative.
Timeframe for delivery, ie when will the initiative commence and conclude?
- Requirements for public disclosure will commence no later than May 2011.
- Program delivery will be over four years, ending on 30 June 2013.
DISCLOSURE OF COMMERCIAL BUILDING ENERGY EFFICIENCY
Why is this important?
- Mandatory disclosure of commercial building energy efficiency is a Government election commitment.
- The program is designed to stimulate improvement in the energy efficiency of commercial buildings.
- This measure has been supported by the Council of Australian Governments as a key element of a new National Strategy on Energy Efficiency.
Who will benefit?
- Under the program, commercial building owners will be required to disclose the energy efficiency of their buildings at the point of sale and lease.
- Buyers and tenants of commercial buildings will then be able to compare the energy efficiency of buildings on a ‘like with like’ basis when making purchasing and leasing decisions.
What funding is the Government committing to the initiative?
- The Government is committing $5.3 million to this initiative.
Timeframe for delivery, ie when will the initiative commence and conclude?
- The program will commence with office buildings and tenancies over 2000m2 net lettable area in 2010.
- The program will be extended to cover other types of commercial buildings in 2012.
- Program delivery will be over four years, ending on 30 June 2013.
IMPROVEMENTS TO THE BUILDING CODE OF AUSTRALIA REQUIREMENTS FOR COMMERCIAL BUILDINGS
Why is this important?
- This program will result in the introduction of increased energy efficiency requirements for commercial buildings in the Building Code of Australia (BCA).
- The new requirements will affect new work in both new and existing buildings and cover areas such as glazing, artificial lighting and heating, ventilation and air-conditioning systems, with specific requirements subject to regulatory impact analysis.
- The new requirements will be included in the 2010 version of the BCA.
- This measure has been supported by the Council of Australian Governments as a key element of a new National Strategy on Energy Efficiency.
Who will benefit?
- This program will deliver a reduction in energy use and greenhouse gas emissions from the commercial property sector.
- The program will benefit commercial property owners and lessees through reduced operating costs.
What funding is the Government committing to the initiative?
- The Government is committing $3.3 million to this initiative.
Timeframe for delivery, ie when will the initiative commence and conclude?
- Program delivery will be over four years, ending on 30 June 2013.
- The initial changes will be made to the BCA in 2010.
- Review and refinement of the new standards will occur over the following years.
COMMERCIAL BUILDING RATING TOOLS
Why is this important?
- This program is designed to increase the scope and uptake of the commercial building energy rating tools.
- This initiative supports the Government’s election commitment to ‘ensure transparency and consistency across jurisdictions of rating tools for sustainable design and performance of commercial buildings’.
- This measure will ensure that nationally consistent tools will be developed for industry to measure and improve the energy efficiency of commercial buildings.
- It will also ensure that tools are developed in time to underpin regulatory measures such as the mandatory disclosure of commercial building energy efficiency and the improvements to the Building Code of Australia.
Who will benefit?
- Industry will benefit by having robust, nationally-consistent energy rating tools for measuring and improving the performance of commercial buildings.
What funding is the Government committing to the initiative?
- The Government is committing $2.6 million to this initiative.
Timeframe for delivery, ie when will the initiative commence and conclude?
- Program delivery will be over four years, ending on 30 June 2013.
IMPLEMENTING HEATING, VENTILATION AND AIR CONDITIONING (HVAC) HIGH EFFICIENCY SYSTEMS
Why is this important?
- The operation of HVAC systems in commercial buildings in Australia is a major source of energy use – HVAC systems can be responsible for between 40 and 60 per cent of all the energy used in a building.
- The program will achieve long-term improvements in the energy efficiency of HVAC systems, particularly in commercial buildings.
- It is aimed at whole-of-life improvements in HVAC efficiency, encompassing design, manufacture, installation, operation and maintenance.
- The program addresses the split incentives that exist between the builders, owners and tenants of commercial buildings.
Who will benefit?
- Commercial consumers will benefit from lower HVAC system operating costs.
- It will raise the level of knowledge and information available to manufacturers, suppliers, installers and maintainers of HVAC products.
- The program could achieve greenhouse gas emission reductions of 20 per cent below business as usual.
What funding is the Government committing to the initiative?
- The Government is committing $2.0 million to this initiative.
Timeframe for delivery, ie when will the initiative commence and conclude?
- Program delivery will be over three years, ending on 30 June 2012.
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