Climate Policy Engagement Analysis
Climate Policy Engagement Overview:Energy Networks Australia (ENA) has been broadly supportive of action on climate change, but it has also expressed opposition to more ambitious policies.
Top-line Messaging on Climate Policy: ENA’s top-line messaging on climate policy appears to be supportive. ENA has communicated support for the net-zero by 2050 target in 2021 and advocated for Australia to increase the ambition of its Nationally Determined Contribution under the Paris Agreement in 2017, while also supporting the wider Paris Agreement goals. ENA has generally been supportive of a national climate and energy policy framework in Australia, although it appears to prefer market-based mechanisms at "least cost" to the consumer.
Engagement with Climate-Related Regulations: ENA’s engagement with climate-related regulations appears to be more mixed. In a submission in 2018, it supported the National Energy Guarantee, however, it is unclear what emission reduction target ENA supports. Additionally, evidence suggests it has opposed ambitious emissions' reduction targets at a state level, stating in August 2019 that those set in Victoria “challenging” and cautioning of “economy-wide” implications. ENA also lobbied to extend the Clean Energy Finance Corporation mandate to be technology-neutral in 2016-17. In 2016, it also appears to have not supported the Renewable Energy Target, calling for it to ‘dumped and replaced with a “low emissions target”’ that would include support for gas.
Positioning on Energy Transition: ENA has been broadly supportive of a transition of the energy mix, however its support appears to be limited to decarbonizing the current gaseous-based energy system and doesn’t appear to be supportive of electrification. In 2020, ENA advocated for the development of infrastructure to support the integration of renewable energy sources. In 2021, ENA stated its support for the decarbonization of the gas network, specifically supporting the transition to renewable gas. In a 2021 submission, ENA stated it supported a Hydrogen Guarantee of Origin Scheme, while also advocating for its scope to be expanded to include bio-methane and other sustainable gases. In a separate submission, ENA has also voiced its support for a renewable gas target to be introduced, similar to the renewable energy target for Australia. However, ENA appear to be less supportive of moves to electrify the energy system and transition away from a gas-based system. On its corporate website in 2021, the association highlighted the cost of electrification and stating it makes the net-zero target harder to achieve, pushing for renewable gas use instead. This position was reaffirmed by the association's submission to Victoria’s Gas Substitution Roadmap in 2021, in which it stated support for the continued use of gas infrastructure, but supported its decarbonization.