Government Energy Efficiency Perspective 2013

1. Government Energy Efficiency Perspective 2013 Subho Banerjee Deputy Secretary Department of Resources, Energy and Tourism

2. Overview • Australia’s economy and the industrial sector are facing major challenges – leading to a renewed focus on productivity • The industrial sector has made major improvements in energy productivity in recent years – and significant opportunity remains • Government remains committed to working with industry to unlock greater energy productivity gains

3. The future holds some challenges for Australian industry Competitiveness Growing beyond the mining boom Rising costs of energy – electricity, gas and oil Improve energy productivity Commodity price volatility Transforming to compete in a low-carbon world Increasingly complex regulatory environments Australian dollar uncertainty

4. Energy prices have risen and are forecast to continue rising Electricity and Gas price indexes (adjusted for inflation) Source: Australian Bureau of Statistics

5. Energy efficiency is important for achieving global emission reduction targets 38 Gt New Policies Scenario 36 34 Energy efficiency measures 32 30 28 26 24 450 Scenario 22 20 2010 2015 2020 2025 2030 2035 Source: IEA, World Energy Outlook 2012

6. Overview • Australia’s economy and the industrial sector are facing major challenges – leading to a renewed focus on productivity • The industrial sector has made major improvements in energy productivity in recent years – and significant opportunity remains • Government remains committed to working with industry to unlock greater energy productivity gains

7. Australian industry has made major energy efficiency improvements

8. Significant opportunities remain to capture further savings Mining, manufacturing & transport identified savings = 11.4% of their total energy use Source: Industrial Energy Efficiency Data Analysis Project How much of the identified potential can be unlocked? How to facilitate uptake of that potential?

9. Overview • Australia’s economy and the industrial sector are facing major challenges – leading to a renewed focus on productivity • The industrial sector has made major improvements in energy productivity in recent years – and significant opportunity remains • Government remains committed to working with industry to unlock greater energy productivity gains

10. Government is working to further understand factors affecting industry investment in energy productivity • ‘Tracking Australia’s Progress Towards a Low Carbon Economy’ • Power • Industry • Buildings • Land use • Waste • In-depth analysis of industrial energy efficiency activities

11. Companies report that three practices in combination increase energy efficiency outcomes Source: Tracking Progress Towards a Low Carbon Economy

12. Government is committed to working with industry to further unlock energy productivity Industry opportunities Government support Factors affecting investment

13. EEO Program is evolving to better enable business outcomes

14. Thank you