The peak body for generators and retailers, the Australian Energy Council, supports an economy-wide interim emissions reduction target as an important step towards achieving net zero.
The Council's Chief Executive Officer, Louisa Kinnear, said "following the release of the Federal Government's interim target range of 62-70 per cent by 2035, it is now critical we focus on the best ways to achieve that goal at the lowest cost.
"Interim targets serve to provide certainty to industry and the broader economy about the expected investment pathway.
"The interim target will be challenging, but that is not a reason to stop trying.
"The scale of the challenge ahead has been recognised along with the need for careful planning and a whole-of-economy approach, and supportive policies and market incentives to be successful and affordable.
"The energy sector has done most of the heavy lifting in reducing emissions and will continue to be called on. While the electricity sector has been able to utilise existing technologies like solar and wind to reduce its emissions, its progress now depends on timely transmission upgrades and market-based incentives to deliver the right mix of generation, including firming.
"We will need to stay open to managing the pace and coordination of the energy transition to ensure costs are kept as low as possible given electricity's central role across all sectors of the economy.
"Inevitably as we get closer to a high renewables grid, the cheapest and easiest form of abatement is moving away from energy.
"That's why it is important for all sectors to play a part. Equally, both consumer affordability and industry competitiveness must remain at the heart of the economy-wide efforts."
About the Australian Energy Council
The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 as well as a 55 per cent emissions reduction target by 2035 and is committed to delivering the energy transition for the benefit of consumers.
