What does this mean for Australia?
Australia has pledged to reduce greenhouse gas emissions by 26-28 per cent reduction by 2030, based on 2005 levels. This is a strong target that will require a significant transformation of the energy sector between now and 2030.
Electricity is the largest source of emissions in Australia, comprising about one-third of total emissions. Assuming the electricity sector will be responsible for one-third of the total reduction required to meet the target, this will be equivalent to replacing two of the most emissions intensive brown coal-fired power stations with renewable energy.
Origin supports Australia’s 2030 target as a minimum goal and we believe even greater reductions in greenhouse gas emissions are possible. Origin has been preparing for a carbon constrained world for several years, developing Australia’s largest gas-fired generation portfolio – which is lower emissions and a natural complement to renewable energy.
What changes will be required for Origin and the electricity sector in Australia more generally?
- a commitment to phasing out the most carbon-intensive fuels like brown coal in power generation and replacing them with lower carbon fuels like gas or renewables. Origin has only one less carbon intensive black coal generator and we have flagged this will close at the end of its asset life in the early 2030s
- significantly increasing our support for renewable energy such as solar, and
- a continuing role for gas for Australia, and as a substitute for coal in international markets.
Origin is working with government, industry and the broader community on the right policies to achieve or better Australia’s 2030 target.