Federal Budget - A focus on emissions reduction, electricity and gas

In May 2021, the Federal Government handed down its 2021-22 budget with $1.8 billion worth of new initiatives, support, and investment in key areas of emissions reduction, electricity and gas. The Government’s perspective is that the budget measures will “provide reliable, secure and affordable energy to all Australians, and increase investment in technology solutions to reduce emissions in a way that supports jobs and economic growth.”

Key investment areas

The budget announcement included several key initiatives that will impact energy market development, help develop new technologies, or assist businesses and large energy users reduce emissions and better manage energy costs.

Emissions reduction

Investment in emissions reductions initiatives represents $1.2 billion in aggregate.  These are designed to stimulate the development of new technologies as well as reduce energy costs for businesses. Examples include:

Electricity

There is approximately $215 million investment in electricity-related initiatives designed to maintain security, reliability and competitive pricing. Examples include:

Gas

Approximately $58 million in new gas-related initiatives were also announced to continue the Government’s push towards a gas led recovery. Examples include:

Conclusion

There have been mixed reactions from sectors of the energy industry, the opposition and other stakeholders to certain investments outlined in the budget.

However, it is clear that the Government is continuing its focus on technology-related investments to reduce emissions while maintaining reliability, energy security and competitive prices. 

If you have any questions or need advice on the impacts and opportunities of the budget on your business, please contact your Energy Action account manager on 1300 964 589 or by clicking here.

You can find out more about the Australian Federal Budget for 2021-22 by clicking here.