Energy Policies of Iea Countries Australia 2005 Review

Energy prices in Australia are among the lowest in the IEA, due to the economic efficiency of the energy sector and the presence of abundant domestic fossil fuels. Australia was one of the pioneers for market reform and its electricity sector can be seen as a model for other countries. Ongoing reform, especially in the area of expanded transmission interconnections and the establishment of a national regulator, will improve the system further. Energy security is sound due to both domestic resources and concerted government efforts.Environmental sustainability represents Australia's greatest energy challenge. CO2 emissions from fuel combustion per unit of GDP are 43% above the IEA average. From 1990 to 2010, the government expects energy-related emissions to grow by 43%. Without a substantial change in energy supply and/or demand behaviour, emissions are likely to continue their growth, making it difficult to participate in any global climate change mitigation programme. Australia is taking a largely technological approach to curbing climate change and recently opted not to introduce an emissions trading scheme. While technology will be essential in dealing with climate change, the government is encouraged to periodically review the costs and benefits of emissions trading in light of technological advancements and developments in international and domestic climate change frameworks.Energy efficiency offers an attractive means of curbing emissions. Australian primary energy use per unit of GDP is 35% above the IEA average. In addition to reduced emissions, greater efficiency can improve national competitiveness, enhance energy security and bring greater economic efficiency, especially in curbing peak demand.IEA staff is the author of 'Energy Policies of Iea Countries Australia 2005 Review', published 2005 under ISBN 9789264109339 and ISBN 9264109331.