The Australian Government's Renewable Energy Target
FACT SHEET
The Australian Government is committed to ensuring 20 per cent of Australia's electricity supply comes from renewable energy by 2020.
To deliver on this commitment, the Government is establishing an expanded national Renewable Energy Target (RET) scheme.
The national Renewable Energy Target scheme will:
- Increase the existing Mandatory Renewable Energy Target (MRET) by more than four times to 45,000 gigawatt-hours in 2020.
- Contribute to meeting Australia's targets for the reduction of greenhouse gas emissions.
- Provide a market incentive to accelerate uptake of Australia's abundant renewable energy sources, which include solar, wind and geothermal energy.
- Reduce red tape by bringing existing state-based targets into a single, national scheme.
Why is it important?
Australians understand that climate change is the biggest threat to our prosperity and our way of life. Australia is one of the nations most vulnerable to climate change.
The Rudd Government is preparing Australia for the future by tackling the challenge of climate change.
Renewable energy sources such as wind, solar and geothermal will be a key part of the climate change solution, and Australia has vast potential in these areas.
The RET will position the renewable energy sector to play a significant role in reducing Australia's energy related greenhouse gas emissions over the longer term.
How will it work?
The RET scheme is being designed in cooperation with state and territory governments through the Council of Australian Government (COAG) Working Group on Climate Change and Water.
The Australian Government is also introducing an emissions trading scheme (ETS) to provide incentives to reduce greenhouse gas emissions in a cost-effective way.
The ETS is the economically responsible way to tackle climate change because it will move us from the high emissions economy of the past to the low emissions economy of the future, at the lowest possible cost to families and business.
The RET is a transitional measure to assist Australia's transformation to a low emissions economy.
The RET scheme will be phased out between 2020 and 2030 as the ETS matures.
The Australian Government is supporting renewable energy through a range of initiatives that complement the RET scheme.
These include:
- the $500 million Renewable Energy Fund which will develop, commercialise and deploy renewable energy in Australia;
- $150 million for solar and clean energy research; and
- more than $500 million for the Solar Cities, National Solar Schools, and Green Precincts initiatives.
For more information on these initiatives or the Renewable Energy Target please visit: www.climatechange.gov.au
