Energy and Climate Change Ministerial Council


Incorporating an emissions reduction objective into the national energy objectives

Publication date

On 19 May 2023, Energy Ministers agreed to amendments to the national energy laws to incorporate an emissions reduction objective into the National Electricity Objective, National Gas Objective and National Energy Retail Objective (the national energy objectives) respectively.

These reforms deliver on one of the first key actions under the National Energy Transformation Partnership.  It will integrate emissions reduction and energy policy in the national energy laws, and provide greater clarity to Australia’s energy market bodies — the Australian Energy Market Commission (AEMC), the Australian Energy Market Operator (AEMO) and the Australian Energy Regulator (AER) and Western Australia’s Economic Regulation Authority (ERA) — to consider emissions reduction in how they undertake their respective powers and functions.

The amendment will also send a clear signal to wider industry, market participants, investors and the public, of the governments’ commitment to achieve a decarbonised, modern and reliable grid.

The national energy objectives are contained in the National Electricity Law, the National Energy Retail Law and the National Gas Law — the laws that govern the national electricity, gas and related retail markets. Energy Ministers agreed to the Bill giving effect to the amended objectives in May 2023.

The Bill commenced on 21 September for the AEMC and for the AER and ERA on specified revenue determinations and access arrangements. All other processes, including those led by the AER, ERA and AEMO, will incorporate the new emissions objective two months from the commencement day to ensure market participants have sufficient lead time before application. 

See the Statutes Amendment (National Energy Laws) (Emissions Reduction Objectives) Act 2023.

In June 2023 Energy Ministers released an information paper (PDF 283 KB) to provide stakeholders with a high-level overview of the refinements made to the draft package that was consulted on in late 2022. This paper also has an indicative list of the consequential rule changes to be prioritised to give effect to the new emissions reduction objective. 

Reform process and consultation

On 12 August 2022, Energy Ministers agreed to fast track the introduction of an emissions reduction objective into the national energy objectives.

Officials released an initial National Energy Laws Amendment (Emissions Reduction Objectives) Bill 2022 (PDF 98 KB) and consultation paper (PDF 344 KB) for a seven-week public consultation. Submissions closed on 7 February 2023.

Over 50 submissions were received, and all submissions not marked confidential are accessible below. Officials used this stakeholder feedback to inform the development of the final legislative package for these reforms.

Read more

National energy objectives AEMC

Energy and Climate Change Ministerial Council Meeting 19 May 2023 Communique

National Energy Transformation Partnership


Attachment Size
NEO submission - ACOSS 730.8 KB
NEO submission - AEMC 135.63 KB
NEO submission - AEMO 423.43 KB
NEO submission - AER - Part A 106.38 KB
NEO Submission - AER - Part B 146.39 KB
NEO submission - AGL 90.19 KB
NEO submission - Alan Pears 151.69 KB
NEO submission - ANU College of Engineering and Computer Science 96.94 KB
NEO submission - APA 754.45 KB
NEO submission - APGA 200.79 KB
NEO submission - ATCO 786.89 KB
NEO submission - Ausgrid 138.87 KB
NEO submission - AusNet 87.16 KB
NEO submission - Australian Academy of Technological Sciences & Engineering 150.45 KB
NEO submission - Australian Aluminium Council 704.48 KB
NEO submission - Australian Conservation Foundation 452.35 KB
NEO submission - Australian Energy Council 466.66 KB
NEO submission - Australian Sustainable Built Environment Council 727.58 KB
NEO submission - BCSDA Part 1 156.95 KB
NEO submission - BCSDA Part 2 97.29 KB
NEO submission - Chemistry Australia 191.33 KB
NEO submission - CitiPower Powercor and United Energy 168.49 KB
NEO submission - Clean Energy Council 330.38 KB
NEO submission - Clean Energy Investor Group 590.72 KB
NEO submission - Climate Council 118.23 KB
NEO submission - Climateworks Centre 308.37 KB
NEO submission - CS Energy 92.27 KB
NEO submission - Delta Electricity 141.08 KB
NEO submission - EDO 196.94 KB
NEO submission - Energy Australia 256.02 KB
NEO submission - Energy Consumers Australia 268.66 KB
NEO submission - Energy Efficiency Council 361.02 KB
NEO submission - Energy Networks Australia 194.23 KB
NEO submission - Energy Queensland - Part 1 186.15 KB
NEO submission - Energy Queensland - Part 2 139.83 KB
NEO submission - Energy Users Association of Australia 294.74 KB
NEO submission - Engie 292 KB
NEO submission - ETU 291.96 KB
NEO submission - Fortescue Future Industries 131.42 KB
NEO submission - Green Building Council of Australia 173.31 KB
NEO submission - HydroTasmania 1.18 MB
NEO submission - Ian Carman 13.18 KB
NEO submission - Jemena 3.03 MB
NEO submission - Jim Crosthwaite 91.91 KB
NEO submission - John Godfrey 34.6 KB
NEO submission - Kate Baker 88.03 KB
NEO submission - Network of Illawarra Consumers of Energy 1.49 MB
NEO submission - Public Interest Advocacy Centre 565.57 KB
NEO submission - Queensland Conservation Council 111.68 KB
NEO submission - RE-Alliance 86.22 KB
NEO submission - Ron Ben-David 290.14 KB
NEO submission - Shell Energy 889.1 KB
NEO submission - Smart Energy Council 204.59 KB
NEO submission - Squadron Energy 712.39 KB
NEO submission - Tilt Renewables 217.96 KB
NEO submission - Transgrid 125.97 KB
NEO submission - Tyson Vaughan 170.37 KB
NEO submission - Uniting Church and CoPower 365.73 KB


Energy Ministers priority issue

Last updated