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News > Global environmental current affairs > Energy-saving effects of Australia's carbon tax

Energy-saving effects of Australia's carbon tax

2013-11-28

The latest survey shows that, with the imposition of carbon taxes and a sustained decline in electricity demand, the energy sector in eastern Australia reduced CO2 emissions by 12.2 million tonnes last year. Carbon emissions figures show that the annual emissions from Australia's national power plants supplying the ACT, NSW, Tasmania, Victoria, parts of Queensland, and southern Australia decreased by 6.9%, lower than the national average of -2.2%.

The carbon tax increase from AU$23 to AU$24.15 per tonne, effective July 1st this year, has further boosted the hydropower industry and eroded the market share of coal-fired power generation. Surveys indicate that the fiscal year from June 30, 2012 to June 30, 2013 saw the lowest coal demand in decades. Conversely, the market share of hydropower and wind power has increased significantly over the past year.

While there is no direct evidence to equate the imposition of a carbon tax with reduced carbon emissions or lower electricity consumption, the push for energy conservation projects, the rapid adoption of solar energy, and political debates surrounding reduced factory output and the costs of carbon emissions are all reminding people to pay more attention to energy-related issues. Once the public begins to recognize the importance of energy conservation, carbon reduction will become easier.

Sources: Eco-Business ((2013-07-03) (Compiled by PIDC)

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