Report – Grattan Institute, 18 June 2023
Getting off gas: why, how, and who should pay?
Australia will not hit its 2050 net-zero emissions target unless it gets off natural gas. Getting off gas will be complex for governments and difficult for many people – but delaying action will only make it more so.
Governments should start by ensuring all Australian homes become all-electric. All-electric homes are cheaper to run and better for people’s health. Alternative technologies such as hydrogen or biomethane are too costly and too far off for widespread use in homes and small businesses.
It’s a big task. About five million households in Australia are on the gas network. Victoria, the state that relies most on gas, will need to take 200 homes off gas every day until 2045 to achieve net zero. Governments need to start now.
There are many barriers, and all must be addressed. They include the initial cost of upgrading houses, apartments, and rental properties from gas to all-electric, the different interests of renters and landlords, and a myriad of space, wiring, and logistical problems.
The current approach to regulating the energy sector is simply not up to supporting this transition. It risks sending the gas network businesses into bankruptcy, or stranding some customers on a redundant, unsafe, expensive gas network – or both.
To achieve net zero and get off gas requires setting targets, developing policies and plans to meet them, and solving the associated challenges. This report shows how we can do it.
Read the full report: https://apo.org.au/sites/default/files/resource-files/2023-06/apo-nid323154.pdf.
