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Ambitious Energy Efficiency

Energy efficiency is an important enabler of emissions reduction and energy productivity in the broader economy, while we transition to a new mix of clean energy generation technologies.

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Improving energy efficiency is one of the most direct and cost-effective ways to reduce carbon emissions, with the potential to lower costs, lower energy imports and lower carbon emissions. 

Energy use contributes around 78 percent of Australia’s greenhouse gas emissions. Industry accounts for nearly 40 percent of these emissions. Emissions intensity varies widely between industry sectors but there are significant opportunities to improve the energy efficiency of large energy users. While small and medium-sized companies generally consume modest amounts of electricity individually, together their consumption is material. 

Emissions from the residential sector make up around 16 percent of national emissions. Alongside regulations and information programs, better access to finance can help households invest in energy efficiency upgrades to reduce energy consumption and, in turn, carbon emissions.

Transport, including road, rail, domestic and shipping aviation, accounts for around 17 per cent of Australia’s emissions. As well as electrification and fuel switching, ongoing improvements in fuel efficiency will be critical to achieving Australia’s emissions goals.

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