On December 20, 2024, The Senate Select Committee on Energy Planning and Regulation in Australia tabled its final report revealing critical weaknesses in the governance, planning, and economic efficiency of Australia’s energy market.

The Committee sought evidence to test if the energy system is being planned and governed in such a way to promote efficient investment in the transition to decarbonised electricity generation at the same time as maintaining price, quality, safety and reliability in the long-term interests of consumers. 

Despite the very tight time limit it was given, intense expert interest and participation in the Inquiry allowed a detailed examination of one of the most complicated engines of our economy. An engine that is currently simultaneously the largest contributor to our nation’s productivity and to our carbon emissions. 

The electricity sector accounts for about 30 per cent of our nation’s carbon emissions, the highest of all industrial sectors. Interestingly, while still complex and requiring enormous amounts of capital, the energy sector also presents one of the most straight forward opportunities for substantial emissions reductions.

The immense effort and investment required to transition to clean energy needs the highest levels of governance to ensure Australians can have confidence in the planning and regulation guiding the decarbonisation of our energy system which will be the cornerstone to decarbonising our economy more broadly.