CEC calls for big budget spend on renewables, and net zero grid by 2035

The Clean Energy Council is calling on federal Labor to use its 2024-25 Budget to further accelerate Australia’s transition to renewables, by ramping up investment “with a view to realising the full decarbonisation of the electricity sector by 2035.”

In a 2024-25 Pre-Budget Submission, the CEC calls for the Albanese government to commit to a nation-building Clean Energy Transformation Investment Package and bed down future growth in what is likely to be the final budget before the next federal election.

The CEC’s recommendations include ensuring a “strong start” to the expanded Capacity Investment Scheme, a cost-of-living package to accelerate the uptake of rooftop solar, batteries and electrification, and a national offshore wind target supported by a policy support mechanism to drive contracting.

But most strikingly, the submission adds to the pressure on the government to set ambitious interim goals – both for emissions reduction and renewables – to bridge the yawning gap between the current targets of 82 per cent renewables by 2030 and net zero by 2050.

“Our message to government is to build on the strong momentum from the 2023-24 Federal Budget and other policy measures, to go even further,” said CEC policy director of decarbonisation, Anna Freeman in a statement on Tuesday.

“This includes strengthening investment and infrastructure planning, increasing energy productivity improvements through electrification and developing dynamic, competitive green growth industries.

“This year’s Federal Budget will help determine the trajectory not just for Australia’s clean energy transformation, but the most consequential structural reforms to our economy in a generation.

“In a globalised economy racing towards decarbonisation and a future powered by renewables, Australia is competing for capital, equipment and skilled workers, necessitating ambitious, long-term policy and planning to minimise delays, increased costs and missed opportunities.”