Energy efficiency is a critical activity for the economy, environment and householder. Australian industry and business is less efficient than in comparable overseas economies. There are major and quick greenhouse gas savings to be made and despite rising electricity prices, householders can better manage and even reduce the share of income spent on electricity. Efficiency measures can forestall investment in new generation and transmission infrastructure, making significant savings in capital expenditure, which would have been passed onto consumers as higher prices. Deferral of new investment also creates the opportunity for more efficient and green technology to come into play, compared to an earlier timeframe that would simply replicate carbon intensive technology.

A number of recent studies have found that energy efficiency should be a first choice for government if they want to take quick and effective action on climate change. The Australian ‘cost curve’ for greenhouse gas reduction produced by internationally renowned analysts McKinsey & Company, released in February 2008 estimated, ‘that by 2020 almost 80Mt, or 25 percent of the total reductions potential, can be realized with positive returns. Most of these positive return (or ‘negative-cost’) opportunities are energy efficiency measures related to improvements in buildings and appliances.’

There are also major job opportunities in the energy efficiency production, installation and service sectors. Between 23,300 and 47,100 additional jobs could be created in energy efficiency by 2020.

State governments such as Victoria and New South Wales are developing comprehensive energy efficiency plans including mandatory targets for electricity retailers and energy savings plans for big business consumers; and household and small business energy audit and efficiency schemes. There are no comparable federal programs and in their absence the states have an obligation to vigorously pursue energy efficiency.