The Weekly Dispatch: Carbon chronicles

In this edition of the Weekly Dispatch:

  1. There have been a number of developments regarding emissions in the NEO that are well summarised in this AEMC consultation note:
    • The Emissions Reduction Objectives Bill will introduce an emissions objective into the NEO and is expected to pass in late 2023. The Bill will amend the NEO to include “the achievement of targets set by a participating jurisdiction – for reducing Australia’s emissions; or that are likely to contribute to reducing Australia’s emissions”.
    • The Commonwealth is leading the work on the development of a value or method for valuing emissions reduction in consultation with market bodies, states and territories. The Value of Emissions Reduction (VER) is expected to be released by November 2023.
    • The AER is consulting on a draft guide for how it apply the changes to the NEO in network determinations. Changes to the NEO may affect (a) Expenditure Forecast Assessments, (b) Cost Benefit Analysis and (c) the value of Consumer Energy Resources. Depending on the timing of the Commonwealth’s value or method for valuing emissions reduction, the AER may factor emissions reduction in the final revenue determinations for the 2024-2029 regulatory period.
  2. Victoria has banned new residential gas connections from 2024.
  3. AEMO has released the final 2023 IASR. All scenarios incorporate the Federal Government’s 82% by 2030 renewable target with the removal of the slow change scenario.
  4. AEMO has also published the Q2 2023 QED showing a dramatic fall in wholesale gas and electricity prices since the crisis last year. New additions to the report include metrics on connections (p. 35) and a summary of regulatory reforms (p. 66).
  5. ACER argues that freeing up interconnector capacity is critical for the EU to reach its clean energy goals. ACER finds that most Member States are falling behind the capacity targets.
  6. The IRA is stimulating a recycling industry for EV batteries.
  7. Podcasts of the week: Energy Policy Now on recent actions to speed up transmission build; Catalyst on deep sea mining; The Interchange on capital flows into renewable energy.
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