Australia outlines new energy efficiency standards

The Australian government has announced it will phase out electronic hot water systems and ban the sale of incandescent light bulbs, but has stepped back from introducing mandatory fuel-efficiency measures.

Ministers representing federal and state governments agreed last week to phase out electronic hot water heaters from next year and ban traditional incandescent light bulbs from November this year.

Australia will also introduce legislation for improved labelling and energy ratings of home appliances, particularly energy-hungry air conditioners, while all new homes and commercial buildings will be forced to meet new energy-rating standards.

However, a proposal to introduce mandatory fuel-efficiency targets has been delayed following intense lobbying from the country's automotive industry, which is arguing that any targets should only be voluntary. The government has agreed to conduct a study on the merits of mandatory and voluntary targets.

Australia's relatively slow take-up of energy efficiency initiatives has frustrated green groups, and many within the property development industry.

Bob Brown, the leader of the Greens Party, said Australia's progress had been "hopelessly slow", and criticised the decision to further delay fuel-efficiency standards as another example of foot-dragging from legislators. "We do not need another study … we need to act," he said.

John Connor, the head of the Climate Institute, an industry lobbying group, said governments were waking up to the potential economic benefits that would arise from improved energy efficiency, but he agreed that progress remained slow. "Australia is getting there but not cracking the hard nuts on what could be gained," he observed.

The institute and other green lobby groups have argued that the government should introduce incentives – either through accelerated depreciation or the creation of "white certificates" – that would help to shorten the payback period for investments in energy efficiency equipment or green building retrofits.

"We are very disappointed by the lack of building retrofit programs," said Rob Murray-Leach, chief executive of the Energy Efficiency Council, who said that annual savings from energy and carbon costs from the commercial building sector could amount to $A38bn (£18.7bn) by 2050.