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Joint Media Release
Australian Minister for the Environment and Heritage
Senator the Hon. Ian Campbell
Australian Minister for Industry, Tourism and Resources
The Hon Ian Macfarlane, MP

21 October 2005

Productivity Commission inquiry report into the private cost effectiveness of improving energy efficiency

We welcome the tabling today in the Federal Parliament of the Productivity Commission's final report of its inquiry into the Private Cost Effectiveness of Improving Energy Efficiency.

Cost effective improvements in energy use have the potential to increase Australia's economic welfare. Energy efficiency also remains an important element of Australia's greenhouse gas abatement strategy.

The Productivity Commission was requested to undertake this inquiry to provide further information on energy efficiency and possible policy responses.

This includes an assessment of the economic and environmental potential offered by energy efficiency improvements that are cost-effective for individual producers and consumers.

While the Commission's focus was on the private benefits available to individuals, the Commission acknowledges that there are public benefits from improvements in energy efficiency, especially through the reduction of greenhouse gases.

Successful energy efficiency policies should, where appropriate, reflect the full range of benefits captured.

Through its white paper, Securing Australia's Energy Future, the Government has clearly demonstrated its commitment to energy efficiency policies.

The recently introduced Energy Efficiency Opportunities legislation and ongoing improvements to energy efficiency standards exemplify this commitment.

State and territory governments are critical to achieving improved energy efficiency across the whole economy.

The Australian Government looks forward to continued cooperation with all state and territory governments in developing the National Framework for Energy Efficiency.

With that in mind, the Government will consult with the Ministerial Council of Energy on the Commission's recommendations.

Copies of the report are available from the Productivity Commission web site at Further assistance can be sought from the Commission's Media and Publications Officer on (03) 9653 2244.

Media Contact:
Kirsty Boazman, Mr Macfarlane's office 6277 7580, 0412 171 444
Renae Stoikos, Senator Campbell's office 02 6277 7640 or 0418 568 434

Commonwealth of Australia