Climate Change and Energy Efficiency

Audit strategy overview

The Department of Climate Change was established in December 2007 with responsibility for leading the development and coordination of Australia’s climate change policies. The department’s activities encompassed the three pillars of the Australian Government’s climate change policy:  reducing Australia’s greenhouse gas emissions; adapting to climate change that cannot be avoided; and helping to shape a global solution. It also administered the recently legislated mandatory 20 per cent Renewable Energy Target.

In March 2010 the department became the Department of Climate Change and Energy Efficiency (DCCEE), with the energy efficiency and renewable energy functions of the Department of the Environment, Water, Heritage and the Arts being transferred to the new department. These additional functions include developing policy and delivering a range of energy efficiency and renewable energy programs targeting the household and small business sectors. The programs are intended to complement and enhance action on climate change by assisting the transition of the community and business sectors to a low carbon future.

Audits in recent years have focused on climate change programs and the coordination and reporting of Australia’s climate change measures. The ANAO’s future audit program will focus on reporting of corporate greenhouse gas emissions and the implementation of the Renewable Energy Target.

Potential audits

National Greenhouse Energy Reporting

The National Greenhouse and Energy Reporting is a mandatory reporting framework for corporate greenhouse gas emissions and energy production and consumption across Australia. The requirements of the framework are outlined in the National Greenhouse and Energy Reporting Act 2007.

An audit would examine the administration of the system by the Department of Climate Change and Energy Efficiency and compliance with the legislative requirements of the National Greenhouse and Energy Reporting Act 2007.

Office of the Renewable Energy Regulator

The Office of the Renewable Energy Regulator (ORER) is a statutory authority established to oversee the implementation of the Australian Government's Renewable Energy Target (RET). From 1 January 2011 the RET, which guarantees 20 per cent of Australia’s energy in 2020 will come from renewable sources, will include two parts: the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET).

The LRET will cover large-scale renewable energy projects like wind farms, commercial solar and geothermal energy, and is expected to deliver the vast majority of the 2020 target. The SRES will cover small-scale technologies such as solar panels and solar hot water systems and will deliver the remainder of the target. The SRES will provide a fixed price of $40 per megawatt hour of electricity produced, providing direct support for households that take action to reduce emissions.

An audit would assess how effectively ORER has managed the implementation of the RET.

 

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