Major moves are underway at the state level and in industry to accelerate the transition away from gas in homes.
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In August 2022, ACT Chief Minister Andrew Barr announced the Powering Canberra: Our pathway to electrification plan. New suburbs need no longer be connected to gas mains, and from this year new gas connections will cease for infill developments, providing a clear signal to the community and industry, with a target to phase fossil gas out entirely by 2045.
And it can't come a moment too soon. The US Consumer Product Safety Commission announced last week it would move to regulate methane gas stoves in the US. This is a response to increasing scientific evidence about the toxic indoor air pollutants emitted by these household appliances - including nitrogen dioxide, carbon monoxide and fine particulate pollutants - causing childhood asthma, cancer, cardiovascular problems and other illnesses.
This move reflects new peer-reviewed research published in the International Journal of Environmental Research and Public Health which found that 13 per cent of current childhood asthma cases in the US can be attributed to gas stove use.
That nation's Inflation Reduction Act (aka Climate Bill) includes rebates of up to $840 for the purchase of new electric ranges as part of some $4.5 billion in funding to help low- and moderate-income households end their reliance on gas and electrify their homes.
As is to be expected, fossil fuel shills are lobbying away to ensure they can continue to profit. It was initially reported that the US Consumer Product Safety Commission was considering an outright ban, but no sooner did the American Petroleum Institute wade in than Republicans mobilised to protect their corporate fossil fuel donors and US President Joe Biden was forced to back down.
The gas con has a long history here in Australia, bolstered by false advertising by the methane gas industry framing gas as "natural" and therefore innocuous - a clean, green, fast and efficient solution to energy needs. A multi-decade fact-free "natural" gas advertising campaign by the likes of AGL did its work, assisted by a corporate rebrand from the Australian Gas Light Company to AGL - Australia's single biggest carbon emitter, recently dragged into the present day by sweeping board reform.
But now, the economics of cooking with gas are under unprecedented scrutiny: the Australian gas cartel has ratcheted-up the price of gas by 5-10-fold over the last two years, raking in private, largely foreign and mostly corporate tax free war-profits off the blood of the Ukrainian people, exploiting our sovereign public assets as it inflicts crushing energy price hyperinflation on the rest of us.
The solution is obvious. As Dr Saul Griffith has been saying, let's electrify everything - including our homes and cars - and slash in half our electricity and gas connection costs even as we do away with the increasingly expensive weekly trip to the petrol station. It is the ultimate win/win: we dramatically, permanently lower our energy and transport bills and concurrently cut carbon emissions.
October 2022 saw Victoria announce its Gas Substitution Roadmap for a phase out of methane gas use in housing as part of the state's ambitious net zero emissions pledge. The government estimates that conversion to an all-electric home plus solar can save over $2000 a year. Adding a medium-sized battery can also save a further $520 per year.
Federally, Prime Minister Anthony Albanese and Energy Minister Chris Bowen announced late last year that the May 2023 budget will include funding for homes and business to electrify, as part of the government's Energy Bill Relief Plan, which saw it bring the cartel to heel by capping gas wholesales prices and legislating a requirement for the industry to retain reasonable pricing in the future. This support for electrification was widely hailed, including by groups such as the Property Council of Australia.
Other key developments include the Green Building Council's Green Star Buildings rating tool, and its Green Star Homes tool. These have set clear targets for electrification and eliminating fossil fuels from heating, hot water, and cooking. To achieve a world-leading 6 Star Green Star or 5 Star rating, any new building or major refurbishment must be fossil fuel free - and this will apply to any rated new buildings from 2026. And to achieve a Green Star Homes rating, a recognised pathway under Commonwealth Bank's Green Homes offer, the home must be fully electric.
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In a landmark move in September 2022 major developer Lendlease committed to Net Zero Emissions by 2040, with five milestones to decarbonisation, including phasing out diesel and gas from operations and 100 per cent renewable electricity by 2030. Developer Cbus Property has also confirmed that all of their properties will be 100 per cent electric.
The accelerating phase out of expensive, dangerous methane gas is a key solution to both the climate crisis and skyrocketing energy prices smashing domestic and business consumers. Ending its toxic legacy in our homes is also critical to ensure the wellbeing of the community.
Fortunately, we are now seeing ambitious, world leading policies from governments at all levels, industry and key lobby groups, building unstoppable momentum and leaving the methane gas cartel increasingly exposed, isolated and flailing in its desperate attempts to continue to protect its vested interests at the expense of all Australians.
- Tim Buckley is director of Climate Energy Finance
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