Relationships

AGL accepts the science on climate change and supports comprehensive policy action to support Australia’s commitments under the Paris Agreement, including the commitments to reach net zero emissions by 2050.
AGL advocates for a responsible transition that balances energy reliability and affordability with the need to decarbonise. We will take action to deliver, and speak up for, a responsible transition. Our advocacy positions and submissions to consultations are published and available on our website.

We recognise that meeting the objectives of the Paris Agreement will require significant policy action from governments and collaboration between the private and public sectors. In our policy engagement we advocate for greater action from governments to commit to progressive decarbonisation of the energy sector and policies that are consistent with the objectives of the Paris Agreement.

As a large energy company, our highest priority is finding an economic pathway to transition our energy portfolio and connect our customers to a sustainable future. However, we also support emissions reductions and policies for other sectors across the economy, and consideration of how abatement in all sectors will contribute to overall economy-wide targets.

The decarbonisation of the electricity sector is a critical step to unlock decarbonisation in other industries. We have a responsibility to achieve this transition via a least cost pathway as these costs will ultimately be passed on to customers who are already facing significant cost of living pressures and commercial and industrial businesses customers are facing high energy input costs that threaten competition at this early stage of the transition.

Government policy should be focused on driving private investment in decarbonisation, by setting clear targets and focussing on overcoming barriers to private investment, including because of government interventions.

We see an opportunity for government to streamline its role for greatest effect – as policy maker and regulator. This will involve analysing the impacts of government intervention and then designing the right conditions to attract private investment, building on the new federal government’s strong climate agenda. Regulatory frameworks should be robust to enable accelerated emissions reductions.

Social licence issues in regional areas where future renewable energy assets and transmission lines will need to be located present a significant risk to the energy transition. In our view, there is a government role in the national coordination of the rollout of generation and transmission assets, the building of community awareness of the need for these assets, the building of trust in industry and engagement with communities, so communities are part of the process, feel heard and are set to benefit.

For the electricity and gas sectors, given that energy is an essential service, there needs to be a focus on outcomes that deliver equity - the ability for all Australians to participate in and benefit from the energy transition.

Safe closure of large base-load generation requires cooperation from many stakeholders including government, energy system operators and planners along with local government.

In our view, transitioning the workforce at locations of large coal-fired thermal assets will be site-specific and will need to be managed with local coalitions and partnerships. On the personnel side, AGL's approach is to treat people fairly and respectfully, working closely with any impacted employees to explore opportunities for career transition.

Finally, safety will remain AGL’s top priority, and we will focus on the safe and efficient management of our thermal assets through to closure, de-commissioning and site rehabilitation.

AGL supports proposals to strengthen reporting frameworks, including the International Sustainability Standards Board (ISSB) and the Task Force for Climate-Related Financial Disclosures (TCFD). We also support the broad commitment to develop a sustainable finance framework for Australia, to promote the ongoing growth and resilience of the Australian economy and its energy sector into the future.

Achieving the optimised, highest performing, lowest-cost form of our future decarbonised energy grid is going to require fine-tuning of a range of solutions, some in opposition to others. Government programs should therefore be designed with clear goals in mind to incentivise the individual solutions available.

A diverse range of both supply-side and demand-side solutions will be required. Energy efficiency and energy productivity are critical objectives, to ensure that reductions in energy use do not come at the expense of reduced economic productivity or household comfort.

Regular reviews of carbon offset schemes and methodologies are important to ensure they are fit-for-purpose, particularly as expert advice and both domestic and international climate goals change.

AGL is a member of several industry associations that also take advocacy positions with regard to several of the above issues, including by providing responses to consultations. AGL takes steps to engage with industry associations, both through working groups and through individual engagement, to ensure that our views are represented in any advocacy undertaken by the industry associations.

Examples of industry associations where AGL has provided feedback on advocacy approaches include the Australian Energy Council (AEC), Business Council of Australia (BCA), Energy Efficiency Council (EEC), Carbon Market Institute (CMI), and Clean Energy Council (CEC).