The International Energy Agency (IEA) has released an in-depth analysis of the Australia’s energy policies, lauding the ‘country’s ambitious goals for developing a low-carbon economy’, but said the sector will still require significantly more investment.

 

The IEA’s Executive Director, Maria van der Hoeven, welcomed Australia’s ‘many positive steps’ it has made since the last review in 2006.

 

The IEA strongly supports Australia’s continuing efforts to increase and improve low-carbon energy in the country.” Ms Van der Hoeven said.

 

While the IEA report notes that Australia is one of the world’s largest exporters of coal and natural gas, it also found that the country has positioned itself well to capitalise on its extensive wind, solar and geothermal resources.

 

The report also admits that the large scale of the task facing Australia and will prove costly for the country.

 

“To sustain progress on conventional resource production as well as development of new technologies, Australia must have continued access to a large pool of highly qualified labour to maintain experienced research communities,” the report concluded.

 

The IEA has recommended that Federal and State Governments use education andtraining to address possible workforce shortages and to focus on attracting qualified workers from overseas as it builds the renewable sector.

 

Ms. Van der Hoeven welcomed the government’s Energy White Paper 2012, released earlier this month, commending its broad sweep of measures in relation to clean energy. She also backed Australia’s recent introduction of a price for the emission of carbon and proposals to reform Australia’s electricity market in an effort to tackle rising prices.

 

“The IEA views carbon pricing as a critical component of climate policy, and we hope its introduction in Australia will put an end to much uncertainty in the energy sector,” she said. “But even with a carbon price, Australia will need supplementary policies, like energy-efficiency policies to unlock low‐cost abatement and technology policies to help lower the long-term cost of new technologies, including renewable energy and carbon capture and storage. Commendably, Australia has developed a relatively balanced package with strong elements of each policy," the report concluded.