We extend our congratulations to all the nominees and winners, and proudly highlight G&K O’Connor, supported by Northmore Gordon, for taking home the EEC Leading Energy Management Project: Industrial award. Their winning project, ‘Closing the Loop on Red Meat Processing Energy and Emissions’, is a testament to what’s possible when strategic vision meets deep technical expertise.

Over the past three years, it has been a privilege to work alongside GKO — helping navigate complex energy challenges and drive real emissions reductions in one of Australia’s most vital industries.

A heartfelt thank you to Australian Renewable Energy Agency (ARENA) and the Australian Meat Processor Corporation (AMPC) for their support, and congratulations again to all involved. This recognition reflects the dedication, innovation, and collaboration that continue to shape a more sustainable future.

The post Celebrating Excellence in Energy at the 2025 EEC Awards appeared first on Northmore Gordon.

Proposed changes include extending the program’s timeline to 2045 and relaxing the time limits for certificate validation which could release more certificates into the market and help bring prices down. There has been an ongoing discussion regarding how the VEEC price will be affected in the coming months, while there is still room for increases in price, there is growing downside risk on prices that could see the wholesale VEEC price fall back from current highs, potentially suddenly.

Managing Your Risk

The VEU is a market-based incentive program and as such there can be volatility in the market. The graph showcases how the VEEC prices can suddenly drop following any government announcements.

Looking at 3 different market-based incentive programs – Victorian Energy Upgrades Program (VEECs), NSW Energy Savings Scheme (ESCs), and the Small-Scale Renewable Energy Target (STCs), you can see that the government policy and market conditions have led to 3 very different outcomes in certificate pricing over the past 6 years

What Steps can you Take?

1. Complete the paperwork and submit your jobs for processing as soon after installation as possible and respond to pending RFI’s quickly to reduce the time job claims are outstanding.
2. Check our spot price newsletter issued every Monday and Wednesday so you are aware of any market changes – if you are not receiving this, please let us know.
3. Regularly review the incentive amounts that you are offering to your customers and keep a buffer for yourself, so you are not caught short.
4. Talk to us about hedging or forward contracting if this is the right option for you. This allows you to lock in the price for a set amount of VEECs to be delivered in an agreed period of time.
5. Consider other activities for additional submissions to diversify your product and service offerings to customers.

Key Factors That Influence Certificate Prices

The Environmental Certificate Program operates on a market-based model, requiring electricity retailers to purchase millions of certificates annually. By removing the strict timeline for certificate validation, the government hopes to increase the supply of certificates, which could relieve some of the price pressures. However, this will only have a margin impact on VEEC price through changing the timing, not the overall quantity of certificates available.

Supply and Demand: the demand for certificates by retailers is set by the annual government targets. The targets are set in 5-year blocks, with the current targets set to the end of 2025. The government has announced that they will set an interim target for 2026 and 2027, while the VEU Strategic review is undertaken. The 2026 and 2027 targets need to be announced by May 2025, however, could be announced earlier. While the target was growing each year in the 2020 to 2025 period, there is a possibility that the government could set a lower target for 2026-2027 which would put downward pressure on pricing by reducing the demand. Supply of certificates is also determined by the government by setting the allowable activities and setting the number of VEECs each activity will produce. Bringing new activities to the program could increase the supply of certificates and reduce the price.

Stronger Regulatory Oversight: Planned reforms also include giving the Essential Services Commission greater authority to regulate appliance installers. While this increased oversight is aimed at ensuring compliance and preventing fraud, it may also slow down the generation of new certificates if installers face additional regulatory hurdles​.

Political and Economic Pressures: The debate surrounding the VEU program is highly polarized. Critics argue that the scheme is unfairly driving up costs for low-income households at a time of economic difficulty, while supporters maintain that it has successfully reduced power bills, distribution infrastructure costs, and the upfront cost for many energy-efficiency upgrades. How the government balances these competing concerns will significantly affect the future pricing of VEECs​.

What Can We Expect Moving Forward?

While the current wholesale price of VEECs remains high at $105-$114 per certificate, the upcoming reforms are expected to create more activities into the future and potentially lower prices over time. The increase in certificate supply, combined with improved regulatory oversight, could provide some relief to both consumers and electricity retailers. However, it remains uncertain how significant these price reductions will be and how long they will take to materialize.

With the VEU program now extended to 2045, businesses and consumers can plan for long-term participation in a more refined and efficient system. The key will be to monitor the ongoing review and regulatory changes closely, as these will ultimately shape the Future landscape of Energy efficiency in Victoria.

In conclusion, while VEEC prices are currently high, upcoming reforms have the potential to bring them down gradually (or suddenly). Stakeholders should prepare for a period of transition and keep a close eye on legislative developments as the Victorian government seeks to leverage this critical emissions reduction program as part of the government electrification strategy.

The post VEEC Market Update: Managing Certificate Price Fluctuations appeared first on Northmore Gordon.

Key Updates: 

Global Context: At COP28 (Nov-Dec 2023), the International Sustainability Standards Board (ISSB) took over climate-related financial reporting responsibilities from the Task Force on Climate-related Financial Disclosures (TCFD), now disbanded. This shift signifies a major uplift in climate-related practices globally, with Australia introducing its own MCR system, which includes over 100 disclosures—far more than TCFD’s 11. 

Rollout: Starting with Group 1 in FY 2025/26, Australia’s mandatory climate reporting will be phased in, covering companies with over 500 employees, followed by Group 2 in FY 2026/27 for companies with more than 250 employees, and finally, Group 3 in FY 2027/28 for those with over 100 employees. This rollout will apply to organizations based on their gross assets, revenue, and employee count, ensuring comprehensive climate-related financial disclosures.

Applicability: MCR laws will apply to most public companies and may extend to larger NFPs, private entities, and government bodies. 

Liability: Treasury will limit Directors’ liability during the first three years of implementation for Scope 3 emissions and certain climate-related forward-looking statements. 

 
Why is MCR introduced? 

A robust, internationally consistent, and credible climate disclosure framework will enhance Australia’s reputation as an appealing destination for global capital, attracting the necessary investments for the transition to net zero. 
 
What is to be reported? 
 
Climate-related financial disclosures will encompass details on an entity’s climate-related risks and opportunities, as mandated by Australian climate disclosure standards, including: 

• From the first reporting year, entities must provide information on governance, strategy, risk management, metrics, and targets, including Scope 1 and Scope 2 greenhouse gas emissions. 

• From the second reporting year, entities will be required to disclose Scope 3 emissions, which include emissions occurring throughout their supply chain and those associated with their financing or investment activities. Scope 3 disclosures will be based on information available at the reporting date without incurring excessive costs or effort. 

Where/How should I report Climate-related financial disclosures?  

Climate-related financial disclosures will be included within your sustainability report, serving as the fourth required document under annual financial reporting obligations and incorporated into an entity’s annual report. To assist users in easily locating climate disclosures, entities should provide an index table within their annual reports. The submission timeline for annual reports, including those filed with the Australian Securities and Investment Commission (ASIC), will remain consistent with the existing requirements specified in section 319 of the Corporations Act.  
 
These news laws place increased workload on finance and accounting teams, but critical to ensuring these compliance requirements become a benefit (not a cost) is examining capital projects through the lens of energy efficiency, emissions reduction, and the role environmental attribute certificates play.  Assessing and undertaking electrification projects, equipment upgrades, and improving production efficiency requires detailed technical understanding.  The right projects have a return on investment and pay you to reduce emissions.  Northmore Gordon, do more with less energy, and less carbon. 

Steps you can start doing now 

1. Executive workshop and preparedness  

2. Baseline your carbon footprint (Scope 1, 2 and 3) 

3. Energy Audits to understand opportunities 

4. Net Zero Roadmap including the technical solutions for real action  

5. Environmental Certificates for renewable energy or project payback 

Prepare now to stay ahead. Explore our Mandatory Climate Reporting Services and ensure your organization is ready for these crucial changes. 

For more information, check out the Australian Sustainability Reporting Standards and Treasury’s Mandatory Climate-related Financial Disclosures. 

The post Ticking Clock: Prepare Now for Australia’s Mandatory Climate Reporting by 2025 appeared first on Northmore Gordon.

Madonna Ghajar, from Northmore Gordon remarked on the initiative, stating, “This initiative represents a crucial step toward a more sustainable future by harnessing the untapped potential of C&I rooftops. Integrating large-scale rooftop solar and battery systems not only provides Victorian businesses with a new revenue stream but also supports the broader energy market, aligning perfectly with Northmore Gordon’s commitment to advancing emission-free electricity through innovative solutions.”

Transforming Rooftops into Powerhouses

The discussion paper, titled “Business Power,” emphasizes the untapped potential of C&I rooftops across Australia, arguing that these spaces could be converted into substantial electricity generation and storage assets. VEPC’s calculations suggest that the country’s unused rooftop space is vast enough to supply at least 25% of Australia’s annual electricity needs, potentially transforming the national energy landscape.

VEPC Director Bruce Mountain underscored the transformative impact of this policy shift: “Electricity produced in cities and used locally reduces transmission losses. Businesses could generate solar power during the day, store it in batteries, and sell it back to the grid during peak hours.”

Financial Incentives for a Sustainable Future

To make this vision financially viable, VEPC proposes the introduction of new floor prices for electricity sold to the grid outside peak solar periods and for battery discharge during evening peaks. Specifically, the paper suggests a solar feed-in floor price of $100 per MWh and a battery discharge floor price of $200 per MWh. These incentives aim to make investing in rooftop solar and battery storage an attractive proposition for businesses, thereby accelerating the transition to a low-carbon economy.

This policy framework aligns with Northmore Gordon’s findings that solar with battery energy storage systems (BESS) generate additional value under the Victorian Energy Upgrades scheme when reducing excess export to the grid.  Northmore Gordon recommends that the Victorian Government explorers ways to increase VEEC generation for Solar with batters under the VEU. Supporting battery storage not only enhances grid stability but also improves cost efficiency, aligning with the broader goal of expanding emission-free electricity while minimizing the need for costly new transmission infrastructure.

Bridging the C&I Solar Gap

While residential solar adoption has surged in recent years, the uptake in the C&I sector has lagged. Between 2019 and 2023, residential rooftop solar capacity grew by approximately 2.5 GW annually, whereas the C&I sector added only about 500 MW per year. This discrepancy highlights a significant opportunity for growth in the commercial sector, which VEPC’s proposed policies aim to address.

A recent report by Victoria-based research firm Nexa Advisory further supports VEPC’s findings, estimating that an additional 28 GW of rooftop PV could be installed across C&I rooftops within the National Electricity Market. This expansion could play a crucial role in replacing coal generation set to be phased out over the next decade, all while minimizing the environmental and social impacts associated with large-scale solar and wind projects that require extensive new transmission infrastructure.

Mountain also pointed out that this shift could reduce the reliance on large-scale solar and wind farms located in rural areas, which require expensive new transmission lines to deliver power to urban centers. Instead, locally produced and stored energy could make better use of existing urban distribution networks, enhancing the efficiency of the energy system.

A Vision for the Future

The VEPC’s “Business Power” proposal is driven by the urgent need to expand emission-free electricity sources in Australia. As the country prepares for the closure of coal-fired power stations, this policy could play a pivotal role in ensuring a smooth transition to cleaner energy. By tapping into the potential of C&I rooftops, Australia could not only meet a significant portion of its electricity needs with renewable energy but also do so in a way that minimizes the social and environmental costs associated with traditional energy infrastructure projects.

Mountain concluded with a compelling vision: “In short, there seems to be little to be lost and a potentially large benefit to society.”

As Australia continues to lead the world in solar adoption, this policy shift could position the country as a global leader in integrating battery-backed solar solutions into the commercial sector, paving the way for a more sustainable and resilient energy future.

The post Could a new policy turn your business’s rooftop into an energy goldmine? appeared first on Northmore Gordon.

Webinar Details: 

• Date: Thursday 25^th July 2024 

• Time: 1-2:30 pm AEST 

Why Attend?

Join our expert panel as we delve into the intricacies of sourcing RECs globally and nationally to effectively manage and reduce emissions, particularly Scope 2. 

Whether your company has a headquarters overseas facing local barriers or operates solely within Australia seeking Climate Active certification, this webinar will provide the guidance and knowledge you need. 

In this webinar we’ll discuss: 

• The Basics: Understand what is a REC and how RECs  

• The Role of RECs: Understanding the use of RECs in achieving sustainability commitments and reducing emissions, particularly Scope 2

• Global and Domestic Regulations: An overview of the various global and domestic regulations and guidelines for RECs, including NGERs, RE100, SBTi, and Climate Active

• REC Supply Landscape in Australia, Asia & Globally: Exploring the REC supply in different countries, how it fits with your company’s goals, and the challenges and opportunities in the region

• Procurement Strategies: Gain practical advice on procuring RECs in the short, medium and long-term.

• Case Studies: Real-world examples of businesses that have successfully navigated the complexities of REC procurement

• Q&A Session: An opportunity to ask questions and get personalized advice from our expert panel

Meet Our Expert Panel: 

Craig Morgan (CoFounder & Group Sales Director): Craig will discuss global regulations for RECs, including frameworks like RE100 and the Science-Based Targets initiative (SBTi). 

Hamish McGovern (CoFounder & Managing Director): Hamish will focus on domestic regulations in Australia for RECs, highlighting the Climate Active framework. 

Sid Bansal (Webinar Host & Account Manager for Certificates): Sid will guide you through the use of RECs, their benefits, and how Northmore Gordon can assist with yearly procurement and buying strategies. 

Kelly Lee (Account Manager for Certificates): Kelly will share more about the REC challenges, opportunities, and Northmore Gordon capabilities around the Asia region.  

With a proven track record of registering over 6 million Environmental Attribute Certificates (EACs) over 10 years, we leverage our global network, facilitated by our Australian and Singapore offices, to provide secure transactions and streamlined trading. Our expertise in navigating diverse regional regulations ensures that your sustainability goals are met efficiently and effectively.  

Don’t miss this opportunity to power up your sustainability game. Register now and take the first step towards a greener future with Northmore Gordon. 

The post Register now: Unlock the Potential of Renewable Energy Certificates (RECs) Webinar appeared first on Northmore Gordon.

Key Findings and Opportunities

The report underscores the substantial impact of energy efficiency, revealing that it can contribute up to 18.5% of the emissions reduction Australia requires by 2030 and 13.5% by 2050, according to the independent modelling provided by Northmore Gordon. With over two million small businesses in Australia, representing nearly a third of the country’s GDP, there is a tremendous opportunity for SMEs to curtail energy consumption and support Australia’s net zero emissions goal.

Strategic Recommendations

Energy efficiency is identified as the most cost-effective initial step for SMEs. The report also highlights electrification and renewables as critical components of energy upgrades. Clare Morgan, ANZ Group Executive for Australia Commercial, emphasizes the importance of prioritising energy efficiency, especially amid rising material and energy costs. She notes that businesses acting now can save money, reduce emissions, meet growing sustainability expectations, and enhance business resilience.

Luke Menzel, CEO of the Energy Efficiency Council, points out that energy use in businesses, homes, and vehicles is responsible for about 80% of Australia’s emissions. With the nation’s energy transition plan becoming clearer, now is the time for businesses to harness energy efficiency.

Comprehensive Approach

The report, part of ANZ and EEC’s “Forgotten Fuel” series, follows the inaugural May 2023 publication, “Putting Energy Efficiency to Work.” This series illustrates how energy efficiency and electrification are vital for lowering energy bills and decarbonizing the Australian economy.

Three key highlights from the current report include:

• Critical Tools: Energy efficiency, electrification, and renewables are indispensable for SMEs aiming to reduce energy bills and emissions.
• Impactful Modelling: Independent analysis by Northmore Gordon, commissioned by ANZ and the EEC, finds energy efficiency can deliver up to 18.5% of the needed emissions reduction by 2030.
• Integrated Solutions: Combining energy efficiency with electrification can achieve nearly 40% of the emissions reduction required for Australia, surpassing the impact of renewable electricity alone.

How Northmore Gordon Can Help

We are committed to helping businesses realise the potential of energy efficiency. We provide expert guidance and solutions to implement these critical upgrades, leveraging both corporate and government funding opportunities. By partnering with us, businesses can navigate the complexities of energy efficiency and make meaningful strides toward sustainability and cost savings.

For more information on how to enhance your business’s energy efficiency and unlock funding opportunities get in touch below.

Images sourced from: ANZ’s Putting Energy Efficiency to work for Business Report – May 2024

The post Press Release: Northmore Gordon’s Modelling Underpins ANZ and EEC Report on Business Energy Efficiency appeared first on Northmore Gordon.

Temperature Check: The first assessment of progress towards the Paris Agreement’s 1.5°C goal revealed that current efforts are insufficient, with 2023 confirmed as the hottest year on record. 

The work at COP28 continues to reinforce the urgency for businesses to act in their own right.  Those who move earlier will not only be the most prepared and better able to manage risk, but will likely profit from consumer and public support. 

Wins: 

• Loss and Damage Fund: A historic agreement was reached to establish a fund to help developing countries address the losses and damages caused by climate change
• Global Stocktake: The first-ever review of countries’ progress under the Paris Agreement confirmed current efforts are insufficient to reach the 1.5°C warming limit. This assessment, though concerning, serves as a crucial motivator for stronger action
• Food Systems Declaration: 134 countries signed a declaration highlighting the urgency of transforming food systems towards sustainability and climate resilience
• Nuclear Energy Boost: 22 countries pledged to triple their nuclear power capacity by 2050, aiming for a cleaner energy mix
• Cooling Commitments: 60 countries committed to improving the energy efficiency of air conditioning to tackle greenhouse gas emissions from this sector
• Clean Hydrogen Recognition: 35 countries agreed to recognize clean hydrogen certificates, facilitating its future role in a low-carbon economy

Progress 

• Renewables and Energy Efficiency Ministerial Roundtables: Highlighted the urgent need to triple global renewable energy capacity and double the rate of energy efficiency improvements using policy interventions, technology advancements, and financing mechanisms

• Voluntary Carbon Markets: The role of voluntary markets in supplementing compliance markets was debated. Concerns about double counting and greenwashing were raised, necessitating robust accounting and verification systems

Challenges: 

• Jaber’s Appointment: Sultan al-Jaber, CEO of UAE’s state oil company, faced criticism for leading COP28 due to potential conflicts of interest
• Fossil Fuel Influence: Oil companies’ commitments were deemed insufficient by many, as continued reliance on fossil fuels threatens climate goals
• Final Declaration Compromise: While a deal was reached, some argue it lacked ambition and concrete action plans

Other Key Points: 

• COP28 saw significant private and public finance pledges towards climate action, although the gap between commitments and action remains

• The summit highlighted the urgency of accelerating emissions reductions and adapting to the impacts of climate change

Overall, COP28 delivered some important agreements and commitments, but it also underscored the challenges ahead. The coming years will be crucial for determining whether the world can effectively address the climate crisis.   

Additional insights

• UNRIC: Climate: highlights of COP28 - https://www.youtube.com/watch?v=aH86wp_KjVE 
• Earth Negotiations Bulletin: Summary Report https://enb.iisd.org/united-arab-emirates-climate-change-conference-cop28-summary 

The post COP28 in Dubai: Progress, Challenges, and Urgency in Climate Action appeared first on Northmore Gordon.

The Victorian Government sets the VEU targets, with the current targets covering 2020 to 2025. The targets for 2026 to 2030 will involve consultation in (late?) 2024 and must be completed by May 2025. The government is committed to continuing the Energy Upgrade program beyond 2025, and the new targets will provide a clear direction for the program’s future through to the end of 2030.

As of February 2023, 13.5 M Victorian Energy Efficiency Certificates (VEECs) are registered or pending in the VEU registry against the VEU target for 2022 of 6.7 M (due for surrender by the Energy Retailers in April 2023). This will leave a surplus of at least 7 million VEECs against the 2023 target of 6.9 M VEECs. The VEET targets are currently set to the end of 2025 and, in aggregate (2022 – 2025), amount to 28 M VEECs (against which 13M have already been created). See current targets.

Surplus VEEC in the VEU registry over time and VEEC price charge. 2010 – 2023 – Image courtesy of DEECA (Vic Government) – February 2023 Market Update.

The VEEC price in February 2023 is sitting at $69.00. This is reasonably high and surprising, given the surplus of 7 M VEECs. The VEEC price remains high because the phase-out of lighting under the program has created uncertainty about where the remaining VEECs will come from. Residential, commercial and street lighting has registered 59 M of the 80 M VEECs ever created; 74% of all VEECs have come from lighting. Hotwater Heatpump, weather sealing, HVAC upgrades, and (Northmore Gordon’s favourite) PBA (Measurement and Verification) will generate significant numbers of VEECs as well as new methods yet to be announced, including Home Energy Rating Assessment (HERA), new HVAC and Hotwater methods, smart thermostats and potential building insulation.

For the past few months, the price has been relatively stable, in the past when new methods are released, or the market realises that substantial VEECs can be created from existing methods, then the VEEC price can move quickly. One such method is commercial and residential hot water replacing electric resistance. When new methods are announced or an existing method takes off then prices tend to move suddenly. The other important consideration is that at the end of every January, the forward emission factor for electricity in the VEU drops by around 20% reducing the number of VEECs from electrical energy savings by this much.

Below is the Victorian Government Department of Energy, Environment and Climate Action (DEECA) Roadmap for 2023 and consultation of new activities planned.

In addition to helping households and businesses save money on their energy bills, the Energy Upgrade program has helped to reduce carbon emissions by promoting the use of renewable energy sources and encouraging energy-efficient behaviour.

Disclaimer: This information is provided by Northmore Gordon based on factual market information and is not financial advice, businesses should make their own decision or seek professional advice by engaging with Northmore Gordon around their specific requirements.

The post VEU Market Update and Target Setting appeared first on Northmore Gordon.

The customer, who upgraded an aging and inefficient 2MW boiler with three 500kW boilers, was able to register over 800 VEECs thanks to Northmore Gordon’s expertise. This not only helped to offset the cost of the upgrade, but also contributed to the reduction of greenhouse gas emissions.

“We are thrilled to have achieved this milestone,” said Patrick Blain for Northmore Gordon. “With gas prices on the rise and the world on track to overshoot 1.5C global warming, it has never been more important for businesses to take action to reduce energy usage and emissions. Our gas efficiency solutions are a great first step in this direction, and we are committed to helping our customers make the transition to more sustainable energy sources.”

To learn more about the value your business can receive from the VIC and NSW with gas efficiencies, please visit https://northmoregordon.com/technologies/boiler-upgrades/.

To find out more about electrification and other alternatives, visit https://northmoregordon.com/articles/increase-boiler-energy-efficiency-and-reduce-costs/.

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