On May 20, 2025, the Australian Alliance for Energy Productivity (A2EP) hosted a pivotal webinar titled “Unlocking Compressed Air Efficiency for Serious Energy Savings.” This session illuminated the substantial energy-saving potential within compressed air systems, which, despite their ubiquity in manufacturing, often operate with significant inefficiencies.

Insights from Industry Experts

The webinar featured insights from leading professionals:

• Satinder Sahni, Group Senior Manager – Utilities at Asahi Beverages, shared strategies on how Asahi significantly reduced compressed air costs by minimizing air consumption in their processes.
• Murray Nottle, an air systems engineer from the Carnot Group, discussed the utilization of ‘Power vs Flow’ curves as a diagnostic tool to identify and prioritize areas for efficiency improvements.
• Craig Morgan, Group Sales Director at Northmore Gordon, presented findings from a measurement-based survey of 30 compressed air systems, revealing surprising inefficiencies and offering guidance on assessing system performance.

A Call to Action for Energy Managers

This webinar serves as a valuable resource for energy managers, engineers, and industry professionals aiming to enhance operational efficiency, reduce costs, and lower emissions. By addressing the often-overlooked inefficiencies in compressed air systems. Want to increase your industrial energy savings? Contact Craig Morgan at Northmore Gordon today!

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The Growing Sector: A Shift Towards Renewable Electrification

The energy landscape is evolving rapidly. With advancements in technology and increasing regulatory support, businesses are moving away from fossil fuels and embracing clean electricity. Renewable electrification is a key pillar in the broader renewable energy strategy, offering improved energy efficiency, lower emissions, and long-term financial benefits.

At Northmore Gordon, we’ve seen a surge in interest from clients looking to electrify their operations, from manufacturing facilities to commercial buildings. The benefits are clear: reduced exposure to volatile fossil fuel prices, enhanced energy security, and alignment with corporate sustainability goals as the grid continues to green. 

For high temperature applications, where electrification isn’t economically viable, there is growing interest in green gas, especially biomethane.  Northmore Gordon will do article on that next time.

How Much is Being Spent on Electrification?

Electrification is a multi-billion-dollar movement. Australian businesses and governments are investing heavily, with state and federal funding exceeding $2 billion in recent years. Individual projects range from $100,000 for small commercial transitions to over $50 million for large industrial sites.

The Step-by-Step Process for Electrification

Transitioning to electrification requires careful planning. Our approach ensures businesses maximise benefits while mitigating risks:

1. Energy Audit & Feasibility Study – Assess energy usage, identify high-energy processes, and evaluate electrification opportunities.
2. Technology Selection – Determine the most suitable technologies (e.g., electric heat pumps, battery storage).
3. Financial & Incentive Analysis – Identify applicable government grants, tax incentives, and funding.
4. Project Design & Engineering – Develop an electrification plan with energy management strategies.
5. Implementation & Integration – Install electrification technologies and integrate with existing systems.
6. Monitoring & Optimisation – Track performance, fine-tune efficiency, and ensure cost savings.

Government Incentives: Making the Transition Viable

Governments at both state and federal levels are supporting businesses in their transition to renewable electrification. Incentives such as grants, tax rebates, and financing options help offset costs. For example, Australia’s Renewable Energy Target (RET) and state-based schemes support solar, wind, and battery storage investments.

Navigating these incentives can be complex. That’s where we come in.

Understanding the Risks: Technology & Supply Challenges

While the opportunities in electrification are immense, businesses must be aware of potential risks:

1. Technology Suitability – Not all solutions fit every business model; options include combinations of heatpumps, heat recovery, electrical and thermal storage and more.
2. Electricity Supply Stability – Businesses may need to explore battery storage or demand management.
3. Upfront Costs & ROI Uncertainty – A clear financial strategy is essential.

By partnering with Northmore Gordon, businesses can navigate these risks confidently, leveraging expert insights to make informed decisions.

How Northmore Gordon Works with You

At Northmore Gordon, we take a strategic approach to electrification, ensuring businesses maximise benefits while minimising risks. Our team helps clients:

• Assess energy usage and identify opportunities.
• Navigate and apply for funding and incentives.
• Design and implement tailored electrification strategies.
• Monitor and optimise energy performance post-implementation.

We’ve worked with numerous clients to transition to renewable electrification successfully. Read our case studies here.

Real-World Business Cases: Electrification in Action

Several companies have transitioned to electrification, demonstrating economic and environmental benefits:

• Manufacturing: A food production facility replaced gas-fired boilers with electric heat pumps, reducing energy costs by 25%.
• Commercial Buildings: A corporate office switched to an electrified hot water and HVAC systems, lowering emissions by 40% while accessing rebates.
• Industrial Processing: A mining company implemented electric arc furnaces, cutting costs and securing renewable energy contracts.

Environmental Certificates & Compliance

Businesses transitioning to electrification can benefit from various environmental certificates:

• Large-Scale Generation Certificates (LGCs): For businesses generating renewable electricity.
• Small-Scale Technology Certificates (STCs): Available for smaller solar, wind, and battery projects.
• State-Based Incentives: Such as the Victorian Energy Upgrades (generating VEECs) scheme and NSW Energy Saving Scheme (generating ESCs)

The Future of Electrification: What’s Next?

Looking ahead, electrification will continue shaping the energy landscape. Advancements in smart energy management systems, battery storage, and integrated renewable solutions will offer new opportunities. Government policies will also evolve, helping businesses stay ahead of the curve.

The time to act is now. Whether you’re considering electrification for cost savings, emissions reduction, or operational resilience, Northmore Gordon is here to guide you.

Get in touch with our experts today and let’s power your business into the future.

Disclaimer: The information in this article is general only and has been prepared without considering your business’ particular circumstances and needs. You should assess or seek advice from Northmore Gordon Environmental (AFSL 533927) on whether it is appropriate for your business’s objectives.

The post Powering the Future: Maximising Electrification for Business Growth appeared first on Northmore Gordon.

After steady growth, the renewable share (~39% in 2023) has plateaued amid rising demand. (CER Quarterly Carbon Market Report December Quarter 2024)

Renewable energy provided roughly 39% of Australia’s electricity in 2023 (up from just 17% in 2017). But in 2024 this momentum has stalled as electricity demand continues to climb. Simply put, the pace of renewable deployment is not yet on track to hit our targets, despite a strong investor appetite.

Renewables Investment: High Ambition, Slow Delivery

Significant investment is pouring into new generation. The Australian Energy Market Operator (AEMO) reported in the December 2024 quarter the energy pipeline continues momentum for large scale solar and wind projects:

• Approvals: 20 projects (~4.9 GW) gained connection approval in Q4 2024
• Grid-registered: 11 projects (~1.7 GW) were fully registered (ready to generate)
• Operational: Only 4 projects (~0.6 GW) reached full output during the quarter

This “connections scorecard” underscores the bottleneck between projects being planned and projects actually delivering energy. 

Furthermore, the Federal Government’s Capacity Investment Scheme (CIS) is driving even more capacity (and a lower LGC price). In December 2024 under the first tender DCCEWW announced:

• Tenders awarded: 19 new large-scale renewable projects (6.4 GW combined).

This is a tremendous boost – enough to power ~3 million homes – the pipeline of projects is clearly not the problem; the real issue is converting this pipeline into electrons on the grid.

Grid Bottlenecks: Large Energy Users Left Waiting

While utility-scale wind and solar farms grab headlines, large energy users attempting to deploy their own clean and electrification energy projects are hitting the same wall. Northmore Gordon works with dozens of large energy users – from meat processing plants and dairy factories to cold storage facilities, industrial laundries, and food & beverage manufacturers – and many are facing 12 – 36 month delays to connect new renewable generation or behind-the-meter electrification projects. Even when businesses are eager to invest in on-site solar, electrification, or bioenergy, they often wait 1 – 3 years for the network to catch up. These delays impose real costs and slow down emissions reduction in sectors ready to decarbonise.

In 2024, on behalf of our customers, Northmore Gordon undertook 20 electrification studies (converting fossil-fueled equipment to electric alternatives), and these exposed two systemic barriers:

• Grid capacity constraints: Many industrial sites simply don’t have the local grid capacity for significant new loads or generation. Businesses looking to electrify boilers, install large electric compressors, or add several megawatts of solar panels often discover the nearest substation or feeder is at its limit. Frustratingly, businesses are being told to wait 2–4 years for expensive network upgrades before they can fully transition to clean energy.
• Misaligned tariffs: Current network tariff structures do little to encourage using electricity when it’s cheapest and greenest. In today’s market, solar power is abundant at midday – often causing negative prices, and grid stability issues – yet many large users see no substantial bill savings for shifting consumption to daytime hours. Demand charges and flat network tariffs mean there is limited incentive to tap into cheap daytime solar.

These two issues derail the business case for electrification and battery storage in many of our studies.  The economic reward for using or storing midday renewable energy is weak under present tariffs and connections will take too long.

Rewiring the Nation: A Call to Action for DNSPs and Government

Australia’s clean energy transition will not succeed without proactive support from the grid itself. Distributed Network Service Providers (DNSPs) – our power distribution companies – must become enablers of the transition for large energy users – some are – but most are not. These companies oversee the “poles and wires” in each region, and they need the right incentives and regulatory direction to act in the public interest. We urge DNSPs to work closely with industry and streamline the connection process for big customers. Fast-tracking assessments, investing in necessary local upgrades, and providing transparency on capacity constraints are ways DNSPs can directly help.

Meanwhile, the Federal Government has a powerful lever in its $20 billion Rewiring the Nation fund. This initiative needs to further align policy and investment with the needs of large energy users and renewable developers alike. We call on government to deploy Rewiring the Nation capital and policy support toward four critical priorities:

• Grid capacity upgrades: Accelerate upgrades of network capacity in renewable-rich regions and industrial zones, so both new solar/wind farms and electrified factories can connect without multi-year delays.
• Faster connections: Streamline grid connection approvals and technical studies for large energy users’ projects. Set clear timelines and accountability for DNSPs to deliver connections, shrinking the 2–4 year wait times to months instead.
• Tariff reform: Overhaul network tariffs to reward consumers for using power when it is cheapest and cleanest. By incentivising use of daytime solar, businesses will shift loads to soak up excess solar generation – cutting emissions and power costs and helping grid utilization simultaneously.
• Support for behind-the-meter projects: Provide targeted funding or incentives for on-site generation and storage at commercial and industrial sites. Behind the meter electrification, renewable and storage, with the right tariffs, will reduce strain on the grid and accelerate emissions cuts in hard-to-abate sectors.

Australia’s 2030 targets are bold and achievable, but only if we match ambition with action

Large energy users are ready to invest in clean energy and be part of the solution. It’s now up to our network providers and governments to clear the path – by rewiring the nation’s grid, reforming tariffs, and removing bottlenecks – so that 82% renewables (and beyond) can become a reality. The time for bold, collaborative action is now, to ensure Australia’s energy transition stays on track and delivers benefits for all.

Contact us today to continue the conversation.

Disclaimer: The information in this article is general only and has been prepared without considering your business’ particular circumstances and needs. You should assess or seek advice from Northmore Gordon Environmental (AFSL 533927) on whether it is appropriate for your business’s objectives.

The post Australia 82% Renewable by 2030; You’re Joking!  Large Energy User Challenges. appeared first on Northmore Gordon.

Our key capabilities

• Environmental Certificates: Specialising in LGCs, VEECs, ESCs, ACCUs, I-RECs, and other renewable energy and carbon credit mechanisms.
• Advisory Services: Providing tailored advice on energy efficiency projects, certificate eligibility, and regulatory compliance.
• End-to-End support: Managing the entire process, from opportunity identification to project delivery, certificate trading and value optimisation.
• Portfolio Management: Helping businesses strategically trade and manage environmental certificates for maximum environmental impact and financial returns.

Sectors we work with

We support a wide range of industries, each with unique challenges and opportunities:

• Solar project developers and installers: Reducing your administration by managing project registration, certificate aggregation and certificate sales
• Animal Processing: Optimising energy use and reducing emissions across the processing lifecycle.
• Aquatic Centres: Improving energy efficiency in pools, heating systems, and water treatment processes.
• Built Environment: Helping architects, developers, and property managers create energy-efficient and sustainable buildings.
• Dairy Processing: Assisting dairy producers in reducing energy consumption while maintaining product quality.
• Data Centres: Minimising energy use in high-demand data facilities to enhance efficiency.
• Food & Beverage: Reducing energy costs and improving sustainability practices in production, storage, and distribution.
• Healthcare: Supporting hospitals and healthcare providers in enhancing energy efficiency without compromising patient care.
• Industrial Laundries: Cutting energy and water consumption in commercial laundry operations.
• Manufacturing: Helping manufacturers reduce production costs, emissions, and energy use without sacrificing productivity.
• Power & Energy: Assisting energy companies in managing emissions reporting and strategies for electrification of fuels, and use of more renewable energy.
• Steel & Cement: Helping heavy industries lower emissions and improve energy management in resource-intensive processes.
• Transport & Logistics: Reducing energy consumption and emissions across transport fleets and logistics operations.
• Waste Management: Addressing methane emissions, and reporting emissions for Waste management operations.
• Water & Wastewater: Optimising energy use in water treatment and wastewater management systems.
• Wood, Paper, and Packaging: Supporting manufacturers in improving energy efficiency and sustainability in production processes.

Benefits to clients

Partnering with Northmore Gordon offers a host of advantages:

• Cost Savings: Unlock financial benefits through reduced energy use and optimised environmental certificates.
• Regulatory Compliance: Stay ahead of government mandates while benefiting from energy and carbon initiatives.
• Expert Guidance: Access a team of experienced professionals with deep industry knowledge and practical insights.
• Sustainability Leadership: Strengthen your brand by demonstrating a commitment to reducing emissions.
• Customised Solutions: Receive tailored strategies that align with your business goals and operational needs.
• Simplified Processes: We simplify and take responsibility for complex reporting, measurement and verification, saving you time and effort.

Real world impact

At Northmore Gordon, we measure success by the tangible outcomes we deliver. We’ve helped manufacturers reduce energy costs, supported councils in achieving carbon reduction targets, and enabled businesses across Australia to take meaningful steps toward sustainability.

Let’s work together

When you work with Northmore Gordon, you’re not just meeting compliance requirements – you’re taking control of your energy and carbon strategy to achieve real results. Whether you’re looking to reduce costs, meet sustainability goals, or gain a competitive edge, we’re here to help.

To find out more contact Craig at c.morgan@northmoregordon.com

The post Who we are and what we do at Northmore Gordon appeared first on Northmore Gordon.

The Australian Sustainability Reporting Standards (ASRS) bring global alignment and greater transparency, ensuring investors and regulators can assess corporate climate impact. With reporting deadlines fast approaching, now is the time to understand the requirements and take action.

When does your business need to start reporting?  (Meet two of the three reporting thresholds)

• FY26, Group 1: Over $500M turnover, more than 500 employees, or $1B in assets 
• FY27, Group 2: Over $200M turnover, more than 250 employees, or $500M in assets 
• FY28, Group 3: Over $50M turnover, more than 100 employees, or $25M in assets 

Start preparing to meet these deadlines.

What does this mean for your business?

Why is ASRS happening?
Australia’s Federal Government is committed to achieving 82% renewable energy, in the electricity grid, by 2030 and transitioning the country toward net-zero emissions by 2050.

Mandatory climate reporting under the ASRS plays a crucial role in this transition by:

• Promoting corporate accountability: More businesses are now expected to measure and disclose their environmental impact.
• Driving investor confidence: Clear and consistent reporting helps investors assess risks and opportunities tied to climate change.
• Encouraging sustainable business practices: By requiring transparency, the ASRS incentivises companies to adopt more sustainable and energy-efficient operations. It also urges them to put similar pressure on their suppliers and customers.

The business impact for businesses, the ASRS introduces several challenges and opportunities:

• Increased reporting obligations: Commencing FY26, many companies will be required to collect, analyse, and report detailed data on their emissions and climate risks. This requires robust internal systems and resources.
• Reputational risk and opportunity: Non-compliance or poor environmental performance will be exposed, damaging poor performers’ reputation. Conversely, demonstrating leadership in sustainability can enhance your brand image and attract new clients and investors.
• Operational adjustments: Companies will need to adapt their operations to reduce emissions and align with national sustainability targets. This may include investing in energy-efficient technologies or renewable energy.
• Regulatory scrutiny: Non-compliance with ASRS standards could result in penalties, increased regulatory oversight, and loss of stakeholder trust.

How to Stay Ahead

The ASRS isn’t just a regulatory requirement; it’s a chance to future-proof your business. By embedding sustainability into your strategy, you can improve efficiency, reduce costs, and create a competitive advantage.

At Northmore Gordon, we simplify the complexity of ASRS compliance. From carbon footprint assessments to net-zero strategy development, we’ll help you navigate these changes confidently and turn challenges into opportunities. Since 2009, we have been supporting our partners in reducing their energy demands, in doing so cutting costs by cutting carbon. We have market leading knowledge on how government can support you in your climate journey through grants, subsidies and certificate schemes.

Choose Northmore Gordon to turn plans into action and do more with less carbon.

Contact Jack Warren at j.warren@northmoregordon.com

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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.

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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 

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Business are facing multiple challenges:

• Rapidly changing policy settings
• Climate-related Financial Disclosures
• Financing the energy transition
• Finding the right business partners

In this article, we will touch on a few of the topics above.

Rapidly Changing Policy Settings

Regardless of whether you work for a manufacturer, warehouse, operate retail assets, or office-based business, here are some things you will need to look out for in 2024 in Australia.

• Mandatory Climate-related Financial Disclosures. By 2025 large businesses, and by 2026
  business medium-sized businesses will need to start their journey for better governance, risk management, disclosure, and structured reporting for Scope 1, 2 and 3 emissions
• Australia’s Second Annual Climate Change Statement. The federal government tabled
  the second statement outlining progress and policy, impacts and risks
• Safeguard Mechanism. Emissions caps tighten up for Australia’s largest businesses
  continues to be refined with consultation closing mid-January 2024
• The Australian Governments Powering Australia has $1.9B in funding across grants for
  decarbonising trade-exposed facilities, emissions reductions for industrial facilities through ARENA, clean energy programs for primary manufacturing, as well as the National Adaption Plan and Flood Warning Infrastructure Remediation
• The $20B Rewiring the Nation is central to Powering Australia to modernise the grids.
• AEMO 2024 Integrated System Plan (ISP) has just released consultation for the roadmap
  for the National Electricity Market
• Victoria’s Gas Substitution Roadmap. The roadmap will drive electrification and help empower Victorian households and businesses to switch fuels

Mandatory Climate-Related Reporting in Australia

• Climate Reporting Obligations: The journey towards mandatory climate reporting obligations, confirmed by the Australian Government in early 2023, enters its implementation phase
  starting on 1 July 2024. Guided by the International Sustainability Board’s Global Climate
  Reporting Standards IFRS S1 & S2, the Australian Accounting Standards Board (AASB)
  released Exposure Draft ED SR1 in late October 2023. This monumental shift in corporate
  reporting will impact organizations of all sizes, spanning listed and private businesses, as well as government entities
• Reporting Stages and Key Metrics: The transition to mandatory climate-related reporting will unfold over three stages, reaching full compliance by 2027. Reporting will hinge on key organizational metrics such as Total Revenues, Gross Assets, and Employees. Companies will be required to incorporate climate-related disclosures into their Financial Reports, necessitating Director sign-off. To meet these new demands, effective data management will be paramount for all reporting entities
• Preparing for Change: ASIC Chair Joe Longo emphasized the monumental nature of this
  shift, stating that it represents “the biggest change to corporate reporting in a generation.” Businesses are urged to embark on this journey early, making the necessary investments in
  people and systems to navigate these changes effectively
  

Financing the energy transition

Fortunately, there are now multiple ways to finance or support the energy transition projects:

• Government Grants: The federal government has a wide raft of (matched) grant funding
• Environmental Certificates: provide either aiding payback or supporting immediate progress
• Substantial funding: is seeking a home in energy transition with third-party ‘energy as a
  service’ financiers’ and other business models

Spotlight Powering Australia Government Grant: Empowering Industries for Transformation

• The Industrial Transformation Stream (ITS) Program: This $400 million program, is backed
  by the Australian Renewable Energy Fund (ARENA). It offers a unique chance for businesses
  in manufacturing, mining, processing, transport, agriculture, forestry, and construction to
  reduce emissions, cut costs, enhance competitiveness, and foster job creation
• The $43m National Industrial Transformation Program (NIT Program) (previously the Industrial Energy Transformation Program, IETS) also run by ARENA is still
  open to assist large energy users in engineering and feasibility studies to lower energy costs and reduce emissions
• The $600m Safeguard Transformation Stream (STS) to support decarbonisation
  investments at trade-exposed industrial facilities covered by the Safeguard Mechanism.
  Announced in 2023 the STS is now open for applications

Final words from our Directors – 9 Key Areas Not to Be Overlooked in 2024

1. New technologies: Hotwater (and space) heatpumps are getting a lot of airtime, and deservedly so. They combine both a 3-5x improvement in energy efficiency with electrification to displace natural gas and reduce emissions. Hotwater heatpumps replacing both electric resistance and natural gas hotwater have lower emissions and when coupled with Solar PV the emissions factor drops to near zero. To date this has mostly been in residential and small commercial. It’s beginning to find it ways into larger thermal requirements
2. Using renewable energy is easy; emissions from Electricity (Scope 2) can be reduced through not only behind-the-meter Solar PV, but also is as simple as buy & retiring RECs (renewable energy certificates) such as Large-scale Generation Certificates (LGCs) as an alternative to Power Purchase Agreements (PPAs). RECS are global recognised, with high integrity and used by the world’s largest organisations in the world to achieve RE100 status (100% renewable energy) in all their sites. RECs can also be used to help reach Climate Active Carbon Neutral certification in Australia
3. Scope 1, 2 and increasingly important scope 3 emissions: it’s essential to recognize the profound impact of addressing Scope 1 (onsite) & Scope 2 (electricity) but readying your business to understand and measure Scope 3 emissions is where the leaders are focus. Scope 3 are the emissions from both your supply chain and your customers. However, they also represent a vast opportunity to make a significant difference. Engage with your supply chain partners, and collaborate on creative solutions. This interconnected approach doesn’t just reduce emissions; it builds lasting partnerships and opens doors to new markets and opportunities
4. Assess your Net Zero Roadmaps: Don’t treat your roadmap as static. Question your progress at every turn. Are you meeting your emissions reduction targets? Is there room for improvement? A great way to start is to understand this very complex space, the second is do a gap analysis and start your journey
5. Energy Audits and Energy Efficiency Opportunities: One of the most valuable tools in your sustainability toolkit for 2024 is the energy audit. These audits aren’t just a routine task;
   they are a strategic investment with tangible benefits for your business. Energy audits go beyond just identifying areas where energy efficiency can be improved. They are the key to optimizing your energy consumption and, in turn, reducing operational costs. When you dig deep into your energy usage, you unearth opportunities that can lead to substantial savings
6. Environmental Certificates: Understanding the treatment under Australian and international protocols is becoming increasingly important. Get this right and you can accelerate your transition. Get this wrong and you’ll end up in the AFR accused of Greenwashing, or worse, getting a call from the ACCC. Read more about it here with our Carbon Accounting, Environmental Certificate Treatment and Public Disclosure article
7. Buying and Retiring Certificates: Consider the option of buying and retiring certificates to demonstrate your commitment to sustainability and support renewable energy projects. Report progress against internal goals, or against accreditations such as RE100, Science Based Targets initiative, or Climate Active
8. Warehousing Certificates: Northmore Gordon has the facilities for corporations to buy spot Carbon Certificates (Australian and International) and warehouse them for future retirements or Investment opportunities, many organisations believe the price will increase over the coming year
9. Climate Active Certification: Pursue Climate Active certification to showcase your organisation’s commitment to carbon neutrality and sustainability

As we move deeper into 2024, Australian businesses find themselves at a pivotal juncture where sustainability and climate responsibility are integral to their future. The challenges posed by climate change necessitate proactive measures and a willingness to embrace change. By participating in initiatives like the Industrial Transformation Stream Program, preparing for mandatory climate-related reporting, and addressing their carbon and energy strategies, businesses can not only mitigate risks but also capitalize on opportunities for growth and success in an evolving landscape. Those that prioritize environmental responsibility will not only thrive but also play a crucial role in shaping a sustainable future for Australia and the global community.

The post Navigating the Carbon & Energy Transition: A Guide for Australian Businesses in 2024 appeared first on Northmore Gordon.

Energy efficiency must be a staple of our transition if we are reach a net zero economy in alignment with the Paris Agreement. In addition to mitigating impacts of climate change, reduced energy demand strengthens energy security by helping companies be less reliant on external sources.

Implementing effective solutions first requires good data. Utility benchmarking should be a top priority for all companies and organizations who wish to advance their decarbonisation efforts and take greater control of their own energy security.

The Importance of Utility Benchmarking

Utility benchmarking is something every plant can do without delay and has a number of benefits.

• Utility performance can be compared to peers and industry standards. Without utility benchmarking, a company won’t know where their performance ranks, much less have insight into opportunities for improvement. This makes utility benchmarking one of the most useful practices for companies wanting to gain a competitive advantage.
  
• Utility performance can be benchmarked across sectors. Because these industrial equipment are widely used across industries, there is ample professional capacity to measure and improve their performance, and support their operation.

• Utility benchmarks can be reliably adjusted to climate or operating conditions. Using statistical modelling techniques, companies can compare utility performance across regions by adjusting for significant factors, like operational activity and weather patterns.

Example: Compressed Air

This snapshot shows the measured performance of 25 industrial compressed air systems in Singapore. By using measured data, our customers are now informed on:

• How they perform relative to their peers
• What best practice is, and
• How much money they would be able to save if they achieved best practice performance.

Need for Widespread Adoption of Utility Benchmarking

Despite the clear advantages of utility benchmarking, most companies don’t do it unless compelled to do so by a regulatory requirement. This may be because of the perceived cost of metering, or skepticism about the possible savings. Yet benchmarking opens the door for companies to take advantage of the most economic and effective near-term solution for driving down emissions and energy demand. If wanting to minimise capital investment, companies can choose to use temporary metering, a service Northmore Gordon provides. 

Globally, there is a growing trend of implementing building energy codes and industrial energy efficiency standards. For instance, Singapore will require all chilled water systems over 300RT in capacity to meet an energy efficiency standard. Therefore, companies that engage in utility benchmarking and energy efficiency programs will insulate themselves from transition risks associated with this growing regulatory trend.

Taking a Comprehensive Approach

It is vital to use a certified energy management team to measure performance accurately and help drive a comprehensive strategy. Northmore Gordon’s team of energy experts is available to help companies realise the economic and strategic benefits of utility benchmarking. Our support alleviates stress from companies’ internal teams while helping them advance their sustainability program and align their decarbonisation pathway and financial objectives.

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