VEU program seeks views on new targets

The Victorian Energy Upgrades program – billed as the largest energy-efficiency program in Australia – is setting emissions reduction targets for 2026 and 2027, and has produced a regulatory impact statement to present options and elicit public comment.

The VEU program is a market-based scheme that provides financial assistance to households and businesses adopting more energy-efficient appliances, such as reverse-cycle air conditioners and hot water heat pumps. Incentives are also available for activities that improve energy efficiency, such as door and window sealing.

The program is a key initiative for helping Victoria achieve its emissions reduction targets. The government has a legislated target of net zero carbon-dioxide equivalent greenhouse gas emissions by 2045, and legislated interim emissions reduction targets of 45–50 per cent below 2005 levels by 2030, and 75–80 per cent below 2005 levels by 2035. Yearly emissions reduction targets are set for the VEU program to help achieve these goals.

The regulatory impact statement (RIS) presents five options for the targets, each with different levels of ambition and mitigating factors. The government notes that all options achieved good economic results with a positive benefit-cost-ratio, but some scored better for energy affordability and equity.

To download the RIS, learn more information about the VEU program, and submit comments, visit the Engage Victoria website.

The consultation closes on January 16, 2025.