Briefing Paper: What are Stakeholders Saying About the National Energy Guarantee?

Australia continues to lack an enduring and credible national climate and energy policy to reduce greenhouse gas pollution from the electricity sector. The Federal Government’s proposed National Energy Guarantee (NEG) policy falls short when it comes to delivering reliable and affordable power, along with tackling climate change.

In February, stakeholders were invited to comment on the proposed NEG Draft Design. Over 140 organisations and individuals submitted a response. Submissions came from a broad range of business and community stakeholders.

This briefing paper summarises key concerns from the Climate Council and raised by other stakeholders about the Federal Government’s proposed NEG.



Stakeholders expressed significant concerns about the NEG’s inadequate approach to a range of issues which are summarised below.

Cost and competition concerns:

  • 61 stakeholders raised concerns about the unwarranted cost and complexity of the NEG’s approach.
  • 64 stakeholders raised concerns about the impact of the NEG on competition in the national electricity market.

Emissions reduction target concerns:

  • 53 stakeholders raised concerns about the need for stronger action on climate change.
  • 44 stakeholders highlighted the inadequacy of the proposed target for reducing electricity sector emissions in 2030.
  • 33 stakeholders highlighted the need for longer-term pollution reduction targets beyond 2030.
  • 28 stakeholders argued state and territory targets should be additional to the NEG, or that the NEG emissions reduction target should be at least equivalent to the aggregate of state and territory policies.
  • 49 argued offsets should not be used as part of the NEG, or be strictly limited.

Reliability mechanism concerns:

  • 33 stakeholders raised concerns about the lack of a demonstrated need or clear problem definition for the reliability mechanism.

Consultation process concerns:

  • 13 stakeholders highlighted the lack of adequate consultation on the NEG.

More details are available in the briefing paper here.

The Climate Council has released an alternative roadmap outlining how Australia can cut its rising greenhouse gas pollution levels, while continuing the transition to clean, affordable and reliable renewable energy and storage technology. This can be accessed here.