AGL has an aspirational goal to provide real leadership to reduce the greenhouse gas intensity of energy across the supply chain throughout the economy. As Australia’s largest energy retailer, we have continually advocated policies that deliver increased clean energy production and lower greenhouse gas emissions. We are also working closely with our customers to reduce their greenhouse gas intensity. Our investment decisions, our daily operations and the products that we offer our customers all contribute to the greenhouse intensity of our energy.

We are committed to:

• Incorporating a forecast of future carbon pricing into all major business decisions.

• Publishing information about AGL’s greenhouse gas impacts.

• Benchmarking our own performance (both using our supply chain intensity and our own generation intensity) against the overall industry.

• Working with all our stakeholders better understand our options for reducing greenhouse gas emissions.

AGL has positioned itself early to maximise shareholder value with the introduction of the Carbon Pollution Reduction Scheme. We communicate the impacts of this scheme on our business to our shareholders. Copies of investor presentations are available on our website. Click here to Download.

Our strategies for reaching our greenhouse goal are:

• Engage with our stakeholders about reducing greenhouse gas emissions

• Expand our portfolio of investments in renewable energy, low-emission power generation and power purchase contracts

• Lead Australian participation in domestic and international emissions trading schemes

• Provide energy efficiency and climate change services to our industrial and commercial customers

• Work with Loy Yang Power to improve its greenhouse gas performance

Information about our suite of green electricity products is available in the Customers section of this report.

AGL and Climate Change

Climate change is one of the most important issues facing the world today. AGL recognises that climate change is a critical issue facing the global community and accepts the scientific consensus that greenhouse gases in our atmosphere need to be stabilised so as to avoid dangerous climate change. The Intergovernmental Panel on Climate Change believes that global anthropogenic greenhouse gas emission reductions in the order of 50% are required by the middle of this century to achieve this outcome.

AGL believes that Australian state and federal governments must agree on a long-term greenhouse gas emissions reduction target for 2050 that is consistent with this scientific understanding. Interim targets must also be set to ensure this 2050 target is achieved. AGL supports three key policies to achieve these targets and mitigate the costs associated with climate change:

• Expedited development and implementation of a national emissions trading scheme that uses the broader long-term greenhouse gas emissions reduction target as its goal.

• The deployment of renewable technologies through a single national clean or renewable energy obligation.

• Appropriate adaptation measures to ensure that Australia is not adversely impacted by climate change already ‘locked in’ by existing greenhouse gas concentrations in the atmosphere.

In 2007/08, the Australian Government announced a number of important policy initiatives. All of these are consistent with the positions that have been advocated by AGL over many years. By providing leadership and preparing early for a carbon constrained future, AGL is well positioned to deliver value for our stakeholders with their implementation:

• Emissions Trading - The Commonwealth Government has committed to the introduction of an emissions trading scheme known as the Carbon Pollution Reduction Scheme in 2010 covering most sectors of the economy. The Carbon Pollution Reduction Scheme is to support the Commonwealth Government’s long-term target of reducing emissions by 60% by 2050.

• Expanded Renewable Energy Target (RET) - The Commonwealth Government has committed to transitioning the Mandatory Renewable Energy Target into a new Renewable Energy Target with an ultimate goal of 45,000 GWh of new renewable energy by 2020.

In September 2007, the Commonwealth Parliament passed the National Greenhouse and Energy Reporting (NGER) Act requiring over 700 Australian corporations to report annual energy consumption, production and greenhouse gas emissions.  The NGER Act has been designed to streamline energy and greenhouse reporting and will act to provide data that will underpin the proposed Carbon Pollution Reduction Scheme. 

During 2007/08, AGL has actively contributed to the development of NGER supporting legislation through the NGER Corporate Pilot Group convened by the Department of Climate Change.  AGL has also been working to establish reporting boundaries, set up data collection processes and ensure that any data gaps will be addressed.  AGL has used the principles and approach set out in the NGER Act to report the 2007/08 greenhouse gas emissions data.