The Australian state of Victoria has announced plans to ban natural gas connections to new homes starting from next year in a bid to reduce emissions and lower energy costs. Victoria, which is Australia’s second-most populous state and the largest consumer of natural gas, aims to achieve net zero emissions by 2045, five years ahead of the federal government’s target.
According to Minister for Climate Action Lily D’Ambrosio, new homes seeking planning permits will be required to connect to all-electric networks beginning January 2024. The gas sector currently contributes 17% of the state’s emissions.
D’Ambrosio stated that reducing reliance on gas is crucial to meeting their ambitious emission reduction target and encouraging the use of more efficient electric appliances, which will help save residents money on their energy bills.
The new policy will be applicable to all upcoming public buildings, including residential properties, schools, and hospitals, that have not yet reached the design stage.
However, the move has faced criticism from the Australian Petroleum Production and Exploration Association, claiming that the ban will have limited climate benefits and will push households to rely on the coal-based electricity grid, which is a significant contributor to carbon emissions in Victoria.
On the other hand, Rewiring Australia, a non-profit advocating for electrification, supported the decision, stating that electrification is the fastest and most cost-effective way to reduce energy bills and lower emissions.
Last month, Australia finalized a package of rules for the domestic gas market, including a cap on wholesale gas prices.
