Key findings
The first paper in our Achieving net zero research series explores the essential policy directions to help New South Wales reach its targets while protecting productivity and living standards:
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Decarbonising electricity as a foundation for all sectors: Rapidly decarbonising electricity is essential to meet emissions targets for the electricity sector itself and to reduce emissions in transport, manufacturing, and buildings. This transition must happen alongside actions in other sectors, with coordinated investments in renewables, firming capacity, and grid infrastructure as all four remaining NSW coal generators close by 2040.
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Smart technology to manage costs: Reforms like cost-reflective pricing and accelerated smart meter rollouts can reduce peak demand and contain system costs, delivering direct bill savings to households and businesses.
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Clear policy principles for a cost-effective path to net zero: With no economy-wide carbon price in place, the transition will require policies that maximise cost-effectiveness, create certainty for investors, remain technology-neutral, and ensure coordination across jurisdictions to avoid overlap and inefficiency.
We know we face challenges in this transition. Achieving net zero will require a skilled workforce and capital investment, but New South Wales’ construction sector is already stretched by demands from infrastructure and housing. Addressing these constraints is vital to meeting emissions targets in the most efficient way possible.