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Roadmap launched to double manufacturing sector energy productivity

27 April 2016

I welcome the launch of the ‘2xEP’ Manufacturing Sector Roadmap to double Australia’s energy productivity in manufacturing by 2030.

Developed by the Australian Alliance to Save Energy (A2SE), and a steering committee of senior business leaders under its 2xEP project, this roadmap establishes what manufacturing can do to improve energy productivity, what policy support manufacturing seeks from government, and how sensible policies can unlock manufacturing productivity improvements in Australia. This is a great example of industry taking the lead in driving growth and innovation in the transition to a low carbon future.

Improving energy productivity is about obtaining more value from the energy we consume. By improving Australia’s energy productivity, we boost our competitiveness, help consumers manage their energy costs to reduce bills, and reduce our carbon emissions.

Manufacturing contributes eight per cent of the nation’s GDP and uses about $14 billion worth of energy a year. The A2SE estimates that in doubling its energy productivity by 2030, the manufacturing sector could reduce the cost of its energy use by $5 billion per annum.

The Government is committed to improving Australia’s energy productivity by 40 per cent between 2015 and 2030. The National Energy Productivity Plan (NEPP), developed by the COAG Energy Council, brings together a wide range of opportunities into a coordinated, national plan to achieve this target.

To date, the Government has provided $260,000 to A2SE to support the development of five sector roadmaps, of which manufacturing is the first. As part of the NEPP, the Government is also supporting the A2SE to develop a proposal for the “2xEP Challenge”. The Challenge, outlined in the manufacturing roadmap, will recognise leading companies for their public commitments to greatly improve their energy productivity.

The roadmap is available at www.2xep.org.au/sectors/manufacturing. To find out more about the NEPP visit www.industry.gov.au/Energy/Pages/National-Energy-Productivity-Plan.aspx

Media contact: Mr Frydenberg's office 02 6277 7180Department media: media@industry.gov.au