For the sake of achieving a decarbonized economy, in line with the Paris agreement of climate neutrality goals, the Australian government contributed greatly to encourage energy production through renewable sources. Australia's renewable energy target policy is devised by the Federal Government to ensure at least 33,000 gigawatt-hours of the total country's electricity to be obtained through renewable sources by 2020. Under the renewable energy policy investors are encouraged and incentivized for the development of renewable energy power stations. Renewable energy target extends mainly two schemes which are Large-scale renewable energy target (LRET) and Small scale renewable energy scheme (SRES). Investment in Large-scale energy generation grew rapidly between 2016 and 2019, driving strong growth in the renewable sector. Large renewable energy power stations created large scale generation certificate and then sold to the high energy users. However, the small-scale renewable energy scheme offers financial support to the individuals and small businesses through issuing small-scale energy certificates, to help them in switching towards a more sustainable and green source of energy.
Clean Energy Regulator declared in September 2019 that Australia has achieved its large-scale renewable energy targets before the set schedule which is an incredible achievement. Clean Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency (ARENA) played a pivotal role to ensure improved access to financial support for the developers of renewable generation power plants. On the other hand, numerous coal-fired power plants are scheduled to be shut down soon, which will require to be replaced through renewable energy generation power plants. To make it possible supportive measures have been taken by the government to boost the further investment in the sector to effectively reach the target of 40% of total electricity generation from renewable energy sources by 2030.
Nevertheless to say there is still a long way to go as according to the Paris agreement target 26-28% reduction should have incurred on the base year 2005 levels by 2030. Whereas, Australia's current standing is 7% below against the base year which is insufficient with respect to the set target and carbon emission started escalating since 2014 and projected to grow 1% per year on average, instead of getting reduced. According to the latest published report in November 2019, which revealed Australia to be second as the most important problem facing country in the world in reaching climate targets. The data gave a clear indication of inefficient government policies which are supposed to be enhanced while inculcating proactive measures for a constructive contribution for significant GHG reduction by 2030.