Climate change policy design, implementation & assessment

Climate change has dominated policy debates in recent times, particularly in relation to energy markets.

Getting the right policy and frameworks in place is important. Working out the best approach and being able to properly assess it is essential.

The Frontier Economics work in climate change policy includes emissions trading scheme design, renewable energy targets, feed-in tariffs, energy efficiency schemes, and the impact of energy efficiency policies on energy demand forecasts.

We’ve been involved in the Australian emissions trading policy debate from the outset. We helped develop, model and implement the NSW Greenhouse Gas Abatement Scheme in 2001-2 – the world’s first mandatory broad based emissions trading scheme. We provided policy advice and modelling for the Federal Coalition and Senator Xenophon on alternatives to the proposed Carbon Pollution Reduction Scheme.

Our Public Policy team covers the economics of mitigation and adaptation in response to climate change. Policy development and implementation in this area, such as bans on new buildings in coastal areas, can have very significant impacts on the economy.

Recent policy assessment and market modelling projects include:
  • a key study on policy options for emissions reduction for the AEMC and COAG in 2016, including the design and impact of an EIS and regulated closure
  • the AEMC/COAG on possible implementation of the Finkel Clean Energy Target (CET)
  • the Energy Security Board (ESB) on the design of the National Energy Guarantee (NEG)
  • the AEMC on the impact of high levels of Variable Renewable Energy (VRE) on the energy only market
  • Queensland Government on the restructuring of government owned assets to create a “CleanCo” generation portfolio and how to achieve the 50% Renewable Energy Target
  • South Australia Government to develop and implement the SA Energy Plan to address the impacts of energy security in a market with a very high share of VRE. The plan included the development of options, market analysis and contract design and negotiation for:
    • Tesla utility-scale battery storage (the world’s largest battery) and
    • the world’s largest Virtual Power Plant combining rooftop PV and Tesla batteries on government owned public housing.

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