1. Introduction

A policy known as the Clean Energy Target (CET) was put forth with the goal of encouraging Australia to produce more renewable energy by establishing targets for low emissions generation. In contrast, the National Energy Guarantee (NEG) attempted to lower greenhouse gas emissions and guarantee energy sector dependability. Still, the choice was made to drop the Clean Energy Target in favor of putting the National Energy Guarantee into action first. With this move, Australia's strategy for striking a balance between sustainability and energy reliability goals was significantly altered.

2. Understanding the Clean Energy Target

Australia's sustainable Energy Target (CET) was a policy created to promote the generation of sustainable energy. Its goal was to raise the share of electricity produced by low-emission energy sources such as hydropower, wind, and solar energy. The CET aimed to lower greenhouse gas emissions and move toward a more sustainable energy future by establishing a target for the quantity of renewable energy to be produced.

Adopting a Clean Energy Target would have benefited Australia in a number of ways. First off, it would have aided in the fight against climate change by lowering carbon emissions. The CET might have reduced emissions from fossil fuel-based power generation and enhanced public health by expanding the use of renewable energy sources. By promoting clean energy with this goal, it may have encouraged investment in renewable technologies, resulting in the creation of new jobs and a boost to innovation in the industry.

3. The Rise of National Energy Guarantee

In Australia, a comprehensive energy strategy called the National Energy Guarantee (NEG) was developed. It attempted to address the nation's energy system's reliability and emissions reduction issues. NEG required energy retailers to achieve predetermined obligations for emissions and reliability, in contrast to the Clean Energy Target (CET), which was only concerned with lowering emissions.

NEG's simultaneous emphasis on emissions reduction and dependability was one of its main characteristics. It attempted to offer a more balanced approach to addressing issues in the energy sector by combining these two elements. This was not the case with CET, which focused mostly on lowering emissions without addressing issues with energy supply security and system stability.

NEG suggested a system in which energy dealers would need to fulfill goals related to emissions reduction and dependability. This strategy promoted investment in a variety of energy sources and provided incentives for cleaner technologies. On the other hand, CET did not place any restrictions on guaranteeing a stable grid or a consistent supply of electricity, instead encouraging the production of renewable energy.

NEG essentially signaled a change in direction toward a more comprehensive strategy that acknowledged the interdependence of emissions reduction and reliability in Australia's energy environment. NEG sought to establish a framework that protected the stability and resilience of the country's energy system in addition to promoting clean energy, whereas CET concentrated on accelerating the rise of renewable energy.

4. Reasons behind Dumping CET for NEG

Numerous reasons had a role in the decision to switch from the Clean Energy Target (CET) to the National Energy Guarantee (NEG). Politically, the NEG's emphasis on both emissions reduction and reliability made it seem like a more reasonable choice that could win over more people from both parties. In terms of economics, the NEG was seen as a more workable option since it attempted to give investors assurance by combining energy reliability measures with carbon reduction targets. Socially, the move from CET to NEG was seen as a middle ground that could both address growing energy cost concerns and move the world closer to cutting carbon emissions in accordance with international agreements. The decision to switch Australia's main energy policy from CET to NEG was influenced by a number of political, economic, and social factors.

5. Impact on Clean Energy Sector

Diverse opinions have been expressed within Australia's clean energy industry on the decision to replace the Clean Energy Target with the National Energy Guarantee. The decision is probably going to have a big impact on the nation's investment in the expansion of renewable energy. Investors may be reluctant to commit to long-term projects due to the uncertainty surrounding future policies supporting clean energy, which could slow down the expansion of renewable energy capacity.

This change in policy direction may provide difficulties for Australia's sustainable energy transition. Concerns concerning reaching emissions reduction targets and shifting to a low-carbon economy are raised by the National Energy Guarantee's lack of a clear objective for the development of renewable energy. This action could make it more difficult for Australia to fulfill its commitments under international agreements like the Paris Agreement and impede the development of a more environmentally friendly and sustainable energy sector.

It is imperative that governments give the clean energy sector clarity and support as stakeholders negotiate these changes. To maintain steady progress towards a cleaner energy future and to encourage ongoing investment in renewables, it is imperative to establish clear norms and incentives. In order to maintain the momentum towards a more robust and sustainable energy landscape in Australia, cooperation between the government, business community, and environmental organizations will be essential.