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Climate Change


As Australia’s largest greenhouse gas emitting business , we recognise that we have a key role to play in reducing greenhouse gas emissions while providing secure and affordable energy for Australian households and businesses.

AGL's Greenhouse Gas Policy

Our Greenhouse Gas Policy outlines AGL's approach to climate change and presents a pathway for the gradual decarbonisation of our generation portfolio by 2050. Our policy includes the following commitments:

  • We will continue to provide the market with safe, reliable, affordable and sustainable energy options.
  • We will not build, finance or acquire new conventional coal-fired power stations in Australia (i.e. without carbon capture and storage).
  • We will not extend the operating life of any of our existing coal fired power stations.
  • We will close, by 2050, all existing coal-fired power stations in our portfolio.
  • We will improve the greenhouse gas efficiency of our operations, and those over which we have influence.
  • We will continue to invest in new renewable and near-zero emission technologies.
  • We will make available innovative and cost-effective solutions for our customers, such as distributed renewable generation, battery storage, and demand management solutions.
  • We will incorporate a forecast of future carbon pricing into all generation capital expenditure decisions.
  • We will continue to be an advocate for effective long-term government policy to reduce Australia’s emissions in a manner that is consistent with the long-term interests of consumers and investors.

Pathway to a modern, decarbonised generation sector

We are committed to playing a leading role in developing a pathway to a modern, decarbonised generation sector, developing and investing in new renewable and near-zero emission technologies. Read more below about some of our recent achievements to date. 

2015: The year of commitment renewal

  • We launched AGL's Greenhouse Gas Policy.
  • We signed a public statement alongside large Australian Corporates supporting the pursuit of the Paris Agreement. Other companies included: BHP Billiton, GE, Mirvac, Santos, Unilever, Wesfarmers and Westpac.
  • We adopted three core 'We Mean Business' commitments:
  • Responsible corporate engagement on climate policy.
  • Reporting climate change information in mainstream corporate reports.
  • Aligning with the UN Global Compact’s Business Leadership Criteria on Carbon Pricing.

2016: The year of action

We followed up on commitments of 2015 through specific actions:

  • We launched the Powering Australia Renewables Fund (PARF), a $2-$3 billion fund to invest alongside institutional organisations in ~1,000 MW of large scale renewable projects –providing innovative financing solutions and risk diversification
  • We launched world’s largest Virtual Power Plant – installing 1000 residential batteries into South Australian solar households and connecting through Sunverge IT platform to operate as a 5MW solar peaking plant feeding energy and services into the grid.
  • We released to the market: "Carbon Constrained Future" an economic analysis of AGL operations within a carbon constrained future, specifically the current Australian NDC and a two degree constraint. This scenario analysis looks at the impact on AGL operations and the role of potential policies in impacting the economic value to AGL.

2017: Alignment to company vision

In 2017 AGL updated its brand, vision and strategy and in this, our role in the decarbonisation of our energy portfolio is clear, absolute and now ingrained into the company value proposition.

You can view our new TV commercial here or read more about what we're doing in this space, here.  



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