Victoria's Climate Action Minister, Lily D'Ambrosio, announced today that the state will prohibit natural gas connections to new homes starting next year as part of a plan to reduce emissions and lower energy bills. Minister D'Ambrosio stated that new homes requiring planning permits must connect to all-electric networks starting January 2024. The gas sector contributes 17% to the state's emissions. The changes will apply to all new public buildings that have not yet been designed, including homes, schools, and hospitals.
This plan comes at a time when southeastern Australia may face a potential gas shortage by mid-decade, due to declining production from offshore fields managed by ExxonMobil, which has long supplied gas to the region. However, the Australian Petroleum Production and Exploration Association stated in a statement that the ban will not significantly aid in combating climate change, as it will push households towards a coal-dependent electricity grid. Victoria's power generation, which heavily relies on coal, produces about half of the state's carbon emissions.
Victoria, the second most populous state in Australia, is the largest natural gas consumer in the country, with approximately 80% of homes connected to gas. However, the state also has ambitious plans to achieve net-zero emissions by 2045.
