Appropriate regulation and legislation give investors certainty and are particularly important for developing industries. Regulations and laws in their current form are unlikely to be suitable for future low-emission energy industries, and will need to be amended or replaced. One example is the large-scale production and use of hydrogen to transport energy,79 which will need its own legal framework.
It can take a long time to develop new or amended regulations and legislation. It is a complex process where multiple stakeholders must be consulted. Governments should follow the COAG Principles of Best Practice Regulation, developing the regulations and laws collaboratively so they are fit-for-purpose. They also need to be flexible and innovative so they stay relevant as the new industries evolve.80
This work has become critical. The Reserve Bank identified that uncertainty around future national policy direction is constraining investment in renewable energy.81 The Australian Government and state and territory governments should start the process now so this country is ready for a low-emission energy future.