Victorian Climate Change Minister Lily D’Ambrosio stepped forward Friday morning to announce a ban on new gas connections for both residential developments and state government buildings such as schools, hospitals and police stations, starting from 2024.

“We know that with every bill that arrives, gas is only going to get more expensive. That’s why we’re stepping in to help even more Victorians get the best deal on their energy bills.” said Lily D’Ambrosio

“Reducing our reliance on gas is critical to meeting our ambitious emission reduction target of net zero by 2045 and getting more Victorians on more efficient electric appliances which will save them money on their bills.”

In November 2018 Victorian Energy Minister Lily D’Ambrosio signed the Climate Emergency Declaration. We congratulate the Minister for taking this action to ban new gas connections and the ancillary programs to assist in this transition.

A reform made in 2022 removed the requirements for gas connections for new homes. Victoria has the highest use of residential gas in Australia, with around 80 per cent of existing homes connected. The gas sector contributes about 17 per cent of the state’s emissions, and the move to electric systems is a key element of meeting Victoria’s nation leading emissions reduction targets of 75–80 per cent by 2035 and net zero by 2045.

• From 1 January 2024, planning permits for new homes and residential subdivisions will only connect to all electric networks, with houses taking advantage of more efficient, cheaper and cleaner electric appliances.
• Changes will apply to all new homes requiring a planning permit, including new public and social housing delivered by Homes Victoria.
• Estimated savings: Going all-electric will slash around $1,000 per year off household energy bills – or up to $2,200 for households that also have solar installed.
• Commencing immediately, all new public buildings that haven’t reached design stage will also be all-electric. This includes new schools, hospitals, police stations and other government-owned buildings.
• $10 million allocated for a Residential Electrification Grants program. Grants will be available to volume home builders, developers and others to provide bulk rebates for solar panels, solar hot water and heat pumps to new home buyers up front.
• $1 million allocated for targeted training to ensure the construction industry is supported in the transition to all electric and 7 star homes. This is in addition to Solar Victoria’s $11 million training and workforce development package that will upskill plumbers and electricians to take advantage of the renewable energy revolution.
• $3 million package including free training for 1,000 plumbers and apprentices to design and install energy efficient heat pumps and solar hot water systems, and free training for 400 electricians and fourth-year apprentices to safely design and install rooftop solar and home battery systems.
• eligible new home builders, as well as existing homeowners and renters, can access the Solar Homes program – offering $1,400 solar panel rebates and interest free loans of $8,800 for household batteries.
• Victorian households and businesses are also eligible for the VEU gas to electric rebates to upgrade heating and cooling and hot water heaters.
• Government is updating Gas Substitution Roadmap, for release later in 2023.

The announcement was greeted positively by environment and health sectors.

“This is a great day for Victorians,” said Healthy Futures Co-ordinator and GP, Dr Harry Jennens.

“The Victorian Government is taking a strong stance on climate change and air pollution, and this announcement is a major step in the right direction.”

“Gas is a harmful fossil fuel that pollutes our air, causes disease and drives dangerous climate change,” said Dr Jennens. “In contrast, electrical appliances are cleaner, healthier and cheaper to run than gas ones, so today’s announcement is a win-win-win for our health, our environment, and for lowering energy bills.”

“It is well established that air pollution from gas appliances causes and exacerbates asthma and other illnesses. A child living in a house with a gas stove faces roughly a 32% increased risk of asthma, which is similar to a child living in a house with cigarette smoke. Gas appliances can even cause death through carbon monoxide poisoning.”

“We are thrilled that the Andrews Government is taking a strong stance on this issue,” said Dr Jennens. “This is a win for Victorians’ health.”

The Royal Australian College of General Practitioners (RACGP) and Australasian College for Emergency Medicine (ACEM) also welcomed the government’s announcement.

“Reducing our exposure to gas from stoves is the right move for our health,” said Dr Aadhil Aziz, Victorian Co-Deputy Chair of the RACGP.

“Gas stoves expose people to respiratory irritants which leads to a multitude of respiratory conditions, and research indicates this includes triggering asthma in children. Phasing out gas in our homes is the right choice for our health and the climate.”

ACEM President Dr Clare Skinner said “Australia’s emergency clinicians know that climate change is the biggest global threat to health and health systems.”

“ACEM supports initiatives that can minimise the impact of climate change, reduce the carbon footprint of hospitals and health systems, and help protect human health.”

“ACEM welcomes today’s announcement in Victoria as a step in the right direction towards reducing the impacts of climate change and air pollution on health, and congratulates Healthy Futures for their successful advocacy on this issue.”

Merri-bek Gas emissions

2018/19	Residential gas	226 000 Emissions (t CO2e)
	Commercial	22 000
	Industrial	11 000
2019/20	Residential gas	245 000
	Commercial	19 000
	Industrial	11 000
2020/21	Residential gas	241 000
	Commercial	20 000
	Industrial	12 000

About 89 per cent of Merri-bek gas emissions come from the residential sector. A ban on gas connections is important for new developments but we also need retrofits of gas appliances for older residential households. Victorian households and businesses are eligible for the VEU gas to electric rebates to upgrade heating and cooling and hot water heaters. There needs to be a similar subsidy for gas cooktops.

References:

Media Release, 28 July 2023, New Victorian Homes To Go All Electric From 2024, https://www.premier.vic.gov.au/new-victorian-homes-go-all-electric-2024

Snapshort, Merri-bek municipal emissions snapshot https://snapshotclimate.com.au/locality/municipality/australia/victoria/merri-bek/