ENERGY TRANSITION
Energy security: Keeping the lights on through the energy transition (QLD)
Published: 26 February 2026
Summary: AEMC Commissioner Rainer Korte addressed energy security challenges in Queensland, drawing on the Draft 2026 Integrated System Plan. Electricity consumption in the National Electricity Market is projected to nearly double by 2050, requiring a fivefold increase in grid-scale wind and solar capacity, an 18-fold increase in storage, and an additional 6,000 km of transmission infrastructure. The annualised capital cost for utility-scale generation, storage, transmission, and distribution is estimated at $128 billion by 2050. AEMC's Transition Plan for System Security identifies specific system-security gaps requiring coordinated action across market bodies and investors over the next decade.
Why it matters: CFOs at energy-intensive companies should model exposure to rising electricity costs now — the ISP's $128B annual investment requirement signals sustained upward pressure on network charges and wholesale prices through the 2030s.
Signals to watch: AEMO's final 2026 ISP is expected mid-year; the Transition Plan for System Security will specify binding actions for generators and networks with indicative timelines to 2035.
Energy security: Keeping the lights on through the energy transition (NSW)
Published: 24 February 2026
Summary: In a parallel NSW address, AEMC Commissioner Rainer Korte highlighted the critical need to maintain system security as coal plants retire. The AEMO Transition Plan for System Security identifies coordination gaps requiring action over the next decade. Origin Energy has extended the operation of Eraring Power Station to 30 April 2029, providing additional time for replacement infrastructure to be developed — but not eliminating the system-security risk window.
Why it matters: Boards with operations dependent on baseload supply in NSW should review continuity plans against the Eraring 2029 retirement date and audit what firm capacity replaces it in AEMO's forward projections.
Signals to watch: AEMO's Generation Information Statement and the NSW Government's Electricity Infrastructure Roadmap progress reports will reveal whether committed capacity milestones are being met on schedule.
Carbon Abatement Schemes Deliver Emissions Reductions Comparable to a Year of Road Transport
Published: 1 February 2026
Summary: The Clean Energy Regulator reported that Australia's carbon abatement schemes reduced emissions by approximately 83.7 million tonnes CO2-e in 2025 — equivalent to removing all cars and trucks from Australian roads for a full year. The Cheaper Home Batteries Program drove a surge in residential storage uptake, with over 193,000 battery installations delivering 4.6 GWh of new capacity. The report also confirmed continued growth in the Safeguard Mechanism's covered facilities, increasing the pool of mandatory ACCU buyers.
Why it matters: Corporates with large Scope 3 supply-chain emissions should note growing ACCU demand from Safeguard Mechanism facilities — tightening baselines in 2026–27 will increase buying pressure and likely lift spot ACCU prices above current forward curves.
Signals to watch: The CER's next quarterly Carbon Market Report (Q1 2026) will confirm whether ACCU spot prices moved in response to Safeguard Mechanism compliance buying in the March quarter.
ESG REPORTING
ISSB Update February 2026
Published: 1 February 2026
Summary: The ISSB met on 25 February 2026 and made preliminary decisions on the IFRS Sustainability Disclosure Standards. Proposed amendments to IFRS S2 industry-based guidance are expected to be published for consultation in March 2026, with an effective date set 12–18 months post-issuance. The ISSB also confirmed it is enhancing SASB Standards to align with climate-related content and improving connectivity between sustainability and financial reporting under IFRS Accounting Standards.
Why it matters: CFOs at entities applying or preparing for IFRS S2 must track the March 2026 exposure draft — the 12–18 month implementation window means board sign-off on disclosure controls, data systems, and assurance arrangements should begin now.
Signals to watch: The March 2026 ISSB exposure draft on IFRS S2 industry-based guidance is the next critical milestone; submission windows typically run 90–120 days, creating an opportunity for Australian entities to influence final requirements.
EFRAG Calls for Balanced Approach to Proposed GHG Protocol Scope 2 Changes
Published: 20 February 2026
Summary: EFRAG submitted its formal position on proposed changes to the GHG Protocol Scope 2 Guidance, advocating for clarity and proportionality. EFRAG emphasised the need for a rigorous cost-benefit analysis and adequate consultation periods before finalising revisions that would alter how companies account for electricity-related emissions under both market-based and location-based methods. EFRAG specifically warned against changes that would require complex system redesigns without commensurate accuracy improvements.
Why it matters: Australian companies reporting Scope 2 emissions under ISSB, CSRD, or voluntarily should monitor GHG Protocol outcomes — revised rules could require restating prior-year figures, renegotiating PPA structures, and changing how renewable energy certificates are counted.
Signals to watch: The GHG Protocol's public consultation response period closes in Q2 2026; revised guidance is expected to be finalised by end of 2026 with an expected 2027 effective date for early adopters.
SUSTAINABLE FINANCE & INVESTMENT
RBA Statement on Monetary Policy — February 2026
Published: 3 February 2026
Summary: The Reserve Bank of Australia released its February 2026 Statement on Monetary Policy, assessing current economic conditions, inflation risks, and the global outlook. The document provides the quarterly foundation for the RBA Board's monetary policy decisions and incorporates updated domestic and international economic forecasts. The February edition reflects updated conditions affecting capital markets, with implications for credit spreads and the cost of long-duration infrastructure debt.
Why it matters: Institutional investors pricing green bonds, sustainability-linked loans, and long-duration renewable energy project debt should factor RBA rate guidance into 2026 cost-of-capital assumptions — any shift in the cash rate trajectory directly affects the spread premium on sustainable finance instruments.
Signals to watch: The May 2026 Statement on Monetary Policy will provide the next formal RBA outlook update; any downward revision to the cash rate path would improve the economics of green bond issuance and reduce refinancing pressure on existing SLLs.
Source: https://www.rba.gov.au/publications/smp/
Changes to STC Rebate for Solar Batteries from 1 May 2026
Published: 17 February 2026
Summary: Amendments to the Renewable Energy (Electricity) Regulations 2001, effective 1 May 2026, will reduce the number of small-scale technology certificates (STCs) solar batteries are eligible for. The STC deeming factor will decline more frequently and at a higher rate than under current rules, directly reducing the upfront rebate for new solar battery installations. The changes reflect the legislated step-down schedule as battery costs fall and are designed to reduce market distortion over time.
Why it matters: Businesses planning solar-plus-storage projects must finalise contracts and lodge STC paperwork before 1 May 2026 — any installation contracted or installed after that date will attract a lower rebate, increasing effective project cost with no transition relief available.
Signals to watch: The Clean Energy Regulator will publish updated STC deeming tables effective 1 May; financial models for battery projects should be stress-tested against the new deeming rate as soon as tables are released.
Source: https://www.cer.gov.au/news-and-media/news/2026/february/changes-to-rebate-solar-batteries-1-may
