Victoria’s Big Gas Challenge: compare our policy options!
The future of gas in Victoria
with Minister Lily D’Ambrosio and Jono La Nauze
Victoria is moving away from gas in our homes, and towards healthier and more affordable electrification. But what is the Government’s Gas Substition Roadmap, and where does the Opposition stand on gas policy?
Learn more about these important issues, as well as to hear a comparison of policy options
Check out Minister D’Ambrosio in our YouTube Live here. talking about Victoria’s energy transition and support for electrification.
David Strang, Energy Transition Group Leader, presented the Opposition policies – Jess Wilson, Leader of the Opposition and a local MP, was invited but was “not available”.
The Minister spoke in conversation with CEO of Environment Victoria and policy expert Jono La Nauze – YouTube chapter point here.
- The future of gas use in Victorian homes
- The future of gas imports and exploration in Victoria
- The pace and shape of the transition
- Support for electrification
- Slideset: Exploration of Opposition climate and energy policy including references
- Download our Agenda here
Minister D’Ambrosio on YouTube Live
David Strang, Convenor of the Energy Transition Group summarises Opposition climate policies here.
What does the evidence tell us about gas in Victoria?
Going electric benefits us all
Getting off gas is not only better for the planet – it’s better for our health and helps lower energy bills!
The science couldn’t be clearer: we must stop using fossil fuels to avoid expensive and potentially irreversible damage to our climate. But replacing gas with clean energy has more benefits than just saving the planet:
- Getting off gas saves on power bills as well as reducing emissions. At the low end, average Melbourne households are estimated to save $580 to $1,200 per year by switching from gas to clean energy, while some calculations put the savings as high as $2,230 or $4,100 per year.
- Getting off gas is better for our health. There is evidence of harm to health from indoor gas appliances – estimated to be responsible for 12% of Australian childhood asthma.
These are just some of the many reasons to get off gas which have been identified by government agencies, doctors and nurses, and policy thinktanks.
An orderly gas transition is better - and fairer - for all of us
Equitable and robustly planned climate and energy policies benefit the whole community
Our transition off gas is already underway. However, experts stress the importance of robust & careful planning to ensure the gas phase-out is equitable for all.
- Our community’s most vulnerable members are already disproportionately impacted by the cost of gas and its health impacts.
- However, these people are also the most likely to struggle with the upfront costs of electrifying, and a 2023 report launched by Minister D’Ambrosio showed they are being left behind
- As gas is phased out, households which keep their gas connections will face ever-steeper costs to maintain the stranded assets of gas infrastructure. This is bad news for all consumers, especially the vulnerable.
These consequences of Victoria’s Gas Substitution Roadmap must be carefully and fairly managed to ensure our energy system does not descend into a “chaotic, costly collapse”.
But what about gas shortfalls?
Every year we hear that Victoria is going to run out of gas – but this is not supported by the evidence
What the evidence does show is this:
- Victoria produces more gas than it uses. Instead of being used at home, huge amounts of our gas are exported (and remember – over half (56%) of gas exported from Australia attracts zero royalty payments, leading to upward pressure on the cost of gas to domestic users).
- According to Government figures, the amount of gas we are using domestically is already declining.
- Further demand reduction measures (such as electrifying household gas appliances at end of life, banning the sale of new gas appliances, transiting to heat pumps for medium temperature light industrial applications) can achieve a further 30%, 52% and 93% reductions in gas demand by 2027, 2030, and 2045 compared with 2022. Reducing demand in these ways, modelling shows, is an untapped and cost effective way to eradicate any supply gaps.
Image credit: Institute for Energy Economics and Financial Analysis (2023), “Reducing demand: A better way to bridge the gas supply gap”, Figure 7 (p. 22).
Victoria is still looking for new gas
Victoria has recently approved exploration licences for new gas projects
Despite the evidence that Victoria does not need new gas, offshore areas in the Gippsland and Otway basins have recently been opened for gas exploration.
- Such choices have been criticised by environmental groups such as Environment Victoria, Friends of the Earth, Greenpeace and The Wilderness Society
- New fossil fuel exploration is inconsistent with Victoria’s legislated climate targets of 45-50% by 2030 and 75-80% by 2035
- It is also at odds with community concerns over seismic blasting, and brings a range of risks, including groundwater contamination
As Friends of the Earth put it: “The gas industry is trying to scare us with reports of looming gas shortfalls, all while Victoria continues to export more gas than it uses. The answer is not to open up new gas reserves, but to speed up the Gas Substitution efforts and force the gas industry to reserve the gas that we need in the short term instead of selling it all overseas”. Image credit: ExxonMobile for ABC News (2025), “Victorian government’s gas exploration plans in Gippsland and the Otways anger environmental groups”
More about our speakers
Minister Lily D'Ambrosio
Minister for Climate Change, Minister for Energy and Resources, Minister for the State Electricity Commission
Minister D’Ambrosio is Australia’s longest serving current Minister for Energy, having had ministerial responsibilities for Energy and Climate since 2014.
More about Minister D'Ambrosio here
Lily D’Ambrosio is a member of the Australian Labor Party and has represented the electorate of Mill Park in the Victorian Legislative Assembly since 2002.
She has previously served as Minister for a variety of portfolios, including Community Development, Industry, Suburban Development and Environment.
But most notably she is Australia’s longest serving current Minister for Energy, having been in the role since 2014, as well as currently being the Minister for Climate Action, Minister for Energy and Resources, and Minister for State Electricity Commission.
Minister D’Ambrosio is a leader in action on climate change, renewable energy and energy efficiency in Australia, and has led the modernisation of much of Victoria’s key environmental regulations. She managed the passage of a restored Climate Change Act, Victoria’s landmark climate legislation, which saw it become the first Australian state to legislate in line with the Paris Agreement for net zero emissions by 2050, a target that has since been updated to 2045.
Under her leadership, Victoria is seeing the fastest real reduction in greenhouse gas emissions in the country.
Recently she announced Victoria’s commitment to nation leading targets for reduction of greenhouse gas emissions, including a goal of halving emissions by 2030 and reducing them by 75-80% by 2035.
She is proud to have brought back the State Electricity Commission, with a mandate to build a portfolio of 4.5 gigawatts of publicly owned renewable energy by 2035, as part of a landmark commitment to reach 95% renewable energy in Victoria.
Minister D’Ambrosio is passionate about redesigning the Australian energy market to facilitate a smooth transition into a renewable, reliable and affordable energy future, and one that puts the interests of the public ahead of profits.
Jono La Nauze
CEO, Environment Victoria
Jonathan La Nauze is CEO of Environment Victoria. He has been working in the environment space for two and half decades.
More about Jono La Nauze here
Jono La Nauze grew up in the foothills of the Great Dividing Range near Albury in regional NSW, and has a long history of running successful environmental campaigns.
He spent 11 years at Friends of the Earth where he led the River Red Gum Campaign and negotiated alliances between environment groups and Traditional Owners. He also led campaigns for the Australian Conservation Foundation for five years as Healthy Ecosystems Program Manager including creation of the historic Murray-Darling Basin Plan. He was the winner of the Jill Reichstein Social Change Award in 2014, and was previously the Executive Director of the Climate Action Network Australia (CANA).
Further Information
Victorian Government pages
Climate Targets
- Victoria has legislated climate targets of 45-50% by 2030 and 75-80% by 2035 – find more about benefits and pathways here.
Victorian Gas Substitution Roadmap
- The Victorian Gas Substitution Roadmap requires new homes and most new commercial buildings “to be built all-electric” from 1 Jan 2027.
Gas Exploration
- The securing gas supply information page notes measures to reduce gas demand such as supporting the switch to energy efficient electric appliances, storage measures and also measures to increase supply such as “$2 billion in new investment in gas exploration, production and storage since September 2024.”
Using gas at home harms our health
Household gas increases indoor pollutants
- Household gas harms our health, including our respiratory and neurological systems.
- A University of Queensland study found that gas cooking causes 12% of childhood asthma.
- Asthma Australia is informing parents about the risks of gas cooking.
- Kids living in households with gas cooktops have a comparable risk of asthma to a child living with household cigarette smoke.
Clean energy is the least cost option
CSIRO confirmed that renewable power with storage is the most affordable form of generation
- CSIRO’s definitive GenCost 2024/25 report found “renewables remain the lowest-cost new-build electricity generation technology”.
- The Climate Council: “Energy from wind and solar is on average half the price of energy from coal and gas.”
Lighter Footprints information
Going electric and energy efficiency
- Fast paced home battery highlights video
- Interested in home batteries? Read more on size, features and tariffs here.
- Entertaining short video on electrification with home energy expert Tim Forcey
- Insulation and draught proofing – informative video highlights
- Health benefits of getting off gas – Dr Genevieve Cowie video highlights
Energy
- Superpower 2026 – scan through the highlights from Simon Holmes à Court and Reuben Finighan’s annual energy update
- We can do this! Richard Denniss, The Australia Institute, gives us a rousing call to move faster towards clean energy.
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