Victoria's Transition to Net Zero

The Victorian Chamber of Commerce and Industry’s advocacy for a plan on how the state will transition to net zero has been further supported following a survey of its members, which revealed that 86% of businesses believe the move to renewables will impact the quality of their output.



“These results, direct from our members, confirm to us that the transition away from natural gas to other energy sources is the number one concern for Victorian businesses,” Victorian Chamber of Commerce and Industry chief executive Paul Guerra explains.

“Businesses need access to affordable and reliable energy to continue to operate viably in Victoria and there is great concern that this is not guaranteed through the transition to net zero.”

The survey found that almost half of all respondents won’t need to replace their gas appliances for the next 10-20 years and asking plumbing and gas professionals to change their appliances from gas to electricians will significantly impact their cost of doing business.

Additionally, 81% of respondents reported cost as the main barrier to switching from gas to electricity, with more than half of those surveyed saying they can’t move away from natural gas as their business processes rely on it and it cannot be transitioned to another energy source.

Also of concern is that 74% of businesses surveyed report they are not planning financially to transition to cleaner energy sources. This could be for several reasons, but there is no doubt many businesses are already financially stretched and can’t take on another cost of such magnitude.

Some of the key findings from the survey include:

  • 68% can’t currently switch to renewable gas
  • 73% forced to close or significantly reduce operations during Victoria’s February power outages
  • 81% cite cost as main barrier to switching from gas to electricity
  • 71% want the State Government to unlock new Victorian gas supply
  • 52% say a reduction in gas supply/gas shortage will lead to reduced production
  • 83% report being pessimistic about current market conditions (15% neutral, 2% optimistic)
  • 65% reported energy policy as their biggest concern, followed by 64% workforce and 53% taxation

Image courtesy of Ilse Driessen

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