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Australia has gone backwards in energy efficiency ratings and has ranked the worst performing major developed country in the world.

The American Council for an Energy-Efficient Economy’s (ACEEE) 2018 International Energy Efficiency Scorecard ranks Australia 18th among the world’s 25 largest energy users, a fall from its 16th-place position in the 2016 ranking.

The report also shows Australia lagging behind developing nations such as India, Indonesia, and China.

Energy Efficiency Council CEO, Luke Menzel, said Australia’s deteriorating performance is a wake-up call for policymakers, planners, and business leaders.

“Our global competitors are saving energy and money with smart energy efficiency policy and investments, while Australia lags at the back of the pack,” Menzel warned.

Australia ranked near the bottom on industrial and transport energy efficiency in the report, which assessed countries on both policy and performance. Its strongest score was in building energy efficiency.

“While this result is disappointing, it points to a huge opportunity. We can quickly cut energy bills, while making our homes more comfortable and our businesses more productive by being much smarter about how we use energy,” he said.

“Taking advantage of this opportunity will require strong government leadership, and smart new energy efficiency policies that help us keep energy affordable while we transition to a twenty-first century energy system.”

Report author Shruti Vaidyanathan, senior advisor for Research at ACEEE, said Australia would definitely benefit from stronger energy efficiency policies that save money, create jobs, cut pollution, and reduce dependence on energy imports.

“Without stronger energy efficiency measures, it will also be impossible for countries, including Australia, to meet the commitments necessary to achieve the global climate goal of capping temperature increases to 2 degrees Celsius.”

The report acknowledged Australia’s National Energy Productivity Plan which aims to improve energy productivity by 40 per cent between 2015 and 2030, but pointed out that implementation of the plan has been slow.