On Friday, Australia’s Minister for Climate Action, Lily D’Ambrosio announced that the state of Victoria will impose a ban on all new natural gas connections to new homes, beginning in 2024.

The new rule is part of a state program which is designed to cut carbon emissions and lower the energy bills of citizens. Reportedly, the gas portion of the energy sector accounts for a full 17% of the state’s emissions of greenhouse gas.

In a statement, D’Ambrosio said, “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.”

All new public buildings which have not yet reached the design stage will be subject to the new rules, to include housing, hospitals, and schools.

It is expected the southeast Australian state will face gas shortages over the coming years, as Exxon Mobil, which has long provided fuel to the region, will see declines in production from its offshore fields.

A report by Reuters cited a statement by the Australian Petroleum Production and Exploration Association, which said it is not expected the new rules will affect carbon emissions, since the new structures will replace their consumption of gas with the consumption of energy provided by the coal-based power grid.

The report noted that Victoria is highly dependent on coal for its energy production, with half of the state’s carbon emissions coming from electricity generation.

Chief Executive Samantha McCulloch said, “The Victorian Government is taking choice away from consumers for limited climate benefit while ignoring the fact that the best way to bring gas prices down is to invest in more gas supply.”