FOR RELEASE 7:00am AEST, 26 August 2025
- Top-down scenario analysis from Deloitte Access Economics shows Australia's GDP will likely be $370 billion greater by 2035 under a 75% emissions reduction target, compared to current projections.
- An estimated 69,000 additional Australian jobs would be supported each year between 2025-2035 under a 75% target compared to continuing along our current trajectory.
- The analysis shows a 75% 2035 emissions reduction target also provides huge economic benefits compared to a weaker 65% one.
The Australian government will soon decide on its 2035 emissions reduction target, consistent with the Climate Change Authority's recommendation of somewhere between a 65% and 75% reduction on 2005 levels.1
A 75% target unlocks enormous economic opportunity, boosting jobs, exports and the GDP. Compared to continuing along our current trajectory, a 75% target unlocks an additional $370 billion in GDP and supports an additional 69,000 jobs by 2035.
But even compared to a weaker emissions reduction of 65%, the 75% target makes a huge difference. That's the clear picture painted by new scenario analysis from Deloitte Access Economics.
75% unlocks economic opportunity above weaker targets
Compared to a weaker emissions reduction target of 65%, a stronger 75% target:
- Brings forward investment, unlocking an additional $20 billion per year to 2035.
- Increases the competitiveness of our exports in a decarbonising world, raising export revenues by $190 billion over the period to 2050.2
Deloitte Access Economics Lead Partner Pradeep Philip says:
"Australia is in a race to secure the global capital required to establish green industries. Setting a lower target today comes at the cost of lower business investment than would otherwise be the case."
"Achieving a strong target creates the foundation for Australia's economy to grow and compete in a decarbonised world, driving investment, innovation and industries for growth. Getting these foundations right with a 75% target can drive, in today's dollars, $190 billion more exports by mid-century."
Business backs 75%
Some of Australia's biggest companies and employers agree that a stronger climate target is better for business.
Over 350 businesses including Future Group, Fortescue, Atlassian, Canva, IKEA, Unilever, Volvo Group Australia, Culture Amp, Bank Australia, Intrepid Travel and Ben & Jerry's have signed the open letter calling for the government to commit to at least a 75% target.
The business coalition, led by Fortescue and Future Group, has gained significant momentum as pressure mounts on the Government to realise this target. Some of Australia's largest businesses have signed the Open Letter at www.businessfor75.com.au in support of this target.
Future Group Chief Executive Simon Sheikh says:
"As the world decarbonises, Australia holds a winning hand: abundant land, affordable renewable energy, critical minerals, and a skilled workforce. With these strengths, we can build a future made in Australia—powered by clean energy, advanced manufacturing, and secure, well-paid jobs in our regions. But ambition must come first."
"A strong 2035 target will send a clear signal to investors, industry and our global partners that Australia is serious about net zero—and ready to play ball in the industries of tomorrow."
Fortescue Metals and Operations Chief Executive Dino Otranto says:
"Results from modelling commissioned by Fortescue and Future Group show clearly that a 75 per cent 2035 target will drive the investment, innovation and infrastructure transformation that will position Australia as a global export powerhouse.
"The modelling shows that achieving a 75 per cent target could unlock an additional $370 billion in GDP by 2035 - a per capita GDP increase of over $10,000 - compared to a business as usual approach. A science-based target will deliver a larger, more productive and more prosperous economy in the 2030s and beyond, compared to a lower target."
"The Australian business community is ready to back a strong emissions target of 75 per cent. The government should seize this once-in-a-generation opportunity, for the good of our economy, for our businesses and for every Australian citizen."
