Today, we're announcing Australia's next step in acting on climate change and seizing the economic opportunity before our nation.
The Albanese Labor Government has accepted the Climate Change Authority's independent advice and will set our 2035 climate change target at a range of 62% to 70% reduction on 2005 emissions.
This is an ambitious but achievable target - sending the right investment signal, responding to the science and delivered with a practical plan. It builds on what we know are the lowest cost actions we can deliver over the next decade while leaving room for new technologies to take things up a gear.
According to the best available analysis the majority of the reductions for Australia to reach the initial stages of our 2035 climate change target range can be achieved through actions in five priority areas, building on our existing policies. These are:
- Clean electricity across the economy: more renewable electricity generation, supported by new transmission and storage (including household batteries)
- Lowering emissions by electrification and efficiency: our New Vehicle Efficiency Standard, supporting consumers switch to EVs and improving energy efficiency
- Expanding clean fuel use: establishing a low carbon liquid fuels industry and supporting green hydrogen
- Accelerating new technologies: through Future Made in Australia investments, and innovation support through ARENA
- Net carbon removals scaled up: enabling land holders to earn money for eligible carbon storage and a robust ACCU scheme
In addition to help meet the target, the Albanese Labor Government is today announcing we will deliver:
- A new $5 billion Net Zero Fund in the National Reconstruction Fund, to help industrial facilities decarbonise and scale up more renewables and low emissions manufacturing
- $2 billion for the Clean Energy Finance Corporation to continue to drive downwards pressure on electricity prices
- $1.1 billion to encourage more production of Clean Fuels here in Australia
- $40 million to accelerate the roll out of kerbside and fast EV charging across our suburbs and regions
- $85 million for frameworks and tools to help households and businesses understand and improve their energy performance
- $50 million for sports clubs doing their bit to decarbonise and drive climate action
The global shift to clean energy represents one of the biggest economic transformations since the Industrial Revolution - and it presents Australia with an enormous economic and jobs opportunity.
Today the following documents to support the Australian Government's 2035 climate target are available.
- The Net Zero Plan and six supporting sector plans: The Net Zero Plan outlines how the Australian Government will meet Australia's net zero target. The sector plans outline the opportunities and challenges across the economy as we decarbonise towards 2050, the key policy levers the Government is using and where future emissions reduction potential is seen.
- The Treasury's economic modelling: This modelling assesses the economic opportunities from the global net zero transformation for Australia and shows an orderly path to net zero supports more jobs and investment, higher wages and living standards, and a bigger economy. The Treasury modelled two orderly net zero scenarios consistent with our government's approach and 2035 targets and a Disorderly Transition Scenario.
- The Climate Change Authority's advice: This advice, informed by CSIRO modelling, considers the climate science, economic and national interest in advising the Government on Australia's 2035 target, as well as examining emerging technology and future opportunities on the road to 2050.
- Our Nationally Determined Contribution: This reflects our international obligation and signals to the world Australia is ready for investment. This document will be submitted as Australia's Nationally Determined Contribution (NDC), consistent with our obligations under the Paris Agreement.
Australia is not alone in acting on climate change - with around 80% of global GDP covered by national net zero commitments.
Global investment in clean energy projects is set to rise over USD $2 trillion - we want to grow this, and Australia's share in it.
This is the right target to protect our environment and secure our prosperity and to create jobs and economic growth for our nation.
The Government's sensible, practical approach means our exporters, farmers and key industries will be able to compete and succeed in the world and our environment will be safe for future generations.
Vitally, this target range balances what the Commonwealth can achieve with existing policies and technologies, and what the country could achieve with a whole-of-economy and whole-of-society effort. A range enables greater ambition, recognising how quickly technology can change and the potential for even greater emissions reduction in the next decade.
We know every effort to tackle emissions today will help avoid the worst impacts of climate change in the future.
This range will see Australia halve its emissions compared to current levels. It is in line with global efforts to limit dangerous global warming.
We are not the biggest polluter or the biggest economy but our commitment to action on climate change matters. It matters to our neighbours, it matters for our economy and it matters for the country that we pass on to our children.
