Ruqayyah Snyder
Australia's climate change policy has been a contentious issue for decades, with the country being one of the world's biggest polluters per capita. However, the Australian government has committed to reducing its greenhouse gas emissions and has developed strategies to respond to climate change. The Climate Change Authority advises the government on climate change policy and emissions reduction targets, while the Bureau of Meteorology monitors and analyses climate changes. Australia's climate targets and policies have been rated as Insufficient by the CAT, indicating a need for substantial improvements to align with the Paris Agreement's 1.5°C temperature limit. The government has set a net-zero emissions target for 2050 and is working to boost renewable energy sources. Despite these efforts, Australia's reliance on offsetting and LULUCF emissions has been criticized, and the country needs to implement more ambitious policies to achieve genuine emissions reduction.
| Characteristics | Values |
|---|---|
| Climate targets | Insufficient according to the Climate Action Tracker |
| Climate finance | Insufficient according to the Climate Action Tracker |
| Climate policies | Insufficient according to the Climate Action Tracker |
| Current emissions reduction target | 43% by 2030 |
| Previous emissions reduction target | 26-28% by 2030 |
| Current long-term emissions reduction plan | Net zero emissions by 2050 |
| Electricity source | 30% from renewable sources |
| Electricity grid | Overhaul delayed |
| National framework for reporting | National Greenhouse and Energy Reporting (NGER) scheme |
| Framework for large emitters | Safeguard Mechanism |
| Climate change authority | Provides advice to the government |
| Annual Climate Change Statement to Parliament | Provides summary of government's progress |
| Powering Australia plan | Focused on creating jobs, reducing energy bills, and reducing emissions |
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What You'll Learn
Australia's 2050 net-zero emissions target
Australia's climate change policies are managed and delivered by the Department of Climate Change, Energy, the Environment and Water (DCCEEW). The DCCEEW works to reduce emissions by upgrading the electricity grid to support more renewable power. The Australian government has committed to the global goal of limiting the increase in global average temperatures to well below 2°C and pursuing efforts to keep warming to less than 1.5°C.
The Net Zero Plan will also support the government's broader policy agenda, including its ambition for a "future made in Australia". The plan aims to capitalise on Australia's abundant natural resources to drive growth, create new industries, and establish the country as a renewable energy superpower. The government intends to achieve this while preserving existing industries and jobs.
The Net Zero Plan is based on existing policies and is guided by five principles: technology, not taxes; expanding choices, not mandates; driving down the cost of new technologies; keeping energy prices affordable; and closing the gap to net zero over the next three decades. The plan identifies the potential for continued technological advances and breakthroughs to unlock ultra-low-cost solar. Australia's priority technologies are expected to deliver 85% of the emissions reductions necessary to achieve net zero by 2050. This includes a strong track record in emissions reduction, the Technology Investment Roadmap, global technology trends, and high-integrity offsets.
To improve its climate action and align with the Paris Agreement's 1.5°C temperature limit, Australia needs to adopt more ambitious climate policies. The government's current policies are projected to reduce emissions by 17-21% below 2005 levels by 2030, excluding LULUCF (Land Use, Land-Use Change and Forestry). Australia's reliance on LULUCF as a carbon sink and its revision of LULUCF estimates erode the ambition of its Nationally Determined Contribution (NDC) for fossil fuel and industrial emissions. Effective climate policies are needed to decarbonize all sectors, and Australia must set genuine emissions reduction targets without relying on uncertain estimates from the land sector.
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Climate Change Authority
The Climate Change Authority (CCA) is an independent statutory body that provides expert advice to the Australian Government on climate change policy and future emissions reduction targets. It was established by and operates under the Climate Change Authority Act 2011, commencing operations on 1 July 2012. The CCA has no legislative or executive powers, which remain with the government and parliament.
The Authority has a board comprising a chair and up to eight other permanent members. Its members are entitled to write dissenting minority reports, and often do so. The current members include Matt Kean (chair), Susie Smith, Mark Lewis, John McGee, and Russell Reichelt. Former members include Wendy Craik, Clive Hamilton, Heather Ridout, Ian Chubb, and Kate Carnell.
The CCA has published 23 reports since its establishment, including reviews of the National Greenhouse and Energy Reporting legislation. The first report, "Prospering in a Low Emissions World", set out recommendations for how Australia could reduce its greenhouse gas emissions to meet its 2030 Nationally Determined Contribution under the Paris Agreement. The Authority is currently working on advice for Australia's 2035 emissions reduction targets and reviewing the potential technology and emissions pathways to support Australia's transition to net-zero emissions by 2050.
The Climate Change Authority also conducts periodic legislative reviews of the Emissions Reduction Fund and the National Greenhouse and Energy Reporting scheme, as well as special reviews requested by the Minister responsible for climate change or Parliament. It may also undertake self-initiated research on matters related to climate change.
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National Greenhouse and Energy Reporting (NGER) scheme
Australia's climate change policies and future emissions reduction targets are advised on by the Climate Change Authority. The National Greenhouse and Energy Reporting (NGER) scheme is a key part of this.
The NGER scheme is Australia's national legislative framework for reporting and publishing company information about greenhouse gas emissions, energy production, and energy consumption. It was introduced in 2007 and is administered by the Clean Energy Regulator (CER). The CER registers and deregisters corporations for reporting, receives reports, and enforces compliance with the Act.
The NGER scheme is a single national framework that requires companies to report their emissions and energy data by 31 October each year. The CER then publishes a point-in-time extract of reported scope 1 and scope 2 greenhouse gas emissions, along with net energy consumption for each corporation exceeding the publication threshold by 28 February of the following year. The NGER scheme also includes the Safeguard Mechanism, which requires Australia's largest greenhouse gas emitters to keep their net emissions below a limit that will be reduced over time. Facilities with more than 100,000 tonnes of scope 1 (direct) carbon emissions per year must keep their emissions below a baseline or purchase Australian Carbon Credit Units (ACCUs) to make up the difference.
The NGER scheme is an important tool for managing and reducing Australia's greenhouse gas emissions and energy consumption, providing transparency and accountability for corporations, and helping Australia meet its international reporting obligations.
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Annual Climate Change Statement
Australia's climate change policies are coordinated by the Department of Climate Change, Energy, the Environment and Water (DCCEEW). The Climate Change Act 2022 legislated emissions reduction targets of 43% below 2005 levels by 2030 and net-zero by 2050. The Australian government has released a Net Zero 2050 plan, as outlined in the 2022 Annual Climate Change Statement to Parliament.
The Annual Climate Change Statement is a requirement under the Climate Change Act 2022. The third Annual Climate Change Statement was tabled in Parliament on 28 November 2024. It reports on the progress made during the year towards achieving Australia's greenhouse gas emissions reduction targets and outlines how much work is underway to ensure Australia meets its climate goals. It also highlights achievements and identifies areas for further action.
The Annual Statement must consider the Climate Change Authority's advice and outline the government's response to the Authority's recommendations. The Climate Change Authority advises the government on Australia's climate change policies and future emissions reduction targets, and the Bureau of Meteorology monitors, analyses and communicates observed and future changes in Australia's climate.
The Climate Change Act 2022 also requires that the Climate Change Authority provide independent advice to the Minister for Climate Change and Energy relating to the Annual Statement. The Minister for Climate Change and Energy delivers the Annual Statement to Parliament.
Australia's climate targets, policies and climate finance have been rated as "Insufficient" by the CAT, indicating that substantial improvements are needed to align with the Paris Agreement's 1.5°C temperature limit. Australia's current policies are projected to reduce total emissions by 17-21% below 2005 levels by 2030, relying heavily on LULUCF sequestration. To improve its climate action, Australia must decrease its reliance on offsetting and LULUCF emissions, implement ambitious policies, and increase transparency regarding its land sector modelling.
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Australia's renewable energy sources
Australia's energy system is undergoing its greatest transformation since the 1950s. The country's renewable energy sources include wind, solar, hydro, bioenergy, geothermal, and marine. In 2021, renewable energy sources provided about 29% of Australia's electricity generation, with solar and wind power being the primary drivers of this expansion.
In 2023, renewable energy sources accounted for 35% of Australia's total electricity generation, with solar at 16%, wind at 12%, and hydro at 6%. This was an increase of 1% from the 2022-23 financial year. Small-scale solar generation grew by 17% in 2023, with an average growth of 21% per year since 2015. Wind generation grew by 6% in 2023, with an average growth of 13% per year since 2015. Large-scale solar generation has also seen rapid expansion, growing from negligible levels before 2016 to 6% of all Australian electricity generation in 2023.
Feed-in tariffs have been enacted on a state-by-state basis to encourage investment in renewable energy by providing above-market rates for electricity generated from sources such as rooftop photovoltaic panels or wind turbines. As of May 2022, 29.2 GW of large-scale renewable energy capacity had been accredited under the Australian Government's Large-scale Renewable Energy Target (LRET) scheme.
The Australian Government's Powering Australia plan aims to create jobs, reduce pressure on energy bills, and lower emissions by promoting renewable energy. The plan aims to capitalize on Australia's natural resources to drive growth and establish the country as a renewable energy superpower. Australia has set a target of reducing emissions by 43% by 2030 and achieving net-zero emissions by 2050. To achieve these targets, Australia will need to adopt more ambitious climate policies and accelerate the expansion of renewable energy sources.
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Frequently asked questions
Australia's climate change policy involves taking practical action based on the best available science and information. The Australian government is working to reduce emissions by upgrading the electricity grid to support more renewable power. The Climate Change Authority advises the government on climate change policies and future emissions reduction targets.
Australia's current long-term emissions reduction plan was published in 2021. The plan sets a net-zero emissions target for 2050. However, the Climate Action Tracker (CAT) rates Australia's climate targets, policies, and climate finance as "Insufficient". Australia's policy gap in the agricultural, buildings, and waste sectors needs to be addressed to align with the 2050 net-zero goal.
Australia is one of the world's biggest polluters per head of population and has struggled to significantly reduce its core emissions. However, Australia is also vulnerable to the effects of climate change. There is an opportunity to harness the country's abundant natural resources, such as solar, wind, and hydro-electric power, to become a renewable energy superpower. Australia's States and Territories are leading the way on climate action, with ambitious 2030 targets.
