UPDATE: Australia’s federal government has just announced a bold commitment to slash emissions by 62-70 percent by 2035. This urgent climate action plan, revealed on Thursday, includes a sweeping strategy aimed at transforming the nation’s energy and industry sectors, but it faces significant criticism and skepticism.
The plan, which has been in development for over a year, allocates $5 billion from an existing industry fund specifically to reduce emissions in hard-to-abate heavy industries. Additionally, the Clean Energy Finance Corporation receives a $2 billion boost to facilitate the transition to renewable energy sources. Also noteworthy is the allocation of $40 million for installing more kerbside chargers to support the growing electric vehicle market.
Climate Change Minister Chris Bowen emphasized the economic potential of this transition, stating, “The global shift to clean energy is the biggest economic transformation since the Industrial Revolution and it presents Australia with our best-ever economic opportunity.” However, he refrained from guaranteeing that power prices would decrease as renewable energy becomes more prevalent in the grid.
Critics have quickly responded to the 2035 targets. The Superpower Institute, advocating for decarbonization as an economic opportunity, raised alarms about Australia’s ability to meet even the lower end of its emissions reduction range under current policies. Chair Rod Sims stated, “If Australia is to achieve a credible and ambitious emissions reduction target of a minimum of 70 percent, we need to energize the private sector.” He suggested that implementing a carbon price would be vital to incentivize fossil fuel producers to reduce their environmental impact.
Despite existing frameworks like the Safeguard Mechanism, which aims to regulate emissions from major polluters, the path forward remains contentious. The federal opposition, led by Sussan Ley, has harshly criticized the plan, labeling it a “train wreck” and asserting that the targets are “unachievable without massive intervention.”
Conversely, the Greens have also expressed disappointment, demanding a more ambitious target of at least 75 percent emissions reduction. Senator Larissa Waters accused the government of abandoning scientific guidance in favor of coal and gas interests.
Given this polarized response, Minister Bowen indicated that he might not pursue legislation for the targets unless there is support from the Greens. “If the Greens indicate a willingness to vote for it, we’ll take it to the parliament. If not, we won’t,” he told ABC’s 7.30.
The urgency of these targets comes on the heels of a concerning report indicating that by 2050, as many as 1.5 million people in Australia could face exposure to coastal hazards due to rising sea levels.
As Australia navigates this pivotal moment in its climate policy, the focus remains on how industry and investors will respond to the outlined pathways and whether the nation can rise to meet these ambitious goals. Stay tuned for further updates as this critical situation evolves.
