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Australia is acting on climate but the nation risks falling short of net zero by 2050 because of major policy gaps.
Australia is undergoing a critical phase in its response to climate change, marked by new policy shifts, emissions reductions, and ongoing debates surrounding energy and adaptation.[1]
The latest developments reflect action by the federal government and civil society to meet international commitments and protect local environments.[2]
Greenhouse Gas Emissions Trends
Australia’s national emissions have declined, with a 1.4% drop in the year to March 2025, now 28% below 2005 levels.[1]
Electricity sector emissions decreased as wind and solar capacity expanded, now supplying over 40% of the national grid.[2]
However, emissions from transport, agriculture, and some industrial sectors are rising, highlighting the need for targeted policies such as vehicle efficiency standards and industrial decarbonisation.[3]
Climate Policies and Government Action
The Climate Change Act 2022 legally mandates a 43% reduction by 2030 and net zero by 2050, with annual parliamentary reporting and guidance from the Climate Change Authority.[4]
Budgets have allocated billions for climate action, including $4.6 billion to 2030 plus $24.9 billion for clean energy and decarbonisation initiatives.[3]
Key programs include Rewiring the Nation, Household Energy Upgrades, and Safeguard Mechanism reforms targeting high-emitting industrial facilities.[5]
Progress, Challenges, and Shortcomings
Renewable energy growth has been strong, but challenges remain.
- Slow planning approvals, rising costs, and local opposition hinder grid and renewable rollout.[6]
- Investment in large-scale generation fell from $6.5 billion in 2022 to $1.5 billion in 2023.[6]
- Pipeline projects may not reach target energy shares; further legislative embedding is recommended.[6]
Ongoing support for fossil fuel production risks increasing emissions, while agriculture, buildings, and waste lag behind electricity in emissions reductions.[6]
Public Opinion and International Standing
More than 80% of Australians support renewable energy subsidies; around 70% back reducing gas exports, and a majority favour banning new coal mines.[7]
Australia’s co-hosting bid for COP31 in 2026 reflects ambitions for global leadership.[7]
International monitors rate Australia’s current climate trajectory as “Insufficient” for 1.5°C, citing fossil fuel support and reliance on offsets.[7]
Adaptation, Resilience, and Outlook
National strategies now emphasise adaptation, disaster resilience, and investment in infrastructure to manage climate risks.[3]
Future targets for 2035 may require up to 75% emissions reductions, highlighting the need for ongoing policy refinement, public engagement, and investment.[9]
References
- Climate Change Authority – Australia
- Climate Action Tracker – Australia policies
- Australian Office of Financial Management – Climate resources
- Climate Change Authority – Act & targets
- Climate Action Tracker – Safeguard Mechanism
- Climate Action Tracker – Transition challenges
- Lowy Institute – Public opinion 2025
- SolarQuarter – Renewable growth and targets
- Climate Council – 2035 targets analysis