Australia sets 2035 emissions target with multibillion-dollar net zero plan

The federal government has unveiled Australia’s new emissions reduction target for 2035, alongside billions in additional funding to support the transition, which it says will simultaneously strengthen the economy by trillions of dollars and increase average personal wealth by $36,000. According to 9News , Prime Minister Anthony Albanese announced on Tuesday that Australia will aim to cut total carbon emissions by between 62 per cent and 70 per cent compared to 2005 levels. “This is a responsible target supported by science and a practical plan to get there and built on proven technology,” A

The federal government has unveiled Australia’s new emissions reduction target for 2035, alongside billions in additional funding to support the transition, which it says will simultaneously strengthen the economy by trillions of dollars and increase average personal wealth by $36,000. According to

9News

, Prime Minister Anthony Albanese announced on Tuesday that Australia will aim to cut total carbon emissions by between 62 per cent and 70 per cent compared to 2005 levels. “This is a responsible target supported by science and a practical plan to get there and built on proven technology,” Albanese said. “It is the right target to protect our environment, to protect and advance our economy and jobs, and to ensure that we act in our national interest and in the interest of this and future generations.” The 2035 benchmark is more ambitious than New Zealand’s target of 51 to 55 per cent, but falls short of the United Kingdom’s legal commitment to cut emissions by 81 per cent from 1990 levels.

$5 Billion Net Zero Fund and New Measures

The government outlined several initiatives to meet the new target, including a $5 billion net zero fund to help the mining and heavy industry sectors cut emissions. Extra funding will also support a nationwide rollout of curbside fast charging for electric vehicles. The announcement follows Australia’s first-ever national climate risk assessment, released last week, which warned of surging heat-related deaths, worsening droughts, widespread natural disasters, and millions of people at risk from rising sea levels if global warming cannot be contained to 1.5°C above pre-industrial levels.

Criticism Over Target

Environmental groups and scientists quickly criticised the government’s goal, arguing it was incompatible with limiting global heating to 1.5°C. “It prioritises fossil fuel profits and business interests over people, and effectively abandons our commitment under the Paris Agreement to collectively limit global heating to 1.5 degrees,” Greenpeace Australia Pacific’s Shiva Gounden said. “It means homes and lands inundated by floods and rising seas; prolonged droughts and severe heatwaves decimating our agriculture and fisheries; the places and wildlife we love ravaged by infernos; our unique cultures and ways of life eroded.” The government, however, defended the target, which was based on advice from the Climate Change Authority. Energy and Climate Minister Chris Bowen said the advice was clear: “They were obliged under law to consider 1.5... a target over 70 is not achievable, that advice is clear. We have gone for the maximum level of ambition that is achievable.” Albanese acknowledged the likelihood of criticism from both directions. “There will be criticism from some who say it is too high, some who will say it is too low. What we have done is accept the Climate Change Authority’s advice and, importantly, this is world’s best practice.”

Official Net Zero Plan Released

The government also launched its comprehensive 125-page “Net Zero Plan”, which maps out the policies to cut emissions by 62 to 70 per cent by 2035 on the path to full decarbonisation by 2050. The plan includes the new $5 billion net zero fund within the National Reconstruction Fund, plus an additional $2 billion for the Clean Energy Finance Corporation and $1 billion for clean fuel production in Australia. Treasurer Jim Chalmers said Treasury modelling showed that managing the transition would deliver a “multitrillion-dollar boost” to the economy. “The baseline scenario would see our economy $2.2 trillion bigger by 2050 and an extra $36,000 per person wealthier, with 5.1 million more jobs and investment up 80 per cent,” Chalmers said. He also cautioned against delaying action. “We also asked Treasury to model the disorderly transition, the alternative if we leave the heavy lifting to others at the start of the 2040s. In that scenario, our economy would be a cumulative $1.2 trillion smaller than the baseline.”

The net zero plan includes a new $5 billion fund to help heavy industry decarbonise. (The Age/AFR via 9News)

Mixed Reactions from Business and Politics

The Business Council of Australia (BCA) welcomed the new plan but warned it would be challenging. “We strongly support net zero by 2050, and getting this right is about balancing the needs of future generations while ensuring Australian industry can continue to compete in the global market today,” BCA chief executive Bran Black said. “The announcements today... are welcome steps towards closing funding gaps and increasing the investment needed to meet 2035 targets and set our economy up.” But the political response was divided. Greens leader Larissa Waters denounced the government’s target as “appallingly low” and “a betrayal of Australian communities and the planet in favour of coal and gas corporate profits.” She also criticised the funding allocations as inadequate. “This utter failure of a climate target is manifestly inadequate to prevent the worst impacts of climate change,” Waters said. “It’s a pitiful amount of money to allocate to the clean energy transition when it’s about two-thirds of what they give every single year to coal and gas companies in cheap diesel and accelerated depreciation.” The Greens had been pushing for net zero by 2035. On the other side, the Coalition dismissed the government’s target as too ambitious. “This is grounded in fantasy land,” Opposition Leader Sussan Ley said. “Targets must be achievable and realistic. And these are not. If the government wants to have an honest conversation with Australians, they need to be upfront about what it will actually cost. Australians deserve to know this.” Ley stressed that energy policy is central to economic policy: “Energy is the economy.” Meanwhile, the Coalition is reviewing whether to maintain its current policy of net zero by 2050. Former defence minister Andrew Hastie has threatened to resign from the shadow cabinet unless the party abandons the commitment. Shadow minister Jonno Duniam has warned of a possible mass exodus from the Coalition frontbench if the policy remains. Opposition deputy leader Sussan Ley has sought to reassure voters that the party is serious about climate action while Dan Tehan leads the review of the Liberals’ energy plan, with no timeline yet set for a decision.