Albanese sets emissions target of 62 to 70 pct, CEFC gets extra $2 billion to fast-track stalled renewables

Prime minister Anthony Albanese has set a 2035 emissions reduction target of 62 to 70 per cent, at the lower end of expectations following an intense campaign by big business interests, and despite a catastrophic forecast of climate impacts released earlier this week.

“Climate change is real …. and we have acted on the science,” Albanese told a media conference in Sydney on Thursday. He said the government had accepted the advice of the Climate Change Authority, which started out consulting on a range of 65 per cent to 75 per cent below 2005 levels, before narrowing it to a lower range.

The target came after a flurry of announcements, including a grim outlook from the government’s climate risk assessment, approval of Woodside’s north-west shelf LNG “carbon bomb”, a delay in the country’s first offshore wind tender, and the successful outcome of the country’s biggest battery storage tender.

Environmental groups had urged the government to set a target of at least 80 per cent below 2005 levels by 2035, with some arguing the target should be “net zero” to stay in line with the Paris target of trying to cap average global warming as close to 1.5°C as possible.

Progressive business groups led by the likes of Fortescue and Atlassian had argued for a target of at least 75 per cent, while other business lobbies wanted a target in the low 60s at most, worried about the cost of action without taking into account the cost of inaction, put by the climate risk report at around $45 billion a year just on disaster recovery.

The federal Coalition has not proposed a target, mostly because it is too wary of many of its own MPs who argue there should be no target at all, with some still suggesting that climate science is a hoax.

“This is a responsible target, backed by the science, backed by a practical plan to get there and built on proven technology,” Albanese said.

He said another $2 billion would be allocated to the Clean Energy Finance Corporation, which would be given a renewed focus on providing finance for renewable energy projects, which have been stalled at the gates despite the federal government’s Capacity Investment Scheme.

A new fund with another $5 billion, under the auspices of the National Reconstruction Fund, would also help large industry decarbonise and be used to scale up more renewables and low emissions manufacturing.

The federal government is painting the target as a bold move towards a green economy, arguing that the world is transitioning quickly to renewables, storage and electric transport, and Australia needs to seize its opportunities.

“This is a huge economic opportunity for our country and its people … and we’d be mad not to grasp it,” Treasurer Jim Chalmers said.

Chalmers said Treasury had conducted modelling for a 65 per cent target which asserted that Australia’s economy would be $2.2 trillion bigger by 2050, or $36,000 per person, but would be $1.2 trillion smaller than this in a “disorderly transition.”

Environmental groups and climate scientists were quick to criticise the target, saying it was too low. Bill Hare of Climate Analytics said it was worst than he expected. Greenpeace said it “prioritises fossil fuel profits and business interests over people,” and effectively abandons Australia’s commitment to 1.5°C.

Energy and climate minister Chris Bowen said it was not possible to aim higher. “A target over 70 per cent is not achievable,” Bowen said, although CCA chair Matt Kean, the former NSW energy minister and treasurer said: “I am hopeful we can overachieve on it.”

Climateworks Centre, which had analysed announced federal and state policies and concluded that these would deliver an emissions reduction target of 66 to 71 per cent.

“With the right policies, Climateworks Centre’s least-cost scenarios developed with CSIRO show that the nation can reach and exceed the new 2035 target,” said CEO Anna Skarbek

The Smart Energy Council said it would be focused on the top end of the “wide-ranging” target.

“In the government’s own words, this must be a floor, and not a ceiling,” CEO John Grimes said in a statement. “We continue to believe Australia is well placed to achieve reductions in excess of 70 per cent through investment already underway in renewable energy.”

“This announcement is a signal to businesses both here and abroad that Australia is serious about tackling dangerous climate pollution and securing a safe future for our children and grandchildren.”

“We already have solar on 4 million homes and 10 million Australians already sleep under solar panels every night.”

“Alongside the government’s renewable energy target this decision should see Australia increase investment in the cheapest, cleanest form of power we have.” 

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