The Australian Government has set a 2035 climate target to cut emissions by 62–70% below 2005 levels, supported by a new Net Zero Plan, six sector-specific roadmaps and fresh funding commitments aimed at industry and energy markets.
The government accepted the Climate Change Authority’s independent advice in setting the target.
Funding to drive industry change
A new $5 billion Net Zero Fund within the National Reconstruction Fund will support decarbonisation in industrial facilities and expand low-emissions manufacturing. Additional measures include:
- $2 billion for the Clean Energy Finance Corporation to expand renewables and storage.
- $1.1 billion to scale up domestic clean fuel production, including hydrogen and low carbon liquid fuels.
- $40 million to accelerate EV charging infrastructure.
- $85 million to help households and businesses improve energy performance.
- $50 million to support community-level decarbonisation through sports clubs.
Sector plans and opportunities
The Net Zero Plan is accompanied by detailed sector strategies setting out the main levers for emissions reduction across the economy:
- Electricity and energy: higher renewable generation, transmission and storage, supported by the Capacity Investment Scheme and Rewiring the Nation.
- Industry: focus on electrification, switching to low carbon inputs, and investment in hard-to-abate sectors.
- Resources: electrification, methane abatement in mining, and scaling up production of minerals needed for clean energy technologies.
- Agriculture and land: support for innovation, carbon storage opportunities and productivity improvements.
- Built environment: electrification, rooftop solar, batteries and improved thermal performance of buildings, creating demand for skilled construction trades.
- Transport: enabling EV uptake, investing in charging, clean fuels, and new technology across freight, aviation and shipping.
Treasury modelling
Treasury analysis suggests that the orderly transition outlined in the Net Zero Plan would support economic growth, higher wages and new export opportunities. The modelling warns that disorderly or delayed action could lead to higher electricity prices, reduced investment and weaker long-term growth.
International obligations
The target will be submitted as Australia’s updated Nationally Determined Contribution under the Paris Agreement. The government noted that investment competition is intensifying, with most major economies already committed to net zero. The new target and supporting plans are intended to keep Australian exporters and industries competitive in that environment.
