The Carbon Market Institute (CMI) today emphasised the importance for investors of maintained ambition and clarity on policy if Australia is to reach the bipartisan goal of net zero by 2050. CMI repeated its previous calls for all political parties to strengthen climate investment policies, and to take all steps necessary to meet ambitious interim targets.
CMI said the 43% emission reduction target by 2030 remained achievable, remained the minimum required to help achieve global climate targets, and was a crucial stepping stone to the more than 70% reductions required by 2035.
“Our members include many large emitting companies that are currently evaluating and planning major investments in clean technologies, and in other emissions reductions measures,” said CMI chief executive John Connor.
“Businesses want additional and longer-term market signals beyond 2030 that reinforce the direction of travel that has been set with the Government’s foundational reforms. This would enable businesses to invest in transformational change with confidence, creating jobs and supporting Australia’s continued prosperity”.
“Business leaders have reacted to the prospect of further policy uncertainty with deep dismay. There should be no backsliding” he said.
“Business, and indeed most Australians, want clarity on emission reduction targets and policies well ahead of the next election and this should include policies beyond energy and across the economy.
A recent CMI survey of Australians found the majority of respondents (59%) agreed it is important that all parties share strong 2035 emissions reduction targets and plans before the next election, with just 17% disagreeing.
Connor said that Australia is making progress towards a 43% reduction by 2030, adding that it was still achievable, if existing federal policies are bolstered, and if state governments also live up to their commitments.
He pointed out that reaching net zero requires a holistic and comprehensive approach to decarbonising Australia’s economy. This demands much more than deciding what sort of power plants are built.
“Achieving 43% reductions by 2030 will be challenging, but we can still meet and beat this target with investments in sectors beyond energy and including transport, industry and agriculture,” he said, noting that the industry-focused reformed Safeguard Mechanism had marked a turning point in Australia’s contribution to climate change mitigation.
“Harnessing private investment in climate solutions requires economically rational and durable policies that can facilitate cost-effective business decision making”, he emphasised. ”Alongside sector specific policies, market-based frameworks can play a critical role in scaling investment and supporting ambitious national targets and international cooperation,” he added.
“The Safeguard Mechanism requires more than 200 of Australia’s largest emitters to cut their emissions in line with a national emissions reduction of 43% by 2030, and it enables them to do so in a cost-effective way,” Connor said.
“CMI has consistently called on all parties to broaden and deepen the Safeguard Mechanism and other policies to best harness private investment in climate solutions,’ concluded Connor.
Carbon Market Institute contact:
Murray Griffin on 0400 952 559.
CMI will be hosting a Safeguard Symposium on 1 July at Parliament House, from 10.30am to 12.30am. Media interested in attending should contact Emily Tammes at emily.tammes@carbonmarketinstitute.org.
About the Carbon Market Institute
The Carbon Market Institute (CMI) is a member-based institute accelerating the transition towards a negative emissions, nature positive world. It champions best practice in carbon markets and climate policy, and its around 150 members include primary producers, carbon project developers, Indigenous organisations, legal, technology and advisory services, insurers, banks, investors, corporate entities and emission intensive industries. The positions put forward constitute CMI’s independent view and do not purport to represent any CMI individual, member company, or industry sector.
