The Carbon Market Institute welcomes landmark legislation passing the Australian Parliament: The establishment of the Net Zero Economy Authority and the introduction of mandatory climate-related financial disclosures through the amendments to the Corporations Act 2001 (Cth).
“Establishing the Net Zero Economy Authority and a disclosure framework provide important supports to ensure sustained investment in decarbonisation and climate solutions,” said John Connor, CEO Carbon Market Institute.
“The Net Zero Economy Authority has been established to facilitate investment and support workers affected by the transition to a net zero economy.”
“The authority’s support will be important for workers, communities and regions during the phasing out of heavy polluting industries like coal and gas-fired power stations so they can benefit from the net zero economy.”
The introduction of mandatory climate-related financial disclosures is an important component to improve the private sector’s management of the risks associated with climate change and brings Australia into line with including the UK, US, European Union, New Zealand and Singapore.
“Transparent mandatory disclosure of climate- and nature-related risks will be a critical pillar in Australia’s climate policy suite.”
“It provides transparency to investors, regulators, and stakeholders to better understand corporate climate risks and opportunities leading to more investment in clean industry,” said Connor.
“Alongside market-based mechanisms such as the reformed Safeguard Mechanism and complementary sectoral policies and programs, mandatory climate-related disclosure will help guide investment decisions that support Australia’s legislated climate targets and the Paris Agreement goals.”
The introduction of mandatory climate-related financial disclosures for Australian corporates is a long-standing CMI position, with a mandatory climate risk disclosure framework a feature of our policy advocacy positions,” concluded Connor.
CMI has supported work to develop and improve the framework for mandatory climate-related financial disclosures throughout 2023 and 2024:
- Lodging submissions to the Senate Inquiry into the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 [Provisions], and appearing to present evidence at the related public hearing (April 2024)
- Providing feedback to Treasury on its exposure draft of the Treasury Laws Amendment Bill 2024: Climate-related financial disclosure in February 2024
- Responding to Treasury’s initial Climate-related financial disclosure consultation paper in February 2023, and second Climate-related financial disclosure consultation paper in July 2023
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About the Carbon Market Institute: CMI is an independent member-based institute that promotes best practice in market-based solutions and decarbonisation investment to help limit warming to 1.5ºC. CMI’s around 150 strong membership includes organisations from across the economy, in Australia and the Asia Pacific region. CMI also administers the Australian Carbon Industry Code of Conduct, which was established in 2018 to promote and steward consumer protection and market integrity. The CMI Board updates CMI’s Policy Positions annually, which draw on practical insights from—but are ultimately independent of—members.
