The Carbon Market Institute (CMI), Australia’s independent business member-based institute for accelerating the transition to net zero emissions, released its 2025 federal election policy priorities today, noting bipartisan support for net zero emissions by 2050 but outlining six steps for a coherent and credible climate policy package.
“While there is bipartisan support for net zero emissions by 2050, that is at least nine elections away. We need to know politicians’ climate plans for the next three to ten years” Carbon Market Institute chief executive John Connor said today.
“Both major parties acknowledge economic drivers for the net zero transition, and the climate crisis is exacerbating cost-of-living pressures, Australian business and voters rightly expect near as well as long term climate plans.
“Australian business needs continuity and clarity on decarbonisation investment across all sectors of the economy, not just electricity, and for that to be linked to international cooperation efforts, trade and diplomacy.”
The CMI policy brief outlines six key steps:
- Lodge a 2035 Nationally Determined Contribution (NDC) to reduce Australia’s emissions by more than 70 percent based on 2005 levels, with corresponding targets for adaptation in alignment with Paris goals.
- Broaden and deepen Australia’s climate policy suite across the economy, including the Safeguard Mechanism, to support the high-ambition NDC, informed by a national carbon market strategy.
- Strengthen investment and community confidence in Australia’s carbon crediting framework to accelerate scaled climate solutions through appropriate reform, governance and resourcing.
- Retain and strengthen the government-backed Climate Active certification program to align with best practice net zero guidance and standards and provide voluntary net zero pathways.
- Guide alignment of Australia’s interconnected Net Zero and Nature Positive goals.
- Articulate a strategy for the integration of carbon markets and international cooperation in Australia’s diplomatic, trade and foreign aid agenda.
“The Albanese Government has made important steps in aligning Safeguard Mechanism responsibilities for large emitters to net zero goals. It initiated reforms for integrity and method development in the carbon crediting framework, corporate disclosure and fuel efficiency standards but will need to do more for a credible 2035 plan that supports business and the goals of the Paris Agreement.”
“The Coalition has recognised the economic importance of pursuing net zero goals before and after the election of President Trump. Peter Dutton has acknowledged the ongoing commitment of many other trading partners to the net zero transition and potential impact of emerging carbon border adjustment mechanisms. Apart from support for nuclear electricity, however, there is still little clarity on the rest of the Coalition’s agenda, and this is a concern for business as well as the broader community.”
“CMI has welcomed cross bench attention to ambition, integrity and supports doubling down on recent reforms to accelerate their implementation and investment in climate solutions,” said Connor.
“While President Trumps agenda will provide challenges, many other countries and companies are addressing economic opportunities and challenges in their climate response. With the economic value of Australian carbon credits, and the climate solutions they support, passing $1 billion for the first time in 2024 it is critical that this election outcome delivers credible and coherent climate policy,” concluded Connor.
