Today the Australian Government announced its 2035 emissions reduction target for Australia’s next Nationally Determined Contribution (NDC) to be submitted to the UN under the Paris Agreement.
The Carbon Market Institute (CMI) welcomed the target range of 62-70% by 2035 (based on 2005 levels) and highlighted it should be a floor and not a ceiling to national ambition.
CMI called on the government to legislate the target and establish robust supporting policy frameworks to provide market confidence in this new level of ambition.
CMI also highlighted the opportunity for the Australian Government to embrace its middle power influence on climate change to drive additional action towards 2035, both through voluntary private sector action and partnerships across the Asia-Pacific region to build capacity and accelerate financial flows.
“The Australian Government’s announcement of its 2035 climate ambition provides a stable platform to advance Australia’s transition towards net zero. The government should enshrine this new target into law to ensure policy certainty for business and investment,” said Kurt Winter, Interim CEO.
“This target must be seen as a floor not a ceiling to Australia’s ambition. While this target takes a middle path, we should never underestimate Australia’s influence as a middle power to punch above its weight. Through international cooperation and a greater focus on guiding voluntary climate action, Australia could drive additional action on climate change.”
Australia has a 2030 emissions target of 43%, alongside its standing commitment to Net-Zero emissions by 2050. Australia’s Net Zero 2050 target is supported by both major parties and now enshrined in law, and the importance of decarbonisation to Australia’s future economic prosperity is understood across the political spectrum.
CMI underscored the importance of Australia’s carbon market in meeting this new target. CMI reiterated the need to strengthen the Safeguard Mechanism by expanding its reach and complete the ACCU Scheme reforms to drive abatement at scale.
“The 2035 target demands urgent action to strengthen Australia’s market-based mechanisms so that Australia’s approach to carbon pricing drives transformative investments across industry. Broadening and deepening the Safeguard Mechanism should be a key focus for policymakers.”
“Investment through the ACCU Scheme will also play a vital role in Australia’s new climate ambition. It is critical that the ACCU Scheme reforms are concluded to ensure public confidence in Australia’s carbon crediting framework. Method development should also focus the attention of policymakers to drive innovation and scale abatement.”
CMI underscored the need for stronger guidance for voluntary private sector investment and a greater focus on the opportunities for international cooperation to unlock additional abatement.
“The Australian Government should take a leadership role in guiding voluntary climate action, to support high integrity carbon market engagement. By establishing stronger guidance and certification programs that are capable of driving high-integrity action, Australia could unlock additional investment from the private sector.”
“Through international cooperation, Australia can stretch its climate ambition. As the Australian Government looks to co-host COP31 with our Pacific Island partners, Australia’s climate policy must also include a clear program to drive international cooperation across the Asia-Pacific region through carbon markets. Strong and interconnected carbon markets can accelerate the transfer of climate finance, technology and expertise.”
“We look forward to Australia continuing to engage with its international counterparts to champion genuine partnerships that can accelerate the implementation of the Paris Agreement goals”, he concluded.
The NDC announcement comes on the heel of the release of the National Climate Risk Assessment and Adaptation Plans which identified a number of significant climate risks for Australia that urgently need to be addressed.
