The Carbon Market Institute welcomes today’s release by the Climate Change Authority (CCA) of its pathways report. It outlines six key sectors potential contribution to Australia’s Net Zero Plan for the bipartisan supported goal of net zero emissions by 2050. The six sectors include agriculture and land; built environment; electricity and energy; industry and waste; transport and resources.
“This report is a critical reality check and a pivot for a climate policy debate that has become mired in the challenges of the energy transition, which needs to be complemented, with a broader focus and expanded investment across all sectors of the economy,” said John Connor, CEO Carbon Market Institute.
“It is vital that both the government and the coalition integrate the analysis and recommendations of the CCA, including the expansion of the Safeguard Mechanism and a clear carbon market strategy to guide decarbonisation investments, into their climate policies and ambitions.”
“The report shows that only the land sector is projected to achieve zero or negative emissions, and it does so mostly by removing carbon from the atmosphere through the age-old technologies of managing soils and vegetation,” said Connor.
“The more emissions remain in the system by 2050, the more removals will be required to offset them if net zero is to be achieved. And the more removals are required, the greater the impacts on energy supply, water, and other land uses.”
“CMI agrees with the CCA that the need for removals will be minimised by reducing emissions directly as much as possible and as soon as possible, but they will still be needed at scale, requiring policy support for the private investments required.”
“Articulating an effective national carbon market strategy will be critical to accelerating economy-wide decarbonisation, contributing towards international action, and facilitating investment in high integrity carbon removals to support net zero and net negative emissions.”
“The report includes important analysis on the trajectories required with modelling from CSIRO highlighting that public and private investment with existing technologies is crucial now and cannot be delayed. It also highlights that, if we are serious about the Paris Agreement goal of keeping warming to 1.5C, accelerated investment and transition will be required to reach net zero emissions by 2040,” said Connor.
In its submission to the review, the Carbon Market Institute highlighted the benefits of a strengthened national climate ambition—reinforced by sectoral budgets and complementary targets for emissions reduction, land-based removals and engineered removals—in providing a long-term investment signal for the transition of Australia’s economy.
The Sector Pathways Review is available from the CCA website.
