Australia will cut emissions 62 to 70 per cent below 2005 levels by 2035 under a new national target.
The new goal locks in large-scale investment in clean power, industry decarbonisation and low-carbon fuels.
The Federal Government accepted independent advice from the Climate Change Authority and released its Net Zero Plan with six sectoral roadmaps this week.
The target range is designed to halve today’s emissions while leaving scope for faster cuts if emerging technologies mature more quickly.
The Treasury’s modelling, also published this week, found that an “orderly path” to net zero would support stronger jobs growth, higher wages and greater investment than a disorderly transition.
Two orderly scenarios were tested against a disorderly one, all linked to the government’s 2035 targets.
The government announced several key measures.
A $5 billion Net Zero Fund will help heavy industry decarbonise and grow low-emissions manufacturing. The Clean Energy Finance Corporation will receive $2 billion in new capital to ease electricity price pressures. Around $1.1 billion will support domestic clean fuels, including green hydrogen and low-carbon liquids, while $40 million will fund suburban and regional EV charging infrastructure.
Funding of $85 million has been set aside to expand energy performance tools for households and businesses, and $50 million will back sports clubs investing in decarbonisation.
The government identified five priority areas to drive early progress: renewable electricity expansion, electrification and efficiency, clean fuels deployment, technology acceleration, and scaled carbon removals through land sector storage and Australian Carbon Credit Units.
Releasing the package, the Prime Minister said the target “balances what the Commonwealth can achieve with existing policies and technologies, and what the country could achieve with a whole-of-economy and whole-of-society effort.”
The Australian Academy of Technological Sciences and Engineering (ATSE) backed the move but warned delivery hinges on rapid policy execution.
“This target is achievable only if the Federal Government takes decisive action in this term of government to cut emissions from high-emitting sectors where the technologies exist to do so,” the Academy said.
ATSE welcomed the industry support programs, particularly for mining and EV infrastructure, and urged bipartisan support to give businesses long-term certainty.
It also highlighted the need for a net zero grid, circular supply chains, and deployment of mature decarbonisation technologies across mining, freight and agriculture.
Australia’s new Nationally Determined Contribution will be lodged with the UN under the Paris Agreement, positioning the country among major economies with mid-2030s interim targets. Around 80 per cent of global GDP is now covered by net zero commitments.