Australia

Australia drops two ranks in the current CCPI, to 52^nd and among the low-performing countries. It receives a medium rating in GHG Emissions, low in Renewable Energy and Climate Policy, and very low in Energy Use.

Australia’s 2030 national target is to reduce GHG emissions by 43% from 2005 levels. The country plans to achieve net zero by 2050. The CCPI national experts welcome these targets and Australia is now nearly on track to achieve its 2030 emissions reduction target.

The experts further note that since the election of the current government in mid-2022, fossil fuel subsidies have declined and been redirected to other industries. However, some major fossil fuel subsidies remain, including the Fuel Tax Credit scheme which subsidies the fuel taxes paid by a range of sectors, including fossil fuel mining. Australia is among the 10 countries with the largest developed coal and gas reserves, and is currently planning to increase its production.

Encouraging Trends and Developments in Renewables

Despite Australia’s continuing support of fossil fuel mining, the experts report policies that support fossil fuel phase-out. By implementing the reformed Safeguard Mechanism, originally commenced in 2016, Australia is establishing stricter emissions baselines for large industrial facilities and strengthening its emissions regulations. The government’s policy framework strongly supports renewable energy development through their Renewable Energy Target and funding bodies such as ARENA and CEFC. The first offshore wind zones also have been announced, marking the start of the development of an offshore wind industry. This effort will lead to, among other things, significant growth in renewable electricity capacity. In 2023, 35% of Australia’s total electricity generation was from renewable energy sources.

At the international level, Australia has not been a strong negotiator in the last couple of years. The experts demand a significant increase in Australia’s contribution to multilateral climate funds to ensure a balanced focus on mitigation and adaptation, and to align its financial commitments with its fair share based on GDP and historical emissions. Australia’s climate finance has been good in terms of quality (e.g. prioritising vulnerable communities in the Pacific and consisting almost entirely of grants), though its quantity lacks.

Australia Engages in International Forums

The experts also note that since the current government was elected in mid-2022, there has been a significant shift in how Australia engages at COPs and other international forums, including the Pacific Islands Forum. In December 2023, the new Australian government signed the Clean Energy Transition Partnership. Notably, at COP28, Australia’s Climate Change Minister, as chair of the Umbrella Group, committed the coalition for the first time to transitioning away from fossil fuels and to ensuring global emissions cuts of 43% by 2030 and 60% by 2035. And as Australia has officially bid to co-host COP31 in 2026 in partnership with the Pacific, COP31 could be a further defining moment for Australia, with global attention focused on host countries.

While the Australian government is making progress in transforming Australia’s electricity system, other areas of decarbonisation are lagging. Mainly, the experts call on Australia to stop approving and signalling support for the expansion of fossil fuel production, including through the Future Gas Strategy released in 2024.

Key Outcomes

Australia drops two ranks in the current CCPI, to 52^nd and among the low-performing countries
Fossil fuel subsidies have declined and been redirected to other industries. However, some major fossil fuel subsidies remain
Key demands: stop approving and signalling support for the expansion of fossil fuel production