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Climate Target Commitment Polarises Business Community

(22 September 2025 – Australia) Australia is seeking to decrease CO₂ emissions by 62 to 70 percent by 2035, committing A$10 billion to hasten the transition to a greener economy.

The Australian government states that it is an ambitious but attainable target if implemented appropriately by building on the lowest-cost actions over the next decade while anticipating a growing impact from new technologies to supercharge the sector. The calculations are based on 2005 levels. The Climate Change Authority says more than five million electric vehicles (EVs), including light vehicles, will be necessary on Australian roads to reach the emissions reduction target by 2035.

The opposition roundly criticised Labor’s ‘trainwreck’ climate target with Coalition Leader Sussan Ley describing Labor’s 2035 emissions target as “fantasy land” and confirming the Coalition is united in opposition to the plan. Climate campaigners argue the target range must include 75 percent to be credible, a level of ambition supported by an Andrew Forrest-backed coalition of businesses. Greens leader Larissa Waters said the target showed Labor had “given up on the science”, a criticism also levelled by the independent senator, David Pocock.

Climate Council CEO Amanda McKenzie said the low-end of the government’s target range was inadequate, but 70% was “closer to what’s needed to protect Australians”.

The target can be achieved through actions in five priority areas, including the delivery of clean electricity across the economy, lowering emissions through electrification, expanding the use of clean fuels, accelerating the adoption of new technologies, and scaling up net carbon removals.

For example Jet Zero welcomed a new A$1.1 billion investment in sustainable aviation fuel (SAF) as a step-change for Australia building on earlier funding commitments, including a total of A$280 million for the Australian Renewable Energy Agency (ARENA) to invest in the low carbon liquid fuels industry and the Queensland Government’s recently announced A$181 million Sovereign Industry Development Fund (SIDF).

Drop-in low carbon liquid fuels are widely recognised as the most effective and practical pathway to decarbonise hard-to-abate sectors such as aviation. By fast-tracking project development Australia can strengthen fuel security through increased use of domestic agriculture-based feedstocks when the country current relies on imported jet fuel for 91 percent of total consumption.

“Global investment in clean energy projects is set to rise over US$2 trillion – we want to grow this, and Australia’s share in it. “This is the right target to protect our environment and secure our prosperity and to create jobs and economic growth for our nation” a joint statement between Prime Minister Anthony Albanese, Treasurer Jim Chalmers and Minister for Climate Change and Energy Chris Bowen stated.

“The government’s sensible, practical approach means our exporters, farmers and key industries will be able to compete and succeed in the world, and our environment will be safe for future generations. Vitally, this target range 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.”

“We have seen voices supporting SAF broaden to include Defence and agricultural bodies such as the National Farmers Federation, Canegrowers and Grains Australia. Ahead of COP30, Jet Zero supports the Government’s efforts towards a national SAF mandate to bring Australia in line with most of the G20, with international experience showing that mandates are the most effective way to provide producers with long-term demand stability and bring the regions to the runway with SAF” commented Jet Zero CEO Ed Mason.

“A big day for the low carbon liquid fuels industry with the Australian Government announcing a $1.1 billion Cleaner Fuels Program” stated Jet Zero CFO Mac Irvine.

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