About the Country

Australia

Under the Paris Agreement, Australia aims to reduce its GHG emissions by 26 to 28 per cent below 2005 levels by 2030. This is an increase in ambition from its prior stated commitment to cut emissions by five percent below 2000 levels (equivalent to 13 per cent below 2005 levels) by 2020. The country states that it will undergo a consultation process to evaluate post-2020 emissions reduction policies and consider a potential long-term emissions reduction goal beyond 2030. It will also begin to evaluate policies to increase energy productivity, improve efficiency of light and heavy vehicles, and further manage synthetic greenhouse gases covered under ozone protection laws and the Montreal Protocol.

A number of older and more recent countrywide measures already support Australia’s goal. Beginning in the early-mid 2000s Australia established voluntary measures for the building industry on energy efficiency, rating systems for energy performance of products and buildings, labeling of vehicle fuel consumption, and a greenhouse gas reporting framework. Since then, further regulations and plans have come in to play.

While Australia’s measures thus far have more heavily focused on energy efficiency (minimum product and performance standards and others), the country also demonstrates an interest in renewable energy transition and carbon markets. Under the Renewable Energy Target Scheme (RET), established in 2011 and last amended in 2015, the country has a renewable energy-specific target of 23 percent of electricity to be sourced from renewables by 2020. The RET also includes measures to encourage further investment. And while several attempts at full-fledged emissions trading scheme have not brought the country to a cohesive strategy, there is a voluntary scheme through the Emissions Reduction Fund (the 2012 carbon price legislation was repealed in 2014 but this Fund has been in place since), which provides incentives for organizations and individuals to adopt new practices and technologies to reduce emissions. Within Australia, the government of New South Wales enacted the first mandatory greenhouse gas emissions trading scheme in the world—a baseline-and-credit scheme. It has yet to be seen whether the country as a whole will choose to adopt a mandatory scheme.

Take Action

Commit to double energy productivity

Forward-looking companies are realising the transformational benefits of setting an ambitious energy productivity goal, while making a vital contribution in the transition to a low-carbon economy.

The benefits range from huge cost savings and improved energy security, to driving innovation throughout the company. And crucially, many companies are achieving an immediate impact on profitability as well as safeguarding future returns.

Companies can seize these opportunities by committing to double energy productivity through the EP100 initiative, brought to you by The Climate Group in partnership with the Alliance to Save Energy.

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Join the Low Carbon Technology Partnerships initiative

The Low Carbon Technology Partnerships initiative (LCTPi) is comprised of over 160 companies and 70 partners that are committed to accelerating the transition to a low-carbon economy.

Led by the World Business Council for Sustainable Development (WBCSD) and supported by We Mean Business partners, LCTPi offers a collaborative platform for businesses and policymakers to scale up deployment of business solutions to a level and speed that are consistent with limiting global warming to below 2°C.

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Commit to 100% renewable power

Forward-looking companies are harnessing the benefits of transitioning to 100% renewable power, including cost reduction, increased innovation and reputational gains.

By transitioning electricity needs to renewable sources, businesses are also playing a crucial role in driving the creation of a thriving, global market for renewable generation – a game-changer in reducing emissions.

Companies committed to 100% renewable power will be invited to join RE100 brought to you by The Climate Group in partnership with CDP. RE100 is a global, collaborative initiative uniting influential businesses committed to using 100% renewable electricity.

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Commit to implement the recommendations of the Task Force on Climate-related Financial Disclosures

Climate change poses serious risks to the global economy. Nonetheless, investors and financial markets lack clear and comparable information about which companies or assets are most exposed to this issue and which are best prepared.

To address this issue, companies are encouraged to commit to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD has published recommendations for reporting climate-related financial information in mainstream reports (annual financial filings).

Companies, investors and financial organizations globally are encouraged to implement the recommendations to allow a more efficient allocation of capital, improve the dialogue among all financial players and support a smooth and rapid transition to a low-carbon economy.

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Adopt a science-based emissions reduction target

Leading businesses recognise the opportunity – and the imperative – to be part of the low-carbon transition. Their future growth and competitiveness hinges on it.

By setting clear, ‘science-based’ emissions reduction targets, companies ensure their plans for carbon reduction meet the level of ambition needed to limit the increase in global average temperature to well below 2°C.

Science-based targets enable companies to play their part in achieving this goal while harnessing climate action as a driver of innovation, competitiveness, risk management and growth.

Companies can develop targets via the Science Based Targets initiative (SBTi). The SBTi is a collaboration between CDP, World Resources Institute (WRI), the World Wildlife Fund for Nature (WWF) and the United Nations Global Compact (UNGC).

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Commit to electric vehicles and charging infrastructure

The transport sector is the fastest-growing contributor to climate change, accounting for 23% of global energy-related greenhouse gas emissions. Electric transport offers a major solution in cutting millions of tons of greenhouse gas emissions per year, as well as curbing transport related air and noise pollution.

With businesses owning over half of all registered vehicles on the road, it is crucial that companies lead the shift to electric vehicles.

EV100 is a global initiative, led by The Climate Group, bringing together forward looking companies committed to accelerating the transition to electric vehicles (EVs) and making electric transport the new normal by 2030.

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Reduce short-lived climate pollutant emissions

Tackling ‘short-lived climate pollutants’ (SLCPs) – including methane, black carbon, tropospheric ozone or hydrofluorocarbons (HFCs) – is vital to reduce near-term global warming and improve human well-being.

Businesses taking action to reduce these emissions can deliver rapid and measurable benefits in air quality, public health and food security whilst also boosting economic growth and making a key contribution to global climate change mitigation efforts.

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Grow the market for the world’s most sustainable fuels

Low-carbon fuels have huge potential for increasing fuel efficiency, reducing costs and cutting emissions. And the time for creating a global market for these fuels has never been better.

below50, brought to you by the World Business Council for Sustainable Development(WBCSD), aims to create demand for low-carbon fuels and scale up their deployment by increasing the number of companies choosing sustainable alternative fuels. This will create cross-sectoral opportunities along supply chains, while addressing legislative and financial barriers to bring these fuels into the mainstream.

below50 brings together companies and organizations who commit to growing the global market for the world’s most sustainable fuels – that is fuels producing at least 50% less CO² emissions than conventional fossil fuels.

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Commit to responsible corporate engagement in climate policy

A supportive policy framework is vital to give business the backing it needs in the transition to a low-carbon economy. This is why forward-looking companies are actively ensuring their policy engagement on key climate issues is aligned, transparent, and consistent.

The “Guide for Responsible Corporate Engagement in Climate Policy” sets out a program of action for companies wishing to demonstrate best practice in policy engagement.

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Remove commodity-driven deforestation from all supply chains by 2020

The commodities soy, palm oil, beef, timber and pulp are wealth generators that feature in the supply chains of companies across economic sectors. By leading the agenda on how these commodities can be sustainably produced, forward-looking businesses are driving innovation, competitiveness and growth.

Business has the power to alter global demand for the agricultural commodities that are the primary drivers of deforestation and forest degradation. And with deforestation accounting for approximately 15% of the world’s greenhouse gas emissions, the need for action has never been more urgent.

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Put a price on carbon

A growing group of forward-looking companies are using an internal carbon price to help manage climate risk and align themselves with the low-carbon transition.

Internal carbon pricing can not only help companies effectively combat climate change and meet bold emissions reduction targets, but can also encourage innovation, drive down costs and help ensure sustained economic competitiveness.

Leading businesses recognize this and are building a carbon price into their operations and investment decisions, as an effective way to future-proof profitability and help shape the evolving regulatory framework.