Australia’s Emissions Reduction Target- Nov 2023
As a major emphasis in the upcoming 2024-25 Federal Budget, Treasurer Jim Chalmers claims that Australia’s energy transition will be “absolutely central” to the Albanese Government’s goals.
As of writing, Australia’s Emissions Reduction Target involves reducing greenhouse gas emissions by 43% below 2005 levels by 2030. This is accompanied by the National renewable electricity target which aims to have 82% of electricity generated by renewable energy by 2030. However, despite having committed $40bn towards these efforts so far, Australia remains behind on its path to achieving the Paris Agreement target of net zero emissions by 2050. Thus, Chalmers has emphasised the need for efficient investment in the key industries of critical minerals, battery manufacturing, renewable hydrogen & ammonia and green metals.
However, with inflation remaining above the RBA’s target of 2-3%, the International Monetary Fund (IMF) has warned that a spending boom on infrastructure projects will push the economy beyond full capacity. Thus, Chalmers has acknowledged the need to roll out infrastructure investment in a “measured and coordinated way”, aligning with the IMF’s recommendation that governments delay such investments to relieve inflationary pressures.