Australia, in the coming decade, must drive substantial emissions cuts to meet its ambitious climate targets. The path forward will hinge on policy choices, investment in clean energy, and coordinated action across households, industry and governments.
What we know
- Emissions in the electricity sector are trending down as renewables expand and storage improves, but reliability remains a challenge for the grid.
- Policy certainty matters: investment in energy and infrastructure slows when rules change midstream.
- Transport and buildings remain sizeable sources of emissions, requiring deeper electrification and efficiency gains.
- Clean energy investment continues to outpace fossil alternatives in many regions, alongside job creation in new sectors.
- There is growing public support for credible climate action, though views vary by region and industry.
What we don’t know
- Whether new technologies like large-scale green hydrogen or CCS will scale at competitive costs within timelines.
- The total cost of deeper cuts and who bears the upfront investment and transitional impacts.
- How global policy shifts, such as international trade in clean technologies, will affect domestic policy choices.
- The speed and economics of broad electrification for homes, fleets, and industry.
- Regional implications for communities dependent on fossil-fuel industries and how to manage transition responsibly.
Six policy ideas we could try
- Lock in a national, sector-by-sector plan with clear milestones and credible enforcement mechanisms.
- Streamline approvals and expand the rollout of renewables and transmission upgrades to reduce bottlenecks.
- Scale up electrification incentives for households, businesses, and public facilities to drive faster uptake.
- Reform the grid to accommodate higher renewables, storage, and demand response while ensuring reliability.
- Consider revenue-neutral carbon pricing or market reforms to align incentives with emissions cuts.
- Invest in industrial decarbonisation and energy efficiency programs targeted at high-emitting sectors.
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