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| Climate policy in Australia | |
|---|---|
| Name | Climate policy in Australia |
| Jurisdiction | Australia |
| Introduced | 1990s–present |
| Key legislation | Carbon Pollution Reduction Scheme, National Greenhouse and Energy Reporting Act 2007, Carbon Farming Initiative, Emissions Reduction Fund, Climate Change Act 2022 (Australian Capital Territory) |
| Responsible minister | Prime Minister of Australia, Minister for Climate Change and Energy |
Climate policy in Australia. Australia's climate policy has evolved through interactions among Prime Minister of Australia offices, state and territory executives such as the New South Wales Government and Victorian Government, and independent institutions including the Australian Renewable Energy Agency and the Clean Energy Finance Corporation. Debates over policy instruments have involved parties like the Liberal Party of Australia, Australian Labor Party, The Greens, and stakeholders such as the Business Council of Australia, Australian Council of Trade Unions, and the Australian Industry Group. International dynamics with actors including the United Nations Framework Convention on Climate Change, G20, and Pacific Islands Forum have influenced domestic choices.
Early Australian engagement with climate issues intersected with international fora such as the United Nations Framework Convention on Climate Change and the Kyoto Protocol, prompting domestic responses from administrations led by Bob Hawke, Paul Keating, and John Howard. The 2000s saw initiatives like the Carbon Pollution Reduction Scheme proposal under Kevin Rudd and the later Carbon Pricing Mechanism introduced by the Gillard–Rudd government before repeal under Tony Abbott. Carbon sequestration and land-sector instruments emerged through the Carbon Farming Initiative during the Julia Gillard era while state-level programs in Queensland, Western Australia, and the Australian Capital Territory piloted renewable targets and emissions reporting. The 2010s and 2020s featured policy oscillations tied to elections fought by Malcolm Turnbull, Scott Morrison, and Anthony Albanese, with institutional creations like the National Greenhouse and Energy Reporting Act 2007 and the Emissions Reduction Fund shaping subsequent action.
Responsibility is split between federal actors such as the Department of Climate Change, Energy, the Environment and Water and state agencies like the New South Wales Department of Planning and Environment and the Victorian Department of Environment, Land, Water and Planning. Independent bodies including the Climate Change Authority (Australia), Clean Energy Regulator, Australian Energy Market Operator, Australian Competition and Consumer Commission, and finance entities like the Clean Energy Finance Corporation implement regulation, market oversight, and investment. Intergovernmental coordination occurs through mechanisms like the Council of Australian Governments and working groups that link with regional bodies such as the Pacific Islands Forum and international arrangements like the Paris Agreement.
Australia's official commitments have evolved from Kyoto Protocol participation to nationally determined contributions under the Paris Agreement. Legislative instruments include the National Greenhouse and Energy Reporting Act 2007, the Clean Energy Act 2011 (repealed), and newer frameworks implemented under the National Reconstruction Fund and regional statutes like the Climate Change Act 2022 (Australian Capital Territory). Targets such as net zero by 2050, endorsed by administrations including those led by Scott Morrison (policy signalling) and Anthony Albanese (ratification and implementation), align Australia with commitments under multilateral agreements like the G20 communiqués and United Nations Framework Convention on Climate Change processes.
Australia has used market mechanisms such as the Emissions Reduction Fund and voluntary carbon units administered by the Clean Energy Regulator, alongside regulatory standards like the National Greenhouse and Energy Reporting Act 2007 and fuel efficiency measures influenced by engagements with the International Civil Aviation Organization and the International Maritime Organization. Subsidies, tax incentives, and grant programs from agencies like the Australian Renewable Energy Agency and the Clean Energy Finance Corporation complement industry agreements negotiated with groups like the Business Council of Australia and energy producers including Origin Energy, AGL Energy, and Santos. Land-sector initiatives leverage frameworks from the Carbon Farming Initiative and techniques recognised by international standards negotiated at United Nations Framework Convention on Climate Change conferences.
Policy for the electricity sector involves the Australian Energy Market Operator, state renewable energy targets such as the Renewable Energy Target, and investments channelled through the Australian Renewable Energy Agency and the Clean Energy Finance Corporation. Large-scale projects by corporations like Fortescue Metals Group and BHP intersect with transmission planning by the Australian Energy Market Operator and state-owned entities including Snowy Hydro and EnergyAustralia. Grid stability, storage deployment including projects like the Hornsdale Power Reserve, and hydrogen strategies coordinated with the International Energy Agency and regional partners in the Indo-Pacific shape the transition.
Adaptation policy features frameworks from the National Climate Resilience and Adaptation Strategy and state adaptation plans in jurisdictions like Queensland and Tasmania, with implementation by agencies such as the Bureau of Meteorology and disaster management authorities including Emergency Management Australia. Programs for coastal protection, water security in the Murray–Darling Basin Authority, and biodiversity conservation via the Department of Agriculture, Fisheries and Forestry respond to climate impacts documented by the Intergovernmental Panel on Climate Change and regional assessments from organisations like the Commonwealth Scientific and Industrial Research Organisation.
Australia participates in international mechanisms including the Paris Agreement and bilateral arrangements such as the Australia–United Kingdom Free Trade Agreement discussions touching on clean trade. Carbon market engagement involves cooperation with systems like the European Union Emissions Trading System and mechanisms under Article 6 of the Paris Agreement, with domestic exchanges and registries overseen by the Clean Energy Regulator and trading intermediaries linked to firms such as Macquarie Group and ANZ. Diplomatic efforts with Pacific neighbours through the Pacific Islands Forum and multilateral engagement at United Nations Framework Convention on Climate Change conferences continue to shape Australia's external climate posture.