Our technology-driven plan sets out a credible pathway to net zero by 2050, while preserving our existing industries, establishing Australia as a leader in emerging low emissions technologies and positioning our regions to prosper.
The five principles that guide our plan will ensure Australia’s shift to a net zero economy will not put industries, regions or jobs at risk.
- Technology not taxes
- Expand choices, not mandates
- Drive down the cost of a range of new technologies
- Keep energy prices down with affordable and reliable power
- Be accountable for progress
Australia’s Long-Term Emissions Reduction Plan is geared to our unique economy.
It shows how Australia will achieve 85 per cent of the emissions reduction necessary to achieve net zero by 2050. It recognises the high cost today of securing the last 15 per cent of abatement and the role future technology breakthroughs will play in closing that gap.
The focus is on driving down technology costs and accelerating their deployment at scale across the economy.
Over the next decade, our $20 billion investment in low emissions technology is expected to unlock a total of $80 billion of private and public investment, including in clean hydrogen, ultra low-cost solar, carbon capture and storage, and energy storage.
The plan includes five-yearly reviews that will enable us to evaluate progress, and adapt to technology advancements
How Our Plan Will Achieve Net Zero
The Government’s technology based approach provides Australia with a pathway to net zero that protects our economy.
- Continuing our strong record
- Emissions are more than 20 per cent lower than 2005 levels.
- The Government’s Technology Investment Roadmap
- Reaching our technology targets will reduce emissions by a further 40 per cent.
- Global technology trends
- Shifts in demand for our exports and developments in global technologies will reduce emissions by a further 15 per cent.
- High integrity offsets
- Storing carbon in soils and vegetation, and working with our Indo-Pacific neighbours will reduce emissions by a further 10 per cent.
- Future technology breakthroughs
- Investing in future new and emerging technologies to reduce emissions by a further 15 per cent.
The Best Plan for the Regions
Australia’s regions have always powered the growth and prosperity of the nation, providing energy, resources, food and fibre to the world.
Our plan has the wellbeing and prosperity of regional communities at its core.
It is important to recognise two things. Firstly, that the impacts of global action on climate change will unfold gradually over time. And secondly, that for most regions, factors other than decarbonisation will define their future prosperity (demographic changes, internal migration, tourism, rising agricultural productivity and emerging industries supplying future export markets).
That gives us the opportunity to act now to harness existing regional strengths, unlock new areas of growth and diversify economic activity in regions impacted by changes in global demand for our energy exports.
Under our plan, we will continue to back our regions with record investments in transport and digital infrastructure, by growing Australian agriculture, resources and manufacturing, expanding trade opportunities for regional exporters, providing for the health and education needs of regional Australians and preparing for the implications of climate change, including through future drought funding, greater disaster resilience and affordable insurance for Northern Australia.
In partnership with local communities and businesses, the Australian Government will secure a strong future for regional Australia as part of our plan for net zero emissions by 2050.
Western Australia is estimated to see around 34,000 new jobs in mining and heavy industry by 2050, with the Pilbara ideal for hydrogen production and export. Resources companies are adapting their operations with the take up of renewables and new technologies like hydrogen trucks, further lowering emissions.
Queensland i is estimated to see more than 12,000 new mining and heavy industry jobs linked to growing export markets. Gladstone can capitalise on hydrogen, renewables, and low emissions materials opportunities. Townsville is set to host the world’s first green zinc facility.
The Hunter Valley’s skilled workforce and energy infrastructure position it to capitalise on opportunities in hydrogen and clean manufacturing, like green steel making.
Our $464 million Clean Hydrogen Industrial Hubs are part of our more than $1.2 billion committed to building a Australian hydrogen industry, with seven priority locations: Bell Bay, the Pilbara, Gladstone, Latrobe Valley, Eyre Peninsula, the Hunter, and Darwin. Clean hydrogen exports could support 16,000 jobs in Australia by 2050, plus an additional 13,000 from the construction of related renewable energy infrastructure. Australian hydrogen production for export and domestic use could be worth more than $50 billion in 2050.
The Best Plan for Industry
Achieving net zero emissions by 2050 will involve all industries adopting cost-effective technologies at scale.
Agriculture
Agriculture has long been at the forefront of Australia’s efforts to reduce emissions.
Australia can reach net zero emissions by 2050 without imposing restrictions on our farmers or converting productive agricultural land to carbon forests. In fact, our farmers stand to benefit from voluntary delivery of carbon sequestration and biodiversity while continuing to supply ‘clean, green and safe’ agricultural products to the world.
We will continue investing in emerging technologies that will boost farm productivity and output while reducing emissions. These include new feed supplements to reduce livestock emissions and improved land management to increase soil carbon.
Electricity
Electricity sector emissions are projected to fall by 90 per cent from 2005 levels under our plan, largely enabled by the falling price of energy storage to maintain affordable and reliable power. This will reduce emissions across all sectors of the economy, and especially the transport sector.
Resources and Heavy Industry
Australia is uniquely blessed with natural resources for both the traditional energy and new energy economies. While emissions-intensive exports like coal and gas will face global headwinds in the long term, there will be demand for these exports for many years to come. This gives Australia time to future-proof our economy and workforce, including establishing new industries like clean hydrogen production.
Output from heavy industry is predicted to more than double by 2050 under our plan. Electrification and energy efficiency will allow the mining and energy sector to significantly and rapidly reduce emissions. Smelters and refineries are already moving to power their plants with renewables, and resources companies are exploring alternatives to diesel fuel, including electric or hydrogen-powered vehicles.
