The Climate Change Act 2022 requires The Climate Change Authority to provide independent, evidence-based advice on how Australia can meet its emissions reduction targets and achieve a prosperous, resilient net zero future.

Each year, The Authority publishes its Annual Progress Advice with recommendations the Minister for Climate Change and Energy must address in the Annual Climate Change Statement to Parliament.

Climateworks Centre welcomes the opportunity to provide a submission in response to the Annual Progress Advice consultation.

Submission summary

Climateworks recommends that the Climate Change Authority call on the Australian Government to:

  • Pursue the upper bound of Australia’s emissions reduction target range, and ensure policy settings and public investment are directed toward meeting or exceeding those targets, fulfilling Australia’s full obligations under the Paris Agreement.
  • Set sectoral reference pathways that show the least cost trajectory to meet the more stringent bound of the government’s emissions reduction target.
  • Accelerate decarbonisation of buildings by driving electrification and energy efficiency, including through a dedicated policy package for rental housing.
  • Implement a well-designed Road User Charge (RUC) that ensures funding for transport infrastructure and creates incentives to reduce emissions in transport.
  • Accelerate electrification of transport through strengthening the New Vehicle Emissions Standard (NVES) and initiatives to support freight decarbonisation.
  • Strengthen the Safeguard Mechanism’s contribution to reducing industrial emissions by differentiating the baseline decline rates between manufacturing and fossil fuel extraction facilities.
  • Strengthen requirements around the use of Australian Carbon Credit Units (ACCUs) to encourage greater on-site abatement and unlock co-benefits from their use, while allowing some flexibility and creating incentives in other parts of the economy. Possible actions include:
  • Coordinate the Safeguard Mechanism with other existing industrial policies, financing and place-based initiatives to ensure that facilities are supported in their transition and that their decarbonisation creates additional economic opportunities.
  • Introduce a robust Carbon Border Adjustment Mechanism (CBAM) to support the competitiveness of Australia’s decarbonising industries, taking a phased approach to coverage and regular statutory reviews.
  • Build a flexible, zero-emissions electricity system that supports economy-wide decarbonisation and enables coal to close on time, including by capturing the opportunities presented by demand flexibility, consumer energy resources and electrification.

More detail can be found in our submission [PDF 0.3mb]