The ALP today released its “Climate Change Action Plan” policy, designed to establish a framework to meet Australia’s long-term emissions reduction obligations. The announcement comes following the signing of the Paris Agreement by Environment Minister, Greg Hunt, on Friday, and the commencement of the third Emissions Reduction Fund (ERF) auction.
In this update, we detail the key aspects of the ALP’s policy, provide analysis of notable developments, and discuss the implications for liable entities and offset proponents.
The ALP’s climate policy framework is underpinned by the formal sign-off of a 45 per cent emissions reduction target (on 2005 levels) by 2030. The ALP’s target sits at the low-end of the Climate Change Authority’s recommended target (45 to 65 per cent below 2005 levels by 2030), yet well above the Coalition’s stated 26-28 per cent commitment. The new emissions target is complimented by the ALP’s 50 per cent renewable energy goal by 2030, announced in mid-2015.
To meet its emissions reduction and renewable energy targets, the ALP proposes the introduction of two key mechanisms:
- A “soft start” Emissions Trading Scheme (ETS), with separate caps and systems for the electricity and industrial sectors; and
- Regulation to establish a
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