Aligning Australian industry with net-zero emissions under the Paris Agreement

While the government continues to reject calls for a net-zero emissions target, policymakers are unlikely to be able to hold their finger in the dyke for much longer, with Australia’s major trading partners adopting targets to reach net-zero emissions by 2050, while industry continues to press for clear direction to decarbonise the economy.

The US election in November also looms as a key trigger point for climate action, with Democratic candidate, Joe Biden, proposing an ambitious climate agenda that would return the US to the Paris Agreement, set a net-zero goal of no later than 2050, and implement carbon border fees or quotas on carbon-intensive goods.

The UNFCCC’s postponed Conference of the Parties (COP 26), initially scheduled for 9-19 November in Glasgow, will now be held in November 2021 – potentially with a new leader in the White House – suggesting that Australia will soon be required to fall into line with the net-zero objectives of the Paris Agreement.

While Australia is on a slight downward trajectory from peak emissions in 2007, key sectors of the economy continue grow their emissions, with only the electricity sector (-34%) currently projected to reach a minus 26% target trajectory by 2030. Comparably, emissions