The Albanese Government has set Australia’s 2035 climate change target at a 62 to 70 per cent reduction in emissions from 2005 levels, highlighting the role of renewable energy and low-emissions manufacturing in driving the transition.
The announcement, published on Prime Minister Anthony Albanese’s website, follows independent advice from the Climate Change Authority and is described by the Government as both “ambitious and achievable.”
Officials said the target aims to balance scientific evidence with practical economic measures while sending a clear investment signal to industry.
According to the government, the majority of emissions reductions over the next decade will come from expanding clean electricity, improving efficiency through electrification, supporting clean fuels such as green hydrogen, accelerating new technologies, and scaling up carbon removal.
To support the target, the government said it will establish a $5 billion Net Zero Fund within the National Reconstruction Fund to help industrial facilities cut emissions and expand renewables and low-emissions manufacturing.
It will also provide $2 billion for the Clean Energy Finance Corporation to ease electricity costs, $1.1 billion to increase domestic clean fuel production, and $40 million to boost the rollout of fast and kerbside EV charging.
Treasury modelling released alongside the target projects that an orderly shift to net zero will create more jobs, raise wages, and grow the economy.
The government said the plan is designed to ensure exporters, farmers, and key industries remain competitive while meeting international obligations under the Paris Agreement.
“The global shift to clean energy represents one of the biggest economic transformations since the Industrial Revolution – and it presents Australia with an enormous economic and jobs opportunity,” the government’s statement said.
Officials noted that Australia’s commitment is framed within a broader international effort, with around 80 per cent of global GDP now covered by net zero pledges.
The government stressed that achieving the 2035 target will require a whole-of-economy and whole-of-society effort, while noting advances in technology could allow for deeper emissions cuts in the coming decade.
Officials said the policy is intended not only to protect the environment but also to “secure prosperity, create jobs, and deliver economic growth for the nation.”
