Invest
Australia set to face mounting pressure on climate change inaction
The Biden administration has warned that it won’t shy away from challenging countries whose inaction on climate change is setting the world back, as Australia is tipped to face mounting pressure due to unambitious net-zero emissions targets.
Australia set to face mounting pressure on climate change inaction
The Biden administration has warned that it won’t shy away from challenging countries whose inaction on climate change is setting the world back, as Australia is tipped to face mounting pressure due to unambitious net-zero emissions targets.
The two-day virtual summit on Earth Day will see Prime Minister Scott Morrison dial in early tomorrow morning, with major world powers committing to take stronger action on climate change.
US President Joe Biden is reportedly set to announce a more ambitious target to cut his country’s emissions at least in half by 2030, after UK Prime Minister Boris Johnson pledged a 78 per cent cut by 2034.
“The UK will be home to pioneering businesses, new technologies and green innovation as we make progress to net zero emissions, laying the foundations for decades of economic growth in a way that creates thousands of jobs,” Mr Johnson said in a statement.
Australia’s current target is 26 to 28 per cent below 2005 levels by 2030. However, Mr Morrison has refused to set a time frame on Australia’s “road to net-zero”, simply implying it will not happen in the inner-city wine bars.
In a speech the PM gave at the Business Council of Australia, Mr Morrison put the onus on businesses, although current policy settings suggest Australia will not reach its climate change goals.
Not willing to admit this possible failure, Mr Morrison said Australia would reach net-zero as “quickly as possible, and preferably by 2050”.
“I’m increasing in confidence with the plan that we’re developing to achieve that.”
“We are not going to meet our climate change targets through punishing taxes. I am not going to tax our industries off the planet. We are going to meet our ambitions with the smartest minds, the best technology and the animal spirits of our business community,” Mr Morrison said.
Prior to the commencement of the summit, Australia has pledged to spend an extra $540 million on clean energy projects, as Australia prepares for the climate summit.
The PM announced $275.5 million will be committed to accelerate the development of four additional clean hydrogen hubs in regional Australia and implement a clean hydrogen certification scheme, and a further $263.7 million to support the development of carbon capture and storage (CCS) and carbon capture utilisation and storage (CCUS) projects and hubs.
“It is essential we position Australia to succeed by investing now in the technologies that will support our industries into the future, with lower emissions energy that can support Australian jobs,” the Prime Minister said.
“There is a strong appetite from business for the new emissions reduction technologies that they know will be needed to run their operations and keep employing Australians and grow jobs for the future.
“World-leading projects like these are about cutting emissions and creating jobs.”
However, Richie Merzian, climate and energy director at The Australia Institute think tank, hit out against Australia’s climate change plan, highlighting that Australia will likely be forced to do some heavy lifting under the Biden administration.
“This is a federal government that will do the absolute minimum required to just keep its seat at the table, but do nothing beyond that,” Mr Merzian said.
RELATED ARTICLES
About the author
About the author
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
