Australia not on Track to Meet Climate Targets
- Treasurer Jim Chalmers recently confirmed Australia will not meet its legislated climate targets without further action. These include reducing emissions by 43% by 2030 and achieving net zero by 2050.
Obstacles Preventing Target Achievement
- Various challenges making target achievement difficult: Ukraine war and inflation, global investment flowing to US, rising NIMBYism and project delays domestically.
Government Under Pressure With Suggestions But No Retreat
- Government maintains targets are achievable but huge challenges acknowledged. Numerous proposals made like expanding Safeguards Mechanism or $100b green investment fund. But no watering down of ambition.
New Plan to Incentivise Private Sector Investment
- Government expanding Capacity Investment Scheme 5-fold to subsidise 32GW new energy capacity by 2030, mostly wind and solar. Taxpayers to cover revenue losses if prices fall below agreed floor. Cost to taxpayers confidential.
Confident Targets Can Be Met, But Challenges Remain
- On paper, the expanded scheme could put 82% renewables target back on track. But supply chain issues, labour shortages, planning delays and transmission challenges continue.
Government Doubling Down On Renewables
- By doubling capacity scheme instead of adjusting targets, government sticking to renewable energy path. But extent of taxpayer subsidies and other lurking obstacles still unclear.