In a move reminiscent of past political maneuvers, the Australian Labor Party has announced its new climate target, aiming for a 62% to 70% reduction in emissions from 2005 levels by 2035. This announcement, made amidst internal debates and public scrutiny, has drawn criticism for being more symbolic than substantial, echoing the strategies employed during Scott Morrison’s tenure as Prime Minister.
Back in the days of Scott Morrison’s leadership, the Liberal Party crafted a narrative of bold climate action by committing to a net-zero emissions target by 2050. Despite the ambitious-sounding goal, the plan lacked a concrete roadmap, with significant reliance on future technological advancements. The press, however, portrayed Morrison’s efforts as a courageous attempt to align his party and the Nationals with global climate commitments.
Fast forward to the present, the current Coalition has distanced itself from even these modest targets, rejecting not only the net-zero goal but also previous commitments such as Tony Abbott’s 2030 emissions targets and John Howard’s 2007 emissions trading scheme. Against this backdrop, Labor’s recent announcement appears as a calculated move to project climate action while sidestepping the more challenging aspects of emissions reduction.
Labor’s Climate Target: More Symbolic Than Substantial
Labor’s new emissions target, while seemingly ambitious, applies to a limited scope of Australia’s total emissions. According to a 2023 report by Climate Analytics, Australia’s domestic carbon emissions account for approximately 1% of global emissions. However, the country’s fossil fuel exports contribute to around 4.5% of global emissions. The announced target addresses only about 20% of these emissions, leaving the remaining 80% largely unaddressed.
The government’s stance on fossil fuel exports mirrors that of previous administrations, asserting that the responsibility for emissions from exported fuels lies with the importing countries. This position, often likened to a “gun manufacturer’s defense,” ignores the broader implications for Australia, as highlighted in the recent national climate risk assessment report.
Fossil Fuel Exports: The Elephant in the Room
Despite the climate rhetoric, the Australian government continues to approve new fossil fuel projects. Data from the Climate Council reveals that in the current year alone, four major projects have been approved, with a projected lifetime emissions output of 4.14 billion tonnes of CO2-equivalent. This is in addition to 27 projects approved during Labor’s first term, collectively expected to produce emissions 15 times greater than Australia’s annual domestic emissions.
In this context, the 62% reduction target by 2035 appears insufficient. Moreover, the government continues to subsidize further fossil fuel exploration, undermining its climate commitments.
Business Council of Australia’s Role in Climate Policy
The Business Council of Australia (BCA) has also played a significant role in shaping the national climate discourse. Historically, the BCA has been accused of obstructing climate action to protect the interests of its big business members. Earlier this year, the BCA circulated a draft report advocating for a modest 2035 target, acknowledging Australia’s dual role in global emissions through domestic and exported emissions. However, this acknowledgment was conspicuously absent from the final report, which instead focused on potential “competitive green exports.”
The BCA’s narrative aligns with the government’s vision of Australia as a “renewable energy superpower,” a vision that contrasts starkly with the reality of its status as a major fossil fuel exporter.
The Missing Piece: A Carbon Price
Amidst the ongoing climate policy discussions, one mechanism remains notably absent: a carbon price. Experts argue that a carbon pricing scheme could provide the most cost-effective and efficient means of achieving significant emissions reductions. Yet, this option remains off the table in the current policy framework.
Just weeks ago, the BCA participated in a roundtable in Canberra, urging the government to enhance Australia’s productivity. However, critics point out that business interests often prioritize profitability over broader economic or environmental considerations.
As Labor unveils its climate strategy, the focus remains on managing expectations rather than implementing transformative policy changes. The challenge for Australia lies in reconciling its economic reliance on fossil fuel exports with the urgent need for meaningful climate action.
