Title page
Contents
Abstract/Résumé 4
Introduction 8
The current state of the transition to net zero emissions 8
Achieving Australia's emissions reduction targets 13
Managing the impact of the climate transition 41
Adapting to climate change 46
Recommendations for achieving the transition to net zero in Australia 52
References 54
Table 1. All states and territories have adopted climate targets 12
Table 2. Australia's state and territory renewable energy targets and policies up to 2030 19
Table 3. Australia's electric vehicle targets by state 31
Figure 1. Australia is among the highest emitters of greenhouse gases in the OECD 9
Figure 2. Energy, transport and agriculture account for a large share of emissions 10
Figure 3. Projected net emissions fall short of reduction targets 11
Figure 4. Carbon pricing has been limited in Australia 14
Figure 5. Support for different climate policies varies greatly 15
Figure 6. The share of renewable electricity generation has risen but more progress is needed 20
Figure 7. Announced retirements of coal-fired generators are not consistent with climate goals 22
Figure 8. Public spending on energy RD&D is low in Australia 23
Figure 9. Fugitive emissions are projected to rise 24
Figure 10. Australia is a major energy exporter 25
Figure 11. Emissions from industrial processes will remain high 27
Figure 12. Electricity and natural gas dominate energy consumption in industry 28
Figure 13. Transport is projected to be the largest source of emissions in Australia by 2035 29
Figure 14. The energy intensity of Australian vehicles needs to come down significantly to achieve climate targets 30
Figure 15. Agricultural emissions are largely driven by livestock methane emissions 34
Figure 16. Composition of the Australia's agriculture producer support estimate 35
Figure 17. The residential sector needs to be further electrified 38
Figure 18. Residential energy consumption by end-use 39
Figure 19. Spending on training policies is low 43
Figure 20. As electricity generation shifts to renewables, employment in renewable energy will soar, while it will fall significantly in coal, oil and gas-powered electricity generation 44
Figure 21. Employment in brown industries is highly concentrated geographically 45
Figure 22. North Australia is especially exposed to climate hazards 46
Figure 23. Australia is among the countries with the highest exposure to wildfire risks 47
Figure 24. Insurance premiums are particularly high in the hazard-prone North 50
Boxes
Box 1. Australian attitudes towards Climate Policies 14
Box 2. The 2023 reform of the Safeguard Mechanism 16
Box 3. The development of offshore wind capacity in Denmark 21
Box 4. Support to agriculture in Australia 35
Box 5. Agricultural methods eligible under the ACCU Scheme 37
Box 6. Labour market reallocation under the transition to net zero 44