The Australian Government has an ambitious national target to reduce greenhouse gas emissions by 62-70% below 2005 levels by 2035, as part of its broader pathway to net zero emissions by 2050. This significant step builds on Australia’s climate commitments and signals a stronger investment and policy direction for decarbonisation.
The 2035 target was released alongside the Net Zero Plan and six sectoral emissions reduction plans, covering electricity and energy, industry, resources, transport, agriculture and land, and the built environment. These plans provide detailed pathways and policy levers for cutting emissions and scaling low-emissions solutions across the economy.
Many had hoped this policy momentum would anchor Australia’s bid to host COP31, especially after a highly politicised Federal election cycle and ongoing challenges for renewable project deployment. While Australia will not host COP31 this year, there remains reason to be optimistic about the year ahead.
Alongside the Net Zero Plan, the Government has established a $5 billion Net Zero Fund within the National Reconstruction Fund to support industrial decarbonisation and scale up low-emissions technologies. Funding has also been earmarked for low carbon liquid fuels, industrial emissions reduction and the agriculture sector.
The “Future Made in Australia” policy further highlights ongoing recognition that sovereign manufacturing capability is central to Australia’s economic and strategic resilience as the global economy transitions to clean energy. As part of this effort, the Australian Renewable Energy Agency (ARENA) opened expressions of interest for the $1.5 billion Future Made in Australia Innovation Fund last month, targeting pre-commercial innovation in renewables and low-emission technologies.
Primary has experience across the clean energy ecosystem – from startups and investors to manufacturers, industrial companies and peak bodies shaping policy. We know that scrutiny and debate on energy policy will persist, given its complexity and cost.
Our focus is on positioning organisations that enable decarbonisation for success, – whether that’s securing grants and competitive bids, building relationships with government and stakeholders, community engagement or establishing them as trusted thought leaders in the energy transition.
As Australia accelerates its transition to net zero, there is clear opportunity. Ambitious targets and supportive funding mechanisms are now matched by market-ready technologies and investor interest.
For organisations navigating this landscape, success will be defined not just by technical capability, but by the strength of their reputation, relationships and messaging. At Primary, we’re committed to helping our clients shape a compelling story, unlock opportunity and contribute meaningfully to Australia’s energy future.
Melissa Johnson, Partner, Primary Communication
