Australia’s Minister for Climate Change and Energy Chris Bowen announced today that the government will develop sectoral decarbonization plans, starting with six key emissions-intensive sectors, aimed at supporting the government’s net zero plan and interim climate targets.
Bowen said that sectors selected for the plans include electricity and energy, industry, the built environment, agriculture and land, transport, and resources. Additionally, the waste sector will be included in the industry plan, and circular economy will be a cross-cutting issue for all sectors.
Australia’s sector decarbonization plan initiative follows the establishment into law by the Albanese government last year of Australia’s climate goals, including its targets to reduce greenhouse gas emissions by 43% by 2030, compared to 2005 levels, and to achieve net zero by 2050.
Bowen said that the Climate Change Authority, an independent body mandated to provide expert advice to the government on climate change policy had recommended underpinning the country’s net zero plan with plans for major economic sectors, and added that investor have also advised that “government-guided sectoral plans are vital for attracting billions in new investment in decarbonisation in Australia.”
To develop the plans, Bowen said that the government would work with “industry, the climate movement, experts, unions and the community,” and that the Climate Change Authority will also be requested to develop sector pathways which will help inform the plans.
Sustainability-focused investor groups welcomed the government’s new initiative to develop sector decarbonization plans. Erwin Jackson, Director, Policy at the Investor Group on Climate Change (IGCC), said:
“The establishment of ‘investable’ 1.5°C pathways and goals for key economic sectors is critical to unlocking finance for climate solutions.
“Clear emissions pathways, goal posts and policy for all sectors can provide clarity for investors and the companies they own, help guide business strategy, climate-related financial disclosures, and the allocation of private capital towards new technology and infrastructure.”