Prime Minister Anthony Albanese announced yesterday an updated emissions reduction target aimed at keeping global warming below the internationally recommended 1.5–2°C.
The highly anticipated 2035 climate target outlines that emissions need to be reduced by a target of 62–70 per cent below 2005 levels, giving industry ten years to meet compulsory emissions standards, as set out in the Paris Agreement, to stop temperatures rising to dangerous levels.
The target has been welcomed by the mining industry – with industry leaders suggesting the Federal Government has show “courage of leadership” and noted the importance of the targets in attaining key investment.
“The government deserves commendation,” Fortescue executive chairman Andrew Forrest said. “Yet let me be clear: the upper range of its target – 70 per cent – must be a floor, not a ceiling.
“Australia must now be a major part of the solution – and Fortescue, along with Squadron Energy, is leading the way. Australia has the opportunity to lead the green industrial revolution. But to seize that future, we must set ambitions that match our potential.”
A Rio Tinto spokesperson echoed this sentiment, marking the move as providing “policy certainty needed for investment in low-carbon projects”.
“We have set our own targets to reduce scope 1 and 2 emissions by 50 per cent by 2030 and to reach net zero by 2050. To deliver on these goals, we’re investing in large-scale renewable energy projects, improving energy efficiency across our operations, and pioneering low-carbon technologies,” the spokesperson said.
Leading industry organisations are also backing the move, with the Minerals Council of Australia (MCA) and South Australian Chamber of Mines and Energy (SACOME) both noting the strength of framework now in place.
“Meeting this ambition will be a formidable challenge and will require a clear and stable policy framework that attracts large-scale investment in decarbonisation and accelerates the development and deployment of the technologies that will ultimately do the heavy lifting,” MCA chief executive Tania Constable said in a statement.
SACOME’s chief executive officer Nicola McFarlane also noted the importance of balancing ambition with pragmatism.
“There is no doubt that resilient and focused collaboration not only within the sector, but between industry and government has the potential to drive progress, unlock new value, and shape the future of sustainable practices for the advancement of the sector,” she said.
The Federal Government is backing its emissions targets with funding. A new $5 billion Net Zero Fund is being rolled out to help decarbonise industrial facilities, plus an additional $2 billion in being committed to the Clean Energy Finance Corporation (CEFC).
The likes of BHP and Liontown Resources have benefited from funding through the CEFC.
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