Tuesday, 22 April 2025 As Australia prepares to head to the polling booths on 3 May, the nation stands at a critical juncture in shaping its climate and energy future. Decarbonisation has become a defining issue, not just for domestic policy but for Australia’s economic trajectory and global positioning. The major parties are offering contrasting approaches to emissions reduction, energy transition, and the role of government in driving climate action. The decisions made in this election will influence how, and how quickly, Australia navigates its path toward a low-carbon economy, with lasting implications for environmental stewardship, industry, and international credibility. The Australian government has already made significant investments to support its commitment to achieving net zero emissions by 2050, and net zero commitments are now legislated in every Australian State and Territory. Key initiatives by the Commonwealth Government include: The Future Made in Australia initiative, a comprehensive plan introduced by the Australian government to strengthen the country's economic resilience and transition towards a net-zero future and invest in innovative technologies to accelerate progress. Announced in the 2024-25 Budget, this initiative involves a significant investment of $22.7 billion over the next decade, incorporating: Renewable Hydrogen Production Tax Incentive, providing $2 for every kilogram of eligible renewable hydrogen produced from 2027 to 2040. Critical Minerals Tax Incentive: A Critical Minerals Production Tax Incentive has been established, offering a production incentive valued at 10% of relevant processing and refining costs for Australia's 31 critical minerals; and National Battery Strategy, aiming to establish local battery manufacturing through production credits and capital grants. The Rewiring the Nation program which commits $20 billion in concessional loans and equity for transmission infrastructure projects to modernise Australia's electricity grid. Investment in special investment vehicles including $7.1 billion for the Australian Renewable Energy Agency and $15 billion for the National Reconstruction Fund to fast track support for the development of new industries and the transformation of existing ones, with a focus on clean energy and climate resilience. The Powering Australia Plan which includes $23 billion to grow and modernise Australia's electricity grid, supporting electrification. The Climate Change Act was passed in 2022, outlining Australia's greenhouse gas emissions reduction targets of 43 per cent below 2005 levels by 2030 and net zero by 2050; and A range of specialist Government agencies, such as the Net Zero Economy Authority and the Climate Change Authority, have been established (among others) to accelerate Australia’s progress. The Labor Government also recently announced a substantial $2.4 billion support package aimed at revitalising the Whyalla Steelworks and securing local jobs. This initiative, announced in collaboration with the South Australian Government, is designed to stabilise and invest in the steelworks, which is crucial for Australia's infrastructure and future green steel ambitions. Our climate commitments are increasingly diverging from those of the United States, which has once again initiated the process of withdrawing from the Paris Agreement. Despite this, many U.S. states remain committed to independently pursuing the Agreement’s goals, and many countries remain committed to limiting global warming. In Australia, while the two major parties have divergent views on the role of fossil fuels in the Australian economy, the key distinction between them lies in their approach to energy security. Coalition One of the Coalition's most ambitious commitments is to establish a nuclear power industry by constructing seven nuclear power plants in regional Australia. This commitment focuses on technology to address climate challenges, emphasising investments in carbon capture and storage. Modelling commissioned by the Coalition estimates the plan's cost at $331 billion by 2050, although this figure is somewhat contested. To bridge the gap until the nuclear plants are operational, the lifespan of ageing coal plants would be extended to ensure stable power while new infrastructure is developed. However, to achieve this nuclear transition effectively, the Coalition proposes a significant expansion of gas infrastructure, requiring gas companies to reserve up to 20% of uncontracted gas for the domestic market. This measure is expected to reduce wholesale gas prices for Australians. As part of its energy policy, the Coalition would also expedite the regulatory and environmental approval process for Woodside's Northwest Shelf gas expansion, committing to sign off within 30 days of taking office. The Coalition has also pledged to terminate Labor's $20 billion Rewiring the Nation Fund, which has been investing in transmission technology to prepare the grid for increased renewable energy integration. How drastically the Coalition would reverse, or repeal, Australia’s other green energy and climate commitments is to be seen. Labor In addition to staying course on the significant investments and legislative incentives already underway and its signature clean energy policies, Future Made in Australia and the Powering Australia Plan, Labor would continue to pursue its stated ambition of having 82 per cent of the electricity market powered by renewables by the end of the decade, and have emissions 43 per cent lower than 2005 levels by the decade's end. As part of their election commitments being announced in the lead up to the 3 May Federal Election, both parties have committed to reducing emissions and promoting the adoption of electric vehicles, but they differ in their approaches to subsidies, target dates, and charging infrastructure investments. Labor have indicated that they would extend rebates on electricity bills by another six months, meaning households will receive a $150 rebate on their power bills from July 2025, which is a commitment that the Coalition have said they won't stand in the way of. More announcements are expected in the coming days. Australian governments, businesses, investors in clean energy, and the community at large will be waiting to see which direction this Election leads us and what it means for funding committed to date. At a global level, the U.S.’s retreat from the Paris Agreement, contrasted with Australia’s substantial investments in green energy technologies, presents a significant opportunity for Australia to emerge as a global leader. This momentum, including advancements in green steel under either major party, positions us favourably on the world stage. The trajectory of Australia’s progress, whether it continues along the current path of clean energy or incorporates a new energy mix, will become clear on May 3. This date will be pivotal for determining Australia’s stance on climate and energy policies, as well as other critical federal issues. References: Protecting our Climate We will deliver cheaper energy - Liberal Party of Australia