Australian govt sets 2035 emissions goal with $5 bn net zero fund

The government will invest $5 billion through a new net zero fund to decarbonise industry, alongside $2 billion for the Clean Energy Finance Corporation, $1.1 billion for clean fuel production, $40 million for EV charging, $85 million for energy performance tools, and $50 million for community-level decarbonisation initiatives, the Prime Minister of Australia said in a media release.

Priority areas for emissions cuts include expanding renewable power, driving electrification and efficiency, supporting clean fuels and hydrogen, accelerating technologies through Future Made in Australia investments, and scaling carbon removals via landholder incentives and a strengthened Australian Carbon Credit Unit (ACCU) scheme.

Supporting documents include the Net Zero Plan and six sector strategies, Treasury’s economic modelling, and the Climate Change Authority’s independent advice. Treasury modelling indicates an orderly transition will create jobs, lift wages, and expand the economy.

Albanese said the target “sends the right investment signal and ensures Australia can compete globally while protecting future generations”. He stressed that around 80 per cent of global GDP is already under net zero commitments, and Australia must claim its share of the projected $2 trillion clean energy investment surge.

The government will submit its updated Nationally Determined Contribution under the Paris Agreement, signalling its international commitment. Albanese concluded: “Our commitment matters to our neighbours, our economy, and our children. Every action we take today helps avoid the worst impacts of climate change tomorrow.”

ALCHEMPro News Desk (SG)