Net zero emissions targets heading for a train wreck

Pre-federation rail networks were built with different gauges, causing a century of transport disruptions. Today, emissions reduction targets are becoming the new rail gauge, writes Stephen Galilee

Before federation, the Australian colonies developed their railway networks independently of each other. Rail lines of at least three different gauges or widths were built across the colonies, causing transport disruptions for more than a century.

State-based emissions reductions targets are fast becoming the rail gauge problem of today.

The Federal Government has a national emissions-reduction target of net zero by 2050. A policy called the safeguard mechanism is the tool to achieve this target. At the same time, each state has its own emissions-reduction targets, with different timeframes, targets and pathways to achieving their own net zero commitment.

There’s an overarching commitment to net zero by 2050, but there the alignment ends.

Nationally, the Commonwealth also has a 43 per cent emissions reduction target by 2030, but has not yet set a 2035 target.

Australian Clean Energy Summit 2024 Global Race to Net Zero panel. Australia is committed to net zero by 2050Picture: NewsWire / John Appleyard

NSW has a 50 per cent target by 2030 and 70 per cent by 2035. Victoria is targeting a 75-80 per cent reduction by 2035, and a 2045 net zero target. Queensland is targeting a 75 per cent cut by 2035.

South Australia has a 50 per cent target by 2030, Tasmania is targeting net zero by 2030, while WA does not have a 2030 target at all.

States also have their own emissions accounting frameworks, with additional rules and obligations within their borders. It’s another level of complication, even before taking into account the many different departments and agencies involved across all these governments.

These include the various departments of environment, climate change, energy, planning as the state-based Environmental Protection Authorities, and others like the NSW Net Zero Commission, the national Climate Change Authority, and the soon-to-be-established national EPA.

There must barely be time to attend the many conferences, events, keynote speeches, and expert panels regularly held on these matters.

The inconsistencies resulting from separate state-based targets are set to hit key sectors of our economy hard, threatening the unnecessary loss of investment and jobs.

Iincoming Chair of the Climate Change Authority Matt Kean (centre). NSW has a 50 per cent net zero target by 2030 and 70 per cent by 2035Picture: NewsWire / John Appleyard

For example, mining projects in NSW operating within the commonwealth’s emissions reduction framework face additional requirements that put their viability at risk. The same will apply for energy intensive industries like heavy manufacturing. This is largely because the NSW government is imposing state border controls on national emissions-reductions efforts.

Under the commonwealth system, projects can purchase carbon offsets from anywhere in Australia when abatement measures are not yet available. These offsets are counted towards the commonwealth’s national emissions-reduction target.

However, the NSW government has adopted a very different approach. Offsets from outside NSW do not count towards the NSW target, so they are disregarding the commonwealth scheme and setting up a separate set of rules in NSW.

This also means the NSW government’s net-zero targets aren’t net targets at all. Offsets counted as reductions in the national framework aren’t being counted in NSW, underestimating our progress, and making it harder than it needs to be for NSW to meet its targets.

After federation, it took another 90 years and major spending to finally achieve a nationally connected standard railway system. The economic cost of this folly to our country over many decades was huge.

Like the railways, Australia’s emissions targets must be aligned, or history will once again repeat itself.

Stephen Galilee is NSW Minerals Council’s chief executive

Originally published as Net zero emissions targets heading for a train wreck