Business coalition demands Labor ‘slash green tape to hit 2035 target’
It’s understood a coalition of influential business figures have urged the government to accompany a higher emissions reduction target with faster approvals for renewables and mining projects.
Industry has warned the Albanese government it needs to fix environmental approvals if it wants to adopt an ambitious 2035 emissions reduction target, as Labor aims to sideline the Greens and strike a deal with the Coalition on reforming green tape rules by the end of the year.
Environment Minister Murray Watt on Tuesday will outline a plan to introduce a bill into parliament by the end of the year to reform the Environment Protection and Biodiversity Conservation Act broadly in line with the recommendations from a 2020 report led by Graeme Samuel.
The move from Labor to finally act on environmental approvals comes as Climate Change Minister Chris Bowen plans to unveil a 2035 emissions target next month, signalling he may adopt a target range rather than a specific figure.
With the Climate Change Authority examining a target of between 65 and 75 per cent, The Australian understands business figures have told the Albanese government that a higher climate goal needs to be accompanied by reforms to the EPBC Act to provide faster approvals for major renewables and mining projects.
The CCA is expected to finalise a target as early as next week, with the Albanese government to announce its new commitment as it seeks to win support to host COP31 next year.
A coalition of influential Australian companies, including the Mike Cannon-Brookes-led Atlassian, Andrew Forrest’s Fortescue and tech giant Canva, has signed an open letter demanding the government commit to at least a 75 per cent emissions reduction target by 2035.
The Business For 75 group said pressure is mounting on Labor to declare a 75 per cent target cut in a decade’s time, forecasting it will unlock an extra $20bn annually in investment compared to a weaker 65 per cent goal. Pushing for the higher emissions cut will also lift export revenues by $190bn over the period to 2050, according to analysis by Deloitte Access Economics.
Australia’s gross domestic product will likely be $370bn greater by 2035 under a 75 per cent target, compared to current projections, with 69,000 additional Australian jobs supported each year over the next 10 years.
“The Australian business community is ready to back a strong emissions target of 75 per cent. The government should seize this once-in-a-generation opportunity, for the good of our economy, for our businesses and for every Australian citizen,” Fortescue chief executive Dino Otranto said.
Energy experts say the government is not on track to meet its current target to lower emissions by 43 per cent of 2005 levels by 2030, with the Australian Chamber of Commerce and Industry warning against adopting a 2035 target of more than 65 per cent.
Data released on Monday showed emissions fell by 1.4 per cent in the year to March, 28 per cent lower than what was recorded in 2005.
Mr Bowen on Monday said the 2035 target would be “based on the science and the evidence about what’s achievable”. He said one option would be to adopt a target range, rather than land on one specific figure.
“Some countries have set ranges, and some countries have set exact numbers,” he told the ABC.
“Plenty of countries have set a range … I’m certainly not critical of … countries that have done it.”
The government next month will also release net-zero plans for the electricity, transport, industry, agriculture, resources and built-environment sectors.
Two reports – National Climate Risk Assessment and National Adaptation Plan – will also be released outlining how Australia can prepare and build resilience for a warmer climate.
Senator Watt, who replaced Tanya Plibersek in the environment portfolio after the May election, said he would introduce legislation to reform the EPBC Act by the end of this year, fast-tracking his initial plan to have a package ready by mid-2026. The government failed to reform environmental laws last term, with its plan to create a green cop being opposed by the Coalition and the key electoral battleground of Western Australia.
The Australian understands the government’s preference is to strike a deal with the Coalition on the reforms, although Senator Watt has also commenced discussions with the Greens.
The minister has held discussions with state governments and industry in order to build a broad consensus to pass the reforms, to be focused on providing stronger environmental protection but faster approvals, with the Samuel review recommending approvals be solely in the hands of the states based on national standards.
Senator Watt said there was “very strong” support at last week’s Economic Reform Roundtable for “serious and urgent reform to deliver stronger environmental protections, faster and simpler project approvals and greater transparency in environmental regulation”.
The Australian understands the Albanese government will not consider a “climate trigger” as part of its deliberations.
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