Cormann urges countries to keep eye on the ball with long-term climate targets

Former Australian finance minister and head of the OECD Mathias Cormann warns measures to manage rising energy costs due to the war in Ukraine must only be used in the short term.

Secretary-General of the Organisation for Economic Co-operation and Development (OECD) Mathias Cormann. Picture: Thomas Lohnes/Getty Images

Former Australian finance minister and head of the OECD Mathias Cormann warns measures to manage rising energy costs due to the war in Ukraine must only be used in the short term.

It comes as countries around the world turn back to fossil fuels including coal in an effort to wean themselves off Russian exports.

Mr Cormann said the war had “certainly put pressure” on climate objectives, and urged countries to keep an eye on the ball when it came to long-term targets.

“We need to ensure that we remain on track over the medium to long term and that whatever responses are put in place on a temporary basis to deal with the shock are indeed short-term measures and don’t divert us from the medium- to long-term trajectory,” he told Sky News. “That is generally understood and generally accepted. Everyone is focused on what needs to be done to ensure energy security, energy affordability, as well as remaining on track to achieve that carbon neutrality by mid-century.”

When asked if the OECD welcomed the election of Labor given its more ambitious climate-change goals, Mr Cormann was careful to stress the organisation was nonpartisan.

“Personally I have of course congratulated Prime Minister Albanese and I very much look forward to working with the Albanese government in Australia to help achieve our common objectives,” he said. His comments come ahead of Labor attempting to legislate its 43 per cent emission reduction target in the first parliamentary fortnight, kicking off on Tuesday.

Environment Minister Tanya Plibersek defended the target in the face of the State of the Environment report last week. She said going beyond the 43 per cent target would equate to “breaking an election promise”.

On the broader impact of the Ukrainian crisis, Mr Cormann said it was having a “very negative impact on the global economy”.

“Russia’s unprovoked, unjustifiable and illegal war … against Ukraine is bad for the world economy, no question,” he said.