Big business receives a net-zero emissions rocket from Angus Taylor

Energy Minister Angus Taylor has warned Australia’s biggest companies that they must be more transparent in outlining and achieving plans to reach net-zero emissions by 2050.

Energy Minister Angus Taylor. Picture: Gary Ramage

Energy Minister Angus Taylor has warned Australia’s biggest companies that they must be more transparent in outlining and achieving plans to reach net-zero emissions by 2050, as the government prepares to name and shame businesses that fail to deliver on commitments.

In a letter to the chief executives of every ASX200 business, Mr Taylor outlined reporting obligations under the National Greenhouse and Energy Report­­ing scheme overseeing emissions pledges by corporations.

Ahead of the Clean Energy Regulator releasing a discussion paper on Friday about establishing an annual Corporate Emissions Reduction Transparency report, Mr Taylor told 530 businesses, including the big four banks, mining giants and insurance firms, that the government expected transparency and accountability.

“Many Australian businesses are making ambitious commitments to reduce emissions. Our shared challenge is to translate commitments and ambition into real and tangible outcomes,” he wrote. “This requires a practical plan, and a commitment to transparency and accountability.”

With companies, including ANZ, NAB, Commonwealth Bank and BHP, releasing climate change action plans, Mr Taylor said there were two ways for Australian businesses to “achieve their voluntary targets and ­contribute to our international commitments”.

“Reducing emissions (for ­example, by deploying low-­emissions technologies) or offsetting emissions (through domestic offset units),” he said “The government is incentivising greater corporate voluntary action by removing barriers to increased supply of domestic offsets.

“New resourcing has been provided to the Clean Energy Regulator to halve the time it takes to develop new Emissions Reduction Fund (ERF) methods, and to develop an exchange traded market for Australian Carbon Credit Units (ACCUs).”

Mr Taylor told company chiefs the government was incentivising voluntary climate action in the corporate sector through building the supply side of domestic emissions reduction offset markets, setting up a new exchange traded market to increase price transparency and reducing transaction costs for businesses.

With Scott Morrison this month pledging that he wanted Australia to reach net-zero emissions potentially earlier than 2050, there is a renewed government focus on supporting the transition of the nation’s largest companies to net zero.

Mr Taylor flagged enhanced oversight of corporate ­climate action plans to the Carbon Market Institute in December.

The Corporate Emissions Reduction Transparency discussion paper released by the Clean ­Energy Regulator focuses on ­supports for companies taking ­action to reduce emissions.

Participation in the proposed corporate emissions reduction transparency scheme will be voluntary, but companies that join and support the generation of ACCUs will be recognised.

Companies that avoid involvement will be named and shamed.

“Shareholders, supply-chain partners and the public have expressed the need for increased transparency in tracking progress towards meeting corporate emission reduction and offsetting targets,” the CER report said.

“The Corporate Emissions Reduction Transparency report will present data and information on voluntary targets, progress in achieving these targets and highlight the proportion of a corporation’s carbon emissions and purchased electricity covered by the surrender of eligible units, regardless of whether such surrenders are voluntary or required under state, territory or commonwealth laws.”