Description

In this episode, Louise McGrath and Tennant Reed discuss the implications of Australia's 2035 emissions reduction target, focusing on how various industries can adapt to meet these goals. They explore the unique challenges faced by different sectors, the importance of carbon border adjustments, and the need for supportive policies to facilitate a smooth transition towards decarbonisation.

The conversation emphasises the potential for decarbonisation to serve as a competitive advantage for Australian industry, provided that the right strategies and investments are made.

Takeaways:

• The 2035 emissions target is a significant challenge for industry.
• Different sectors face unique challenges in reducing emissions.
• Investors expect returns while companies reduce emissions.
• The safeguard mechanism provides both incentives and penalties.
• Carbon border adjustments are crucial for maintaining competitiveness.
• Decarbonisation can be a competitive advantage if managed well.
• A reliable supply of zero emissions electricity is essential.
• Tax incentives can facilitate industry upgrades.
• Policymakers need to prioritize clear objectives for projects.
• Fundamental process changes may be necessary for effective decarbonisation.

Australian Industry Group comment: The challenging next step to net zero

Contact the Industry Development & Policy team here.