Energy News | Climate Council https://www.climatecouncil.org.au/category/energy/ Australians deserve independent information about climate change, from the experts. Fri, 19 Dec 2025 04:34:05 +0000 en-GB hourly 1 https://wordpress.org/?v=6.8.3 https://www.climatecouncil.org.au/wp-content/uploads/2024/09/favicon-150x150.webp Energy News | Climate Council https://www.climatecouncil.org.au/category/energy/ 32 32 2025 wrapped: the best climate stories from Australia and the world https://www.climatecouncil.org.au/2025-wrapped-the-best-climate-stories-from-australia-and-the-world/ Fri, 19 Dec 2025 00:12:39 +0000 https://www.climatecouncil.org.au/?p=170819 We can’t sugarcoat it  – there’s a lot of bad news around and it can be hard to find hope, especially when climate news can be confronting. But there was good news too. Changing the world is a big lift, and slowly but surely we are turning this enormous ship around – thanks to the […]

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We can’t sugarcoat it  – there’s a lot of bad news around and it can be hard to find hope, especially when climate news can be confronting.

But there was good news too. Changing the world is a big lift, and slowly but surely we are turning this enormous ship around – thanks to the tireless efforts of many individuals, communities, businesses and governments. 

Here are some of the biggest climate news stories this year that give us hope.

The seven biggest climate stories from Australia

  1. Biggest annual drop in climate pollution outside COVID. Greenhouse gas emissions fell by 2.2% in the year to June 2025, driven by a surge in renewable energy replacing coal and gas. 
  1. For the first time, renewable energy overtook fossil fuels to power Australia’s main energy market. Clean energy in the National Energy Market (including every state and territory except Western Australia and Northern Territory), supplied a record 51% of electricity in October (and even went as high as 79% at one point on  11  October).
  1. The new national battery rebate powered into action. In only six months the scheme has almost doubled Australia’s home battery capacity, and is on track to have helped 175,000 households and small businesses cut their power bills by the end of December. It’s now being expanded to help install two million household batteries by 2030.
  1. Australia finally caught up with most of the world by implementing vehicle fuel efficiency standards – i.e stopping the most polluting cars from entering our market. These cleaner standards kicked into gear at the start of the year and will prevent 20 million tonnes of climate pollution by 2030. Meanwhile, the share of electric vehicles among new car sales in Australia has accelerated from 0.8% in 2020 to 12% in 2025.
  1. Australia announced a new climate target (a commitment most countries have made to cooperate in cutting global pollution). The government has committed to cut pollution by 62-70% by 2035. To help achieve our new target, the government announced new programs to increase renewable generation, help industry decarbonise, roll out more EV chargers, and more.
  1.  Australia’s nature laws have been strengthened for the first time in half a century. Thanks to a deal with the Greens, the new laws will strengthen protection for native forests and accelerate environmentally responsible renewable power. 
  1. We didn’t win the bid to host the world’s largest climate conference (COP31) next year, but we did join a growing list of countries signing up to a roadmap to phase out fossil fuels. It’s the strongest language we’ve seen from the Australian Government yet about the need to switch away from fossil fuels.

The five biggest climate stories from around the world

  1. For the first time, renewables provided more of the world electricity than coal, marking a turning point for the global power system. Solar and wind are now growing fast enough to meet the world’s growing appetite for electricity, and so clean power is keeping pace with demand growth.
  1. In a landmark case in July, the International Court of Justice ruled that all countries have a legal obligation to protect and prevent harm to the climate and can be held liable for climate change damage. While the court’s advisory opinions are non-binding, they can still have a powerful impact, both legally and politically. 
  1. China’s carbon emissions have been flat or falling for the past 18 months, indicating the world’s largest greenhouse gas emitter may reach peak emissions earlier than anticipated. This is attributed to China’s rapid increase in solar and wind generation, even with increasing demand for electricity.
    There was twice as much investment in renewable energy compared to fossil fuels. Globally, there is more investment than solar than there is in any other type of energy technology. 
  2. South Korea has committed to phasing out most of its coal fired power plants by 2040. It operates the seventh largest coal fleet in the world but the share of coal generation has decreased from 42.5 per cent in 2015 to 30.5 per cent in 2024. As one the world’s top coal importers, and one of Australia’s largest coal customers, this signals a major shift for the industry. 

And that’s just the shortlist!

We’re looking forward to more good news in 2026.

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11 countries leading the charge on renewable energy https://www.climatecouncil.org.au/11-countries-leading-the-charge-on-renewable-energy/ https://www.climatecouncil.org.au/11-countries-leading-the-charge-on-renewable-energy/#comments Fri, 12 Dec 2025 01:39:00 +0000 http://climatecouncil-migrate.test/2016/02/16/11-countries-leading-the-charge-on-renewable-energy/ The need for a switch to renewable energy is more urgent than ever. Climate change, driven by the extraction and burning of coal, oil and gas, is already wreaking havoc on communities, economies and ecosystems right around the world. The easiest, quickest and most effective way of driving down climate pollution and giving ourselves the […]

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The need for a switch to renewable energy is more urgent than ever. Climate change, driven by the extraction and burning of coal, oil and gas, is already wreaking havoc on communities, economies and ecosystems right around the world. The easiest, quickest and most effective way of driving down climate pollution and giving ourselves the best chance of kicking climate change’s butt is by moving to an energy system based on renewables and storage. 

Here in Australia, we are building out renewable power and storage at record rates, and they now make up more than 40% of our electricity in our main grid – and 36% across the country. We are far from alone in the global renewable rollout: in the first half of 2025, for the first time ever, the world made more power with renewables than from coal. In total, around 90 countries now make more than 35% of their power with renewables. 

Around the world, the “sun is rising on a clean energy age” with more than 9 out of 10 renewable power projects being cheaper than fossil fuel alternatives.  Renewables will grow faster than any major energy source in the next decade, making the transition away from fossil fuels inevitable.

Learn more about the global progress on climate action.

Which countries have the most wind and solar power?

Australia, like many countries around the world, is relying mostly on a combination of wind, solar and storage (like batteries and pumped hydro) for its renewable power. Here’s the lowdown on the top 11 wind and solar-powered countries.

The world’s top wind- and solar-powered countries

Sources: International Energy Agency: Renewables 2025; Energy Institute: 2025 Statistical Review of World Energy; Open Electricity

*Australia refers to Australia’s main grid, the National Electricity Market (NEM). The NEM includes all states and territories except the Northern Territory and Western Australia.


1. Denmark

Denmark is one of the world’s renewable leaders, sourcing 88% of its power from renewable sources in 2024, and racing towards 100% by 2030. Wind alone provides 58% of the country’s power, thanks to more than 50 years of community leadership in wind projects. For nearly 15 years the Danish government has required all new wind projects to be at least 20% community owned. Now, more than half of Denmark’s wind generation capacity is owned by the community, helping to ensure its citizens benefit from the shift to renewables and building social licence for a rapid rollout.

2. Djibouti

In just five years, the Djibouti in northeast Africa has grown its renewable generation from nearly zero to 67% – its first wind farm opened in just 2023. Djibouti has a target to be the first country in Africa to reach 100% renewable by 2035. It is rolling out renewables as a national priority, to reduce power prices, support its industries to grow and increase its energy independence.

3. Lithuania

In recent years as the Russia-Ukraine war has impacted energy supply and prices worldwide, Lithuania has emerged as a renewable leader, ending its reliance on imported Russian fossil fuels in 2022. It has more than doubled its renewable generation since 2018 and is now more than 60% renewable, supported by a boom in rooftop solar. By 2030, Lithuania aims to shift from a net electricity importer to an exporter.

4. Luxembourg

Luxembourg, historically very reliant on fossil fuels, has been rapidly rolling out renewables as part of its plan to cut emissions by 55% by 2030. The country has already reached more than 60% wind and solar power, compared to just 9% a decade ago.

5. Portugal

Portugal is powered by more than 75% renewables, with 45% coming from wind and solar, and the majority of the remainder from hydro. Portugal’s solar generation is growing rapidly – it increased by 440% between 2017 and 2024! Portugal has been coal-free since 2021, and is working to phase down its gas use to reach 93% renewable by 2030. Portugal has a target to completely end gas generation by 2040.

6. The Netherlands

The Netherlands has halved its power sector emissions since 2018 thanks to rapid growth in both solar and wind power which now make up 45% of its power. The Netherlands’ position on the North Sea makes it ideal for offshore wind generation: it has a target to more than quadruple its offshore wind capacity from 5 GW today to 21 GW by 2032 – around 75%of its current electricity needs. Increasing its offshore wind and other renewable generation will enable the Netherlands to completely phase out coal by 2029

Want to know more about offshore wind? Read our explainer Australia and offshore wind.

7. Germany

Germany currently makes around 45% of its power from renewable resources, and has targets to grow to 80% renewable by 2030, and 100% by 2035. Germany is a leader in offshore wind, and is also installing solar at record rates: on average, Germany has been installing more than 100,000 solar panels every day!

8. Spain

Spain currently makes around 43% of its electricity from wind and solar, and another 11% from hydro. In 2024, just 1% of Spain’s power came from coal, and its last mainland coal-fired generator is set to close in 2026. Spain plans to reach 81% renewable by 2030.

9. Ireland

Ireland became the sixth country in Europe to end coal generation in June 2025 thanks to impressive growth in its wind generation capacity in the past 25 years – from just 117 MW in 2000, to more than 5 GW now installed across the country. In total, around 40% of the country’s electricity comes from wind and solar.

10. Greece

With help from its abundant Mediterranean sunshine, Greece has more than doubled its renewable generation in the past decade. Renewables now make up 50% of its total generation, with nearly 40% from wind and solar. Like Australia, Greece has a target to reach 82% renewable by 2030. As part of this, Greece will end coal generation by 2026.

11. Mauritania

Mauritania is rapidly transforming its energy systems and economy: before 2008, the share of electricity produced from renewables was less than 1%. Now, it’s more than 50% renewable, with most of this coming from wind and solar, and is aiming to reach 70% by 2030. With fewer than 10% of rural Mauritanian households connected to electricity, renewables are a key part of the country’s goal of achieving universal access by the end of the decade.


The world’s biggest polluter, China, has also  become a renewable powerhouse. Find out how China is shaping the global shift to clean energy.

How does Australia’s shift to renewables compare with the rest of the world?

Australia currently ranks 12th place for the share of wind and solar in our main grid, despite being the sunniest and one of the windiest countries in the world. 

Since our first wind and solar projects started up in the 1980s, they have grown to make up 36% of our main grid, and a further 6% of our power comes from hydro. Rooftop solar is where we really shine: one in three households have panels on their roof, more than anywhere else in the world. Rooftop solar alone makes up 13% of our power! We are also in the midst of a battery boom, with more than one million household batteries expected to be installed between now and 2030 to soak up all the excess solar power from our rooftops. These community-owned energy systems are cutting climate pollution and slashing power bills at the same time – homes with solar and battery can save more than $2,000 every year on average.

We can learn from the successes around the world to make the most of our abundant renewable resources and ramp up our ambition even further to roll out more reliable, affordable clean power.

Learn more about how renewables are the cheapest form of energy for Australia.

How are renewables impacting power bills around the world?

The International Energy Agency has found that reaching net zero by 2050 will lead to a clear decline in total household energy bills (including power, gas and fuel) in advanced economies like Australia.

While power prices are complex and depend on many factors – not just the source of power –  countries around the world are showing that renewables put downward pressure on power bills. For example:

  • In Ireland, research has found that wind and solar farms have saved Irish homes and businesses €840 million since 2000 (nearly AUD $1.5 billion). Ireland has a target to reach 80% renewable by 2030, which could cut consumer bills by an additional €610 million (more than AUD $1 billion). 
  • In Spain between 2021 and 2024, as renewable generation increased by 20%, wholesale power prices dropped by nearly 20%
  • In the United Kingdom, wind power saved homes and businesses £104.3 billion (more than AU$2 billion) between 2010 and 2023, due to its direct impact on electricity prices as well as reduced gas prices due to lower gas demand.

Have any countries reached 100% renewable?

Several countries including Costa Rica, Nepal, Albania, Ethiopia, Iceland and Norway have already reached, or come very close to, 100% renewable power. 

These countries have unique resources compared to other parts of the world, and are able to make significant amounts of power using traditional technologies like hydro and geothermal generation. However, other countries relying more on wind and solar are quickly catching up, like Denmark and Estonia which aim to be 100% renewable by 2030.

For example, Iceland – the “land of fire and ice” – has built a 100% renewable power system using hydro and geothermal resources. Iceland is making the most of the glaciers which cover 11% of the country, and its location on the volcanic Mid-Atlantic Ridge. Iceland started its renewable journey back in the 1970s as a way of reducing its reliance on expensive imported fossil fuels, and hasn’t looked back! Thanks to its abundant renewable power, Iceland citizens pay “almost nothing” for their electricity.


Want to see Australia in the top 10? Chip in today to keep climate change in the headlines and push for urgent action.

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An Aussie Roadmap: building a clean, reliable and low-cost electricity grid https://www.climatecouncil.org.au/understanding-whats-next-for-australias-main-electricity-market/ Tue, 09 Dec 2025 23:42:59 +0000 https://www.climatecouncil.org.au/?p=162687 The Australian Energy Market Operator (AEMO) has released the 2026 Draft Integrated System Plan (ISP). Think of it as a roadmap for Australia’s electricity grid. AEMO’s job is to talk to thousands of experts and test many scenarios to develop a plan that cleans up our grid and keeps it reliable as Australia’s polluting, ageing […]

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The Australian Energy Market Operator (AEMO) has released the 2026 Draft Integrated System Plan (ISP). Think of it as a roadmap for Australia’s electricity grid. AEMO’s job is to talk to thousands of experts and test many scenarios to develop a plan that cleans up our grid and keeps it reliable as Australia’s polluting, ageing and unreliable coal-powered generators close down. 

The draft 2026 roadmap confirms what plenty of energy experts know (and 4 million Aussie households with solar on the roof have experienced): renewable energy, powered by the sun and wind, is the lowest-cost way to deliver the clean and reliable energy Australia needs now. 

The latest ISP shows we are well on our way to a reliable renewables-powered grid, with more than 40 percent of the electricity in our main national grid already coming from clean wind, hydro and solar. Now, we need to build on this progress so even more Australians can enjoy the benefits.

Let’s take a look in a bit more detail.

First, what’s AEMO?  

AEMO is the organisation that makes sure our electricity and energy systems work smoothly to provide clean, reliable and affordable power for our homes, businesses and industry. Every two years, AEMO publishes an updated roadmap that governments, businesses, investors and others rely on for upgrading Australia’s electricity grid all the way out to 2050. This shows us the best way forward to keep power reliable as we keep cutting climate pollution from coal and gas and our energy needs keep growing. 
AEMO’s roadmap specifically looks at Australia’s main national electricity grid (referred to as the National Electricity Market, or NEM), which is one of the largest power systems in the world. It provides electricity to more than 23 million people – that’s almost 90% of Australia’s population.

What does the roadmap tell us? Here are our top six takeaways.

1. The switch to renewable energy is well underway, and picking up pace

Altogether, clean energy sources like hydro, rooftop solar, and solar and wind farms are already supplying 40 percent of the electricity in the national grid annually. In the right conditions, they provide even more – at one point on 11 October this year, 79% of our electricity came from renewables! 

Aussie households are generating a lot of this clean power, with millions of families simultaneously cutting their power bills and climate pollution by putting solar on the roof. In early 2025, rooftop solar was contributing nearly 15% of the electricity in our national grid – more than large-scale solar, wind or gas.  In South Australia, rooftop solar has met more than 100% of demand at certain times over the past year.

Households, businesses and investors alike are embracing renewable energy because it’s affordable, clean and can be rolled out fast. AEMO says accelerating the build out of clean wind and solar – backed by storage – is the lowest cost energy plan for Australia.

Australia is not alone in the shift to renewables: Investors around the world favour renewable energy and supporting technologies over fossil fuels. Globally in 2024, renewable generation received three times as much investment as coal did. In the first half of 2025 and for the first time, more of the world’s energy was delivered by renewables than by coal. 

2. Coal is making a quick exit, so we need to build new capacity ASAP 

Australia’s coal-fired electricity generators are retiring. Those that are left are ageing, unreliable and expensive to maintain and run around-the-clock. They are frequently taken offline to deal with breakdowns and maintenance outages, which puts pressure on the rest of our power grid. 

AEMO is preparing for two-thirds of Australia’s coal-fired generators to close by 2035 so we’re in a race against the clock to get replacement power online before this happens. The roadmap confirms that a combination of rooftop solar and community batteries, together with large-scale wind, solar and storage, is our best and most affordable option to keep powering Australia past the end of coal. 

As we phase out climate pollution in more places like transport and industry, the roadmap confirms we’ll also need more electricity in the future. Under the scenario that AEMO considers most likely, Australia’s electricity demand will double by 2050, as we use more electric vehicles, switch out gas in homes and businesses for electric alternatives, and as our green exports industries expand. 

While we’re making great progress, there is still a lot more to do – which is why AEMO says we need to step on the accelerator. 

Learn about how our ageing coal generators are ramping up blackout risks and power prices.

3. Clean energy backed by storage and firming is the lowest-cost way to power our homes and businesses

AEMO modelled thousands of different scenarios, and consulted with more than 1,400 organisations and experts to determine the lowest-cost way to supply reliable, affordable and clean electricity to Australians while cutting climate pollution. The result? Renewables, backed by storage. This is because solar and wind projects are quick to build, cheap to run, and most importantly, the sun and wind are freely available forever! This not only keeps electricity affordable, it protects Australians against international price shocks caused by volatility in the coal, oil and gas markets. 

Even with the supporting technologies needed for renewables – like transmission and storage – they are the lowest-cost option. In fact, building more transmission can deliver more than $20 billion in benefits for Australians.

4. More Aussies will directly benefit from rooftop solar

The roadmap shows that more and more of our electricity needs will be met by everyday Australians taking their power bills into their own hands with rooftop solar, as well as household or community batteries.

Already, 40% of households in Australia’s main grid have rooftop solar, and this is expected to grow to nearly 50% over the next decade. More and more Aussies will also pair their rooftop solar with household batteries as they become cheaper. AEMO expects the amount of electricity that everyday Australians make and use to increase from around ten percent today to more than  a third of Australia’s energy needs by 2050, even as electricity consumption doubles.

Read more about the benefits of rooftop solar in our report Seize the Sun: How to supercharge Australia’s rooftop solar

5. Batteries and pumped hydro will keep our grid reliable, with gas playing a limited role

Different types of renewable energy, like wind and solar, complement each other to provide power around the clock. Our energy system will also store energy up at times when it’s abundant through large- and small-scale batteries and pumped hydro, to make it available later on when we need it. In other words, just as it doesn’t rain all the time but we can access water whenever we want, AEMO’s roadmap confirms that a mix of solar, wind, hydro and storage can power our homes, industry and businesses 24/7.    

Gas is a polluting fossil fuel which can be just as bad for the climate as coal.  As we shift to renewables, expensive gas will only be used to generate electricity at the rare times that other sources aren’t available. Gas is often the most expensive source of energy in the market today, with high prices for this fossil fuel globally playing a big part in driving up household power bills over the past few years.

Find out more about how batteries are supporting our renewable grid in Battery Boom: Supercharging Australia’s Renewable Rollout

6. We need to do more to unlock the benefits of renewables for Australians

While momentum is building, challenges remain in delivering essential infrastructure at the pace required. To meet our climate and energy targets and maximise the benefits for Australians, we need to address the barriers to the renewable energy rollout, including:

  • Ensuring the supply chain for critical energy assets and workforces is secured.
  • Maintaining investment certainty with targets and policies that support energy infrastructure and investment. 
  • Ensuring our power system is ready for 100% renewables with technologies to ensure a smooth transition and deliver a secure and reliable energy system. 
  • Coordinating household solar and storage, so that power is available when it’s needed most, cutting costs for all Australians.
  • Building social licence through community engagement, benefit sharing and clear roles.
  • Streamlining and enhancing planning and environmental approval processes for infrastructure.

So, what’s the bottom line?

The experts at AEMO say renewable energy from the sun and wind, backed by storage, is the best way to power Australia in the coming decades. 

Not only is it our lowest-cost option, it’s also the most reliable and our best bet for getting replacement power online before more coal generators close down. The roadmap underscores that we’re well on the way to building the clean energy system we need. 

Australia should stick to the path we’re already on, and accelerate our progress, to deliver a reliable and affordable energy system that can cleanly power Australia for generations to come

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Five reasons why your power bills are sky high–and how we can help bring them down https://www.climatecouncil.org.au/four-reasons-why-your-power-prices-are-sky-high-and-rising/ Mon, 01 Dec 2025 00:32:21 +0000 https://www.climatecouncil.org.au/?p=163735 First published: 13 March 2025; Updated 1 December Australians are struggling with the cost of living, and rising power bills are putting even more pressure on household budgets. Three in 10 parents say they’re struggling to afford food, power bills or insurance. The key question is: how did we get here, and what can actually […]

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First published: 13 March 2025; Updated 1 December

Australians are struggling with the cost of living, and rising power bills are putting even more pressure on household budgets. Three in 10 parents say they’re struggling to afford food, power bills or insurance. The key question is: how did we get here, and what can actually be done about it?

While power prices are complex, the short answer is, Australia’s reliance on polluting and expensive coal and gas is a major driver of high power bills. They are driving up wholesale power prices (the prices our electricity retailers pay), which make up up to 40% of bills. 

key reasons your power bills are sky high

1. Australia’s energy system still relies too heavily on expensive fossil fuels 

Australia is adding renewable power, like solar and wind at record rates – but for now, the majority of our electricity still comes from expensive and polluting coal and gas. These days, electricity made from fossil fuels is far more expensive than renewable power. In 2025, the average price of electricity from fossil fuels is $123 per megawatt hour (MWh), almost twice the average price of electricity from renewables ($64 per MWh). Already, more than 40% of our power is from renewable sources, and adding more will avoid even larger power price hikes.

Fossil fuel prices are so high because on top of general inflation, coal and gas-fired power stations pay international prices for the fuels. Prices have eased since the extreme spikes driven by the Russia-Ukraine conflict in 2022, but are still high. As long as our energy system continues to rely on fossil fuels that are bought and sold as international commodities, we will remain at risk of sudden and unexpected spikes in power prices. In contrast, the wind and sun are free, and when backed up by storage like batteries, they can provide abundant, locally produced power forever.

Weighted average wholesale prices in the NEM, year to October 2025. Source: Open Electricity 2025

Read more: An Aussie Roadmap: building a clean, reliable and low-cost electricity grid.

2. Gas companies export the vast majority of Australia’s gas for eye-watering profits, at the expense of Australian families and businesses

Fossil gas prices are high because we are one of the largest exporters of gas in the world, exporting around 80% of our gas, which means we have to compete with global export prices. Gas companies ship so much of their gas offshore because that’s how they maximise their profits. 

Companies exporting fossil gas have made close to $100 billion in profits since the Russia-Ukraine conflict began in 2022, at the expense of Australian families and businesses. More and more Australian households are struggling to stay on top of their power bills, and industries are under significant pressure, and even closing down, due to high gas costs. These multinational corporations are making billions while providing almost no benefit to our economy and costing us thousands of dollars every day. At the same time, they are responsible for huge amounts of climate pollution both in Australia and worldwide.

Because gas is so expensive, electricity made using gas has a disproportionate impact on overall power prices. Even though only about 5% of electricity in Australia’s main grid comes from gas, research from Griffith University shows that because gas is so expensive, gas prices drive 50-90% of pricing periods in Australia’s main grid.

Expensive gas often sets power prices

Average prices for the financial year. Sources: Australian Energy Regulator gas market prices 2025; Open Electricity 2025

Read more: 5 reasons Australia needs to break up with gas.

3. Our ageing and unreliable coal-fired power stations are driving severe price spikes

Most of Australia’s coal generators are more than 40 years old, and their ability to reliably produce power has dropped off dramatically – driving severe price spikes when there are unplanned outages. For example, Australia’s largest coal-fired power station, the 43 year-old Eraring Power Station in NSW’s Hunter Valley, had more than 6,000 hours (250 days) of planned and unplanned outages in 2024. Yallourn in Victoria is limping to its retirement date, with at least one of its generators unexpectedly out of action for one-third of the year in 2024.

When there are coal outages, power prices go up due to reduced supply and the increase in expensive gas generation to meet our electricity needs.  Four of the most severe power price spikes in the past seven years have been driven by unplanned coal outages (Analysis by Baringa 2024). Coal outages contributed to yet another severe price spike in June this year. 

Building a diversity of projects, like solar, wind, and storage, in more places makes our grid more reliable. Instead of relying on a small number of large generators that must run constantly (no matter how much electricity we need), and cause huge shocks to the energy system whenever outages occur, renewables create a flexible, distributed system. Modern grids need a mix of technologies, not traditional baseload generation. 

Read more: Lights Out: Ageing Coal and Summer Blackouts.

Coal outages are driving major power price spikes

Monthly average wholesale prices. Source: Baringa 2024: The challenge of ageing coal generators and the growing role of storage in grid reliability; AEMO Quarterly Energy Dynamics Q2 2025; Open Electricity 2025

It’s not all bad news – here are two ways we can help keep power prices in check.

4. Replacing our ageing coal-fired power stations with renewables will save Australians billions on their power bills

We need to replace our ageing coal-fired power stations to keep reliably powering homes and businesses. Renewables are not only the least expensive option to build, but are also the lowest-cost source of power. This is because unlike fossil fuels, Australia’s abundant wind and sun provide locally produced power without needing to extract and burn expensive, polluting fuels.

Australia’s energy market operator is preparing for nearly all our coal-fired power stations to close by 2038, and 90% to shut down over the next ten years. We need new sources of electricity to keep the lights on. The fastest, lowest cost way to replace coal is with renewables and storage. CSIRO recently found for the seventh year in a row that renewables (wind and solar), including storage and transmission, is the lowest-cost option – far cheaper than gas and nuclear. 

As more and more lower-cost renewables enter our grid and displace coal and gas, this will help put downward pressure on power prices. Modelling shows that if we delayed the expected roll out of renewables and continued our reliance on coal and gas, power bills could be between $449-606 higher for households, and $877-$1,182 for small businesses in 2030. This adds up to between $4.5 – $6 billion in additional costs for households in Australia’s main grid in 2030.

Delaying the shift to renewables could cost Aussie households billions

Source: Climate Council analysis of Jacobs and Clean Energy Council 2025: The Impact of a Delayed Transition on Consumer Electricity Bills; Australian Bureau of Statistics 2021: projected households

Read more: What is the cheapest form of energy for Australia?

5. Aussie households can take control of their power bills by installing rooftop solar, switching to electric appliances and improving their energy efficiency    

The best way governments can help Aussies struggling with rising energy costs is to deliver more lower-cost, clean power, backed by storage like batteries, and make sure all Australians can access opportunities to reduce their energy bills and make their homes more comfortable and safe to live in. 

Electrifying our homes, improving their energy efficiency and increasing rooftop solar uptake will directly help households deal with the rising costs of living while cutting our climate pollution. Already, more than 4 million Australian households have already installed rooftop solar, with each saving on average more than $1000 on their power bills every year. Australians are also installing batteries in record numbers to store their cheap excess solar to use whenever they need it. Batteries can boost the savings of a solar system to more than $3000, depending on where you are in Australia and your energy use.

On top of this, households in all Australian capital cities could save between $500 and $1900 every year by getting off gas and switching to electric, efficient appliances. When combined with solar and batteries, all-electric homes could slash household energy bills by up to 90% in many parts of Australia.

Read more: Seize The Sun: How to supercharge Australia’s rooftop solar.

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What does the data centre boom mean for Australia’s switch to renewables? https://www.climatecouncil.org.au/what-does-the-data-centre-boom-mean-for-australias-switch-to-renewables/ Tue, 25 Nov 2025 05:32:34 +0000 https://www.climatecouncil.org.au/?p=170584 Data centres make many of the things we take for granted in our day-to-day lives possible: sending emails, online shopping, streaming tv shows, cloud storage and navigation apps – the list goes on. They are the foundation of our growing digital economy, and are bringing new investment and skilled jobs to Australia. Data centres can […]

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Data centres make many of the things we take for granted in our day-to-day lives possible: sending emails, online shopping, streaming tv shows, cloud storage and navigation apps – the list goes on. They are the foundation of our growing digital economy, and are bringing new investment and skilled jobs to Australia. Data centres can help cut climate pollution and boost productivity by making many processes more efficient, but they also use large amounts of energy and water. As demand for data centres surges, driven largely by the growth in artificial intelligence (AI) and cloud computing, we need to carefully manage their impact on our grid and environment. 

Here are eight key things to know about data centres and what they mean for Australia and our shift to renewables.

1. What are data centres?

Data centres are buildings that run all day, every day, to process, store, and manage digital data. They include equipment like servers, routers, switches, firewalls, and storage systems. They can range in size from small sites under 500 square metres, to massive “hyperscale” centres more than 100,000 square metres.

2. How many data centres are in Australia?

There are already more than 250 data centres in Australia. Despite our relatively small population, we are in the top five locations for data centres in the world. They’re usually near major cities, so they can be easily connected to the electricity grid and to the businesses and government agencies that rely on them. 

3. How much energy does a data centre use?

Like their physical size, the energy needs of data centres vary greatly. Typical data centres are around 5-10 megawatts (MW) in size (NB 1 MW is enough to power around 300 homes). or use about as much energy as around 3000 houses. Emerging “hyperscale” data centres can be more than 100 MW, needing as much electricity as a small city. In total, Australia’s data centres currently use just over 2% of the power in our main grid, and this is expected to grow to around 6 per cent by 2030 as AI and cloud computing grow.

Data centre energy demand is forecast to grow nearly 5x over the next decade

Data centre energy demand graph
Source: AEMO 2025-26 Inputs, Assumptions and Scenarios

4. How much climate pollution does a data centre create?

Most of the climate pollution from data centres comes from the electricity they use, and along their supply chains. The emissions from energy use depend on a centre’s size, location, and energy efficiency. For example, a data centre in a state with a high share of renewables like Tasmania, the ACT or South Australia, will generally have lower emissions than one in states that rely more on coal and gas. Some data centres are also cutting their climate pollution (and their power bills) by making or purchasing clean power. 

What are the climate impacts of using AI?

AI is now powering processes and devices that many of us regularly use – like search engines, social media algorithms, maps apps, smart watches and voice recognition tools. It is becoming embedded in our digital lives, often without us playing an active role. More people and businesses are also actively using large language model (LLM) tools like ChatGPT. There are growing concerns about the climate and environmental impacts of AI.

Research estimates that a typical text-based AI query now uses about 0.2-0.3 watt-hours (Wh). The energy consumed depends on the model used, and increases with the complexity of the query – generating an image may use around 0.5Wh. For comparison, boiling a kettle uses around 100 Wh. The climate pollution from an AI query depends on many factors including the location of the data centre and measures it has in place to improve energy efficiency and use renewable power. Research shows that a typical AI query creates a few grams of carbon pollution. 

Should I limit my AI use to reduce emissions?

Firstly, energy use and climate pollution are just two of many factors to consider when deciding whether to use AI tools. Minimising AI use is one thing we can do to reduce emissions, just like eating less meat, riding a bike to work instead of driving, or composting food waste. Ultimately though, governments and corporations have the responsibility to set and work within policy that addresses the climate emergency including by switching to renewable energy and away from fossil fuels.

5. How can data centres reduce their energy use and climate pollution?

There are many ways that data centres can cut climate pollution, and many are already being adopted in Australia. Many data centre operators in Australia have committed to 100% renewable energy by 2030. Actions they are taking include:

Elsewhere around the world, data centres are:

6. How can data centres help reduce climate pollution in other sectors?

AI and data centres have many existing and emerging applications that can help reduce emissions. For example, AI is already being used around the world to:

  • detect leaks in oil and gas projects to cut pollution
  • make manufacturing processes more efficient
  • drive precision agriculture to reduce fertiliser, pesticide and water use while boosting productivity
  • optimise energy use in buildings – for example, smarter heating and cooling can cut energy use by around 10 per cent.

Here in Australia, AI-integrated 3D concrete printing is being pioneered to help increase the environmental sustainability of the construction industry, and provide solutions for the housing crisis. The technology can cut construction waste by 60 per cent, production time by 70 per cent and labour costs by 80 per cent. In 2025, the first 3D-printed multi-storey house in the southern hemisphere was built in Melbourne in just five weeks.

7. What are the other environmental impacts of data centres?

Data centres generate a lot of heat and need huge amounts of water for cooling. A small one-megawatt data centre using traditional cooling methods can use around 26 million litres of water a year – enough for more than 150 average Australian homes. As southern Australia experiences one of its most severe droughts to date, water resources will become even more limited in some parts of the country in coming years under the changing climate. It’s critical that we manage the growth in data centres without placing extra strain on water supplies. 

For example, we should ensure data centres are located in areas with sufficient water supply and infrastructure, and adopt systems that recover, treat and reuse water. New technologies are emerging too. In China, there is already one commercial-scale underwater data centre, and more are being built – using seawater for cooling rather than valuable freshwater. Roughly 40 percent of the electricity consumed by a typical data centre is for cooling – so innovative approaches like this are a win-win.

Data centres can also require significant amounts of land, can create noise pollution which impacts nearby communities and animals, and electronic waste that needs to be appropriately managed at its end of life.

8. How are we going to power the growing number of data centres?

As Australia electrifies homes, businesses, and vehicles, energy demand is rising. The rapid growth of data centres will place extra pressure on our grid.  We have a timely opportunity to develop data centres in ways that support our shift to renewables – attracting investment in new clean power projects and cutting climate pollution across the economy. 

Work is already underway: key energy bodies including the Australian Energy Market Operator (AEMO) and Australian Energy Market Commission (AEMC) are factoring data centre demand into future grid planning and market rules. The Australian Government is developing a new national data centre strategy, and already requires the data centres it uses to host government data to meet strong energy efficiency standards. Governments are major data centre customers, and these requirements set important expectations for the entire industry. Growing pressure from businesses, investors and the community to improve Environmental, Social and Governance (ESG) standards is reinforcing this trend. But further coordination and leadership is needed to ensure data centres are powered by renewables and reduce their impacts on the grid.

Data centres are essential for Australia’s growing digital economy, but the industry must grow in ways that align with our clean-energy future. With smart policy, industry leadership, and lessons from global best practice, Australia can harness the benefits of data centres while accelerating the shift to renewables.

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Five reasons why a Coalition deal on environment law would fail on climate https://www.climatecouncil.org.au/five-reasons-why-a-coalition-deal-on-environment-law-would-fail-on-climate/ Fri, 21 Nov 2025 01:01:38 +0000 https://www.climatecouncil.org.au/?p=170546 The Coalition has reportedly released their list of demands to do a deal with the Government on our national environment law reforms. The Climate Council has undertaken rapid analysis of these proposed amendments and why they would fail on climate. The five reasons a Coalition deal on environment law would fail on climate: In contrast […]

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The Coalition has reportedly released their list of demands to do a deal with the Government on our national environment law reforms. The Climate Council has undertaken rapid analysis of these proposed amendments and why they would fail on climate.

The five reasons a Coalition deal on environment law would fail on climate:

  1. Climate accountability gutted: climate impacts would be completely ignored in approval decisions – even though climate change is the greatest threat to Australia’s environment. 
  2. Free pass for polluting fossil fuel projects: By rejecting any inclusion of climate, the Coalition’s approach effectively gives new coal and gas developments a free ride through approvals. Under this deal, mega-polluting fossil fuel projects would continue to be approved unchecked by climate considerations and no guardrails would be put in place to prevent the fast-tracking of fossil fuels. 
  3. Undermines an independent EPA reducing accountability of project impacts.
  4. Dilutes key guardrails and safeguards designed to protect our environment: including the ‘net gain’ and definition of ‘unacceptable impact’, that are crucial to stopping irreparable environmental damage and ensuring developments leave nature better off.
  5. Fails to fix logging loopholes and land clearing exemptions that are currently contributing to the destruction of our native forests and critical habitat.

In contrast to the Coalition, the Greens’ key demands have been reported as:

  • A strong, independent EPA
  • An end to native forest logging – such as closing existing loopholes
  • Adequate protections for critical habitat, including from land clearing
  • Consideration of climate impacts to some degree (even if a ‘climate trigger’ is off the table)
  • No fast-tracks for polluting coal or gas projects
  • No wholesale handover to states of approvals – including the water trigger

Rapid analysis of Coalition deal

Watering down climate pollution information provided by companies and the requirement for companies to make plans to reduce climate pollution

Climate accountability gutted: A Coalition deal would explicitly exclude emissions disclosure and consideration of direct climate pollution from projects. This would represent an abject failure to address climate change or climate harms in any way, and risk undermining Australia’s climate targets, policies like the Safeguard Mechanism and Australia’s international commitments.

Emissions disclosure requirements and plans to reduce pollution would either be gutted completely, or left toothless – in direct contradiction to the recommendations of the Samuel Review of the EPBC Act, which recommended disclosure of “the full emissions of the development”.

This would leave our national environment law completely out of step with existing emissions disclosure requirements (that include Scope 3) in many states i.e. Environmental assessments in both New South Wales and Queensland, Environmental assessments from the Federal offshore oil and gas regulator NOPSEMA, and the Albanese Government’s own climate-related financial disclosure framework.

Fossil fuel projects given a free pass: By rejecting climate safeguards, the Coalition’s approach effectively gives new coal and gas developments a free ride through approvals. There would be no obligation to assess whether a proposed mine or gas field undermines Australia’s climate targets, nor any ban on fast‑tracking polluting projects

No guardrails against fast tracking of fossil fuels

There are currently several approval pathways in the bill that could inadvertently enable this – such as the streamlined assessment pathway, the bioregional plans, state accreditation pathways and NOPSEMA. A deal with the Coalition doesn’t set any guardrails at all to ensure polluting coal and gas projects aren’t fast-tracked, alongside the environmentally responsible clean energy and housing projects Australia needs.

The Minister retaining responsibilities, particularly around the assessment and approval of projects, and weakening the EPA’s ability to enforce the rules

Undermining an independent EPA: A core Coalition condition is to weaken the new independent Environmental Protection Agency. They want to extend political control over the EPA’s leadership – for example, by giving the minister power to sack the EPA’s CEO. This undermines the whole point of an independent watchdog. Effective oversight requires a strong, arms-length EPA. The new EPA must be free to enforce the rules without fear of political interference, otherwise environmental protections will be hollow.

Reinstating streamlined approval pathways that industries are demanding

This prioritises approval pathways and efficiency for business and industries over environmental protection.

It is noteworthy that the Coalition supports the creation of more approval pathways, when this law is supposed to reduce complexity and avoid duplication. 

This is about industry trying to have a foot in both camps: if the fast lane doesn’t work for them, then they want to keep a back door open.

Redefining or watering down the “unacceptable impact” safeguard

Dilution of the ‘unacceptable impact’ safeguard: The reforms propose a new test to block projects that would cause “unacceptable impacts” on protected matters – a crucial safeguard to stop irreparable environmental damage. The Coalition appears to be attempting to water this down by weakening the definition or making it easier for decision-makers to bypass. 

This test needs to be strong and objective, not weaker: it should clearly condition or prevent projects that would irreversibly harm critical ecosystems or drive species extinctions.

Redefining or diluting the concept of “net gain”

The Coalition also objects to provisions requiring developments to leave nature better off. Notably, they oppose the “net gain” requirement – a rule that any environmental damage from a project must be more than offset by repairs or improvements elsewhere.

If this requirement is watered down or scrapped, companies could tick a box with token efforts that don’t actually make up for the harm done. The result? Big projects go ahead, while our wildlife and ecosystems continue to decline.

Weaker penalties

A watered down penalty regime: Reduced accountability and compliance – letting industries/projects that break the rules or cause environmental damage off lighter by reducing penalties.

Nothing on the table regarding native forest logging, or land clearing

A deal with the Coalition would leave a gaping hole in the law by keeping native forest logging exempt from federal oversight. Right now, logging conducted under Regional Forest Agreements (RFAs) isn’t subject to the EPBC Act at all – and the Coalition is not prepared to change that. This means destructive logging of our native forest could continue without meeting national environmental standards or scrutiny by the new EPA. 

This decades-old loophole must be closed to protect wildlife and carbon-rich forests. A deal with the Coalition would perpetuate business-as-usual logging, undermining the credibility of any “once-in-a-generation” reform. Graeme Samuel himself strongly critiqued these exemptions for forestry, describing them as “untenable loopholes” in the context of strengthening Australia’s environmental laws. The deal also preserves a free pass for continued land clearing – exactly the kind of loophole that has contributed to Australia’s nature emergency.

Learn more about the Government’s proposed environment law reforms here.

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Ten years of the Paris Agreement: what have we achieved? https://www.climatecouncil.org.au/ten-years-of-the-paris-agreement-what-have-we-achieved/ Wed, 12 Nov 2025 01:43:22 +0000 https://www.climatecouncil.org.au/?p=170452 In 2015, the Paris Agreement made history. 195 countries came together at the world’s biggest summit on climate action (also known as COP21) and agreed to the world’s first binding international agreement to limit climate change and adapt to its impacts. Importantly, countries agreed to work together to hold ‘the increase in the global average […]

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In 2015, the Paris Agreement made history. 195 countries came together at the world’s biggest summit on climate action (also known as COP21) and agreed to the world’s first binding international agreement to limit climate change and adapt to its impacts.

Importantly, countries agreed to work together to hold ‘the increase in the global average temperature to well below 2°C above pre-industrial levels’ and pursue efforts ‘to limit the temperature increase to 1.5°C.’

Every national government must now establish a clear plan to reach net zero emissions with regularly updated targets to cut climate pollution.

As governments converge once more at the United Nations Climate Conference, this time, COP30 in Belém, Brazil, some are asking what have we achieved to combat climate change? 

The past three years have been the hottest on record, climate disasters have slammed every continent this year and climate pollution from coal, oil and gas continues to rise.  

10 years after Paris, it’s worth taking stock of where we are at, how much the world has achieved, and the task ahead.  

We’ve made substantial progress in the global shift to clean energy

Pollution from coal, oil and gas continues to rise, but much more slowly

In 2023, the international community agreed to switch away from fossil fuels, finally formally acknowledging the contribution of coal, oil and gas to global warming.

This agreement was labelled the ‘beginning of the end’ for fossil fuels globally. While we still have a long way to go, the global energy mix is shifting away from coal, oil and gas:

  • Global emissions are slowing: the latest data shows that we are burning more fossil fuels than ever and emissions continue to climb, but the rate of growth has dropped from 2% per year to 0.6% per year. 
  • The world’s biggest polluter’s emissions have peaked: China’s emissions are already peaking, five years ahead of previous projections.
  • Countries are phasing out coal: this year, Ireland became the eighth country to phase out coal generation since the Paris Agreement was signed. Many more have committed to becoming coal-free over the coming years, including nearly the entire European Union.
  • More countries are committing to get off coal, oil and gas: Pacific Island Nations are leading a diplomatic campaign for a global phase out of coal, oil and gas, calling for a Fossil Fuel Non-Proliferation Treaty. In addition, 62 countries led by the UK and Canada have pledged to phase out unabated coal generation completely through the Powering Past Coal Alliance.

Clean energy is transforming the world

The global energy transformation is gathering speed: low-emissions energy sources (including wind, solar, hydropower and nuclear) now generate more than 40% of the world’s electricity, compared to 33% in 2015. 

Clean energy is smashing records:

  • 2025 saw a significant milestone: in the first six months of 2025 the world generated more power from solar and wind than from coal.
  • Record-breaking renewable rollout: Global renewable electricity generation is expected to nearly double by 2030 – enough new renewable generation to meet the combined power demand of China and the US.
  • Solar is booming: ​​It took eight years for the world’s solar capacity to go from 100 TWh to 1,000 TWh, then just three years to double to 2,000 TWh. Solar prices have dropped 66% in the past decade, becoming the cheapest form of power in history.
  • Investment in clean energy has increased 10x: Investment in clean energy has grown from around US$230 billion in 2013, to $2.2 trillion in 2025 (equivalent to AU $3.4 trillion – twice as much as global investment in coal, oil and gas). 
  • China: The world’s biggest polluter, China, is transforming into a clean energy juggernaut. 
  • Cleaning up transport: One in five cars sold worldwide is now electric, compared to just 1% in 2015.

Read more in our report Power Shift: The US, China and the Race to Net Zero

Net zero is the global minimum

When the Paris Agreement was signed in 2015 no countries had formal net zero targets. Now, 

83% of the global economy has a net zero target. Analysis shows that climate targets are becoming more robust over time, covering more sectors and gases. The majority of countries also have targets to increase renewable generation.

The Paris Agreement aims to reach peak global greenhouse gas emissions as soon as possible, reaching net zero by the second half of this century. If all countries follow through on their commitments, global emissions are expected to peak by 2030. However, to limit global heating to 1.5°C without overshoot, global climate pollution needed to peak this year, at the latest, and fall by 43% on 2019 levels by 2030. 

But global temperature is rising, and so are the impacts

We are already living in a hotter and more dangerous world, fuelled by climate pollution from coal, oil and gas. Today we are at 1.3°C of global warming, and the past three years have been the hottest on record

In 2015, the world was on a catastrophic path to an average global temperature increase of 4°C by the end of this century. Now, according to the latest official data, we are tracking towards 2.3 – 2.5°C, if countries reach their targets. 

This is a more dangerous future, and still falls far short of what is needed. Global warming of 1.5°C is considered the upper limit of what vulnerable communities, coral reefs, and many ecosystems can withstand. Science is clear that crossing the 1.5°C threshold increases the risk of triggering irreversible and cascading climate impacts. Transformative action, delivered urgently, is needed to limit how much and for how long we overshoot this threshold, and to bring temperatures back down to safer levels.

The only way to do so is by cutting pollution from coal, oil and gas further and faster than we are today, in all the places we can do so.

With almost half the world’s population already vulnerable to the effects of climate change, global work to adapt, build resilience and deal with loss and damage caused by climate-driven disasters is critical. The Paris Agreement set a Global Goal on Adaptation to increase countries’ efforts to prepare for and manage the impacts of climate disasters. In 2023 countries agreed to an adaptation framework, and a key focus of COP30 in Belém is to establish indicators to measure this progress.

The international community has also established a new Loss and Damage fund, and as of June this year, 27 countries had pledged more than AU$1.2 billion. This represents a small fraction of the estimated economic costs of climate change-induced loss and damage in developing countries of up to $AU800 billion in 2030, rising to up to 2.6 trillion by 2050.

We need to do so much more – and Australia has a key role to play

Australia is a major climate polluter: we are the world’s 10th largest polluter on a per person basis, and one of the largest fossil fuel exporters. So we have an important role to play at home, and abroad. With the right policies, Australia can contribute to global goals while growing our own economy and creating skilled jobs. 

Powering past our climate targets

Under the Paris Agreement, the Albanese Government has pledged to cut climate pollution 43% by 2030, 62-70% below 2005 levels by 2035 and reach net zero by 2050. 

Our analysis shows we can, and should, be doing much more to keep Australians safer. Read more about our analysis of Australia’s target and temperature rise scenarios

To keep Australians safer from worsening climate harm, and unlock Australia’s economic opportunity, the Australian Government should put in place policies to not just meet a 70% reduction, but power past it. 

Growing green export industries

Australia also has a significant opportunity in the global shift to renewables. By making use of our abundant renewable resources and critical minerals we can support global decarbonisation while boosting our own economy and creating skilled jobs in future-focused export industries. Australia’s green export opportunity could create over 400,000 jobs by 2040, growing the economy by $100 billion per year. 

Phasing out fossil fuels

We must also deal with polluting fossil fuels. We can start by stopping approvals of new and expanded fossil fuel projects. At the moment our environment law doesn’t include any mechanism to consider the climate impacts of such projects on our environment.

The Government has approved seven coal and gas projects this year alone, and 32 since forming government in 2022. Another 42 are waiting to be assessed.

The Albanese Government can still deliver credible environment laws that protect the places we love from climate harm, and don’t undermine our climate laws and policies.

Find out how Australia’s national environment law measures up on climate, and how we can fix this.

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What is the Paris Agreement and why does Australia need to set a Nationally Determined Contribution? https://www.climatecouncil.org.au/paris-agreement-australia-nationally-determined-contribution/ Mon, 28 Jul 2025 05:08:06 +0000 https://www.climatecouncil.org.au/?p=169975 The Paris Agreement, adopted by 195 countries in 2015, represents the world’s collective approach to tackling climate change. Under the agreement, nations submit targets to cut climate pollution – described as Nationally Determined Contributions. Together, these targets chart a global pathway to slash climate pollution and prevent global temperatures from exceeding agreed limits. Under the […]

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The Paris Agreement, adopted by 195 countries in 2015, represents the world’s collective approach to tackling climate change. Under the agreement, nations submit targets to cut climate pollution – described as Nationally Determined Contributions. Together, these targets chart a global pathway to slash climate pollution and prevent global temperatures from exceeding agreed limits.

Under the Paris Agreement, countries are required to submit increasingly strong targets every five years, enabling them to “ratchet up” (or ramp up) their effort over time to cut climate pollution. 

National targets need to be backed by plans and policies to allow those planned reductions to be achieved. 

This year marks a critical moment for our climate future. Under the Paris Agreement, nations are required to submit new 2035 climate targets. Collectively, these targets must slash global climate pollution fast enough to keep temperatures within internationally agreed limits designed to prevent catastrophic harm to people and ecosystems.

The central goal of the Paris Agreement is “holding the increase in the global average  temperature to well below 2°C above pre-industrial levels” and pursuing efforts “to limit the temperature increase to 1.5°C above pre-industrial levels.”

Australia’s 2035 climate target is an opportunity to set Australia on the right path, one which keeps our kids safer from the impacts of climate change and sets our economy up for success in a fossil fuel-free world. Climate Council’s report, Stronger Target, Safer Future: Why Australia’s 2035 Climate Target Matters, provides a framework for setting the strongest possible targets.

Securing a safer future means hitting the brakes on accelerating climate change

Climate science is clear: humanity is now releasing huge volumes of heat-trapping greenhouse gases into our atmosphere, primarily from the burning of coal, oil, and gas. This layer of gas acts like a blanket, trapping more heat every year. That heat fuels worsening extreme weather events and is dramatically damaging the ecological systems that sustain human life. In other words, we are living through a climate crisis.

In the future, the scale and severity of the climate crisis will depend on:

  • How quickly we cut climate pollution; and 
  • How much global temperatures rise as a result.

Every fraction of a degree of global temperature rise leads to more frequent and ferocious extreme weather events, ecosystem damage, and impacts on lives around the world. On the other hand, avoiding even a fraction of a degree of global heating is extremely significant in reducing risks to communities worldwide. 

Global average temperature rise is now 1.3°C above the pre-industrial average and, in 2024, global average temperatures hit 1.6°C over a full year, breaking through 1.5°C for the first time. Importantly, these temperature thresholds cannot be breached in a single year – climate science, and the Paris Agreement, take a longer-term view of global average temperature over decades. But this is a clear warning sign that we are moving closer and closer to exceeding the 1.5°C temperature threshold. 

We are currently on a trajectory towards drastic global temperature rise and catastrophic climate impacts that could undermine the foundations of our society, prosperity, and security. Swift action to slash climate pollution from the burning of coal, oil and gas is the only solution which can protect those most vulnerable to the catastrophic impacts.

“Climate history is playing out before our eyes. We’ve had not just one or two record-breaking years, but a full 10-year series. This has been accompanied by devastating and extreme weather, rising sea levels and melting ice, all powered by record-breaking greenhouse gas levels due to human activities.” – WMO Secretary-General Celeste Saulo. 

The rate of global warming is now 0.27°C per decade and, without urgent efforts to cut climate pollution, we will overshoot the Paris Agreement’s goal of holding warming well below 2ºC in less than two decades. Climate change is accelerating and the risks are escalating at a much quicker pace than we previously thought.

The UN’s latest assessment concluded that the “current national climate plans fall miles short of what’s needed to stop global heating from crippling every economy, and wrecking billions of lives and livelihoods across every country”. 

It is in this context that countries are required to submit their 2035 target under the Paris Agreement later this year.

What climate target should Australia commit to?

Australia will submit our new 2035 climate target, a Nationally Determined Contribution, under the Paris Agreement this year. The current target, to reduce Australia’s climate pollution 43% on 2005 levels by 2030, was legislated in 2022.

The Climate Change Authority has been charged with providing advice to the Australian Government on setting and achieving its 2035 target. This advice is expected to be shared imminently. In 2024, the Authority released an issues paper, ‘Targets, Pathways and Progress’, which considered a target range of 65-75% below 2005 levels by 2035.

In anticipation of this advice being provided to the Australian Government, Climate Council commissioned Climate Resource to assess the global warming implications of an Australian 2035 climate target. The analysis uses the latest emissions data and shows what an Australian target means for global average temperature risk.

This new analysis shows the only Australian target that’s compatible with holding global warming below 2°C is net zero by 2035. The closer the Australian Government’s 2035 climate target gets to net zero, the less climate risk Australians face. 

The analysis also shows that a 2035 climate target of -75% or more (on 2005 levels) is aligned with more than 2°C of global heating, but likely less than 2.3°C*. Weaker targets are aligned with even higher levels of global heating. Each fraction of a degree of global heating is associated with more catastrophic impacts to communities and ecosystems. A -65% target is aligned with below 2.4°C of global heating.

The Australian Government must set the strongest possible 2035 climate target. A stronger target will keep Australians safer. A weaker target risks more disasters, more damage and more danger.

Climate consequences if the world fails to set strong targets

As our climate has warmed, Australia has been being hit hard. Where long-term global warming is currently about 1.3°C above pre-industrial levels, Australia has warmed by an average of around 1.51°C since national records began in 1910.

This increase in temperature is fuelling more frequent and intense extreme weather events, including extreme heat, heavy rainfall, coastal inundation, dangerous bushfire weather and drought. Many communities have now experienced back-to-back disasters that would have previously been considered a 1-in-50 or 1-in-100 year weather event. 

The IPCC Special Report on Global Warming of 1.5°C (IPCC 2018) shows the risks for both human and natural systems are lower if global temperature rise stabilises at 1.5°C. There are substantial increases in extreme weather events (e.g. extreme heat, heavy precipitation events and drought) between 1.5°C and 2°C. Impacts on land-based biodiversity and ecosystems are less at 1.5°C than 2°C, but overshooting the 1.5°C target could have irreversible impacts on some species and ecosystems. 

Climate change is accelerating, and current global efforts – including Australia’s – are dangerously inadequate. The future scale and severity of the climate crisis will depend on how quickly and deeply we slash global climate pollution. Each fraction of a degree of global heating is associated with more catastrophic impacts to communities and ecosystems.

For more information see our Stronger Target, Safer Future: Why Australia’s 2035 Climate Target Matters report.

Climate Council has launched a petition calling on the Australian Government to set the strongest possible 2035 climate target – and take urgent action to meet it!

*Assuming other countries adopt the same per-capita share of the global carbon budget.

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Why Australia needs to set a strong climate target this year https://www.climatecouncil.org.au/why-australia-needs-to-set-a-strong-climate-target-this-year/ Mon, 28 Jul 2025 04:55:15 +0000 https://www.climatecouncil.org.au/?p=169971 For at least 30 years, since the publication of the Intergovernmental Panel on Climate Change’s ‘First Assessment Report’ in 1990, scientists have issued progressively more urgent calls to tackle the escalating climate crisis, driven by the burning of coal, oil and gas. The Albanese Labor Government’s imminent decision on Australia’s 2035 climate target will shape […]

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For at least 30 years, since the publication of the Intergovernmental Panel on Climate Change’s ‘First Assessment Report’ in 1990, scientists have issued progressively more urgent calls to tackle the escalating climate crisis, driven by the burning of coal, oil and gas.

The Albanese Labor Government’s imminent decision on Australia’s 2035 climate target will shape the lives of every Australian. Climate Council’s latest report, Stronger Target, Safer Future: Why Australia’s 2035 Climate Target Matters, warns the safety, security and prosperity of our communities and environment is at stake as the government finalises their decision.

The science is clear. To do our fair share to hold global warming to well below 2°C, Australia needs to reduce climate pollution to 75% below 2005 levels by 2030, and reach net zero by 2035. Every fraction of a degree of warming avoided matters. While some climate impacts are getting progressively worse, like heatwaves or bushfire risk, beyond 2°C scientists warn that we will see abrupt, irreversible changes or tipping points that supercharge global warming and cause widespread system collapse, like:

  • The loss of the Greenland and West Antarctic ice sheets, leading to multi-metre sea level rise.
  • Frozen soils in the Arctic melt, releasing vast quantities of heat-trapping gases. 
  • The Amazon rainforest experiences massive dieback – where plants die off en masse – releasing huge volumes of heat-trapping gases.

Why is Australia setting a 2035 climate target?

The Paris Agreement, adopted by 195 countries in 2015, represents the world’s collective approach to tackling climate change. Under the agreement, nations submit targets to cut climate pollution – described as Nationally Determined Contributions – every five years, enabling them to ramp up efforts over time to cut climate pollution. Together, these targets chart a global pathway to slash climate pollution and prevent global temperatures from exceeding agreed limits.

Like countries world-wide, Australia is expected to submit our 2035 climate target this year. The current target, to reduce Australia’s climate pollution 43% on 2005 levels by 2030, was legislated in 2022

Australia’s 2035 climate target is an opportunity to set Australia on the right path, one which keeps our kids safer from climate change and sets our economy up for success in a fossil fuel-free world. 

What climate target should Australia commit to?

Climate Council commissioned Climate Resource to assess the global warming implications of an Australian 2035 climate target. The analysis uses the latest emissions data and shows what an Australian target means for global average temperature risk.

This new analysis shows the only Australian target that’s compatible with holding global warming below 2°C is net zero by 2035. The closer the Australian Government’s 2035 climate target gets to net zero, the less climate risk Australians face. 

The analysis also shows that a 2035 climate target to reduce pollution by 75% or more puts the world on track to heat by more than 2°C but likely less than by 2.3°C, if other countries adopt the same per capita share of the remaining global budget from 2024 onwards.

Weaker targets are aligned with even higher levels of global heating. Each fraction of a degree of global heating is associated with more catastrophic impacts to communities and ecosystems. A 2035 target to reduce pollution by 65% is aligned with below 2.4°C of global heating.

At the end of the day, the stronger the climate target, the safer Australians are from climate risks. On the other hand, the weaker the target, the more vulnerable we become.

What targets are possible for Australia to achieve over the next decade?

Several significant Australian-based research projects have demonstrated that deep cuts to climate pollution in the next 10 years are possible. 

  • The CSIRO’s pathway to reduce emissions by 75% on 2005 levels by 2035 and reach net zero by 2040. Under this scenario, average real GDP growth from 2020 to 2050 would only be 0.03 percentage points lower than the net zero by 2050 scenario, a cost significantly less than the economic, social and health benefits of cutting emissions.
  • ClimateWorks Centre’s decarbonisation modelling, which shows how Australia can reduce emissions by 85% by 2035, demonstrates that a stronger 2035 target is achievable. 
  • Climate Council’s Seize the Decade report shows that, by going all-in on proven clean technology that’s already available, Australia could reach a 75% climate pollution cut this decade. This suggests much more is possible by 2035, with further time available for technology development, the rollout of solutions like batteries, electric vehicles and electrification, and the wider availability of zero-emissions fuels like green hydrogen and sustainable aviation fuels.

What changes would Australia need to make to deliver a strong 2035 climate target?

Achieving stronger climate targets will require more action across our economy to double down on what is already working, and build the clean industries of the future. Australian households and businesses will need to change the way they power themselves, make things, and get around. Australian governments will face changes to revenue sources as coal and gas exports decline, and new industries emerge. 

We’re already making progress in Australia, with existing policies and efforts projected to cut climate pollution by almost 43% on 2005 levels by 2030 – a 13 percentage point improvement from 2021 projections. Already, a 51% climate pollution cut is projected by 2035 just by implementing current policies.

To protect Australians from the consequences of the climate crisis, Australia can also consider tackling its global carbon footprint by:

  • Developing clean industries that contribute to global pollution reduction. For example, by developing green metals, cathode and battery manufacturing, sustainable shipping and aviation fuels;
  • Supporting developing countries in their transition through climate finance or other mechanisms; and 
  • Reducing our exported climate pollution, particularly by not approving new fossil fuel projects.

In recent years, climate solutions have been delivered at a speed and scale that has surpassed expectations. The last decade has seen incredible progress, with the cost of many climate solutions reducing dramatically. The key lesson here is our ambitions should not be constrained by what we currently consider to be the limit of our clean energy potential. Just as progress in renewable electricity outstripped all expectations over the last decade, progress in industrial decarbonisation and harder-to-abate sectors can far exceed our current projections over the next. 

By aiming high we give ourselves the best opportunity at fulfilling our true potential. The climate crisis demands that we do everything we can, everywhere we can, as fast as we can.

Climate consequences if the world fails to set strong targets

As our climate has warmed, Australia has been hit hard. Where long-term global warming is currently about 1.3°C above pre-industrial levels, Australia has warmed by an average of around 1.51°C since national records began in 1910.

This increase in temperature is fuelling more frequent and intense extreme weather events, including extreme heat, heavy rainfall, coastal inundation, dangerous bushfire weather and drought. Many communities have now experienced back-to-back disasters that would have previously been considered a 1-in-50 or 1-in-100 year weather event. 

Climate-driven extreme weather events in Australia are already becoming more frequent and intense, with devastating impacts. 

The future scale and severity of the climate crisis will depend on how quickly and deeply we slash global climate pollution. Each fraction of a degree of global heating is associated with more catastrophic impacts to communities and ecosystems.

For more information see our Stronger Target, Safer Future: Why Australia’s 2035 Climate Target Matters report.

Climate Council has launched a petition calling on the Australian Government to set the strongest possible 2035 climate target – and take urgent action to meet it!

The post Why Australia needs to set a strong climate target this year appeared first on Climate Council.

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An international court ruling, proof that the world can follow the Pacific’s lead on climate action https://www.climatecouncil.org.au/an-international-court-ruling-proof-that-the-world-can-follow-the-pacifics-lead-on-climate-action/ Fri, 25 Jul 2025 06:30:02 +0000 https://www.climatecouncil.org.au/?p=170031 This week the International Court of Justice delivered a strong advisory opinion that States have a clear legal obligation to cut emissions, prevent harm to the climate system and in some cases, pay for historical damages caused by their emissions. What does this mean for those of us on the frontlines of climate impacts? This […]

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This week the International Court of Justice delivered a strong advisory opinion that States have a clear legal obligation to cut emissions, prevent harm to the climate system and in some cases, pay for historical damages caused by their emissions. What does this mean for those of us on the frontlines of climate impacts? This means that international law is now on our side. It can now evaluate States’ climate obligations not just in terms of emissions, but in terms of how the climate crisis has impacted our basic human rights and losses. While not binding, these advisory opinions shape international norms and inform legal action.

What began as a group of 27 Pacific Island law students is now a turning point that strengthens a struggling multilateral system for climate action. The Vanuatu government was also a driving force behind this first ever legal opinion on climate change. With these proceedings, we are seeing a familiar storyline play out in the international arena, one that the Pacific is all too familiar with – that if we want to survive the climate crisis, it is up to us to chart the path of least destruction. Whether or not the world follows our lead has differed over history.

Ten years ago, those of us present in Paris cried tears of resolve and pride when Republic of the Marshall Islands Foreign Minister, Tony De Brum, masterfully led the High Ambition Coalition to negotiate and secure what we now know as the Paris Agreement. The world then followed suit with their national emissions targets, some worthy of the phrase “climate action”, and some not. In 2022, Tuvalu became the first country to call for a Fossil Fuel Non Proliferation Treaty, with 135 cities and subnational governments today backing that same call. Over the years, Pacific Island states have attempted to set high bars for climate ambition and prayed that those with the power to impact global emissions saw our survival as worth fighting for.

Today, this call-and-response is again at play for the Pacific. When we became aware of Australia’s intentions to host COP31 as an Australia-Pacific COP, we saw the opportunity to chart a path encouraging Australia’s climate leadership. But it has been no easy feat. When the Australian government signalled its addiction to gas expansion in Canberra last May, a group of Pacific Islanders took to parliament lawns calling for a renewable energy transition instead – both domestically and within the Pacific region. Climate Minister Chris Bowen’s recent visit to the Pacific indicated that Australia’s direction, at least in terms of a Pacific energy transition, could be looking positive. On this four-nation tour, Australia committed $16.4 million to upgrade Palau’s electricity network and shift to renewable energy. This includes the 15MW Palau Solar Farm, one of the Pacific’s largest solar power projects. However, President Surangel Whipps Jr of Palau has made it clear that a “Pacific COP” would require more than renewable energy investments. It would call on Australia to address its gas addiction and position as one of the top-three fossil fuel exporters in the world.

The issue of Australia’s coal and gas exports is the stain on Australia’s potential climate legacy. Even as Australia courts Pacific leaders in their bid for COP31, Environment Minister Murray Watt recently approved the extension of the Woodside’s North West Shelf gas plant, one of the world’s biggest fossil gas projects, prolonging its life from 2030 to 2070. The extension is expected to be responsible for about 87.9m tonnes of carbon dioxide equivalent every year in the decades ahead. Acts of hypocrisy like this make it increasingly difficult to trust Australia as a partner to Pacific peoples, as continued fossil fuel exports exacerbate climate disasters across our islands.

So as we skate dangerously close to the 1.5 degree target set in Paris, we cannot allow the next five years to be where we lose our fight against the climate crisis. Australia’s current emissions reduction target of 43% by 2030 is woefully short of what’s required to keep global heating below 1.5 degrees, and predictions of its revised emissions target due this year are still unclear. As a potential COP host within this critical timeframe, Australia has the opportunity and responsibility to up its climate game significantly – but only by listening to Pacific co-hosts and following our lead.

We have dreams and pathways for a Pacific free from fossil fuels and climate catastrophe, and we are actively trying to secure the resources and relationships to make that a reality. We have employed everything at our disposal to realise this dream, from diplomacy to litigation to grassroots activism. It is clear that both history and international law are on our side. What remains to be seen is how Australia responds to the role they’ve been cast in the story of our survival.

Author: Fenton Lutunatabua, 350.org Deputy Head of Regions and founder of the Pacific Climate Warriors.

Photo: ABC News

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