The Facts News | Climate Council https://www.climatecouncil.org.au/category/the-facts/ Australians deserve independent information about climate change, from the experts. Fri, 23 Jan 2026 03:42:10 +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 The Facts News | Climate Council https://www.climatecouncil.org.au/category/the-facts/ 32 32 10 reasons why US President Donald Trump can’t derail global climate action https://www.climatecouncil.org.au/10-reasons-why-us-president-elect-donald-trump-cant-derail-global-climate-action/ Fri, 23 Jan 2026 03:42:08 +0000 https://www.climatecouncil.org.au/?p=168006 This web page is based on a 2025 article written for the Conversation by Climate Council Fellow Wesley Morgan and Professor Ben Newell. It has been updated by the Climate Council to reflect the developments in the first year of President Trump’s second term. Read the original article here.  If you care about protecting people […]

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This web page is based on a 2025 article written for the Conversation by Climate Council Fellow Wesley Morgan and Professor Ben Newell. It has been updated by the Climate Council to reflect the developments in the first year of President Trump’s second term. Read the original article here


If you care about protecting people and our planet from the climate crisis, you might be feeling a little down about Donald Trump’s second term as United States president. Undeniably, his return to the White House has been a real setback for federal US climate action.

Trump is a climate change denier who has put measures in place to increase fossil fuel production and stand in the way of new renewable projects, withdrawn the US from key United Nations climate treaties and organisations, and ‘taken a sledgehammer’ to the country’s climate science capabilities – with worldwide impacts. 

But beyond Trump and his circle, there remains deep commitment to climate action in the US. State governments are stepping up to fill the void, more than half of the country’s economy remains committed to net zero, and many US businesses are also standing strong on their net zero commitments. Globally, renewables are set to grow faster than any major energy source in the next decade, making the transition away from fossil fuels inevitable.

So now is a good time to remember that efforts to tackle the climate crisis – both in Australia and globally – are much bigger than one US President. Here are ten reasons to remain hopeful.

1. The global clean energy transition can’t be halted

The global shift to clean energy is accelerating, and Trump can’t stop it. In 2025, investment in clean energy hit AU $3.4 trillion – twice as much as global investment in coal, oil and gas. In the first half of 2025, for the first time ever, the world made more power with renewables than from coal. The record global growth in renewables prompted Science magazine to label the “seemingly unstoppable growth of renewable energy” its 2025 “breakthrough of the year”.

This is a historic mega-trend and will continue with or without American leadership. 

Source: International Energy Agency

2. US states are standing strong

Many US states have a strong history of leadership on climate change, creating the country’s first pollution control laws and clean energy standards. The states laid the foundations for the groundbreaking policies and investment under the Biden-Harris administration, and they are continuing to advance climate action at a state level. Some states are uniting to push back on the Trump administration’s anti-climate agenda. For example, a coalition of 17 states led a challenge against Trump’s order to block new wind projects, and in December 2025 a Federal judge declared that the order was unlawful

Twenty-four US states, that together account for more than half the US population (54%) and its economy (57%), have joined the US Climate Alliance – a bipartisan coalition advancing state-led, high-impact climate action. The US Climate Alliance is just one of many organisations coordinating action across the country.

3. The economic benefits of renewables are undeniable

The International Energy Agency has confirmed 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 and the US. At the same time, technological innovation, competitive supply chains, and economies of scale, mean that more than 90% of renewable projects are cheaper than fossil fuel projects. Renewables also offer reduced dependence on international fuel markets and improved energy security.

These benefits are making the economic argument in favour of renewables stronger, even as the Trump administration cuts subsidies. Even Republican-controlled states like Iowa, Texas, and Montana were all early adopters of renewable energy, in pursuit of economic development and energy independence. Texas was the country’s leading installer of solar in 2025. 

4. Many US businesses are also standing by their climate commitments

Globally, more companies than ever before are making climate commitments, because they recognise that action on climate change can reduce energy costs, expand their market share, protect their business from risks and secure long-term growth. Between 2023 and 2025, there was a 227% increase in companies setting comprehensive climate targets.

As global markets and consumer preferences shift towards clean technologies, many US businesses are also standing strong on their net zero commitments. 2025 analysis found that 84% of US companies are standing by their climate commitments. 37% of companies are even increasing their efforts to cut climate pollution while only 16% of companies are weakening their commitments. 

5. China is charging ahead as a clean energy juggernaut

China, the world’s second largest economy, has been the largest polluter since 2006 – when it overtook the US. Over the past two decades, however, China has been rapidly expanding renewable energy and electrifying homes, businesses and transport to improve its energy security and independence as its economy grows.

Since 2020, China’s solar capacity has almost quadrupled and its wind capacity has doubled. Record-breaking investment in 2024 saw China achieve its 2030 renewable target six years early. Importantly, this impressive renewable build out has helped displace coal: China’s coal generation dropped in 2025 for the first time since the 1970s. China’s emissions are now showing signs that they’ve peaked, five years ahead of projections – signalling a major milestone in global climate action.

Now, the country aims to cut climate pollution by 7-10% over the next decade by expanding renewables, promoting electric vehicles, and achieving overall cuts to climate pollution. 

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

6. Other major economies are also powering ahead with clean energy

Other major economies including the UK, India and the EU, as well as Australia’s key trading partners like Japan and South Korea, are all pushing ahead with the renewable rollout.

The UK has already phased out coal-fired power generation, along with six EU countries. India has reached its target of 50% non-fossil power capacity five years early, paving the way for a faster switch to renewables. South Korea has recently committed to phasing out most of its coal fired power plants by 2040. As one the world’s top coal importers, and one of Australia’s largest coal customers, this signals a major shift for the global industry. 

Source: Ember

7. Global climate cooperation is bigger than Trump

Despite Trump’s withdrawal from key climate treaties including the Paris Agreement, other countries remain committed. 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 greenhouse gases. The majority of countries also have targets to increase renewable generation.

A lack of national leadership in the US has created opportunities for other countries to step up on the global stage. For example, as China looks to grow its productivity, it is committed to supporting the global shift to renewables, helping to build its clean technology industries. President Xi Jinping has committed to remain a “steadfast actor and major contributor in promoting global green development” and work with the international community to “overcome the headwinds and steadily move forward global climate governance”.

8. More than 80 countries have called for a roadmap to phase out fossil fuels

While the US was absent from the 2025 global climate summit – COP30 in Brazil – several important breakthroughs were achieved. Importantly, Australia joined more than 80 countries in signing the Belem Declaration. Led by Colombia, the Declaration commits countries to work together towards a “just, orderly and equitable” transition away from fossil fuels, consistent with limiting average global heating to 1.5°C. 

The Belem Declaration is non-binding, which means countries aren’t legally required to take action, BUT it’s the strongest language we’ve seen from the Australian Government, and many others, about the need to switch away from fossil fuels. It is an important mechanism to hold our governments to account in phasing out polluting coal, oil and gas.

9. The world’s highest court has confirmed countries have a legal obligation to tackle climate change

In a landmark case in July 2025, the world’s highest court – the International Court of Justice – advised 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 on countries, both legally and politically. The case will reverberate across the world – in courtrooms, boardrooms, Parliaments and international negotiations. 

10. Australia’s clean energy shift is accelerating

Throughout 2025, 43% of Australia’s main national electricity grid was powered by renewables. In October 2025, we hit a major milestone: renewable energy and storage overtook fossil fuels to power 51% of Australia’s main grid. Compare this to the same month a decade ago, when renewables provided just 14% of our power.

Australians love clean energy: one in three households have rooftop solar installed, making us a world-leader in the technology’s uptake, and two million homes and businesses are expected to install batteries to soak up their excess solar power by 2030. Trump’s occupation of the Oval Office cannot stop this momentum.

Source: Open Electricity

On gloomy days, it might feel like humanity won’t rise to our biggest existential challenge. But there are many reasons for hope. The vast majority of us support policies to tackle climate change, and in many cases, the momentum is virtually unstoppable.

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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 good climate policy look like? https://www.climatecouncil.org.au/what-does-good-climate-policy-look-like/ Mon, 14 Apr 2025 02:44:18 +0000 https://www.climatecouncil.org.au/?p=162267 With the 2025 Federal Election just around the corner on May 3, major parties, minor parties and With the 2025 Federal Election just around the corner on May 3, major parties, minor parties and independent candidates are vying for your vote.  The next Australian government will take us most of the way to 2030, and […]

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With the 2025 Federal Election just around the corner on May 3, major parties, minor parties and With the 2025 Federal Election just around the corner on May 3, major parties, minor parties and independent candidates are vying for your vote. 

The next Australian government will take us most of the way to 2030, and shape our climate trajectory for decades to come. Every bit of climate pollution we avoid by burning less coal, oil and gas will help create a safer future for our kids. 

In 2022, Australians voted for climate action. This year, climate change is still a top concern for voters. The problem is, with so much conflicting information, it can be hard to spot real climate action amongst all the slogans. To help out, we’ve put together a list of questions to ask about a party or candidate’s climate policies, to help you dodge spin, fluff, and dodgy accounting.

To help make your job even easier, we’ve spent the last few months looking at the major parties’ and candidates’ election policies and track records on climate change, and pulled this information together, all in the one place. 

If the answers to the following questions are YES, this could be a sign that a party or candidate is serious about action on climate change:

1) Does their policy acknowledge that we need to get on with cutting climate pollution (i.e. reducing our carbon emissions) now?

The science is clear: we need to get on with cutting climate pollution now to protect Australians from worsening climate disasters. While most politicians agree that we need to act on climate change, the pace of change really matters. Every fraction of a degree of avoided warming in the near-term will be measured in lives and livelihoods saved, and a safer future for our kids.

This means we need to cut climate pollution as soon as possible, and get our pollution as low as possible, as we work towards net zero. In fact, the total amount of climate pollution we release over time matters just as much as when we reach that magic ‘net zero’ target. In other words, how we get there matters just as much as the destination.

The science tells us that, to do our fair share to cut climate pollution, Australia needs to reduce climate pollution by 75% on 2005 levels by 2030, and get to net zero by 2035. Good climate policies should be as close as possible to this goal, with targets that get our climate pollution down as much as we can in the short term, and get us on track for net zero as soon as possible. 

2) Does their policy include evidence-based, real climate solutions, across the economy?

Credible climate policies need to promote real solutions, not false ideas that just delay the action we need. The solutions we’re prioritising today should be the ones that we know will cut climate pollution quickly, like wind and solar backed by big batteries and hydro, and electric vehicles, bikes, and shared transport. So how do you pick out a real climate solution? Here’s a few tips:

  • Real climate solutions cut climate pollution today, or in the very near future – think the next five years. We need to prioritise the many great solutions that are already at our fingertips. Solutions that will take decades – like nuclear energy – are too little, too late. 
  • Real climate solutions don’t include new or expanded coal, oil or gas developments. Some false solutions claim to make these polluting fuels ‘clean’ (like carbon capture and storage), or claim we can keep using them while relying on offsets elsewhere. But the science is clear: we can’t expand fossil fuel development if we are to avoid the worst impacts of climate change.
  • Real climate policies are part of a plan to get all climate pollution down across the economy. The biggest sources of climate pollution in Australia are power generation, transport (mostly cars, utes and trucks), and industry (mostly mining, coal and gas extraction, and heavy industry like smelters). Parties and candidates need to have climate policies that deal with at least these areas. These policies should be underpinned by legislated climate pollution targets, which give certainty and clarity to industry and across government.

3) Is their policy matched by a strong track-record of real action on climate change?

It’s not enough to just talk about climate change: politicians and parties need to back it up with real action. Make sure that any party or candidate you’re thinking of voting for has used their time in parliament to vote on positive climate action, and pushed for better climate policies.

We know that’s a lot of homework, which is why we’ve carefully reviewed the track record of our political parties and independents in the last parliament in Climate crossroads: Progress, politics and a pivotal election.

Let’s vote like our lives depend on it – because they do.

In the first months of 2025, communities across Australia have experienced several devastating extreme weather events, made more severe and damaging by climate change. Tropical Cyclone Alfred hit many communities in Queensland and New South Wales that have been battered by repeat disasters in recent years – being forced to clean up the mess of climate pollution again and again and again. Fires in Victoria and Tasmania burned across hundreds of thousands of hectares of land, including homes, farmland and invaluable wilderness and world heritage areas.

Climate pollution from the burning of coal, oil and gas is driving more ferocious extreme weather events like these. They give us just a glimpse of what is to come if we don’t slash climate pollution as fast as we can, while also preparing our communities and infrastructure for the disasters we cannot avoid.

It’s more important than ever to analyse the details in order to recognise, reinforce and repeat the good, and call-out (and stop) the bad. 

I’m still not sure which policies would really cut climate pollution!

We know it’s confusing – that’s why this election, we’re keeping tabs on the big climate policies being proposed across all sides of politics. If you’d like to see which of our biggest political parties support action on climate change, check out our analysis here.

Help us get the word out!

We’ve created a series of downloadable posters showing how the different parties stack up on climate this election. Print them at home and pop them in your window, on a community notice board and anywhere else that shows your community exactly who – and what – we’re being asked to vote for this election (just check you’ve got permission first!).

We’ve also created a suite of social media content for you/your organisation to download and share amongst your networks. Click here to see our full social media pack for assets, suggested captions, and more!

Climate Council is non-partisan and advocates for evidence-based policies that will progress science-aligned climate action.

Authorised by Amanda McKenzie, Climate Council of Australia Ltd, 1 Nicholson St, East Melbourne.

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5 reasons why Australia needs to break up with gas https://www.climatecouncil.org.au/5-reasons-why-australia-needs-to-break-up-with-gas/ Thu, 13 Feb 2025 18:35:00 +0000 https://www.climatecouncil.org.au/?p=169263 For too long, Australia has been in a toxic relationship with gas. And as we head into a federal election campaign, it’s worth thinking about the role of gas in Australia’s energy mix, and why we need to phase it out sooner rather than later. So here are 5 reasons why Australia needs to break […]

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For too long, Australia has been in a toxic relationship with gas.

And as we head into a federal election campaign, it’s worth thinking about the role of gas in Australia’s energy mix, and why we need to phase it out sooner rather than later.

So here are 5 reasons why Australia needs to break up with gas:

1. Gas is a polluting fossil fuel that’s driving climate change

Gas is a fossil fuel that produces a lot of climate pollution wherever we extract, process and burn it. That pollution from gas (as well as from burning coal and oil) is overheating our planet and driving more intense and frequent unnatural disasters like bushfires, floods and heatwaves.

And yet, a lot of Australians don’t know that gas is a polluting fossil fuel, thanks to a concerted PR campaign from the gas industry to market gas as “natural” and clean. 

From big advertising campaigns designed to mislead the public, to advertorials splashed across the front pages of Australia’s biggest-selling tabloid newspapers, they’re using all the dirty tricks to hoodwink Australians so that they can keep profiteering. 

2. Gas is expensive and building more gas projects won’t help

Gas used to be cheap, but those days are long gone. Now it’s one of the most expensive energy sources and Australians are paying a heavy price for it on their energy bills. That’s because Australian gas companies export almost 80% of our gas overseas. 

Building more gas projects won’t help. That’s because all our cheap options to extract gas are gone, so now new gas is very expensive. New gas projects in Australia have high development costs and struggle to generate returns on capital investment.

3. Australia already has plenty of gas and we don’t need more

Gas has a small, shrinking and short-term role to play in Australia’s energy mix – and we don’t need more of it. Gas from Australia’s existing projects through to 2035 would be enough to power our domestic energy needs for 64 years.

Pursuing new gas projects in Australia will add to our climate pollution crisis. More gas is a bad bet against our kids having a safer future and enjoying a thriving, clean economy.

4. Gas is bad for our health

Gas isn’t just harmful to our climate – it’s damaging to our health as well. Studies have shown that gas cooktops leak harmful toxins into your home, even when they are switched off. In fact, a child living with gas cooking in the home faces a comparable risk of asthma to a child living with household cigarette smoke.

5. Australia can reliably meet our energy needs with renewable power plus storage

Already, about 40% of Australia’s electricity comes from solar, wind and hydro power. That’s doubled in the past six years. Australian Energy Market Operator (AEMO) tells us that large-scale solar and wind, backed up by storage (massive batteries and hydro power), can provide power to Australians 24/7. We also know that solar is the lowest-cost electricity and building more renewables is the most affordable way to keep the lights on (CSIRO’s GenCost 2024). Plus, since gas appliances are less efficient than electric alternatives, getting off gas can save the average Aussie family $200 per year, increasing to $400 in 10 years time.

So there you have it: it’s time for a clean break with gas—and to go all in on renewables.

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Why nuclear energy is not worth the risk for Australia https://www.climatecouncil.org.au/nuclear-power-stations-are-not-appropriate-for-australia-and-probably-never-will-be/ Mon, 27 Jan 2025 23:36:05 +0000 https://www.climatecouncil.org.au/?p=12004 Update – May 2025: At the 2025 Federal Election, Australians made a resounding choice: keep powering on with renewables and storage. Nuclear bombed at the ballot. It was politically toxic, especially with women and undecided voters. Australians have given the ALP its strongest mandate since World War II to roll out more renewable power and storage, better […]

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Update – May 2025: At the 2025 Federal Election, Australians made a resounding choice: keep powering on with renewables and storage. Nuclear bombed at the ballot. It was politically toxic, especially with women and undecided voters. Australians have given the ALP its strongest mandate since World War II to roll out more renewable power and storage, better regulate polluters and set new, stronger climate targets.

We don’t yet know whether the Liberal Party will get behind the renewables and storage that Australians want, or keep pursuing a nuclear fantasy, but the National Party has indicated they will keep promoting nuclear. We’ll keep you up to date as each party’s policy is announced.


Federal Opposition Leader Peter Dutton and the Liberal-National Coalition have said that, if they win the next Federal Election, they would attempt to build nuclear reactors in communities around Australia to produce electricity.

Here’s what you need to know about this risky energy scheme:


Why nuclear reactors are too risky for Australia

Coal-fired power stations still supply about half of the electricity in Australia’s main national grid – but they are outdated, unreliable, polluting and expected to close down by 2038 at the latest. That’s before a single watt of nuclear energy could enter our energy system, given nuclear reactors would take at least 15 years to get up and running in Australia, according to the CSIRO.

The majority of our coal capacity is over 40 years old, and the ability of our generators to reliably produce electricity has dropped off dramatically. Coal outages are already a primary driver of power outage warnings. We need to bring on new sources of energy right now – like solar and wind, backed by big batteries – before the lights go out and our kids’ future goes up in smoke.

Australia’s independent science agency, CSIRO, has found that building solar and wind power backed by storage is the lowest-cost way to meet our electricity needs. Unlike renewables, the cost of building and operating nuclear energy in Australia remains prohibitively high. In fact, independent analysis shows that building nuclear could increase electricity bills by $665 on average, and $972 for a family of four.

In December 2024, the Federal Coalition released its nuclear costings. Unfortunately, as expected, these costing contain a number of misleading assumptions and omissions. Their scheme doesn’t provide enough electricity to meet our needs, underestimates the cost of building and operating nuclear reactors compared to similar nations overseas, and ignores the eyewatering costs of more climate pollution and worsening unnatural disasters. Our analysis found that the Federal Coalition’s nuclear scheme would cost up to $490 billion more than they’ve estimated and add one billion tonnes more climate pollution from burning more coal and gas while waiting for nuclear reactors.

Why should Australians pay more for less?

Around the world, building nuclear reactors are notorious for running overtime and over-budget. For example, the UK’s Hinkley Point C nuclear energy facility is costing three times more than promised ($90 billion) and running 14 years late (2031 vs 2017). 

In the US, NuScale’s Small Modular Reactor in Idaho was expected to cost US$3.6 billion and produce 720 megawatts of electricity. Just three years later, the project cost had blown out to US$9.3 billion while capacity had reduced to 496 megawatts, and the project was ultimately cancelled in 2023.

Importantly, both of these projects were in nations with more than 60 years of experience building nuclear energy, whereas Australia has none.

Radiation from major nuclear disasters, such as Chernobyl in 1986 and Fukushima in 2011, have impacted hundreds of thousands of people and contaminated vast areas that take decades to clean up.

While rare, the risk of such disasters in Australia can’t be ruled out, and many of the proposed nuclear sites are already in disaster-prone regions experiencing escalating heatwaves, bushfires, storms and floods – which only exacerbates the risk. Even when a nuclear reactor operates as intended, it creates an expensive long-term legacy of site remediation, fuel processing and radioactive waste storage.

Why should Australians – especially those living in the regional communities which would host reactors – accept these risks when we don’t need to?

Nuclear reactors need a lot of water for cooling. For example, a typical 1600 MW nuclear facility uses about 2,000 litres of water per second, equivalent to the daily water use of four households. In a changing climate, with increased risk of droughts in Australia, the significant amounts of water used by nuclear reactors is a significant concern. 

At times when water supply is tight, it’s also unclear how the needs of nuclear reactors will be balanced against those of households and farmers. Other countries with nuclear reactors may soon be facing these challenges: 61% of the USA’s nuclear energy facility are expected to face water stress by 2030, potentially forcing them to reduce their generation or even shut down.

In Australia, the driest inhabited continent on earth, nuclear’s water use is a big concern for many communities. 

Climate pollution from burning coal, oil and gas for electricity is overheating our planet and harming our communities right now. Every action taken today to tackle dangerous climate change helps secure a safer future for our kids.

But the Federal Coalition’s nuclear scheme won’t cut climate pollution.  In fact, the Coalition’s own modelling shows that the scheme would produce one billion tonnes more climate pollution by 2050. Incredibly, that’s equivalent to the climate pollution released by running the Eraring coal power station for another 85 years.

Why take that risk when we already have a plan to  keep rolling out clean, safe, and abundant renewable power?

Bushfire in Queensland
Here’s the bottom line: nuclear energy risks our energy security, our economy, the safety of our communities and our kids’ future. It makes no sense for Australia. On the other hand, power from the sun and wind is cheap, abundant, safe and available now. So why risk nuclear – especially when there’s so much we still don’t know? More on that below.

What we still don’t know about the Federal Coalition’s nuclear scheme

The Federal Coalition’s energy scheme was first announced back in June 2024, but there are still more questions than answers, including:

  • How would the Federal Government overturn State Government bans on nuclear activity? 
  • How would our emergency services be equipped to deal with escalated nuclear risks? 
  • How would the government acquire the privately owned land and infrastructure needed to build these reactors, and what would it cost Australian taxpayers?
  • How would the safety of communities living and working near the facilities be protected, especially as climate change increases the frequency and severity of unnatural disasters?
  • How would water be shared between nuclear reactors, farmers and communities during droughts?
  • Where and how would nuclear waste be stored? How much would that cost, and who would pay?

Renewables are safe, clean and successfully cutting climate pollution in our electricity grid right now

Already, about 40% of Australia’s electricity comes from solar, wind and hydropower. More than 4 million Australian households have put solar panels on their roof, and together they are saving $3 billion a year on electricity bills.

The Australian Energy Market Operator (AEMO) tells us that large-scale solar and wind, backed up by storage (massive batteries and pumped hydro), can provide power 24/7. We can keep accelerating this progress to build a clean grid that’s powered by renewables within the next 10 years.

So why risk going nuclear?


Need more information?

If you’re looking for another source of trusted information on nuclear energy, we recommend reading the latest explainer from Australia’s independent science-based information agency, CSIRO.

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As Los Angeles combusts, 2024 is declared Earth’s hottest on record https://www.climatecouncil.org.au/as-los-angeles-combusts-2024-is-declared-earths-hottest-on-record/ Fri, 10 Jan 2025 04:23:51 +0000 https://www.climatecouncil.org.au/?p=169110 This article is republished from The Conversation under a Creative Commons license. Read the original article. Written by Climate Councillor, Professor David Karoly and Associate Professor Andrew King. The year 2024 was the world’s warmest on record globally, and the first calendar year in which global temperatures exceeded 1.5°C above its pre-industrial levels. The official declaration was made on Friday by the Copernicus Climate […]

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This article is republished from The Conversation under a Creative Commons license.

Read the original article. Written by Climate Councillor, Professor David Karoly and Associate Professor Andrew King.


The year 2024 was the world’s warmest on record globally, and the first calendar year in which global temperatures exceeded 1.5°C above its pre-industrial levels.

The official declaration was made on Friday by the Copernicus Climate Change Service, the European Union’s Earth observation program. It comes as wildfires continue to tear through Los Angeles, California – a disaster scientists say was made worse by climate change.

This record-breaking global heat is primarily driven by humanity’s ongoing greenhouse gas emissions, caused by the burning of fossil fuels. The warming won’t stop until we reach net-zero emissions.

Clearly, the need for humanity to rapidly reduce its greenhouse gas emissions has never been more urgent.

Graphic from Copernicus showing Earth experienced record high temperatures in 2024. Copernicus

An exceptional year

The Copernicus findings are consistent with other leading global temperature datasets indicating 2024 was the hottest year since records began in 1850.

The global average temperature in 2024 was about 1.6°C above the average temperatures in the late-19th century (which is used to represent pre-industrial levels).

On July 22 last year, the daily global average temperature reached 17.16°C. This was a new record high.

Copernicus also found that each year in the last decade was one of the ten warmest on record. According to Copernicus director Carlo Buontempo:

We are now teetering on the edge of passing the 1.5ºC level defined in the Paris Agreement and the average of the last two years is already above this level.

These high global temperatures, coupled with record global atmospheric water vapour levels in 2024, meant unprecedented heatwaves and heavy rainfall events, causing misery for millions of people.

house burns behind sign reading 'peace'
A home burns in the Pacific Palisades neighborhood of Los Angeles, California. Allison Dinner/EPA

How scientists take Earth’s temperature

Estimating the global average surface temperature is no mean feat. The methods vary between organisations, but the overall picture is the same: 2024 was the world’s hottest year on record.

The high global average temperature of 2024 wouldn’t have been possible without humanity’s greenhouse gas emissions. The El Niño climate driver also played a role in the first part of the year. It warmed Earth’s surface – particularly over a large swathe of the central and eastern Pacific – and increased global average surface temperature by up to 0.2°C.

Very few areas were cooler than average in 2024 and many land areas saw much higher temperatures than normal. Copernicus

What about Australia?

Copernicus found 2024 was the warmest year for all continents except Antarctica and Australasia.

But Australia is feeling the shift into a hotter, less hospitable climate, too. Last year was Australia’s second-hottest year on record, according to a declaration last week by the Bureau of Meteorology.

The hottest was 2019, when a blisteringly hot and dry spring led to the widespread bushfires of the Black Summer. Unlike 2019, Australia had a wetter than normal year in 2024.

However, 2024 was the hottest year on record for the southwest of Australia and parts of the centre and east of the continent.

It was Australia’s second-hottest year on record, with most of the continent seeing temperatures very much above average. Bureau of Meteorology

Apart from April, Australia saw unusual warmth through all of 2024. August was the standout month for record-breaking heat.

In general, temperature records are broken more easily at the global scale than in individual regions. That’s because weather is more variable at the local level than on a global average. A period of, say, very cold weather in one part of a continent can bring down annual average temperatures there, preventing records from being broken.

That’s why Australia’s annual average temperatures have reached record highs three times since 2000 – in 2005, 2013 and 2019 – whereas the global average temperature set six new records in that period.

Does this mean the Paris Agreement has failed?

The global Paris Agreement aims to limit global warming to 1.5°C above pre-industrial levels. So, if 2024 was about 1.6°C above pre-industrial levels, you might think the world has failed to meet this goal. But it hasn’t, yet.

The success of the Paris Agreement will be measured against longer periods than temperatures over a year. That eliminates natural climate variability and factors such as El Niño and La Niña, to build a clearer picture of climate change.

However, the statistics for 2024 are certainly a bad sign. It shows humanity has its work cut out to keep global warming well below 2°C, let alone 1.5°C.

More heat guaranteed

There’s one very important thing to understand about climate change: the amount of greenhouse gases that humans emit over time is roughly proportional to the increase in global temperatures over that same period.

This near-linear relationship means every tonne of greenhouse gas emissions from human activity causes about the same amount of global warming. So, the faster we decarbonise the global economy, the sooner we can halt global warming and reduce its harms.

This year is unlikely to be quite as hot as 2024 because the El Niño has passed. But unfortunately, Earth will continue to experience record hot global temperatures for at least the next few decades.

This is all the more reason for humanity to move faster in decarbonising our society and economy. It’s not too late to shift the long-term trajectory of Earth’s climate.

The Conversation

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Deforestation and Climate Change https://www.climatecouncil.org.au/deforestation/ https://www.climatecouncil.org.au/deforestation/#comments Tue, 10 Dec 2024 02:54:08 +0000 http://climatecouncil-migrate.test/2014/10/13/deforestation/ Forests act as carbon sinks that draw carbon dioxide from our atmosphere and stabilise our climate. How does that work and what does it mean for our warming climate? Let’s find out.  Deforestation and the carbon cycle Forests store large amounts of carbon. Trees and other plants absorb carbon dioxide from the atmosphere as they […]

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Forests act as carbon sinks that draw carbon dioxide from our atmosphere and stabilise our climate. How does that work and what does it mean for our warming climate? Let’s find out. 

Forests store large amounts of carbon. Trees and other plants absorb carbon dioxide from the atmosphere as they grow. This is converted into carbon and stored in the plant’s branches, leaves, trunks, roots and in the soil.

When forests are cleared or burnt, stored carbon is released into the atmosphere, mainly as carbon dioxide. The scale of this release of carbon is enormous. In 2023, global loss of tropical forests totalled 3.7 million hectares, equivalent to around ten soccer fields of forest lost every minute. This forest loss produced roughly six percent of estimated global carbon dioxide emissions in 2023.

Carbon stored in forests is part of an active, relatively quick cycle that sees carbon released back into the atmosphere when living things (including trees) die and decay.

On the other hand, carbon stored underground in the form of fossil fuels such as coal, oil and gas, is much more stable and part of a much slower carbon cycle. Without the influence of humans burning these fossil fuels for energy, this carbon is unlikely to reach the atmosphere. However, when fossil fuels are burned, carbon from dead and decayed plants, animals and phytoplankton that lived hundreds of millions of years ago is released into the atmosphere in the form of heat-trapping carbon dioxide.

Burning fossil fuels, combined with the destruction of carbon sinks, has caused too much carbon dioxide to build up in the atmosphere – more than can be absorbed from existing carbon sinks such as forests. The build-up of carbon dioxide to the highest level in human history is driving global warming, as it traps heat in the lower atmosphere. 

A carbon offset is a claimed reduction in climate pollution, usually achieved by planting trees and restoring land, to account for an equivalent amount of pollution that occurs elsewhere. Companies use carbon offsets to ‘even out’ their carbon pollution.

As climate change creates more frequent and intense fires, trees originally planted to offset carbon are more likely to get burnt. This means carbon offsets are fragile and unreliable in the face of a changing and unpredictable climate.

The good news is, we don’t need to rely on carbon offsets to cut climate pollution. Proven technologies like solar and wind can electrify our lives, slash climate pollution this decade and ensure a safer future for our kids.

Protecting natural ecosystems and sustainably managing and re-establishing forests are important ways to cut climate pollution and slow down temperature rise in the short term by drawing down carbon dioxide from the atmosphere and avoiding its release. At the same time, we must slash climate pollution from coal, oil and gas further and faster . If we do only the former and not the latter, we risk transforming more and more of our carbon sinks into carbon sources as climate change progresses.

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The law that’s slamming the brakes on transport pollution https://www.climatecouncil.org.au/law-thats-slamming-brakes-on-transport-pollution/ Wed, 17 Jul 2024 04:21:20 +0000 https://www.climatecouncil.org.au/?p=167495 On May 16, 2024, the New Vehicle Efficiency Standard was voted into law by the Federal Parliament. Under this new law, climate pollution produced by new cars, vans and utes will more than halve by the end of the decade, preventing 20 million tonnes of climate pollution. That’s the same amount of pollution produced by […]

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On May 16, 2024, the New Vehicle Efficiency Standard was voted into law by the Federal Parliament.

Under this new law, climate pollution produced by new cars, vans and utes will more than halve by the end of the decade, preventing 20 million tonnes of climate pollution. That’s the same amount of pollution produced by every gas-connected home in Australia for more than two years! 

This is a huge climate win, which we relentlessly campaigned for. Over the past two years, Climate Council held dozens of political briefings, made three government submissions, produced 13 explainers and reports, flooded the inboxes and social media feeds of political decision-makers and had our spokespeople appear in the media more than 2,500 times.

It was a long and arduous fight, but our values-led, science-driven approach ensured we kept up a consistent drum beat that informed thousands of Aussies and kept this issue ‘front and centre’ for politicians and decision makers.

We’ve locked up the garage for good when it comes to expensive, polluting, inefficient cars. Australians will finally have access to more low and zero emissions vehicles already being sold in their millions overseas

Amanda McKenzie, Climate Council CEO

This is a win for the climate, a win for our health, a win for our hip-pockets, and a win for all Australians – whether they drive a car or not. 

Find out more about how this policy works.

So, what’s next?

While driving low and zero emission vehicles are an essential part of the puzzle, simply switching every private petrol or diesel vehicle for a lower emissions one won’t deliver the deep cuts to climate pollution we need to make this decade.

To clean up pollution from transport, we need more shared transport (eg. public transport, ridesharing), active transport (like walking and bike riding ) AND electric vehicles. Giving people who live in our big cities frequent and convenient access to shared and active transport is our biggest opportunity to slash climate pollution from transport this decade. 

Over the next few months, we’ll be taking our plan to slash climate pollution from transport directly to decision makers across state and federal governments, and we’ll be sharing all the benefits a transport system that prioritises moving people, rather than cars, can deliver for Aussie communities with our supporters, the media and more. 

Learn more about why delivering a transport system that enables more people to have more choice in how they get around is the biggest opportunity for transport this decade here

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Climate holdout Japan drove Australia’s LNG boom. Could the partnership go green? https://www.climatecouncil.org.au/climate-holdout-japan-drove-australias-lng-boom/ Wed, 12 Jun 2024 00:25:30 +0000 https://www.climatecouncil.org.au/?p=167287 This article is republished from The Conversation under a Creative Commons license. Read the original article. Written by Senior Researcher Wesley Morgan Without funding from Japan, many of Australia’s gas projects wouldn’t have gone ahead. Massive public loans from Japanese taxpayers are propping up Australia’s now-enormous fossil gas industry. Japan is also becoming a major gas trader and today exports more […]

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This article is republished from The Conversation under a Creative Commons license.

Read the original article. Written by Senior Researcher Wesley Morgan


Without funding from Japan, many of Australia’s gas projects wouldn’t have gone ahead. Massive public loans from Japanese taxpayers are propping up Australia’s now-enormous fossil gas industry. Japan is also becoming a major gas trader and today exports more gas to other countries than it imports from Australia.

Even as the world rapidly shifts to a clean energy future, Japan is emerging as a fossil fuel holdout. The world’s fourth biggest economy, Japan has long been dependent on foreign sources of fossil fuels. Even as China has filled its deserts with solar farms, Japan has focused on gas.

These projects make it harder for Australia to achieve its climate goals and undermine the shift to clean energy industries. New gas projects threaten to divert workforce and investment away from these export industries.

But this can change. As Australia spends big on green power, green manufacturing and green exports – as part of the government’s Future Made in Australia policies – the enduring partnership between the two nations could go green.

Developing new clean energy partnerships with energy-hungry Asian nations such as Japan, China and South Korea could boost climate cooperation, grow new clean energy exports and promote investment.

Japanese funding, Australian gas

Worried about energy security, Japan is subsidising new offshore gas projects in Australia which probably wouldn’t go ahead otherwise.

Japan is the world’s largest provider of international public finance for gas production. While other nations – including Australia – have pledged to end international finance for fossil fuels, Japan has kept the money flowing.

For example, last month, the Japan Bank for International Cooperation provided Australia’s biggest gas corporation, Woodside, with A$1.5 billion in loans to develop the Scarborough gas field offshore from Western Australia. Japanese power utility JERA also received $1.2billion from the Japanese bank to acquire a 15% stake in the project, gaining rights to a share of the liquefied natural gas (LNG) produced.

Without this kind of financial support, new gas projects would be less likely to proceed.

It is not certain other funders would step in. Gas production in Australia is relatively expensive, due to remote locations and high operating costs. Over the past decade, Australian gas projects have typically been delivered late and over budget and have delivered poor returns for investors.

In the years ahead, Australian gas projects will struggle to deliver gas at internationally competitive prices. In 2022, Russia’s invasion of Ukraine triggered a surge in demand for LNG. Now, the world is facing a massive oversupply of gas.

In two years time, large new LNG volumes will come online from lower-cost producers in the Middle East – mainly Qatar – and in North America, just as demand for gas falls in key markets. The Australian government’s own analysis projects a much lower price of LNG from these producers than the cost of production in Australia.

If we left it up to the market, Australia’s increasingly uncompetitive gas exports would lose market share. But it’s not being left up to the market. Japan is underwriting new gas projects to make money-losing projects seem viable. And that makes it much harder for Australia to shift to a lucrative green economy.

Tokyo’s neon lights will keep glowing

Last year, Japanese ambassador Yamagami Shingo claimed Australian gas exports were crucial to keeping the neon lights of Tokyo glowing.

In reality, Japan is now reselling more LNG to other Asian nations than it imports from Australia. Japanese gas corporations are contracted to buy more gas over the next decade than Japan will use at home, and are planning to sell excess gas in other markets in Asia.

This is a direct result of official policy, which aims to create new demand for gas in Southeast Asia by offering financial support for gas import terminals and gas-fired power plants and supporting Japanese corporations to supply that demand.

This is not hidden. It’s an open goal. By 2030, the Japanese government wants its corporations to “handle” 100 million tonnes of LNG each year – far more than Japan will use to meet its own energy needs.

Why? Japan’s government sees maintaining influence in the region’s LNG market as important to its own energy security.

Renewables offer Japan true energy security

The gas industry has tried to brand gas as cleaner than coal or a transition fuel. In reality, gas is a dangerous fossil fuel. It’s largely methane, 80 times more potent in heating the planet than carbon dioxide. Methane has added almost a third (30%) of the extra heat building up since the industrial revolution.

Woodside chief Meg O’Neill claims Australian gas exports “can help Asia to decarbonise by replacing coal”. But gas can be just as polluting as coal. Methane leaks are very common across the gas supply chain. You only need a very low amount of leakage for gas to be on par with coal for pollution.

While Japan buys and resells Australian gas, it’s own power grid is greening. The government now plans to double the role of renewables – rising from 18% of power generation in 2019 to 37% by 2030 – while gas-fired power shrinks.

Japan’s demand for gas at home is already falling. It fell 18% in the decade to 2022. In 2023 alone, demand for gas fell by 8%.

Shifting to renewables even faster would improve Japan’s energy security by reducing dependence on imported gas. Recent analysis suggests Japan could achieve a 90% clean energy system by 2035.

Without Japanese funds, Australian gas would be dwindling

In the five years to 2017, Australia’s gas industry grew enormously. By 2019 Australia became the world’s largest LNG exporter. Analysis from the Institute for Energy Economics and Financial Analysis points out this is remarkable given how remote and relatively small Australia’s gas reserves are.

International subsidies – including Japan’s largesse – helped turn Australia into a fossil fuel giant. But these subsidies will not serve our interests long term. Continuing to allow subsidised investment in new gas projects diverts investment, workforce, and supply-chain capacity away from the green industries the government wants to grow for the future.

This doesn’t mean turning our back on Japan. Japan has a huge need for energy. But it can get it without resorting to fossil fuels. Japan could partner with Australia to supply critical minerals and green metals for batteries and renewables, green ammonia for fertilisers and industry, and green hydrogen for transport and industry.


Acknowledgements: Ben McLeod (Quantitative analyst, Climate Council) and Josh Runciman (Lead analyst, Australian Gas, IEEFA) provided data used in the article.

The Conversation

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