Political backers advocate for cross-party collaboration in shaping Australia's climate strategy
In the lead-up to Australia's upcoming federal election, a joint statement from several major investor groups urges political candidates to stay the course on climate policy, emphasising the need for a clear, science-aligned target for emissions reduction by 2035.
The statement, signed by groups including the Investor Group on Climate Change, the Responsible Investment Association of Australasia, the Financial Services Council, and the Clean Energy Investor Group, among others, highlights the importance of climate policy continuity and increased ambition.
Coalitions like Business for 75, which includes investors such as Future Super and corporations like Fortescue and Bank Australia, call for a 75% emissions reduction target by 2035. This target, they argue, would provide national coherence, international credibility, and clear investment signals aligned with the Paris Agreement.
The Investor Group on Climate Change (IGCC) views the 2035 emissions target as the biggest climate policy decision of this political term. They urge for strong sector-specific policies, such as clean energy targets and the Safeguard Mechanism baselines, to avoid systemic risks and mobilise capital investment in the energy transition.
There is a noticeable divergence across corporate advocacy. While several large companies, including Fortescue, BHP, AGL, and Origin, support ambitious, renewable-led energy policies, influential industry associations linked to fossil fuels, such as the Minerals Council of Australia and the Australian Energy Producers, continue to resist high climate ambition.
Modeling and advocacy from environmental and business groups suggest Australia could set an even more ambitious target, up to 85% emissions reduction by 2035. This aligns with economic advantages and global climate justice demands, especially from regional Pacific nations.
The Safeguard Mechanism, a key market-based policy regulating industrial emissions, is a crucial focus for investor groups and the government. It has shown early success in emissions reductions and is expected to be strengthened post-2026 review to support the 2035 target and clean economy transition.
In summary, major Australian investor groups strongly favour climate policy continuity with heightened ambition for 2035 emissions reductions. They advocate for stable, science-based targets and mechanisms that encourage investment in clean energy and decarbonisation, while navigating political uncertainties and opposition from fossil fuel industry sectors.
The statement comes amidst the reversal of climate policy positions within American regulatory agencies, including the SEC, prompting an urgent call to avoid a US-inspired change in direction. The signatories demand continuity in climate regulations such as the Safeguard Mechanism and the mandatory climate disclosure regime, emphasising the importance of continuity and bipartisanship in climate policy.
[1] Business for 75, (2022). Retrieved from [2] Investor Group on Climate Change, (2022). Retrieved from [3] Climate Council, (2022). Retrieved from [4] Responsible Investment Association of Australasia, (2022). Retrieved from [5] Financial Services Council, (2022). Retrieved from
- The Investor Group on Climate Change (IGCC) and various other investor groups, such as Business for 75, the Responsible Investment Association of Australasia, the Financial Services Council, and the Clean Energy Investor Group, have urged political candidates to maintain climate policy, particularly a science-aligned emissions reduction target by 2035.
- Business for 75, an investor coalition, has proposed a 75% emissions reduction target by 2035, asserting that this would provide national coherence, international credibility, and clear investment signals aligned with the Paris Agreement.
- In the realm of environmental-science and policy-and-legislation, the Investor Group on Climate Change views the 2035 emissions target as the most critical climate policy decision of this political term, emphasizing the need for strong sector-specific policies to avoid systemic risks and mobilize capital investment in the energy transition.
- Simultaneously, in the arena of politics and general-news, modelers and advocates from environmental and business groups suggest Australia could set an even more ambitious target, up to 85% emissions reduction by 2035, aligning with economic advantages and global climate justice demands, especially from regional Pacific nations.
