Environment & Energy

Australia is at a pivotal moment in our transition to net-zero by 2050. We need competitive, market-driven policy settings that facilitate this transition, while supporting sustainable development and maintaining affordable and reliable energy supply. ACCI believes that energy and environment policies should be complementary, providing long-term certainty that stimulates private investment and competition.
 
A bipartisan, technology-neutral approach is essential to ensure the best mix of traditional and renewable energy sources are at our disposal, while retaining our position as a reliable global export leader. At the same time, environment and climate change policies should promote and drive sustainable development, ensuring the needs of current and future generations are protected. A dynamic industry with innovative environmental solutions, including policies that advance sustainable development and a circular economy, are vital to meeting our climate ambitions.

With increasing domestic and international pressure to limit the impact of climate change, Australia must take decisive action now to meet its net-zero targets by 2050. The role of natural gas as a lower emission transition fuel in the move to renewable energy needs to be recognised, to keep energy affordable and reliable.

Alongside this, increasingly complex and prescriptive environmental regulation, particularly the duplication at Federal and State/Territory levels, can lead to extensive delays in approval times and severe budget blow-outs for major projects. This is inhibiting growth by holding back business investment and economic development. To meet the challenges that lie ahead, environment and energy policies need to be streamlined and fast-tracked, with a focus on driving innovation and maintaining Australia’s competitive edge.

Peter Grist

Chief Economist 

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Net-Zero and Energy Transition

Commit to and achieve net-zero emissions by 2050, while ensuring energy security and affordability
Australia’s transition from fossil fuels to renewable energy to meet our commitment to net-zero emissions by 2050 must be done in a way that ensures energy security, reliability and affordability. We advocate for a technology-agnostic approach, allowing all forms of energy to drive the transition. Investment in emerging technologies like hydrogen and battery storage is essential, but in the medium-term, baseload power from natural gas and emissions reduction from carbon sequestration and storage, will be needed to support a move to renewable sources.

Foster innovation and focus on market-driven solutions to lower emissions 
We advocate for energy and climate policies that spur innovation and encourage the development and uptake of low and zero-emissions technologies. Government should look to market-based solutions, by promoting private sector investment in new renewable energy projects, reducing reliance on regulation to prompt change, and supporting businesses to grow and succeed. To ensure a smooth transition, energy policies should be predictable, stable, and supported by both major parties. Additionally, policies should promote international collaboration and information sharing, ensuring Australia retains its position as a major player in the renewables sector. Engaging in global climate negotiations and setting ambitious yet achievable targets will safeguard our competitive edge, while supporting climate goals.

Environmental Regulation and Land Use

Commit to and achieve net-zero emissions by 2050, while ensuring energy security and affordability

Australia’s transition from fossil fuels to renewable energy to meet our commitment to net-zero emissions by 2050 must be done in a way that ensures energy security, reliability and affordability. We advocate for a technology-agnostic approach, allowing all forms of energy to drive the transition. Investment in emerging technologies like hydrogen and battery storage is essential, but in the medium-term, baseload power from natural gas and emissions reduction from carbon sequestration and storage, will be needed to support a move to renewable sources.

Foster innovation and focus on market-driven solutions to lower emissions
We advocate for energy and climate policies that spur innovation and encourage the development and uptake of low and zero-emissions technologies. Government should look to market-based solutions, by promoting private sector investment in new renewable energy projects, reducing reliance on regulation to prompt change, and supporting businesses to grow and succeed. To ensure a smooth transition, energy policies should be predictable, stable, and supported by both major parties. Additionally, policies should promote international collaboration and information sharing, ensuring Australia retains its position as a major player in the renewables sector. Engaging in global climate negotiations and setting ambitious yet achievable targets will safeguard our competitive edge, while supporting climate goals.

Simplify, streamline and fast-track environmental regulations to reduce delays and costs for business
Environmental regulations, particularly under the Environmental Protection and Biodiversity Conservation Act (EPBC Act), have become overly complex and prescriptive, leading to protracted delays in projects and budget blowouts. Similarly, government agencies are increasingly becoming too heavy-handed in the regulation of projects, further exacerbating delays and costs. These processes should be streamlined and simplified to ensure critical projects aren’t needlessly held up. We also want the Federal Government to work closer with State and Territory Governments to harmonise regulations, removing duplication, and setting a clear, outcome-oriented process. For projects that carry a lower environmental risk, more options should be made available, including self-assessment. A more efficient regulatory framework will allow businesses to succeed, while contributing to sustainable environmental development.

Implement a balanced approach to land use that supports both sustainable development and environmental protection
We advocate for government policy that is conducive to sustainable development, allowing consistent and realistic goals to be set and achieved, including minimum standards. Land use policies need to balance environmental protection with economic prosperity, ensuring businesses aren’t discouraged from participating in projects. Clear and transparent guidelines for land usage and development projects will help businesses navigate the regulatory landscape while upholding standards. Additionally, we support the recommendations from the recent review of the EPBC Act to see more transparency and accountability of the environmental approval process through the Nature Positive Plan. 

Circular Economy

Accelerate policies that embed circular economy principles across all parts of the economy, such as the environment, energy, and industry

Circular economy principles seek to retain the economic value of the materials we use for as long as possible, reduce the rate of depletion of natural resources, and minimise the adverse impact of waste on the environment. The transition to a circular economy requires embedding its principles into all sectors of the economy. Circular economy principles can be best achieved by encouraging businesses to maximise resource use through better design, reuse, recycling, and remanufacturing. Government should work with industry to set clear standards for circular economy practices, incentivise private investment and foster industry-led innovation that reduces the consumption of resources. Greater collaboration between Government and industry will ensure the transition is both sustainable and profitable for all parties.

Enhance the market for recycled materials and waste management technologies
Australia needs to establish markets for recycled products and materials to promote a competitive and sustainable circular economy. We advocate for government policies that work to eliminate barriers that hinder the development of new technologies, while simplifying processes that encourage the reuse of resources. Green public procurement should also be prioritised to help develop markets and drive demand for recycled products. Government should promote the development of new markets by streamlining approvals for innovations to repurpose recycled products. Incentives for businesses to engage in these activities will enhance productivity while achieving environmental goals.