Key takeaways
The Safeguard Mechanism will be reviewed in 2026/2027, presenting an opportunity to strengthen it by further reducing emissions and encouraging more onsite abatement at major industrial sites.
Frameworks for future federal renewable energy initiatives are evolving. The REGO scheme will continue beyond the end of the LRET in 2030 and a review of the NEM is underway to support investment in firmed renewable generation and storage after the Capacity Investment Scheme concludes.
At the state level, funding programs play an important role in incentivising investment in low carbon technology solutions, but there is uncertainty over state emissions targets.
Following the recent federal and state elections, we discuss the policies driving Australia’s push for decarbonisation and renewables. With under five years until 2030, the transition is on, but remains bumpy and highly political.
In this article, we take a look at what’s working and what may change both nationally and in resource-rich Queensland and Western Australia.
Recent reforms and initiatives towards Australia's decarbonisation journey
Australia’s energy transition is undeniably accelerating and we have the benefit of a more stable Federal Government policy setting than previously seen. However, the path remains complex with transmission constraints, the ongoing the push and pull between renewables and gas, and disjoint between the States.
Recent reforms and initiatives show a growing policy commitment to driving down emissions and attracting clean energy investment. Yet, the transition still faces significant hurdles ranging from emissions reporting gaps and offset reliance, to uncertain policy settings at the State level and evolving frameworks for gas and industrial decarbonisation.