The 'Emirates COP28 Leaders Declaration' echoed Australia's pledge to triple renewables and double efficiency by 2030. Reforms addressed sustainability standards and First Nations collaborations and the Federal Budget's significant funding for hydrogen-based renewables affirms Australia's commitment to decarbonisation.
This review summarises Australia's impactful journey in 2023, exemplifying proactive strides in clean energy adoption and decarbonisation and solidifying its position as a global advocate for sustainable practices.
1. Decarbonising Australia: Policy Pulse Check
To better understand Australia’s progress towards net zero, G+T conducted a client survey that sought feedback from active industry participants in Australia’s decarbonisation journey on our national progress towards our net zero goals, and the legal, political, and commercial challenges they are facing. The resulting report, Decarbonising Australia: Policy Pulse Check, analyses the findings from this survey.
Click here to access the report.
2. COP28 Outcome: The UAE Consensus on Climate Action
On 1 December, the COP28 Presidency announced that 134 countries representing over 75% of total emissions from the global food system - including Australia, China, the US and the UK - signed the ‘Emirates COP28 Leaders Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action’.
On 2 December, the COP28 Presidency announced that over 100 countries - including Australia, the US and Canada - had signed the Global Renewables and Energy Efficiency Pledge, agreeing to triple worldwide installed renewable energy generation capacity to at least 11,000 GW and to double the global average annual rate of energy efficiency improvements from around 2% to more than 4% each year until 2030.
COP28 concluded with parties agreeing on their response to the first Global Stocktake under the Paris Agreement - the decision termed the ‘UAE Consensus’. The decision notes that global greenhouse gas emission trajectories are not on track and calls on parties to transition away from fossil fuels, encourages them to submit economy-wide National Determined Contributions, articulates a new specific target to triple renewables and double efficiency by 2030, and aims to build momentum towards a new architecture for climate finance.
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3. Safeguard Mechanism, Sustainability and Nature-related Risk Disclosure Standards
The International Sustainability Standard Board published its first two global sustainability disclosure standards focusing on sustainability-related financial information and climate-related disclosures. They aim to provide a global baseline for companies to report sustainability-related risks and opportunities.
Greenwashing remains a key risk with ASIC commencing civil penalty proceedings late this year in the Federal Court for alleged greenwashing conduct by Mercer Superannuation (Australia) Limited. The ACCC also issued its final guidance for businesses making environmental claims, with its eight “principles for trustworthy environmental claims”.
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4. Access to Land for Clean Energy Projects + First Nations Partnerships + Aboriginal Cultural Heritage
With approximately 63% of Australia's land mass being subject to Native Title claims or determinations, engagement with First Nations People is central to proposed clean energy projects. Land access, in many cases, goes to the heart of ‘social licence’ which requires community engagement and support for renewable energy infrastructure.
On 14 November 2023, the Commonwealth Government released a consultation paper to inform the development of Australia’s First Nations Clean Energy Strategy which is formulated to drive investment, cooperation, and lasting benefits to indigenous communities across Australia.
5. Federal Budget’s commitment to Hydrogen
The 2024 Federal Budget has made a commitment towards decarbonisation, including:
commenced land allocation in different strategic industrial areas across the region for projects which will focus on producing hydrogen, ammonia, renewable power and other green industrial products; and
A$2 billion towards the Hydrogen Headstart Program;
$A2m committed over 2024-25 to establish a fund to support First Nations communities to engage with hydrogen project proponents and planning processes; and
A$5.6m over 2023-24 to analyse implications for Australia of intensifying global competition for the clean energy industry.
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Australia's Critical Minerals Strategy 2023-2030
The Australian Government published its “Critical Minerals Strategy 2023-2030” in June 2023. A key vision being that by 2030, Australia will have grown the geostrategic and economic benefits of its critical minerals sector, becoming a globally significant producer of both raw and processed critical minerals.
On 20 May 2023, Anthony Albanese and Joe Biden signed the Climate, Critical Minerals and Clean Energy Transformation Compact - a landmark joint formal statement of strategic intent to establish climate, clean energy, and a shared energy industrial base as the third pillar of the Australia-US Alliance.
6. Carbon Capture and Storage and Carbon Credits
Amendments to Commonwealth sea dumpling legislation were passed on 13 November 2023 to enable the grant of permits for export and geological sequestration of CO2.
In summary, Australia's 2023 journey showcased global leadership in clean energy and decarbonisation. Notable highlights include COP28 milestones, sustainability reforms, and the Federal Budget's commitment to hydrogen. For further information, please reach out to our contacts listed below.