Australia commits to increase climate emissions reduction target to 43%

Australia has informed the United Nations that it will increase its climate emissions reduction target under the country's Nationally Determined Contributions (NDCs) to 43% by 2030, Prime Minister Anthony Albanese said June 16 at a press conference.

Legislation would be submitted to the parliament in July, Albanese said. Australia's existing NDC has an emissions reduction target of 26%-28% below 2005 levels by 2030.

"Today, the Minister for Climate Change and Energy (Chris Bowen) and I have written to the Executive Secretary of the UN Framework Convention on Climate Change, Ms Patricia Espinosa, to convey Australia's enhanced 2030 Nationally Determined Contribution under the Paris Agreement," Albanese said.

International leaders had welcomed "our changed position of 43%, up by 17%-15%, from the 26% to 28% target that has remained there since Tony Abbott determined it in 2015," Albanese said.

The move aligns with Labor's "Powering Australia" policy announced in December 2021, boosting renewables, transmission and domestic manufacturing of green commodities.

"What we did was work out what good policy looked like, and it happened to come out with a 43% target by 2030," Albanese said.

Albanese said trade associations had supported a stronger climate policy and that it was an opportunity for Australia to "end the climate wars."

He gave the example of miner Rio Tinto's plans to decarbonize its alumina refinery in Gladstone using renewables and green hydrogen.

Albanese said a legislation will be introduced in parliament in July, calling it "economic reform," which is "substantial, but it will have an environmental benefit."

"The Australian government is implementing a substantial and rigorous suite of new policies across the economy to drive the transition to net zero," Australia's Nationally Determined Contribution -- Communications 2022 document says.

Energy crisis

Noting Australian Energy Market Operator (AEMO)'s suspension of the spot power market in all regions June 15 due to unprecedented capacity tightness, Minister Bowen said the government's energy and climate actions represented "the best chance of getting a properly functioning energy system."

AEMO imposed a cap on wholesale electricity prices in Queensland, New South Wales, Victoria and South Australia earlier in June. Energy ministers have agreed to accelerate a capacity market plan to ensure future security of supply.

"The government, through the AEMO and independent action, stepped in," Bowen said. "It will continue for not a day more or less than is necessary."

He warned the New South Wales grid would be under significant pressure during the evening peak demand period June 16.

"High amongst the factors is unscheduled outages of ageing coal-fired power stations. Everybody is working to fix that," Bowen said.