What every Australian state and territory can still do on climate

Discussions about Australia’s climate transition often focus on the federal government, but states and territories also play a significant role in support of national and international goals.

Our soon-to-be-released report identifies leading climate policies from Australia’s states and territories as well as key opportunities for further action in each jurisdiction and sector.

Some key actions emerge as we analysed climate policies that can be taken by subnational governments right across the country.  

Targets are critical, for the market, and decision-makers

By setting emissions reduction targets, state and territory governments send a message about their priorities. 

This message tells Ministers, departments and government-controlled entities to incorporate transition planning into their decision-making. 

A target also tells the market the expected direction of travel, giving businesses information about government priorities so they can limit their risk on investments, projects and other activities.

In our recent Briefing Room webinar, we shared this map of current state and territory emissions reduction targets.

While all states and territories have net zero targets, not all of these targets are legislated,

All state and territory governments could set more ambitious, 1.5°C-aligned targets  – in line with the Paris Agreement goals.

Interim targets provide greater certainty about the path to net zero 

Climateworks’ most recent decarbonisation scenarios outline two possible emission reduction pathways for Australia.

Based on best-in-class modelling, these scenarios show least-cost options for decarbonising Australia’s whole economy in line with the Paris Agreement goals – limiting warming to well below 2 degrees Celsius with an aim of 1.5 degrees.

Delaying emission reductions could see Australia overshoot its Paris-aligned carbon budget – the amount of greenhouse gases that can be emitted while keeping warming below a temperature goal.

While we have calculated that state and territory emissions reduction goals are broadly 2°C aligned, we know that globally, governments must aim for 1.5°C alignment to prevent the worst effects of climate change.

By setting interim targets, state and territory governments can set up their jurisdictions to reduce emissions faster, sending a clear signal to the market and decision-makers.

Climateworks recommends governments set interim targets between now and their net zero target date to make the pathway to net zero clear and base their targets on a 1.5-degree carbon budget.

Interim targets can support the Australian Government as it develops Australia’s next and future global climate commitments, known as nationally determined contributions. 

To ensure Australia can reduce emissions in line with a 1.5-degree pathway, state and territory governments need to bring their existing net zero targets forward and set more ambitious interim targets. 

This will help drive the development of the supporting policies and programs needed to reduce emissions faster.  

Setting out sector plans 

Having a target by itself will not lead to net zero. Action and implementation plans are also required.

State and territory governments can develop plans for each sector, setting out a suite of policy measures to decarbonise that sector.

Similar to targets, best practice is to regularly update these sectoral plans to reflect the latest science.

Victoria, for example, already has emissions reduction pledges in place for seven economic sectors, including a whole-of-government pledge, and updates these every five years.

Other states are also developing sectoral plans. 

At the time of writing, Tasmania is finalising Emissions Reduction and Resilience Plans for six sectors of its economy. And Queensland has legislated the development of sectoral plans, which are due by the end of 2025. 

Ideally, all jurisdictions would develop their plans to align with and contribute to the federal Sectoral Emissions Reduction and Net Zero Plans, due to be published next year.

Further opportunities

Deeper collaboration between jurisdictions – and putting climate at the heart of decision-making – can set Australia up to prosper in a net zero emissions future.

Our forthcoming report identifies key opportunities for further climate action in every sector of the economy.

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