500 Australian businesses back 75% climate target
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The News: Atlassian, Canva and Fortescue are among a coalition of more than 500 businesses operating in Australia that are backing a 75% emissions reduction target for 2035, which modelling from Deloitte found was technically achievable.
The numbers: The Deloitte modelling, which Fortescue and Future Group commissioned, compared the GDP, investment and employment benefits from adopting a 75% emissions reduction target versus 65% by 2030 compared to 2005 levels.
It found that by choosing the higher 75% cut in emissions, an extra $370 billion in additional GDP would be unlocked, alongside an additional $20 million of business investment annually and a $190 billion boost in exports by 2050.
The Climate Change Authority is expected to recommend a target or range between 65% and 75% when it provides its recommendation to the Albanese government next month.
The context: Known as Business for 75, the coalition also includes Australia's CultureAmp, Bank Australia, Future Super and Intrepid Travel alongside larger multinationals including Unilever and Volvo.
Business for 75 is a lobbying effort to reassure the government that they would invest in economic opportunities stemming from a more ambitious emissions target.
Australia must set and announce its interim 2035 target ahead of the UN climate change talks in Brazil in November. The UN has indicated it would like nations to submit their Nationally Determined Contributions by September.
Energy Minister Chris Bowen yesterday told ABC Afternoon Briefing that the government was yet to receive the CCA advice on the target, which it is modelling based on carbon budget estimates for six sectoral pathways.
Once the CCA provides its recommendations, cabinet ministers must decide on which target to adopt so it can be included it in the NDC report which is then submitted to the UN ahead of COP 30. On current efforts, Bowen said Australia is "well on track" to meet its 2030 emissions target of a 43% cut compared to 2005 levels, referring to National Greenhouse Inventory data for the year to March 2025 released on Monday.
Existing state and territory government policies, if implemented, would already put Australia on track to achieve around a 70% emissions reduction by 2035, the Business for 75 report states.
What they said: "If we look beyond the disinformation, the evidence is clear: Australia can profit from the global shift from fossil fuels to renewables," Fortescue chair Andrew Forrest and Future Group CEO Simon Sheikh said in the Business for 75 report.
"We have abundant wind, solar and critical mineral resources, a skilled workforce and deep business ingenuity. Australians are already reaping the rewards of accelerated climate action," they said.
The sources: Future Group/Deloitte Modelling , Business for 75 website, Climate council media release
