Walking the walk on climate talks

Ahead of COP29, President-Designate Mukhtar Babayev’s visit to Australia appeared to be mere window dressing for climate partnerships, focusing on resilience and climate finance.

In Sydney, Babayev met with Climate Minister Chris Bowen to discuss strategies to reach the 1.5°C target and engaged with Dr Mike Freelander MP and others to strengthen collaboration. His visit to the Sydney Marine Science Institute shed light on Australia’s marine research on climate impacts, emphasising the nation’s role in advancing regional climate resilience and sustainable development.

Shortly after taking office, the Albanese government legislated a 43 percent emissions reduction target by 2030 and committed to net-zero by 2050. This legislative approach was a critical shift from previous administrations, embedding Australia’s climate goals into law and setting a foundation for future accountability.

Through the Rewiring the Nation Corporation Program, a AU$20 billion investment, the government claims it will modernise Australia’s power grid, ensuring solar and wind energy are more efficiently integrated. This modernisation effort is being touted as essential to achieving the target of 82 percent renewable energy in Australia’s grid by 2030.

The Labor government’s renewed commitment to climate finance for the Pacific region aligns with its international stance. Recognising its responsibility as a significant emitter and one of the world’s largest fossil fuel exporters, Australia has begun directing climate aid to vulnerable neighbouring nations.

This move supports the COP29 agenda, which focuses on setting a New Collective Quantified Goal for Climate Finance, a financial benchmark aiming to surpass US$100 billion each year by 2025. Contributing to this global effort not only improves Australia’s international standing but also strengthens regional resilience against climate impacts.

Australia’s approach also includes adaptation initiatives, especially for Indigenous and northern coastal communities facing immediate climate threats. Rising sea levels, extreme heat, and drought are already impacting these areas, and the government has introduced programs to enhance resilience and adaptation in these regions, such as the Northern Australia Action Plan 2024–2029.

By addressing climate impacts on vulnerable populations, Australia is demonstrating an understanding of the social equity dimension of climate policy, an aspect that aligns with COP29’s emphasis on climate justice.

Though Australia is one of the world’s largest exporters of liquefied natural gas (LNG), with significant economic implications, it is now advancing as a clean energy leader, driven by its “Critical Minerals Strategy,” “Hydrogen Headstart Program,” and “Solar Sunshot Program.”

These initiatives leverage Australia’s rich natural resources to create supply chains for renewable energy and advanced technologies like batteries, electric vehicles, and green hydrogen.

The Critical Minerals Strategy capitalises on Australia’s strong reserves of lithium, cobalt, and rare earths essential for clean energy technologies, while the Hydrogen Headstart Program invests AUD$2.7 billion in large-scale green hydrogen projects to power industries sustainably. Additionally, the Solar Sunshot Program supports solar manufacturing to boost energy security and reduce reliance on imports.

Yet, despite these positive steps, critical challenges remain. In May 2024, the government announced its plan to increase natural gas extraction until 2050 and beyond,  a policy that contrasts sharply with the need to phase out fossil fuels as advocated by the International Energy Agency (IEA). Gas currently accounts for 27 percent of Australia’s energy needs, and the Albanese administration argues that it serves as a “transitional fuel,” necessary for a stable energy supply.

This reliance on gas has drawn sharp criticism, as it is responsible for approximately a quarter of Australia’s emissions. Expanding gas production risks locking Australia into a high-emissions future that contradicts its climate ambitions. The harsh reality is that building a net-zero policy around fossil fuels could lead to a global temperature rise of 2.7-3°C, far exceeding the Paris Agreement’s 1.5°C target.

The inconsistency in Australia’s strategy—promoting renewable energy on the one hand while expanding fossil fuel infrastructure on the other—casts doubt on its ability to meet its long-term climate goals.

The Albanese government’s decision not to implement carbon pricing further complicates Australia’s path to net zero. Although carbon pricing is widely recognised as an effective tool for reducing emissions, the government has avoided it due to political sensitivity stemming from past carbon tax debates.

Without this market-driven mechanism, Australia’s emissions reductions may proceed more slowly than anticipated, even with substantial investments in renewable energy infrastructure.

Leading economists and climate experts suggest that integrating carbon pricing into Australia’s comprehensive policy framework could unlock additional pathways to achieve the nation’s ambitious climate targets, while simultaneously driving innovation and creating new economic opportunities.

Further challenges lie in the government’s commitment to gas exports, particularly to markets like China, Japan, and South Korea. Gas projects run by major players like Chevron and Woodside Energy in Western Australia illustrate the scale of Australia’s dependence on fossil fuels.

While these projects contribute to Australia’s economic stability, they undermine its credibility in the global climate arena and complicate its position as a reliable partner in the fight against climate change.

With COP29’s emphasis on climate finance and adaptation, Australia has a unique opportunity to strengthen its international climate leadership through thoughtful realignment of its energy policies. The foundation is already laid through promising infrastructure investments and regional aid initiatives, and now Australia can build on these successes by carefully balancing its energy transition.

While the Labor government’ s position on fossil fuel projects addresses immediate energy security concerns, Australia could balance its act by accelerating renewable alternatives and innovative storage solutions.

Backed by strong infrastructure investments and legislative frameworks, Australia stands at the threshold of transformative change. The path forward builds on these achievements while embracing bold new opportunities in clean energy. COP29 arrives at an ideal moment for Australia to showcase its innovative spirit and commitment to climate action by closing the gap between ambition and achievement.

By leveraging its abundant renewable resources, embracing market mechanisms like carbon pricing and supporting communities through the transition, Australia can emerge as a global climate leader. Today’ s policy decisions offer Australia an opportunity to pioneer a sustainable future that others can follow, establishing a legacy of environmental stewardship and economic innovation in the fight against climate change.

This article was published by the Australian Institute for International Affairs.