Australia’s New 2035 Climate Target: Progress, But Not the Ceiling
Australia has set a new national emissions reduction target for 2035, a 62–70% cut below 2005 levels. On the surface, this is progress as it is a clearer acknowledgement that the climate crisis demands stronger ambition.
But beneath the headline figure lies a more complex story. The target remains below what scientists, business leaders and civil society groups say is needed, at least a 75% reduction by 2035, to align with the Paris Agreement and limit warming to 1.5°C.
Why the number matters
The difference between 70 and 75% may seem small, but symbolically, it represents the difference between steady progress and genuine leadership. More than 500 Australian businesses, including us, joined the Business for 75 coalition calling on the government to adopt a 75% target. This campaign signalled that climate ambition is now a mainstream economic imperative supported by super funds, corporates, and investors (Business for 75, 2025).
While the government’s decision doesn’t fully meet that call, it demonstrates that collective advocacy works. Sustained, coordinated pressure from business and community voices is shifting the national conversation, and the policy landscape, in real time.
Where the money is going
The new target is backed by a suite of funding measures aimed at accelerating decarbonisation and supporting industry transition. Key funding commitments include:
$5 billion Net Zero Fund to help carbon-intensive industries decarbonise.
$2 billion for the Clean Energy Finance Corporation, expanding its capacity to finance renewable projects.
$1.1 billion for clean fuel incentives and low-emissions manufacturing.
$85 million to improve household and business energy efficiency.
$40 million for EV charging infrastructure expansion.
$50 million to help local and community sports clubs reduce emissions.
These investments mark real progress, but they also underscore the scale of the task ahead. According to the Climate Change Authority, reaching even the lower end of the new target range will require “whole-of-economy transformation”, from the power grid and transport systems to agriculture, buildings, and finance (Climate Change Authority, 2025).
Falling short of boldness
While this step forward should be acknowledged, Australia’s 2035 target cannot be the ceiling of ambition. The reality is that inaction costs more than action in lives, livelihoods, infrastructure damage, and missed opportunity. Deloitte’s 2025 modelling found that a 7% cut by 2035 could add billions to national GDP while reducing the long-term fiscal impact of climate inaction (Deloitte/Business for 75, 2025).
If Australia is serious about protecting prosperity and intergenerational fairness, it must move beyond 62–70% and adopt the level of ambition that science demands, the economy can support, and the public increasingly expects.
References
Business for 75 (2025). Business for 75% climate action campaign. https://www.businessfor75.com.au/
Climate Change Authority (2025). 2035 Targets Advice: recommended emissions reduction range. https://www.climatechangeauthority.gov.au/sites/default/files/documents/2025-09/2035%20Targets%20Advice.pdf
Climate Council (2025). Everything you need to know about Australia’s 2035 climate target. https://www.climatecouncil.org.au/resources/australias-2035-climate-target-is-one-of-the-most-critical-decisions-were-making/
Deloitte/Business for 75 (2025). Economic modelling of a 75% emissions reduction scenario. https://www.businessfor75.com.au/download/Unlocking%20potential.%20Powering%20prosperity.pdf
