Albanese Government sets a 2035 emissions reduction target of 62-70%

18 September 2025

On Thursday 18 September, Prime Minister Anthony Albanese, Minister for Climate Change and Energy Chris Bowen, and Treasurer Jim Chalmers announced the Albanese Government’s 2035 emissions reduction target.

The Albanese Government has set an emissions reduction target of 62-70% cent by 2035 on 2005 emissions levels.  The 2035 target is based on the independent advice provided by the Climate Change Authority through its 2035 Targets Advice report.

The government has deemed the 2035 target an ambitious but achievable target that aims to seize the economic and jobs opportunity the clean energy transition presents Australia.

The decision to set the 2035 target at a range of 62-70% balances what Australia can achieve with existing policies and technologies, and what could be achieved through a whole-of-economy and whole-of-society effort. The government has argued this enables greater ambition, recognizing that technology can change quickly and bigger emissions cuts may be possible over the next decade.

The announcement of the 2035 target is also in line with Australia’s commitments under the Paris Agreement. The Prime Minister will attend the United Nations’ Climate Summit in New York on 24 September where the Parties to the Paris Agreement will formally update their Nationally Determined Contributions.

Alongside the 2035 target announcement, the Albanese Government has released Australia’s Net Zero Plan, which outlines five priority areas in addition to existing policies that will ensure the lower reaches of the target is achieved. They include:

• Clean electricity across the economy: more renewable electricity generation, supported by new transmission and storage (including household batteries).
• Lowering emissions by electrification and efficiency: a New Vehicle Efficiency Standard, supporting consumers switch to EVs and improving energy efficiency.
• Expanding clean fuel use: establishing a low carbon liquid fuels industry and supporting green hydrogen.
• Accelerating new technologies: through Future Made in Australia investments, and innovation support through ARENA.
• Net carbon removals scaled up: enabling land holders to earn money for eligible carbon storage and a robust ACCU scheme.

The Net Zero Plan aims to enable Australia to transition to net zero by 2050 while growing the economy, delivering benefits for households and businesses, and creating new jobs. To support the plan, the government has also developed six sector emissions reduction plans to provide detail on the opportunities the 2035 target presents across the economy and how the government is driving and supporting action to achieve it. The six sector plans cover Electricity and Energy, Agriculture and Land, Built Environment, Industry, Resources, and Transport.

Today’s announcement also includes a commitment of funding across the economy that will help deliver the 2035 target. This includes:

• A new $5 billion Net Zero Fund in the National Reconstruction Fund, to help industrial facilities decarbonise and scale up more renewables and low emissions manufacturing.
• $2 billion for the Clean Energy Finance Corporation to continue to drive downwards pressure on electricity prices.
• $1.1 billion to encourage more production of Clean Fuels here in Australia.
• $40 million to accelerate the roll out of kerbside and fast EV charging across our suburbs and regions.
• $85 million for frameworks and tools to help households and businesses understand and improve their energy performance.

The government’s media release of the 2035 emissions reduction target announcement can be found here.

The announcement of the 2035 emissions reduction target follows the government’s release of the National Climate Risk Assessment (NCRA) and National Adaptation Plan (NAP) earlier this week. The NCRA is Australia’s first comprehensive assessment of the risks posed by climate change across the country. It is accompanied by the NAP, which outlines how government will respond to the impacts outlined in the NCRA. Hawker Britton’s occasional paper on the NCRA and NAP can be found here.

Further information 

For more information, please contact Hawker Britton’s Managing Director Simon Banks on +61 419 638 587 Director John Jarrett  on +61 434 384 745.

Further Hawker Britton Occasional Papers on the activities of the Federal Government are available here.