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Air pollution control

Nationals Dump Net Zero Commitment, Tying Australia's Emissions Reductions to the OECD Average

Strategic Insights

— 2 min read

The Nationals party has unanimously agreed to a revised policy that drops the party's commitment to net zero by 2050. Instead, the party will tie Australia's emissions reductions to the average of OECD countries, which would effectively downscale the Albanese government's 2035 target of a 62%-70% cut on 2005 levels to a 30%-40% cut.

The move is seen as a departure from the Liberals, who are still committed to the 2050 target, albeit in some watered-down form. The Nationals' decision has raised questions about the future of the Coalition relationship and the Liberals' chances of retaining the target. It also puts the Liberals under greater pressure to release a policy quickly.

Key Takeaways:

  • The Nationals have agreed to a revised policy that drops the party's commitment to net zero by 2050.
  • The party will tie Australia's emissions reductions to the average of OECD countries.
  • The revised policy would downscale the Albanese government's 2035 target of a 62%-70% cut on 2005 levels to a 30%-40% cut.
  • Nationals leader David Littleproud said Australia should peg its emissions reductions to the rest of the world, citing a 1% per year average emissions cut by OECD countries.
  • Littleproud claimed Australia has cut emissions more than like countries, with a 2% per year reduction.
  • The Nationals will incentivize lower emissions through a renewed Emissions Reduction Fund, which will be a small fraction of the $9 billion currently spent on net-zero subsidies, regulations, and administrative costs.
  • The party will broaden the Capacity Investment Scheme to include all energy technologies and remove the moratorium on nuclear energy.
  • Senator Matt Canavan said under the Albanese government's plans, Australia would be cutting its emissions three times more than the rest of the world.
  • The Liberals are split on the issue, with some hardline conservatives wanting to ditch the net zero commitment, while moderates strongly believe in keeping the 2050 target firmly in place.
  • Environment Minister Murray Watt accused the Nationals of "dictating terms" to the Liberals, saying it was a repeat of the nuclear issue.
  • The Greens' Sarah Hanson-Young denounced the Nationals' policy move, saying it was a "ridiculous, out-of-touch party."
  • Crossbencher Zali Steggall said the Nationals' decision showed they were "captured by fossil fuel interests."

Statistics:

  • Australia's emissions reductions are currently tied to the OECD average (Littleproud).
  • OECD countries have been cutting their emissions by 1% per year (Littleproud).
  • Australia has been cutting its emissions by about 2% per year (Littleproud).
  • The Albanese government's 2035 target of a 62%-70% cut on 2005 levels would be downgraded to a 30%-40% cut under the Nationals' policy.
  • The Emissions Reduction Fund will be a small fraction of the $9 billion currently spent on net-zero subsidies, regulations, and administrative costs.

Sources:

  • The Conversation -- By Michelle Grattan, Professorial Fellow, University of Canberra
  • National Party
  • Labor Party
  • Greens
  • The Conversation -- View from The Hill: Nationals dump net zero -- say Australia shouldn't cut emissions faster than comparable countries
  • https://theconversation.com/view-from-the-hill-nationals-dump-net-zero-say-australia-shouldnt-cut-emissions-faster-than-comparable-countries-268100

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