Australia’s energy policy landscape is undergoing significant change, with political debate intensifying around the nation’s net zero commitments and the future of affordable, reliable energy.
This month, the federal opposition formally abandoned the 2050 net zero target, raising questions about the future direction of climate and energy policy and sparking widespread discussion across the sector.
Industry leaders, investors, and communities are seeking clarity and stability to guide long-term planning and investment, while the federal government remains committed to ambitious renewable energy targets, aiming for 82% renewable electricity by 2030 and supporting the transition through initiatives like the Capacity Investment Scheme and Rewiring the Nation.
The Coalition’s new energy plan released on November 16, 2025, sets their position on Australia’s energy future.
“Under our plan, affordable energy will always come first. Our emissions reduction goals will never come at the expense of Australian families, and this principle will guide every decision we take.
To keep faith with that commitment, we will remove a net zero target from our policy, to deliver affordable energy for Australian families, small businesses and the industries that power our nation.”
The Leader of the Opposition Sussan Ley said, “As a grandmother, I think about the world we are leaving to the next generation. Right now, we risk handing our children and grandchildren worse living standards than we inherited.
“We have a duty to fix this, to get energy costs down and to play our part in reducing emissions in a way Australians can afford.”
The policy document emphasises the need for affordable and reliable energy and argues that the current approach is unsustainable and costing Australians.
The Shadow Minister for Energy and Emissions Reduction Dan Tehan said, “We will make energy more affordable and continue reducing emissions responsibly. This is an energy plan built for Australians, not one that punishes them.”
The Coalition’s plan includes a commitment to reducing emissions in a responsible way, stating “we will do this by cutting emissions without cutting jobs or raising household bills. We will rely on technology and innovation rather than new taxes or heavy-handed regulation.”
One of the key challenges facing the sector is the need to balance environmental goals with economic and social considerations. The transition to net zero requires significant investment in new infrastructure, technologies and skills, as well as support for communities and industries affected by the shift away from fossil fuels. The transition to net zero requires significant investment in new infrastructure, technologies and skills, as well as support for communities and industries affected by the shift away from fossil fuels.
Energy affordability and reliability remain central concerns. Recent analysis from the Institute for Energy Economics and Financial Analysis shows that achieving net zero can go hand in hand with lower energy costs, improved grid stability and enhanced energy security. Recent analysis from the Institute for Energy Economics and Financial Analysis shows that achieving net zero can go hand in hand with lower energy costs, improved grid stability and enhanced energy security. However, the transition also presents risks, including potential disruptions to supply, price volatility and the need for new regulatory frameworks. However, the transition also presents risks, including potential disruptions to supply, price volatility and the need for new regulatory frameworks.