Australia has made significant strides in climate action with the Labor Government’s new climate reforms, passed with support from the Greens.
These changes reshape environmental laws and accelerate emissions reduction, putting Australia’s domestic climate policy in the spotlight after COP30 in Brazil. While some opportunities, the reforms mark a notable improvement over previous policy.
As frustrating as it is to have missed many opportunities, like cutting fossil fuel rebates, it’s got to be a better deal than we would have got with the coalition. I mean that starts with the word ‘coal’.
Key Features of Labor’s Climate Policy Reform
- No Fast-Tracking for Coal and Gas Projects: All fossil fuel developments require full federal scrutiny, including water use approvals.
- National Environment Protection Agency: An independent body now enforces standards and oversees project approvals.
- National Environmental Standards: Projects must deliver a “net gain” for the environment.
- Forestry and Land Clearing Oversight: Federal laws now cover high-risk land clearing and regional forest agreements.
- $300 Million Growth Fund for Forestry Industry: Balances environmental protection with economic support.
- Emissions Reductions: Australia cut emissions by 2.2% in 2024–25, equivalent to eliminating the entire domestic aviation sector.
- Renewables Milestone: Renewable energy reached 50% of the national grid in October 2025.
Pros
- Stronger protections against deforestation and fossil fuel expansion.
- Record emissions reductions, with electricity sector emissions at their lowest ever.
- Clearer rules for business approvals, reducing uncertainty.
Cons
- No climate trigger—fossil fuel projects aren’t automatically assessed for greenhouse gas impacts.
- Transport emissions continue to rise, especially from diesel and aviation fuel.
- Business groups warn of slower approvals and higher compliance costs.
Final Thoughts
Australia’s new climate policy demonstrates domestic leadership with stronger environmental laws and measurable emissions reductions.
However, the absence of a climate trigger and rising transport emissions highlight ongoing challenges. Globally, COP30’s mixed results and Colombia’s bold initiative to phase out fossil fuel, which Australia has signed up to emphasise that ending fossil fuels remains the central challenge.
For households and communities, Australia is moving forward, but vigilance and continued pressure are essential to ensure promises translate into real-world action.