Joint media release: Australia delivers on key Paris Agreement commitment

Chris Bowen MP, Minister for Climate Change and Energy

Sen Jenny McAllister, Assistant Minister for Climate Change and Energy 

The Albanese Government is delivering real climate action and ending accounting loopholes for good by permanently cancelling Commonwealth-held Kyoto ‘carryover’ credits.

While the Albanese Government has always been committed to not using these carryover credits – their permanent cancellation means no future Government can use this loophole to meet their climate targets either.

Their use was rightly characterised at home and abroad as an accounting trick – and an excuse not to have any climate or energy policy.

Without this strong action, more than 700 million credits – representing more than a year’s worth of national emissions, could have been used in dodgy accounting in years to come.

Australia now has an ambitious but achievable target of 43% emissions reduction by 2030 and net zero by 2050.

Because we know that good climate and energy policy is good for the economy.

So we’re getting there with measures that invest in our nation’s future competitiveness and growth.

Like our landmark Safeguard Mechanism Reforms which will deliver over 200 million tonnes of emissions reduction by 2030 – the equivalent of taking two-thirds of Australia’s cars off the road.

Like our $1.7 billion for our Energy Savings Package which will deliver energy upgrades for households, businesses and communities to save on energy, power bills and emissions.

Like our $20 billion Rewiring the Nation Plan and our Capacity Investment Scheme, which will help unlock cleaner, cheaper, firmed renewable energy to reach 82% renewables by 2030.

The Morrison Government couldn’t let go of these Kyoto carryover credits, because they knew they’d need to use them to meet their inadequate emissions reduction targets.

Previous abatement represented by Kyoto units will not count towards Australia’s Paris Agreement targets. Instead, the Albanese Government is driving policies to deliver real, new emissions reduction to not just to meet climate targets but to prepare the Australian economy for a net zero global economy.

Comments attributable to Minister for Climate Change and Energy, Chris Bowen:

“The Albanese Government has delivered on its election commitment to legislate our ambitious but achievable climate targets – and we’re now back at the decision-making table for the global economy, attracting critical investments in cleaner, cheaper energy, and protecting industry for the future.”

“After a decade of chaos, denial and delay, the LNP still can’t decide if they believe in climate change or if they’re committed to net zero – so we’re closing the loophole for dodgy accounting tricks they’ve tried to use in the past.

Comments attributable to Assistant Minister for Climate Change and Energy, Jenny McAllister:

“The Albanese Government is doing what we said we would – acting on climate change after a decade on denial and delay and chart a clear path to net zero. The cancelling of these credits is a clear milestone that shows the government is meeting its commitments. 

“Our government has legislated an ambitious 2030 target, along with net zero by 2050, policies like the Safeguard Mechanism, Rewiring the Nation and the Capacity Investment Scheme will help deliver on these targets,” Assistant Minister McAllister said.

“We are cleaning up after a decade of neglect and denial, while rapidly decarbonising our economy to become a renewable energy superpower."

In June 2022, the government formally submitted Australia’s updated NDC to the United Nations Framework Convention on Climate Change, including Australia’s new target to reduce emissions by 43% below 2005 levels by 2030.

Australia’s compliance with its Kyoto Protocol CP2 target will be officially confirmed through international review processes under the Kyoto Protocol scheduled for early 2024.