Annual Climate Change Statement

I want to acknowledge the Ngunnawal and Ngambri people, the traditional custodians of this land.

The National Climate Risk Assessment told us this year that Aboriginal and Torres Strait Islander peoples will experience unique impacts from climate change.

Since the last annual statement, the Australian Government has released the first-ever First Nations Clean Energy strategy.

And I was proud to recently appoint a key architect of that strategy, Dr Kate George, to the Board of the Clean Energy Finance Corporation.

Because we believe that Australia’s First Nations must be part of the conversation at the highest levels.

As we gather today, something incredible is happening across this country.

Over 1,000 households are having a battery installed in their home each day.

Over 500 households are installing solar panels for the first time each day – joining the one in three Australian households who already have them in place.

And around 1,000 motorists are getting in to a brand new hybrid, electric vehicle or plug-in hybrid each day.

Never before in our history have so many Australians been able to take control of their energy destiny.

It’s clear that in many ways households are leading the charge.

That’s why this Government will keep working to make it easier for households to save on their energy bills and take advantage of clean, reliable renewable power.

We are seeing Cheaper Home Batteries bring down the cost of batteries.

Their availability is smoothing evening demand, reducing our reliance on expensive gas

And in doing so helping bring down bills for everyone.

Australia's energy market is in a remarkable transition.

Through solar sharer we're working to make sure more Australians benefit from the transition.

Whether they can have panels or not.

We announced this new retail offer at start of this month – making it available to all households in default market offer regulated states - NSW, South-East Queensland, and South Australia - from July next year.

I was pleased to see recently that the Victorian Essential Services Commission is also consulting on making it available next year.

Whether it's harnessing free solar or encouraging more people to be part of the energy market with their battery - bills stay lower for everyone, and our grid becomes a lot fairer.

All while doing our bit for the planet.

That’s what we’ve done in just one term – but there’s much more to do.

It’s clear that energy prices are still too high.

When we entered office, we uncovered that the former Coalition Government had hidden a 20% price surge until after the election.

It was the departing gift of the former Coalition Government that had failed to do anything to replace Australia’s ageing coal.

Most of Australia's coal fired power stations are more than 40 years old.

This isn’t a secret.

All our independent market bodies and regulators have told us, year on year, that coal power stations are becoming more unreliable and increasingly costly to operate.

We need to replace them and the cheapest way to do that is renewables.

The average level of coal capacity that was unavailable due to outages increased by 28% in the second quarter of this year, compared with the same period last year – that's costing Australians in their bills.

When coal goes down, bill goes up.

The Australian Energy Market Commission has warned

"Delaying the connection of renewable generation and transmission into the market would put upward pressure on residential electricity costs."

This remains an inconvenient fact those opposite continue to ignore in their internal ideological energy debate.

While those opposite are arguing, we are acting.

We’re acting to make energy more affordable and abundant at every level.

From the household, to the market, to the energy generation.

We are working with households to insulate them from energy price spikes.

And to put them back in charge of their bills.

Wholesale electricity prices fell by a third last quarter.

And we know there is more work to do to make sure this flows to retail bills.

We know we need to keep going.

2025 marks ten years of the Paris Agreement

The world is making good progress.

Dealing with the challenges and the headwinds.

And making a difference.

Not only reducing emissions

But also building a more reliable energy system

And setting us up for economic success in a decarbonising global economy.

The world is doing it.

We’re doing it too.

Including by bringing our projected emissions down from 4 degrees of warming to 2.8 degrees.

Global investment in clean energy projects will exceed USD 2 trillion in 2025, double that of fossil fuels.

The National Climate Risk Assessment makes clear our country has a lot at stake when it comes to acting on climate change.

We know that by 2050, the annual cost to our economy of floods, bushfires, storms, cyclones and hailstorms for a moderate emissions scenario is expected to be over $40 billion.

We are not the biggest polluter or the biggest economy but our commitment to action on climate change matters.

It matters to our neighbours, it matters for our economy and it matters for the country that we pass on to our children.

The global shift to clean energy represents one of the biggest economic transformations since the Industrial Revolution

And it presents Australia with an enormous economic and jobs opportunity.

As the Climate Change Authority notes in their Annual Progress report to me, which I table today:

This global shift presents a strategic opportunity for Australia.

By acting decisively, Australia can position itself as a clean energy leader and benefit from emerging markets.

But by moving slowly, it would risk losing competitiveness as its raw commodities are increasingly processed overseas using clean energy, driven by other nations’ national interests.

Australia must be proactive to remain relevant in a rapidly decarbonising global economy

That’s why this year we accepted the Climate Change Authority’s independent advice

And have set our 2035 climate change target at a range of 62% to 70% reduction on 2005 emissions.

We are seeing good progress when it comes to curbing climate pollution.

Emissions for the year to June 2025 were 437.5 million tonnes of carbon dioxide.

This is a decrease of 2.2% or 9.9 million tonnes compared with the previous year to June.

Another way of putting it is that - in one year - Australia has reduced emissions equivalent to the entire domestic aviation sector thanks to Albanese Labor Government policies.

This represents the largest financial year fall in non-land emissions on record, outside of the COVID lockdowns.

Emissions fell in electricity, chemicals and metals sectors, fugitives, agriculture, and stationary energy– reflecting record renewable generation, abatement technology improvements and reduced venting.

This was partially offset by increased transport emissions - an area we continue to see long term opportunity in with our new vehicle efficiency standards and low carbon liquid fuel developments.

Australia’s 2025 emissions projections show that with currently implemented government policies, Australia is on track to achieve the 2030 target in budget terms and is close to achieving the 2030 point in time target.

The emissions projections also show additional work is needed to achieve the 2035 target.

While the 2035 target is ambitious and achievable, it is not yet being achieved.

Several pre-existing policies are also not included in the emissions projections

Such as support to accelerate the development of Australia’s green metals industry, projects funded under the Future Made in Australia Innovation Fund and new government purchases of ACCUs under the Powering the Regions Fund.

And, the emissions projections also do not include new policies announced alongside the Net Zero Plan in September.

As well as future potential policy changes arising from scheduled reviews, such as the Safeguard Mechanism review.

We know that the 2035 target reflects Australia’s highest possible ambition

Because on this side of the house we back our nation’s ability to rise to challenges.

The target is grounded in science, and a credible contribution to global efforts to keep warming well below 2 degrees and 1.5 degrees within reach, supporting a safer environment for future generations.

We think our shared future is one worth fighting for.

And because there is opportunity for us all in taking up the fight.

We will meet it by implementing, strengthening and building on the strong policy foundations we have laid over the past three years.

It is normal for there to be a gap between projected emissions and a target 10 years in the future.

As new policies are developed and implemented, the emissions outlook improves.

That’s what a target is for – to drive new initiatives and work.

Mr Speaker-

We are making progress.

The first time our national grid got over 70% renewables in any 30-minute period was in September 2023.

Since the start of September this year, renewables have been 70% or more for at least 30 minutes in a day on 65 days, or 81% of days.

In October renewable electricity was half of our national grid, with this month continuing that trend.

In that last 12 months, Australia has produced over 100 terawatt hours of renewable electricity, enough to power every household more than one and a half times.

We’ve seen over 6 GWh of new large-scale battery capacity entering the national grid.

This has allowed battery discharge to increase by a massive 150%.

The pipeline remains strong.

To date we have completed five of the fifteen expected Capacity Investment Scheme tenders

We have over 16 GW of projects under contract or in negotiations.

Of these, we expect around 11 GW will have reached financial close by the end of 2026.

The Australian Energy Market Operator’s latest Connections Scorecard shows the development pipeline for the main national grid has ballooned out to 275 projects, representing a total of 56.6 GW in generation and storage capacity.

23.2 GW of earlier-stage projects are finalising contracts or under construction – up 43 per cent from this time last year.

Mr Speaker-

We have made serious progress.

The delayers and deniers are losing the climate fight.

And as momentum continues, they seek to disrupt this transformation by disrupting the debate.

With mistruths, falsehoods, distortions and deceptions.

It’s worthwhile stating 10 simple facts

1. Climate change is real, it’s driven by humans, but we also have the tools to respond.
2. The world has already made progress, but there’s more to do.
3. Net zero by 2050 is the bare minimum to avoid the worst impacts of global warming.
4. Australia reducing its emissions matters. It matters for our own future, our economy, and our standing in the world.
5. Renewable energy is the cheapest form of energy.
6. What’s good for the planet is good for your pocket. And from home batteries and rooftop solar to cleaner, cheaper-to-run cars, it’s our suburbs and regions that are leading the way.
7. Ageing, unreliable coal-fired power stations are driving up prices every time they break down.
8. Australia has the best solar and wind resources in the world, ready to be taken advantage of.
9. Nuclear won’t work for Australia. It costs too much and takes too long.
10. Australia has everything it needs to become a top global destination for clean energy investment.

With those facts in mind, we must seize the opportunity.

We cannot pretend climate change isn’t real.

We cannot ignore it.

And we can’t give up and say it’s all too hard.

Climate change is part of our lives and how we adapt and limit the worst of it is what matters.

Now is the time to seize the opportunities of a clean economy.

A failure to do so would be to act out of step with Australia’s national interest.

Particularly the interests of those who will come after us.

So let us take stock of the progress we’ve made

And keep going.