Environment

Environment

The Albanese Labor government has ended a decade of climate policy chaos by legislating emissions targets, driving record renewable energy investment, protecting more ocean than any country on Earth, and reforming Australia's environmental laws for the first time in 25 years.

Since taking office in May 2022, Labor has transformed Australia from a climate laggard into a renewable energy leader. The government legislated a 43% emissions reduction target by 2030 and net zero by 2050, approved renewable energy projects capable of powering over 10 million homes, protected 52% of Australia's oceans, invested $76 million to save koalas, and passed the most significant environmental law reforms in over 25 years. These actions have attracted record investment whilst positioning Australia as a renewable energy superpower.


Labor's first major act was legislating the Climate Change Bill 2022 in September 2022, ending nearly a decade of policy uncertainty. The legislation commits Australia to a 43% emissions reduction from 2005 levels by 2030 and net zero by 2050, with these targets set as a floor rather than a ceiling. The Bill establishes accountability through an annual climate change statement to Parliament, independent advice from the Climate Change Authority, and mandatory publication of that advice. Recent analysis shows Australia is on track to achieve these targets, with projections indicating a 42.6% reduction by 2030 and the potential to exceed the carbon reduction budget by 152 million tonnes over the decade.


The government has approved 77 renewable energy projects with capacity to power over 10 million homes, representing the most renewable energy projects approved by any Australian government in history. Recent approvals include three major wind farm projects in New South Wales totalling 2,404 megawatts, which will reduce greenhouse gas emissions by 6.5 million tonnes annually, equivalent to removing more than 2 million cars from the road. These projects create 1,340 construction jobs and 80 ongoing positions, whilst the renewable energy network now supplies 46% of the national grid's demand, with an additional 15 gigawatts added under the current government.


In November 2024, Australia became the first country to protect more than half its ocean territory, reaching 52% protection and far exceeding the UN target of 30% by 2030. The historic achievement came after the government quadrupled the size of the Heard and McDonald Islands Marine Park, adding 310,000 square kilometres of protected ocean (an area larger than Italy). This expansion builds on the previous year's tripling of the Macquarie Island Marine Park. The newly protected areas encompass pristine wilderness including Australia's only active volcanoes, glaciers, wetlands, and critical wildlife habitats for penguins, seals, and albatrosses.


Labor passed the Environment Protection Reform Bill through Parliament on 28 November 2025, marking the most significant changes to Australia's environmental laws in over 25 years. For the first time, Australia will have a National Environmental Protection Agency, a strong independent regulator commencing operations on 1 July 2026, and National Environmental Standards providing clear guidelines to protect the environment. The reforms introduce higher penalties for significant breaches, environmental protection orders for urgent circumstances, and remove exemptions for high-risk land clearing and regional forest agreements. A new Streamlined Assessment Pathway will significantly reduce timeframes for proponents, whilst regional planning will deliver go and no-go zones, providing greater certainty to business.


The government invested $262 million to restore Australia's national parks after a decade of neglect, creating 110 new jobs (with a significant portion for Traditional Owners) and addressing critical infrastructure needs. The investment will repair deteriorating buildings, provide essential housing for rangers in remote locations, enhance visitor facilities, strengthen conservation activities to protect threatened species, support cultural heritage management, and create a new National Seed Bank at the Australian National Botanic Gardens.


Labor launched the $76 million Saving Koalas Fund to protect one of Australia's most iconic species, now endangered across Queensland, NSW and the ACT. The program has already restored 5,000 hectares of koala habitat and planted a quarter of a million trees through community-led projects. Healthcare for injured and sick koalas has been transformed through a $19 million investment in wildlife hospitals, including new facilities at Currumbin Wildlife Sanctuary and Australia Zoo. The National Koala Monitoring Program has surveyed over 335 sites across more than 1,200 kilometres, revealing an estimated 95,000 to 238,000 koalas in Queensland, NSW and the ACT.


The government reformed the Petroleum Resource Rent Tax, implementing a cap limiting deductions to 90% of assessable income, addressing design flaws that allowed LNG projects to minimise tax payments for decades. The reforms will increase tax receipts by $2.4 billion over the forward estimates, ensuring Australians receive a fairer return from their natural resources whilst maintaining investment certainty. The changes respond to recommendations from both the Treasury Gas Transfer Pricing Review and the Callaghan Review.


Labor introduced major investments in hydrogen and renewable energy infrastructure. The government expanded the Hydrogen Headstart program to $4 billion and introduced a $6.7 billion Hydrogen Production Tax Incentive over 10 years for renewable hydrogen produced from 2027. The Driving the Nation Fund was doubled to $500 million to establish a national network of 117 EV charging stations approximately every 150 kilometres on highways, connecting all capital cities. The New Vehicle Efficiency Standard commenced 1 January 2025, aiming to reduce new passenger vehicle emissions by more than 60% by 2030 and save motorists $95 billion in fuel by 2050.


The Capacity Investment Scheme delivered 19 projects with 6.4 gigawatts capacity in its first major round, enough to power three million homes. The scheme uses revenue underwriting agreements to guarantee investment certainty for renewable energy projects, targeting 32 gigawatts of new capacity by 2030. The $1 billion Solar Sunshot program aims to boost domestic solar manufacturing, with plans to transform the former Liddell coal-fired power station in the NSW Hunter Valley into a solar manufacturing hub, creating hundreds of jobs in coal communities transitioning to renewable energy.


The reformed Safeguard Mechanism requires Australia's 219 biggest polluters to reduce their emissions, cutting 200 million tonnes of carbon pollution by 2030 through mandatory yearly declining emissions limits. Each facility has a baseline that will decline by 4.9% each year to 2030, with special provisions for trade-exposed industries and $600 million allocated to help facilities transition. The reforms commenced on 1 July 2023 and cover facilities producing 30% of Australia's emissions.


The Water Amendment (Restoring Our Rivers) Act 2023 delivers comprehensive reforms to protect the Murray-Darling Basin, extending deadlines to December 2027 for delivering environmental water targets, unlocking $1.3 billion for water recovery, removing the 1,500 gigalitre cap on water purchases, and strengthening the Inspector-General of Water Compliance's powers. By March 2025, the government announced recovery of 286 gigalitres towards the 450 gigalitre environmental water target, compared to just 2 gigalitres delivered in the previous decade.


Labor has developed strategic climate and energy partnerships with nine major economies including the US, China, India, Japan, Korea, Singapore, UK, Germany, and the Netherlands. The government launched the $200 million KINETIK partnership with Indonesia in March 2024, committed $50 million to the Fund for Responding to Loss and Damage, and invested $75 million for Southeast Asia's clean energy transition. Additional commitments include at least $350 million in climate resilient infrastructure through the Pacific Climate Infrastructure Financing Partnership.


Key Environment and Climate Achievements:

  • Legislated 43% emissions reduction target by 2030 and net zero by 2050 in September 2022

  • Approved 77 renewable energy projects capable of powering over 10 million homes

  • Protected 52% of Australia's oceans, more than any other country on Earth

  • Quadrupled Heard and McDonald Islands Marine Park, adding 310,000 square kilometres of protected ocean

  • Passed historic Environment Protection Reform Bill establishing National EPA (commencing 1 July 2026)

  • Reformed Safeguard Mechanism targeting 200 million tonnes of emissions reduction by 2030

  • Invested $262 million to restore national parks, creating 110 new jobs

  • $76 million Saving Koalas Fund protecting endangered koalas with 5,000 hectares restored

  • Reformed Petroleum Resource Rent Tax, increasing receipts by $2.4 billion

  • $4 billion Hydrogen Headstart program and $6.7 billion Hydrogen Production Tax Incentive

  • $500 million Driving the Nation Fund establishing 117 EV charging stations across highways

  • New Vehicle Efficiency Standard targeting 60% emissions reduction for new cars by 2030

  • Capacity Investment Scheme delivering 6.4 gigawatts in first round (enough for 3 million homes)

  • $1 billion Solar Sunshot program transforming Liddell Power Station into solar manufacturing hub

  • Recovered 286 gigalitres for Murray-Darling environmental water (vs 2 gigalitres under previous government)