The Australian government is establishing the Net Zero Authority, which will guide the country’s economic transformation to net zero emissions, as reported by ESG Today on May 5. The new authority will ensure workers in emissions-intensive sectors access new skills and employment, coordinate programs and policies across government to support regions and communities to attract and take advantage of new clean energy industries, and help investors and companies seize net-zero transformation opportunities. The government will legislate to empower the Net Zero Authority following detailed design in consultation with stakeholders. The government will recommend the creation of an interim agency in the Department of Prime Minister and Cabinet (PM&C) from July 1, 2023, to establish the Authority and begin some of its core functions.

The plan for establishing the Net Zero Authority responds to concerns about Australia’s new ambitious environmental law. Effective from July 1, 2023, the landmark rule requires Australia’s biggest polluters, including 215 most polluting facilities, to reduce their emissions by 4.9% a year or reach the target with carbon credits. Although the legislation is considered a significant step towards Australia’s goal of reducing greenhouse gas emissions by 43% by 2030 from 2005 levels, it has sparked concerns over a potential outflow of industrial investment, rising living costs, and unemployment. The Prime Minister’s Office has stressed that the shift to net-zero emissions must happen fairly for Australians in emissions-intensive industries and the communities they live and work in, and that the new authority will leave no one behind during the transition.

Sources:

https://www.esgtoday.com/australia-to-launch-net-zero-authority-to-manage-climate-transition-for-workers-industry-investors/

https://www.pmc.gov.au/news/new-national-net-zero-authority

https://apnews.com/article/australia-climate-change-laws-safeguard-mechanism-fb4b99a70a831c7baf27b5d1de0140ff