After a decade of climate policy stagnation that saw it labeled a global laggard, Australia is now engaged in a rapid and consequential effort to reverse course. A significant legislative overhaul in 2022 has committed the nation to ambitious emissions reduction targets, yet the country finds itself navigating a complex transition, simultaneously championing renewable energy while continuing to expand its fossil fuel exports.
This pivot follows a period from 2013 to 2022, dubbed the “lost decade” by scientists and activists, where environmental regulations were weakened and support for renewable energy was curtailed. Now, faced with the escalating impacts of climate change and the economic imperative to join the global energy transition, Australia is scrambling to make up for lost time. New research reveals a nation on a “dual track,” fostering green technology while grappling with the immense economic and political weight of its fossil fuel industries, a contradiction that leaves its climate transformation hanging in the balance.
A Decade of Dismantled Policies
Between 2013 and 2022, Australia’s federal government actively dismantled existing climate policies. During this period, the nation earned a reputation for being a blocker in international climate negotiations. The government systematically weakened environmental rules and slashed funding for renewable energy initiatives. This approach included cutting funds to the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and other climate-related programs. This sustained inaction occurred despite clear advice from scientists and expert bodies about the growing climate crisis. The result was a squandered opportunity to decarbonize the economy in a gradual and cost-effective manner, effectively shortening the timeline available to avert catastrophic outcomes.
A Legislative Turning Point
The federal election of a new centre-left Labor government in 2022 marked a significant turning point for the nation’s climate policy. Within months, the parliament passed the Climate Change Act of 2022, the country’s most ambitious climate legislation in a generation. The act enshrined into law a new, more aggressive emissions reduction target. It commits Australia to cutting emissions by 43% below 2005 levels by the year 2030 and achieving net-zero emissions by 2050. This legislation represented a substantive shift, responding to both domestic and international calls for Australia to take the climate threat more seriously. The act also expanded the advisory powers of the Climate Change Authority, signaling a renewed reliance on expert guidance.
The ‘Renewable Superpower’ Ambition
Alongside the new legislative framework, the government has articulated a vision for Australia as a “Renewable Energy Superpower.” This strategy is built on the nation’s vast natural advantages, including abundant sunshine and wind, as well as significant reserves of critical minerals essential for clean energy technologies. The government has launched plans to achieve 82% renewable electricity generation by 2030. This industrial strategy aims to leverage rich deposits of lithium, cobalt, and other minerals that are vital components for manufacturing electric vehicles, batteries, and solar panels. By positioning itself as a key supplier in the green technology supply chain, Australia seeks to create new jobs and industries, transitioning its economy away from its historic reliance on fossil fuels.
A Contradictory ‘Dual-Track’ Approach
Despite the significant progress on renewable energy policy, researchers warn that Australia’s transformation is far from complete and is hampered by a fundamental contradiction. The country is pursuing a “dual-track” approach, attempting to expand green energy while simultaneously doubling down on fossil fuel exports. This conflict is exemplified by the government’s unveiling of a “Future Gas Strategy” in 2024, which signals an intent to continue supplying global gas markets well beyond 2050. This entrenched commitment to fossil fuels demonstrates the powerful influence of existing political and economic structures. This legacy means Australia often acts as a policy “taker,” copying climate initiatives from other nations rather than setting a bold direction, and leaving it to follow, not lead, the global energy transition.
The Enduring Costs of Inaction
The consequences of the “lost decade” extend beyond environmental damage. Experts argue the delay has imposed significant economic and social costs, making the necessary transition harder and more urgent. By failing to act sooner, Australia missed opportunities for innovation, investment, and job creation in the burgeoning green economy. The nation is now playing catch-up, forced to implement changes more rapidly than if it had embarked on a steadier, more gradual path a decade ago. A co-author of a study on the topic, Dr. Paul Tobin, warned that delaying action means paying a price later, not only in the form of worsening climate impacts like bushfires and floods but also in diminished global influence and economic competitiveness for future generations.
