Australia's 2035 Nationally Determined Contribution

1. Australia’s 2035 emissions reduction target 2

2. A target in Australia’s interest 4

3. A target that is ambitious and achievable 8

4. A target backed by clear policies and plans 13 Annex A: Information pursuant to 4/CMA.1 19 Annex B: Australia’s response to the Global Stocktake 26 Australia’s 2035 Nationally Determined Contribution 1

1. Australia’s 2035 emissions reduction target Since the adoption of the Paris Agreement in Australia’s Nationally Determined Contribution 2015, the global response to climate change has (NDC) reflects the transformative changes gained significant momentum and has sparked a underway as we rapidly decarbonise. Australia transformation in the way the world produces and stands to benefit from the global transition to net consumes energy. Despite global conflicts and zero – not just from a safer climate, but from new other headwinds, investment in renewable energy economic opportunities for our workers and our continues to accelerate; the cost of renewable regions. We have abundant renewable energy, rich energy has steadily declined to become one of the metal and mineral deposits, a skilled workforce most cost-effective and accessible energy sources; and a stable investment environment to drive our demand for renewables, low-emissions materials, domestic transition, stimulate jobs and grow new and the critical minerals that support them, industries and exports. continues to grow apace. 2 Australia’s 2035 Nationally Determined Contribution As with many countries across the world, Australia Australia’s 2035 emissions reduction target and is experiencing the profound and accelerating implementation of our Net Zero Plan and sector effects of climate change. From our cities to our plans will continue to grow our economy, strengthen farmlands, it is reshaping our economy, jeopardising our industrial competitiveness, and safeguard public health and wellbeing, compromising national the health and wellbeing of Australians. They will security, and threatening our unique natural provide certainty and clear signals to investors to heritage. Robust global action is important to accelerate our decarbonisation and build our clean safeguarding Australia’s national interests and energy export industries. essential to the stability, prosperity, and economic Our target is ambitious and achievable. It is a development of all countries in our region. meaningful contribution to global efforts to Australia is working with the global community to avoid the dangerous and costly impacts of address this shared challenge. We are committed climate change. It will allow Australia to work in to the achievement of the Paris Agreement goals step with our trading partners and the global and present our second Nationally Determined community to respond to climate change. With the Contribution with our 2035 emissions reduction decarbonisation of our economy and growth of target submitted in accordance with Article 4 of new clean energy industries, Australia will play an the Paris Agreement. Australia also reaffirms our important role in helping other countries to achieve existing emissions reduction commitment for 2030 their decarbonisation goals. and to achieve net zero by 2050. Australia’s 2035 emissions reduction target is consistent with requirements established under the Climate Change Act 2022. Under the Act, the Australia’s 2035 target is a 62-70% Australian Government must consider advice from reduction in net national greenhouse gas its independent Climate Change Authority (CCA) emissions below 2005 emissions levels, before setting national emissions reduction targets covering all sectors of the economy and all or communicating its NDC. The CCA provided its greenhouse gases. advice to government on 12 September,1 and after This will be implemented as an emission consideration, the government adopted the CCA’s budget over 2031–35. This target aligns with recommendation to set a 2035 national emissions Australia’s Net Zero Plan, which charts out reduction target of 62-70%. Australia’s path to achieving our commitment Australia’s NDC is part of our broader response to reach net zero by 2050. to climate change. Australia’s First Nations Further technical information on Australia’s peoples have cared for the country for 65,000 target pursuant to 4/CMA.1 is at Annex A. years and our actions should build on this legacy. We recognise the crucial role of adaptation to protecting Australian people, livelihoods, and Our 2035 emissions reduction target is built on ecosystems. We have developed a National comprehensive consultation, analysis and planning Adaptation Plan, 2 which establishes a framework for for implementation, including our detailed Net Zero adapting to nationally significant physical climate Plan and 6 sector emissions reduction plans risks. These are identified in our National Climate (sector plans). Risk Assessment, 3 which provides a comprehensive assessment of the most consequential climate risks facing Australia. Australia is bidding to host COP31 in 2026 in partnership with Pacific nations. Together, we aim to deliver an ambitious agenda to accelerate action and investment to drive global implementation to keep temperatures at safer limits, help build resilience to climate impacts, and unlock economic opportunities in the global clean energy transition. Australia’s 2035 Nationally Determined Contribution 3

2. A target in Australia’s interest Climate change is already impacting Australia is not alone. In Asia and the Pacific, Australia, our region and the world disasters displaced over 225 million people between 2010–2021. Over the next 45 years, climate change Australia is experiencing the profound and is projected to drive further mass displacements, accelerating impacts of climate change. Australia’s escalate damages to $3 trillion annually, and cut average land temperature has increased by regional GDP by $96 trillion by 2070 – undermining approximately 1.5oC since 1910.4 Australians are safety, security, and economic stability. Australia already witnessing more frequent and severe events, recognises that climate change poses an existential such as droughts, floods, bushfires and heatwaves. 5 threat for the Pacific region. Many communities have experienced recent hazards and disasters, such as ex-tropical cyclone Alfred in The world is responding to NSW and QLD, the Tasmanian west coast bushfires climate change in 2025, and drought conditions affecting large parts of the southern states. Climate change is Addressing climate change is a global challenge. All also contributing to the emergence of new types of countries must take action to reduce emissions and adverse events, such as South Australia’s ongoing seize the opportunities of climate action. In 2015, algal bloom, which is partly driven by extended 195 parties adopted the Paris Agreement, and since periods of warm ocean temperatures.6 Events like then over 190 have set targets to cut emissions. this underscore that new impacts will emerge as Today, 165 nations, representing around 80% of climate change intensifies. global GDP, have also set long-term targets to reach net zero, charting a clear and irreversible course Australia’s National Climate Risk Assessment toward a low-carbon future. published in September 2025 provides the first comprehensive government-led assessment of the nationally significant risks Australia faces as a result of climate change.7 It presents a sobering future, Since the Paris Agreement, the underscoring that climate-fuelled extreme weather projected global warming trajectory has events are increasing pressure on our natural ecosystems and the livelihoods and communities improved from 4°C to 2.8 C. that rely on them. It is also clear that we have choices about the future, with every action we take today to reduce emissions helping to avoid the Since the Paris Agreement, the projected global worst impacts on Australians. warming trajectory has improved from 4°C to Climate disasters are impacting our infrastructure, 2.8 C.11,12 This marks significant progress, driven including our transport networks, hospitals, schools by collective global action, but also underscores and homes; and these costs are escalating over the urgent need for deeper and faster emissions time. This is affecting our economic productivity reductions to keep warming within safer limits. and imposing significant costs to regional and Every fraction of a degree matters – even modest national economies from recovery and rebuilding temperature declines can dramatically lessen the efforts. For example, the 2022 NSW floods caused severity of climate-related impacts on ecosystems, $6.4 billion in insured losses alone. 8 The Insurance economies, and communities. Council of Australia estimates natural disasters are costing Australian homeowners around $4 billion each year, and are increasing insurance premiums.9 Changes in seasonal conditions over the period 2001–2020 have reduced profits of Australian broadacre farms by an average of 23% relative to the previous 50 years. Reductions in rainfall in southern Australia could exacerbate these losses.10 4 Australia’s 2035 Nationally Determined Contribution The global climate response is driving Global energy intensity fell by an average of 2% per a positive and irreversible transition cent between 2010 and 2019 and 1.2% per year to clean energy from 2020 to 2023.13 Carbon intensity (carbon dioxide emissions per unit of energy) fell on average The global response to climate change is driving an by 0.3% annually from 2010 to 2019.14 These trends irreversible transformation of energy systems and reflect structural changes in the global energy the global economy – arguably the most significant system, including improved energy efficiency and transformation since the Industrial Revolution. a shift away from coal towards the growing role of Regardless of geopolitical challenges and volatility, renewable energy. the economic fundamentals remain and will continue to accelerate the transition to net zero. The plummeting costs of wind and solar have seen them become the fastest growing sources of electricity,15 and clean energy investment and jobs now outnumber those in the fossil fuel industry.16 The global response to climate While it took 68 years to reach 1 terawatt of change is driving an irreversible installed solar PV capacity globally in 2022, it took just 2 more years to reach 2 TW.17 The International transformation of energy systems and Energy Agency (IEA) reports that global investment the global economy – arguably the most in clean energy infrastructure, efficiency and electrification are set to rise to $2.2 trillion in significant transformation since the 2025, almost double the investment in oil, coal and Industrial Revolution. natural gas.18 They project that renewables are set to meet around 90% of global electricity demand growth out to 202719. By 2050, the IEA project global demand to decrease by 7% for coal20 and by Countries around the world are investing heavily 40% for oil and gas, from 2022, under announced in their energy and economic transitions; not only climate commitments. 21 The IEA attributes the to address climate change, but also to remain surge in clean-energy spending to a combination competitive and capture the immense economic of emissions reduction targets, technological opportunities that are emerging from the clean innovation, and energy security concerns. It notes energy boom. that major economies are deploying new industrial strategies to spur clean energy manufacturing and establish stronger positions in the emerging global market. Australia’s 2035 Nationally Determined Contribution 5 Renewable energy is now the cheapest way to generate electricity There has been a 91% decline in solar PV A similar change is underway in Australia as costs from 2005 to 2024.23 Renewables we transition from a fossil-fuel dependent and are now the least-cost pathway for new- emissions-intensive economy to one powered by renewable energy and the growth of clean energy build electricity.24 industries. Firmed renewables are the cheapest source of electricity generation in Australia, outcompeting fossil fuels. 22 Electricity generation in Renewable energy also brings other benefits – Australia has historically been underpinned by coal- cleaner air, less water use, fewer environmental fired power plants. Australia is rapidly shifting to a impacts – while electrification and household- modern, cost-effective electricity system based on efficiency make homes safer, healthier, cheaper to renewable energy, with coal-fired power-generation live in, and more resilient to climate impacts. phasing out, and gas playing a firming role alongside Renewables are already helping to limit electricity hydro and batteries. The share of total electricity price increases. Research has suggested that generation from renewable sources has more than recent wholesale and retail electricity prices would doubled in just 6 years. have been higher without renewables, with one study finding retail prices would have been 22% higher in 2024 without the impact of solar and wind lowering wholesale prices. 25, 26 Figure 1: Solar PV levelised cost of energy in Australia 2005–205028 $/kW 700 600 500 400 300 200 100 0 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Historical Projected under current policies 6 Australia’s 2035 Nationally Determined Contribution Australia is ready to seize the numbers because they know the benefits. In 2025, economic opportunities of the global the Australian Government launched the Cheaper transition to net zero Home Batteries policy, to help ensure our world- class solar energy can keep powering Australia at all times, day and night. Over 55,000 batteries – with As a trade-focused nation, Australia’s economic total storage capacity of over 1 gigawatt hour – future is linked to our ability to leverage new have been installed in just over 2 months since the markets and investment. Over 90% of Australia’s program commenced on 1 July 2025. trade is with countries that have net zero targets. 27 Australia’s 2035 emissions reduction target, Net Investors have asked for clear and stable policy Zero Plan, and sector plans will ensure we are signals that support long-term decision-making. working alongside and in step with major economies This includes ambitious targets, backed by and trading partners, while building on a strong credible transition plans. 30, 31, 32 Our 2035 emissions track record of policies. reduction target and comprehensive Net Zero Plan and sector plans position Australia to meet Australia’s world-class renewable resources, rich this call. They provide a clear direction of travel for metal and mineral deposits, skilled workforce and investor confidence. stable investment environment put us in a strong position to maintain economic growth and remain competitive as the world transitions away from “[t]he benefits from investment in new green fossil fuels towards low-emissions goods and industries could add more than $300 billion to services. These advantages position us well to the [Australian] economy annually by 2035- help our partners decarbonise while growing their 2050, more than a 10% boost compared economies as global demand for renewable energy to Australia’s current GDP.” – The Climate and low-carbon products continues to climb. Change Authority 2035 Targets Advice33 The Australian Government committed $22.7 billion over the next decade in the 2024–25 Budget to its Future Made in Australia agenda, with Australia’s Sustainable Finance Roadmap subsequent announcements continuing to build on provides a pathway for mobilising the private this investment. capital required to achieve net zero, modernise our financial markets, and maximise the Through a Future Made in Australia, we are building economic opportunities associated with energy, new clean energy industries in sectors important climate and sustainability goals. As part of this, to our net zero transformation including renewable Australia’s Sustainable Finance Taxonomy offers hydrogen, green metals, and low-carbon liquid investors a voluntary framework, to assess the fuels. By building these industries, Australia sustainability claims of economic activities, align can contribute to global emissions reduction by with international standards, and confidently producing the clean energy embedded products invest in projects that advance net zero. Climate- the world needs to decarbonise – while attracting related financial disclosure obligations also support investment, creating new jobs and maintaining our greater transparency of climate-related risks, role as a reliable global energy supplier. We are also opportunities, commitments and action. making investments in sectors where domestic capability is needed to deliver economic resilience and security such as clean energy manufacturing and the processing of critical minerals. Australia has the highest rate of rooftop solar in the world. More than 4 million Australian households and businesses are generating clean energy from their rooftops. This has reduced their energy bills by about $6 billion a year. 29 Australian households and businesses have invested in rooftop solar in record Australia’s 2035 Nationally Determined Contribution 7

3. A target that is ambitious and achievable Climate change is a global challenge, and all determine what national contributions should be, countries must play their part to achieve the it provides a useful point of comparison. This is Paris Agreement goals. Australia’s emissions are well within Australia’s target range of 62-70% - for 1.15 % of global emissions – but all the countries Australia, a 60% reduction on 2019 levels is equal to that contribute less than 2% to global emissions a 68% reduction on 2005 levels. collectively emit nearly 40%. Collective action is Our 2035 emissions reduction target is a critical to success. 34 Australia’s contribution to substantial step-up in ambition of 19-27 percentage the global effort is important. Every fraction of points from our 2030 emissions reduction target. a degree matters. Australia is the 15th largest Over the next 10 years, Australia aims to reduce emitter, 35 and an advanced economy with the emissions by more than it has over the past 20 resources and capacity to set and achieve years. Reducing emissions by 62-70% involves ambitious targets and contribute to emissions cuts cutting Australia’s emissions by roughly half from beyond our borders. the current level. The average rate of emissions Australia’s ambitious target is reductions will need to accelerate from 16 Mt CO2-e per year from now to 2030, to at least 23 Mt CO2-e aligned with the science and global per year from 2031 to 2035. temperature goals A straight-line trajectory from Australia’s current The 2023 UN Global Stocktake of progress under emissions to net zero in 2050 indicates a 2035 the Paris Agreement recognised that global emissions reduction of 57 to 58%. Australia’s emissions must reduce by 60% from 2019 levels 2035 emissions reduction is more ambitious than to keep 1.5 °C within reach, as found by the IPCC’s a straight line to net zero, positioning us among Sixth Assessment Report. While this does not other leading economies in the transition to a net zero future. Figure 2: Australia’s emissions reduction pathways to 205036 600 2020 target: 5% below 2000 levels 500 400 2030 target: 43% below 2005 levels Emissions (Mt CO2-e) 300 200 2035 target: 62-70% by 2035 below 2005 levels 100 2050 target: net zero 0 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Actual emissions Straight line from current emissions to net zero Straight line between 2020, 2030 and 2035 targets, representing emissions budgets Straight line from 2035 target to net zero 8 Australia’s 2035 Nationally Determined Contribution “Our comprehensive analysis has led us Australia’s current policies provide to conclude that 62–70% is an ambitious strong foundations for achieving deeper target. It is aligned to pursuing efforts to limit warming to 1.5°C, informed by the best emission reductions over time. available science, and contributes to the momentum required for timely and effective national and global action on climate.” A range of current and scheduled policy reviews - Climate Change Authority 2035 Targets Advice. provide opportunities to further drive cost- effective abatement across the economy and help achieve our 2035 emissions reduction An achievable target, built on target. Scheduled reviews to calibrate existing strong foundations policies will ensure they effectively contribute to the 2035 emissions reduction target, including Australia has made good progress towards our upcoming reviews of the Safeguard Mechanism existing 2030 emissions reduction target of and New Vehicle Efficiency Standard. Achieving 43% reduction on 2005 levels. Our most recent 82% renewable electricity generation by 2030, projections show that 5 years out from 2030, supported by the Capacity Investment Scheme, Australia is within sight of this target, with current and Rewiring the Nation, will also underpin our 2035 measures projected to achieve a 42.6% reduction emissions reduction target. by 2030. 37 Our 2030 emissions reduction target is also implemented as a 10-year emissions budget, Setting the target as a range allows Australia which we are currently projected to beat by 3%. 38 to manage risks and uncertainty. The global Australia’s 2030 emissions reduction target and landscape is volatile. Shifts in global markets net zero by 2050 target are legislated under our will affect demand for our energy commodity Climate Change Act 2022. exports. Technology costs are often lower than predicted. Climatic and weather patterns affect Without taking further steps, and taking into emissions from our land sector, such as elevated account market and global trends, we are projected sequestration during La Nina periods and elevated to be 51% below 2005 by 2035. emissions during droughts. A target range factors in these risks and provides a more stable policy basis for planning against variable weather patterns and global market fluctuation. Australia’s 2035 Nationally Determined Contribution 9 A target working alongside Our 2035 emissions reduction target, Net Zero global consensus Plan and sector plans reflect our rapid transition to renewable energy and make a meaningful The 2023 Global Stocktake under the Paris contribution to the global goals of tripling Agreement provided a comprehensive assessment renewable energy and doubling the annual rate of of global progress in addressing climate change energy-efficiency improvements by 2030. and outlined next steps to accelerate action. Its conclusions – endorsed by all parties to the Paris . Australia has increased its renewable energy Agreement – reflect a shared recognition of the share of electricity to over 40% on our two strides made and the urgency of further efforts to major grids39 meet the Agreement’s goals. . Australia currently has the highest penetration of rooftop solar in the world at over 35% Australia’s 2035 emissions reduction target of households40 and underpinning plans represent a meaningful contribution to global efforts to take forward the . We are making significant progress towards our Global Stocktake. target of 82% renewable electricity by 203041 Our 2035 target is an economy-wide, absolute . In the last decade, Australia has made a 28% emissions reduction target that includes all improvement in energy productivity.42 greenhouse gases, sectors and categories – as was Modelling and analysis by the Australian Treasury the case for our 2030 emissions reduction target. projects the share of renewable generation The Global Stocktake recognised the global reaching 97% in the National Electricity Market in direction of travel in its consensus call to transition 2050 under a scenario with an orderly transition to away from fossil fuels in energy systems and to net zero (Figure 3). phase-down unabated coal-fired power. In Australia, Further information on how Australia’s 2035 target our transition is underway. and climate actions respond to the calls of the first Global Stocktake is at Annex B. Australia’s Julia Gardiner in her role as Chair of the Subsidiary Body for Implementation (SBI) for the UNFCCC and the Paris Agreement at the opening of the 62nd session of the Subsidiary Bodies meeting. Credit: SB62 Opening Plenary by UNclimatechange, CC BY-NC-SA 2.0. 10 Australia’s 2035 Nationally Determined Contribution Figure 3: Australian electricity generation by fuel type43,44 Australia’s transformation will Between 2025 and 2050 global demand for coal contribute to emissions cuts beyond is expected to decrease by 71%, LNG by 40% and our borders oil by 42%.45 By contrast, global demand for the commodities needed to support the net zero Beyond our own domestic transition, our ambition transition – such as critical minerals – is projected is for Australian exports and expertise to play a to increase. In addition, analysis by the Australian significant role in global decarbonisation efforts Treasury estimates that, under a Renewable including by supporting sectors such as renewable Exports Upside Scenario, Australia’s green iron, hydrogen, low-carbon liquid fuels, and green metals. ammonia and lithium exports could contribute Australia is a close neighbour to some of the world’s 466 Mt to global decarbonisation in 2050 by fastest growing economies whose clean-energy displacing carbon-intensive activity overseas. needs are increasing. We aim to be a partner of choice for countries seeking the resources, technology, training and support to transition to cleaner, more secure and more affordable renewable energy. Australia’s advantages position us to not only deliver domestic economic benefits, but to shift from being an exporter of emissions- intensive commodities to a key enabler of a decarbonised world. Australia’s 2035 Nationally Determined Contribution 11 Australia is working with countries In Southeast Asia, we are supporting the region’s to act on climate change clean-energy transition and ASEAN priorities such as the ASEAN Power Grid. We are sharing Since 2023, Australia has established a range of Australian expertise on energy transition policies partnerships to support the achievement of our and regulations, and energy-system planning and mutual climate and energy ambitions, including management. We are also helping develop clean with the Republic of Korea, China, Germany, India, energy supply chains and infrastructure, and the Netherlands, Austria, New Zealand and the supporting partners to attract quality finance United Kingdom. Australia also has close climate – including through the $2 billion Southeast and energy collaborations with the European Union, Asia Investment Financing Facility under France, Denmark, and Japan. Our pioneering Green ‘Invested: Australia’s Southeast Asia Economic Economy Agreement with Singapore is among the Strategy to 2040’. first of its kind in the world to blend trade, economic and climate objectives. Australia is partnering with countries in the Pacific to act on climate change, transform their Our partnerships will help integrate efforts to scale- economies and increase their capacity to respond up supply chains for key inputs into clean energy, to climate impacts. We are working with Tuvalu, such as through our low-emissions hydrogen the Republic of the Marshall Islands, and other partnership with Germany and renewable electricity Pacific nations, to accelerate renewable energy work with India. These partnerships will facilitate deployment and fast-track their transition away collaboration on practical and scalable solutions from fossil fuels. We have signed the world-first for accelerating renewable energy and clean Australia–Tuvalu Falepili Union, in which Australia energy industries. recognises Tuvalu’s continuing statehood and Complementary to these partnerships, Australia sovereignty; notwithstanding climate-related sea- is working through the Quad46 to build diverse and level rise, commits to assist Tuvalu in response to resilient global clean energy supply chains. We are major disasters, and supports mobility with dignity working closely with major economies to develop for the citizens of Tuvalu. interoperable standards and emissions accounting We are on track to deliver over $3 billion towards approaches to support the growth of new clean global climate finance efforts over 2020–25. energy industrial sectors and mitigate potential We have actively integrated climate change barriers to trade. considerations into our International Development Policy. In 2023, the Australian Government set a goal that 80% of new bilateral and regional investments valued at over $3 million must have a climate change objective by 2028–29. Further information on our climate finance and development assistance is provided in our Biennial Transparency Report.47 12 Australia’s 2035 Nationally Determined Contribution

4. A target backed by clear policies and plans A target based on extensive analysis and consultation The CCA found “A target of 62–70% is an achievable target. It is technically feasible, Australia’s 2035 emissions reduction target harnessing contributions across every sector is backed by clear plans and robust policy and jurisdiction and enabled by practical development processes, as detailed in our policy measures. Careful analysis finds that Net Zero Plan. delivering a reduction at the top of that The Net Zero Plan is supported by 6 sector emissions range—70%—would be more challenging than reduction plans (sector plans) which outline how each 62% but is feasible by 2035.”50 sector will contribute to Australia’s transition to a net zero economy, covering electricity and energy, transport, industry, agriculture and land, resources, In addition to the CCA’s advice, our 2035 target was and the built environment. informed by the work across government to develop The 2035 emissions reduction target was informed the Net Zero Plan and sector plans, which included by independent advice from the Climate Change engagement with subnational governments, Authority (CCA)48 as required under the Climate international comparisons, Treasury’s whole- Change Act 2022. Australia’s Net Zero Plan and of-economy analysis, and extensive nation-wide sector plans were also informed by this advice, as consultation. 51 This consultation included industry well as the CCA’s Sector Pathways Review.49 This roundtables, meetings with unions and workforce advice was informed by extensive analysis and representatives, regional community workshops, engagement, including macroeconomic modelling by roundtables with First Nations representatives, the CSIRO, scientific and policy research, the CCA’s NGOs, youth representatives, senior official council sectoral pathways analysis and broad stakeholder meetings with state and territory governments, and engagement. The CCA also considered social, engagement with local government organisations. 52 employment and economic benefits, the physical This engagement has reinforced that all sectors impacts of climate change, and impacts on rural and and stakeholders play a role in the transition, regional Australia. and the importance of enabling and encouraging The Government considered the advice in detail, broad participation. along with other considerations and inputs, and adopted the CCA’s recommended target. Australia’s 2035 Nationally Determined Contribution 13 A target that is part of a A target built on strong foundations comprehensive roadmap to Australia’s existing suite of policies provides achieve net zero a strong platform for achieving our 2030 and The Net Zero Plan charts an orderly and efficient 2035 emissions reduction targets. Since 2022, pathway for Australia to reach net zero emissions the Australian Government’s policy reforms have by 2050 and the actions to achieve this. established legally binding policies calibrated to our national emissions reduction targets for over Australia will take a phased approach to our net half of Australia’s emissions. These include: zero transition. . The Safeguard Mechanism, which requires . The early focus is to decarbonise and expand Australia’s largest industrial facilities to the electricity network, electrify activities meet legislated emissions limits that decline wherever possible, and improve energy progressively over time performance and materials efficiency . The Capacity Investment Scheme, which is a . This will be complemented by an increasing revenue underwriting scheme to accelerate focus on switching to low-carbon fuels where investment in renewable generation and clean activities cannot be electrified dispatchable projects including wind, solar and . Innovation to expand emissions reduction battery storage solutions will become increasingly important . The New Vehicle Efficiency Standard, which as we decrease emissions beyond 2035 toward sets declining emissions targets for new net zero, with the scale-up of carbon removals passenger cars and light commercial vehicles having an important role throughout the entering the Australian market from 1 transition to balance residual emissions. This July 2025. will include targeted action to reduce methane emissions from key sources. Australia has a number of programs to incentivise the uptake of consumer energy resources to accelerate decarbonisation, including: . The Cheaper Home Batteries program, which Figure 4: Australia’s five priorities for net zero53 brings down the cost of a typical home battery by around 30%, allowing households and businesses to reduce emissions while reducing their energy bills by capitalising on Australia’s Five decarbonisation priorities world-class solar resources to achieve net zero emissions . The Social Housing Energy Performance The Australian Government will focus on Initiative to support energy performance five priorities to achieve net zero: upgrades to over 100,000 social housing properties by 2028-29 Clean electricity across the economy . The Household Energy Upgrades Fund, which provides low-cost finance for energy Lowering emissions through electrification performance initiatives by working with and efficiency co-financiers to create tailored and discounted green finance products which are easy for Expanding clean fuel use households to access. Accelerating new technologies Net carbon removals increased 14 Australia’s 2035 Nationally Determined Contribution Australia is also considering how we can leverage Without taking further steps, and taking into investment to de-risk and crowd in private account market and global trends, we are projected investment. Existing mechanisms include: to be 51% below 2005 by 2035. . The Australian Carbon Credit Unit Scheme, Further policy effort will build on these foundations, which incentivises projects that avoid emissions including through scheduled reviews to recalibrate or sequester carbon from the atmosphere existing measures. . The Rewiring the Nation Program, which offers Supporting workers, skills, jobs and concessional loans to support investments in transmission infrastructure, building a businesses through the transition more efficient grid, and unlocking additional As Australia decarbonises, new industries are renewable generation emerging while emissions-intensive industries in . The Clean Energy Finance Corporation and mining, manufacturing and transport undergo Australian Renewable Energy Agency, which rapid change. This shift will require reskilling and work in concert to facilitate increased finance retraining workers to participate in and drive clean into the clean-energy sector and accelerate industry growth – building on the existing skills of the pace of pre-commercial innovation and the energy industry workforce. renewable energy deployment to support The Net Zero Economy Authority supports workers, Australia’s transition to net zero emissions. communities and regions to manage the impacts Progress toward our 2035 emissions reduction and share in the benefits of the net zero economy, target is further supported by the continued including by supporting affected communities implementation of state and territory government to prosper through economic development and policies to achieve their own subnational emissions investment. It works closely with the Department reduction targets, and their work on shared national of Employment and Workplace Relations to support priorities, including through the Renewable Energy workers affected by the net zero transition in Transformation Agreements and National Renewable emissions intensive regions. Energy Priority List, as well as the recently . Regional Workforce Transition Plans will offer announced National Climate Change Partnership. tailored support to meet specific needs of The new policies and reforms introduced by the communities in regions most impacted by Australian Government since 2022 provide strong the transition foundations and are already contributing to . The Net Zero Economy Authority administers progress towards the target. This includes: the Energy Industry Jobs Plan which supports . Using the market-based Safeguard Mechanism workers impacted by coal and gas power and New Vehicle Efficiency Standard to drive station closures, helping them transition into least cost abatement secure, well-paid jobs. . Expanding foundational energy performance programs for the built environment . Supporting electrification in manufacturing, transport and buildings . Fostering a low carbon fuels industry to support fuel switching where electrification is not viable . Attracting greater investment in abatement across all sectors, supported by low-cost green finance. Australia’s 2035 Nationally Determined Contribution 15 Australia’s education system is preparing for the Australia’s actions on climate skills required to power new industries and support and the environment are long-term prosperity. Through the nationwide mutually reinforcing Australian Curriculum, Australia equips students to understand the basics of climate change and Australia’s actions on climate also help protect its impacts, while empowering them to be part of our environment and oceans. Addressing climate creating a more climate-resilient future. Australia change is crucial to protecting Australia’s is using education programs such as the Key unique natural environment and biodiversity. At Apprenticeship Program to incentivise the uptake the same time, actions to protect and restore of careers in the priority industries of the net biodiversity and the environment, contribute zero transition. significantly to Australia’s climate mitigation and adaptation efforts. Australia is embedding equity considerations in our transition. By empowering First Nations peoples to lead and participate in the net zero transition we can take meaningful steps to achieving the priority Actions to protect and restore reforms of the National Agreement on Closing the biodiversity and the environment, Gap. ‘Working for Women: A Strategy for Gender Equality’ highlights renewable energy as a key contribute significantly to emerging industry to embed gender equality in pay, Australia’s climate mitigation and leadership and opportunities. 54 adaptation efforts. Deepening Australia’s talent pool through inclusion of historically excluded groups is vital to delivering the energy transition while improving outcomes for Our Net Zero Plan will work in concert with all Australians. This is supported by the community Australia’s National Biodiversity Strategy and benefit principles under the Future Made in Action Plan, 56 the National Adaptation Plan, and Australia agenda, which aim to ensure public reform to national environmental laws. investment, and the private investment it attracts, flows to communities in ways that benefit local Australia’s Nature Repair Market is designed to workers and businesses. increase investment in nature, supporting projects that enhance and protect biodiversity. The market Improving the health and wellbeing is aligned with the Australian Carbon Credit Unit of Australians Scheme, making it easier for land managers to The Australian Government is tackling the health deliver projects that achieve both biodiversity and impacts of climate change and supporting the carbon outcomes. This will complement current net zero transition and resilience of Australia’s carbon abatement through our land sector. The health system through implementation of the land sector contains vegetation and soils that National Health and Climate Strategy. Mitigation can both emit and sequester carbon dioxide; it is measures such as improved household energy currently a net-carbon sink equivalent to 16% of efficiency, electrification, renewable energy, and Australia’s annual emissions. clean and active transport, can deliver significant With 5–11% of global blue carbon stocks held in direct and indirect health and wellbeing benefits Australia’s oceans, 57 the integration of ocean-based to Australians. 55 These include reductions in climate solutions is critical to global climate change indoor and outdoor air pollution, which will help to efforts. Through the development of Australia’s reduce the burden of lung and heart diseases, with Sustainable Ocean Plan, stakeholders have called for downstream benefits for economic productivity. opportunities to pursue ocean-based climate action to help advance delivery of our emissions targets and support climate adaptation, such as through protecting and restoring blue carbon ecosystems. 16 Australia’s 2035 Nationally Determined Contribution Over 2020–25, the Australian Government has corridors that will support efforts to accelerate provided $30.6 million in funding for practical maritime decarbonisation of key shipping routes. action to support restoration, conservation and Australia is also working to reduce emissions from accounting for blue carbon ecosystems. Through aviation through the Sustainable Aviation Fuel our leadership of the International Partnership Funding Initiative to support the development for Blue Carbon, Australia has also supported of an industry with production from renewable international efforts to protect, restore and feedstocks in Australia, and working with New sustainably manage global blue carbon ecosystems. Zealand to investigate the conditions required to develop a regional sustainable aviation fuel industry. Australia is using its oceans to support our decarbonisation efforts. Offshore wind projects are Australia is rapidly progressing its circular economy proposed in some of Australia’s 6 declared offshore transition, with the ambition to double Australia’s wind areas. Australia is also working to decarbonise circularity by 2035. The achievement of this goal ocean-based industries through our Maritime is expected to contribute toward the mitigation Emissions Reduction National Action Plan, which of up to 23% of Australia’s greenhouse gas will facilitate Australia’s pathway to decarbonise emissions by 2050. 59 Increasing material efficiency shipping and the broader maritime sector. 58 While and implementing Australia’s Circular Economy international shipping emissions are not counted Framework are priority actions under Australia’s towards Australia’s emissions reduction targets, Net Zero Plan to lower energy demand and reduce Australia is working with the Republic of Korea and Australia’s emissions. Singapore to establish green and digital shipping Australia’s 2035 Nationally Determined Contribution 17 First Nations leadership in the central role First Nations communities must achieving net zero be afforded in managing the transition to net zero. The strategy prioritises collaboration, respect for First Nations people have managed Australia’s cultural knowledge, and the development of clean natural environment for over 65,000 years and energy projects that deliver social, economic, and have experienced the climate changing over the environmental benefits to First Nations communities. millennia, with integral knowledge being passed down through generations. Many communities Empowering the next generation of today maintain a deep and enduring connection Australians to the land, seas and waters that make up their Country and Culture. This knowledge and Children and young people are uniquely vulnerable connection to Country continues to play a role in to climate change, but they bring vital perspectives, Australia’s efforts to tackle climate change. innovation, and leadership to climate solutions, and serve as beneficiaries of those solutions. Australia First Nations peoples are leading climate mitigation is committed to ensuring the perspectives of activities through active land management, young Australians are reflected in our domestic participating in the Australian Carbon Credit Unit and international climate efforts, including through Scheme. Projects such as savanna fire management capacity building and participation in the Paris provide opportunities for First Nations people Agreement, the UNFCCC process, and broader to apply traditional knowledge and strengthen climate action. their connection with Country, while also reducing emissions. Savanna fire management projects cover over 34 million hectares of north Australia; 70% of this area is managed by Indigenous projects Australia is committed to ensuring using intergenerational knowledge. Projects the perspectives of young Australians undertaking fire management methods are issued on average 1.2 million Australian Carbon Credit are reflected in our domestic and Units each year.60 international climate efforts, including Australia’s Indigenous Protected Areas cover over through capacity building and 13% of Australia’s landmass, and more than 6 million participation in the Paris Agreement, hectares of sea. The Australian Government has committed to expanding the coverage of IPAs, with the UNFCCC process, and broader more First Nations managed land and sea Country. climate action. The government is supporting 2,900 Indigenous rangers working on-ground to achieve environmental, climate and cultural outcomes in the management of Country and increasing the role of First Nations Through our ‘Engage!’ youth strategy and its people in achieving Australia’s climate objectives. advisory mechanisms, Australia advocates for the convening of young people to ensure they are Australia’s First Nations Clean Energy Strategy meaningfully engaged in shaping national policy.62 provides the foundation for climate action through The strategy will serve as a supporting framework the renewable energy transition in partnership with for capturing youth perspectives in climate policy First Nations people. It addresses the intersection development processes as we implement our between First Nations’ rights and interests and the Net Zero Plan, to support inclusive, effective and renewable-energy transition to support future-focused climate decision-making. First Nations people to lead and benefit from the transition wherever they live in Australia. An estimated 70% of Australia’s land and waters are owned, managed or co-managed by First Nations people and/or subject to other rights and interests including native title,61 underscoring 18 Australia’s 2035 Nationally Determined Contribution Annex A: Information pursuant to 4/CMA.1 Australia’s 2035 commitment as detailed below is in addition to our existing 2030 and 2050 commitments as outlined in our previous NDC.63 Information element Response NDC Target Reduction in net national greenhouse gas emissions of 62–70% below 2005 levels by 2035, implemented as an emissions budget covering the period 2031–35.

1. Quantifiable information on the reference point (including, as appropriate, a base year): 1a. Reference year, base year, Reference period: Emissions budget for the period 2031–35. reference period or other starting point. 1b. Quantifiable information The indicator is net national greenhouse gas emissions. The reference period on the reference indicators, (emissions budget) values are calculated using the method set out in section 5f-i) their values in the reference below. period. The indicative values of the reference period, based on net national emissions reported in 2025, are 1,248 to 1,395 million tonnes carbon dioxide equivalent (Mt CO2-e). 1c. If a Least Developed Not applicable. Country (LDC) or Small Island Developing State (SIDS), info on strategies, plans and actions 1d. Value of target relative to Australia’s 2035 emissions reduction target is a reduction in net national greenhouse the reference indicator. gas emissions of 62–70% below 2005 levels by 2035, implemented as an emissions budget covering the period 2031–35. The emissions budget values are the target values, calculated using the method set out in Section 5f-i below. Indicative target values, based on net national emissions reported in 2025, are 1,248 to 1,395 Mt CO2-e. 1e. Data used in quantifying Quantification of the reference period (emissions budget) is based on data reported the reference point. in Australia’s latest annual National Inventory Report, up to the end of the period. Following this, quantification will be based on data reported in the National Inventory Report for the year 2035. 1f. Updates to reference Net national emissions used to calculate the reference period (emissions budget) indicators. will be updated to reflect improvements implemented in Australia’s latest annual National Inventory Report, including use of additional data sources and recalculations resulting from continuous methodological improvements. Net national emissions for the year 2005 used to calculate the emissions budget according to the method set out in Section 5 (f–i) below may be updated to reflect an average of a multi-year period. Such an update would be applied as necessary to maintain reliability and comparability in tracking progress towards the 2035 emissions reduction target.

2. Timeframes 2a. Time frame for 2031–35 implementation. 2b. Single-year or multi-year Multi-year: emissions budget. target.

3. Scope and coverage 3a. General description of Absolute economy-wide net national greenhouse gas emissions reduction target, the target. implemented as an emissions budget covering the period 2031–35. 3b. Sectors, gases, categories Carbon dioxide (CO2); Methane (CH4); Nitrous oxide (N2O); Hydrofluorocarbons (HFCs); and pools covered by the Perfluorocarbons (PFCs); Sulphur hexafluoride (SF6); Nitrogen trifluoride (NF3). nationally determined All sectors, categories and carbon pools, as defined by the IPCC 2006 Guidelines, and contribution. additional sources reported in the annual National Inventory Report. Australia’s 2035 Nationally Determined Contribution 19 Information element Response NDC Target Reduction in net national greenhouse gas emissions of 62–70% below 2005 levels by 2035, implemented as an emissions budget covering the period 2031–35. 3c. Complete and continuous Australia has included all categories of anthropogenic emissions and removals, coverage. as defined by the IPCC 2006 Guidelines and additional sources reported in its annual National Inventory Report, in the 2035 target in this NDC. All sources, sink, or activity, that was included in Australia’s previous NDC and 2030 emissions reduction target, continue to be covered. 3d. Mitigation co-benefits. Not applicable.

4. Planning processes 4a. Information on planning processes and implementation plans for the preparation of the NDC including, as appropriate: 4a-i). Domestic institutional Domestic Institutional Arrangements arrangements, public The Australian Government is responsible for climate policy-making at the national participation and level, including the development of the 2035 emissions reduction target contained in engagement with local this NDC. communities and Indigenous peoples, in a gender- Australia’s 2035 emissions reduction target and NDC was developed in line with the responsive manner. Climate Change Act 2022. The Act enshrines in legislation Australia’s 2030 emissions reduction target to reduce our net greenhouse gas emissions to 43% below 2005 levels by 2030 and reducing Australia’s net greenhouse gas emissions to zero by 2050. The Act requires the Minister to present an annual Climate Change Statement to Parliament which speaks to progress made during the year towards achieving Australia’s GHG emissions reduction targets. The Act establishes a process that ensures that independent, expert advice informs the setting of 5-yearly targets on the pathway to net zero by 2050: . The Minister must at least every 5 years request advice from the Climate Change Authority (CCA) on Australia’s greenhouse gas emissions reduction targets under the Paris Agreement. . When preparing that advice, the CCA must consider (amongst other things) social, employment, and economic benefits, the matters in Article 2 of the Paris Agreement and conduct public consultation. . The Minister must receive and consider the CCA advice before deciding and communicating Australia’s next greenhouse gas emissions reduction target. . The CCA must publish its advice, and the Minister must prepare a response to the advice within 6 months, and table that response in parliament. In September 2025, the CCA published its advice to government to adopt a 2035 emissions reduction range target of 62-70% reduction on 2005 levels by 2035 and to commit to stay within an emissions budget of 1,248–1,395 Mt CO2-e between 2031 and 2035. This advice was informed by extensive analysis and engagement, including scientific and policy research, the Climate Change Authority’s sectoral pathways analysis, macroeconomic modelling by CSIRO, and broad stakeholder engagement. Advice from the CCA was considered by the Minister and the government alongside the 6 sector plans, analysis from the Australian Treasury and consultation with states and territories, experts, industry and the broader community on the Net Zero Plan, 2035 emissions reduction target and sector plans. Public participation and engagement with local communities and Indigenous people, in a gender-responsive manner Consultations on the Net Zero Plan, 2035 emissions reduction target, and sector plans, including those conducted in collaboration with the CCA, included industry roundtables, meetings with unions and workforce representatives, regional community workshops, roundtables with First Nations representatives, ministerial and senior official council meetings with state and territory governments, and engagement with local government organisations. Discussions on gender-responsive approaches, diversity and opportunities for women in the transition to net zero featured across each of these groups. 20 Australia’s 2035 Nationally Determined Contribution Information element Response NDC Target Reduction in net national greenhouse gas emissions of 62–70% below 2005 levels by 2035, implemented as an emissions budget covering the period 2031–35. Australia recognises that women and girls face unequal impacts from climate change, and that it is critical women have a seat at the table to address these challenges. Australia’s Working for Women: A Strategy for Gender Equality, recognises the gendered impacts of climate change, and ensuring their full inclusion to ensure climate solutions work for women. Australia assesses the social and economic impacts of its policies and measures via a thorough impact analysis during the policy design phase. This can also include analysis of distributional effects to identify how certain cohorts, such as women, First Nations people and people in remote and regional areas, may be affected disproportionately by particular policies. In addition to the impact analysis process, the Office for Women supports the analysis of gender impact assessments, the National Indigenous Australians Agency supports the analysis of First Nations impacts, and the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts supports the analysis of Regional Australia Impacts. Further information is available in Section 2.8 of Australia’s first Biennial Transparency Report. 4a–ii)-a. Contextual Information on Australia’s government structure, and economic, geographic matters, including, inter and climate profiles can be found in Chapter 2.1 of Australia’s first Biennial alia, as appropriate: Transparency Report. National circumstances, Australia is experiencing the profound and accelerating impacts of climate change. such as geography, climate, The CSIRO’s 2024 State of the Climate Report warned that in the coming decades, economy, sustainable Australia will experience ongoing changes to its weather and climate, including development and poverty increased temperature, bushfires, sea-level rise, and marine heatwaves. The National eradication. Climate Risk Assessment reinforced that climate-fuelled extreme weather events are increasing pressure on Australia’s natural ecosystems, and communities. Australia’s unique national circumstances shape its response to climate change. Australia’s system of government, vast size, diverse landscapes, climatic variability, resource-based economy and small but growing population living mostly in coastal regions pose challenges and opportunities to managing the impacts of climate change. Australia is transitioning away from being an emissions-intensive economy. Our transition starts with our own domestic electricity supply. Already, over 40% of electricity in our two major energy grids is renewable, representing significant progress to achieving 82% renewable electricity by 2030. We have abundant renewable energy resources, strong access to battery minerals and a skilled workforce. We are working to build new industries to help the world transition through our low-emissions exports. 4a-ii)-b. Best practices and Australia’s NDC follows guidance for clarity, transparency and understanding set out experience related to NDC in decision 4/CMA.1. Australia’s target determination process follows best practice preparation. in requesting and considering the independent advice from the Climate Change Authority, as legislated in the Climate Change Act 2022 (see further section 4(a)(i)) above. A range of Australian Government agencies were involved in the development of the NDC, including a whole-of-government process for determining our 2035 emissions reduction target and Net Zero Plan, with responsible ministers allocated to each sector’s emissions reduction plan together with economic analysis from the Treasury, reflecting shared policy responsibility. 4a-ii)-c. Other priorities Not applicable. acknowledged when joining the Paris Agreement. 4b. Information applicable to Not applicable. Parties acting jointly. Australia’s 2035 Nationally Determined Contribution 21 Information element Response NDC Target Reduction in net national greenhouse gas emissions of 62–70% below 2005 levels by 2035, implemented as an emissions budget covering the period 2031–35. 4c. Global stocktake See Annex B. consideration. 4d-(i-ii). Information Not applicable. in relation to Article 4 paragraph 7.

5. Assumptions and methodological approaches for emissions estimates and accounting 5a. Accounting for emissions Australia will assess progress towards its 2035 emissions reduction target by and removals. comparing cumulative net national greenhouse gas emissions over the period 2031– 35 with the emissions budget for the period. Both cumulative net national greenhouse gas emissions and the emissions budget will be calculated based on data submitted in Australia’s latest annual National Inventory Report. Australia’s National Inventory Reports are compiled in accordance with the Modalities, Procedures and Guidelines adopted by the CMA (currently decisions 18/ CMA.1 and 5/CMA.3), including application of methodologies and common metrics assessed by the IPCC and adopted by the CMA (section 5d below refers). Australia has no plans or policy to count internationally transferred mitigation outcomes for use towards NDCs. Should the Australian Government authorise any internationally transferred mitigation outcomes for use towards NDCs, Australia will make corresponding adjustments, consistent with guidance adopted under Article 6 of the Paris Agreement. 5b. Accounting for the Not applicable. implementation of policies and measures or strategies. 5c-d. IPCC methodologies The estimates of emissions and removals used in accounting for the NDC will be and metrics used and those reported in Australia’s National Inventory Reports, which apply the IPCC existing approaches. 2006 Guidelines, or subsequent version or refinement as agreed by the CMA, supplemented by the IPCC 2019 Refinement and IPCC 2013 Wetlands Supplement. The metric used will be the 100-year time horizon Global Warming Potential values as agreed by the CMA for the compilation of National Inventory Reports, currently the relevant metrics are those listed in Table 8.A.1 of the IPCC Fifth Assessment Report (decisions 18/CMA.1 and 5/CMA.3 refers). 5e-i). Natural disturbances. Australia’s NDC covers anthropogenic emissions and removals. Australia will address non-anthropogenic emissions and subsequent removals from natural disturbances in accounting for its NDC. The carbon stock changes from natural disturbances are included in the national emissions totals, as described in Australia’s National Inventory Report (May 2025) consistent with approaches set out in the IPCC 2006 Guidelines and the IPCC 2019 Refinement. Australia will continue to provide information on its approach to addressing emissions and subsequent removals from natural disturbances in its annual National Inventory Reports. 5e-ii). Harvested wood Australia will use a stock-change approach consistent with the IPCC 2006 Guidelines products. to estimate emissions from Harvested Wood Products, consistent with the 2006 IPCC Guidelines and paragraph 56 of the Annex to decision 18/CMA.1. The methodology will be described in detail in Australia’s annual National Inventory Reports. 5e-iii). Effects of age-class Not applicable. structure in forests. 22 Australia’s 2035 Nationally Determined Contribution Information element Response NDC Target Reduction in net national greenhouse gas emissions of 62–70% below 2005 levels by 2035, implemented as an emissions budget covering the period 2031–35. 5f-i). Other assumptions The emissions budget (reference period) values for the 2035 emissions reduction and methodological target are calculated using straight-line trajectories to the lower and upper ends of approaches used, including: the 2035 target range. The trajectories begin in 2030 with net national emissions at 43% below 2005 levels (Australia’s 2030 single-year emissions reduction target) Construction of the and finish in 2035 – one with net national emissions 62% below 2005 levels, the other reference indicators. with net national emissions 70% below 2005 levels. The area under each trajectory for the period 2031–35 are the emissions budget values for the 2035 emissions reduction target. As stated in section 5a above, the emissions budget values will be calculated based on data submitted in Australia’s latest annual National Inventory Report and may be updated as set out in section 1f above. 5f-ii-iv).Non greenhouse-gas Not applicable. components; Climate forcers, as applicable; Further technical information, as necessary. 5g. Intended use of voluntary Australia currently has no plan to engage in international cooperative approaches cooperation under Article 6 under Article 6 of the Paris Agreement towards achievement of its NDC. of the Paris Agreement. Should Australia decide to use cooperative approaches under Article 6 of the Paris Agreement towards achievement of its NDC or to authorise the use of internationally transferred mitigation outcomes towards the NDCs of other parties, it would report on such use or authorisation through its Biennial Transparency Reports and consistent with guidance adopted under Article 6.

6. How the party considers that its nationally determined contribution is fair and ambitious in the light of its national circumstances 6a. A fair and ambitious Australia’s 2035 NDC is a significant 19-27 percentage point increase over our 2030 contribution. emissions reduction target. It is an ambitious target that reflects a significant transition of Australia’s economy, including a shift towards 82% renewable energy by 2030. Australia’s contribution to global climate action is complemented by actions to increase our clean energy and other low-emissions exports to help other countries achieve their emissions reduction targets. Australia also provides significant support to other countries that contributes to global emission reductions. Australia’s 2035 emissions reduction target is consistent with requirements established under the Climate Change Act 2022. Under the Act, the Australian Government must consider advice from its independent Climate Change Authority (CCA) before setting national emissions reduction targets or communicating its NDC. The CCA’s advice is the culmination of two years’ work, informed by modelling from CSIRO, extensive scientific and policy analysis, and public consultation. The CCA’s 2035 Target Advice was also informed by its Sector Pathways Review.64 This advice was provided on 12 September 2025, and recommended a target of 62- 70%. The CCA’s comprehensive analysis led it to conclude that 62–70% is an ambitious target for Australia to achieve by 2035, and represents the highest possible ambition for Australia. The CCA notes it involves cutting Australia’s emissions by roughly half from the current level. 65 The CCA provided government with this advice on 12 September. The government considered this advice alongside other important inputs, such as the consultation on work undertaken to complete the Net Zero Plan and sector plans, including Treasury’s modelling and analysis. After consideration in light of its own target analysis, government agreed with the CCA’s recommendation to set a 2035 national emissions reduction target of 62-70%. Australia’s 2035 Nationally Determined Contribution 23 Information element Response NDC Target Reduction in net national greenhouse gas emissions of 62–70% below 2005 levels by 2035, implemented as an emissions budget covering the period 2031–35. 6b. Fairness considerations, International equity considerations including reflecting on Australia’s 2035 emissions reduction target reflects a meaningful contribution equity. to global efforts and calls to action under the Global Stocktake which have been endorsed by every party to the Paris Agreement. It reflects consideration of the best available science, as recognised in the Global Stocktake, that global emissions must be 60% below 2019 levels by 2035 to limit warming to 1.5°C. The increased ambition in our 2035 emissions reduction target reflects our contribution to global efforts to mitigate the impacts of climate change on current and future generations. We recognise that actions taken to protect the climate system today will benefit peoples and individuals of present and future generations. The Treasury modelling for the 2023 Intergenerational Report finds that reduced global climate ambition increases the cost of physical risks.66 Australia’s suite of climate policies reflect the Global Stocktake’s encouragement for parties to implement climate policy and action that is gender-responsive, fully respects human rights, and empowers youth and children. Australia’s international engagements are guided by our International Gender Equality Strategy, International Disability Equity and Rights Strategy and Humanitarian Policy, which recognise the important nexus of climate change and human rights in all areas of humanitarian assistance and climate action, including mitigation, adaptation, disaster risk reduction, preparedness, response and recovery. Through these strategies, the Australian Government is prioritising the delivery of equitable climate action and integrating disability equity across our international engagement on foreign policy, international development, trade, humanitarian assistance and climate with a particular focus on the Indo-Pacific region. Domestic equity considerations In the delivery of its advice to government, the CCA is required to take into account a number of principles including equity, public interest, economic efficiency, and the impact on households, businesses, workers, and communities.67 Australia’s domestic policy design and implementation seeks to improve the wellbeing and prosperity of all Australians, including First Nations communities, transitioning workforces, women and regional communities. We are supporting First Nations and other community-backed clean energy projects, with improved community engagement principles and through our First Nations Clean Energy Strategy. This strategy and its principles will guide actions under the Net Zero Plan and will be applied by government agencies leading the sector emissions reduction plans drawing on best practice approaches to identify specific challenges and opportunities for First Nations communities for each sector. In implementing our 2035 target and Net Zero Plan, we are partnering with communities, workers and businesses affected by the transition to reduce emissions, develop new clean energy industries, and grow the skills and training needed for a strong, future-ready workforce. The Net Zero Economy Authority and the Department of Employment and Workplace Relations are ensuring an inclusive approach to Australia’s transition by promoting consultation, fairness, and shared benefits for affected communities, with a focus on empowering First Nations people to benefit from the net zero transition. 24 Australia’s 2035 Nationally Determined Contribution Information element Response NDC Target Reduction in net national greenhouse gas emissions of 62–70% below 2005 levels by 2035, implemented as an emissions budget covering the period 2031–35. 6c. How the NDC is a Australia’s 2035 emissions reduction target is an increase in ambition of 19-27 progression and reflects percentage points from our 2030 emissions reduction target. highest possible ambition. The CCA advised that a target of 62-70% represents Australia’s highest possible ambition, noting it will involve cutting Australia’s emissions by roughly half from the current level.68 “Our comprehensive analysis has led us to conclude that 62–70% is an ambitious target for Australia to achieve by 2035. … It aligns with what the science demands: strong and urgent action.”69 Over the next 10 years, Australia aims to reduce emissions by more than it has over the past 20 years, while our population continues to grow. Australia’s 2035 target will reduce our annual per-capita emissions down from the current level of 16.5 t CO2-e to around 7.5–5.9 t CO2-e by 2035. It is built on comprehensive modelling that indicates Australia has extensive abatement potential. Our track record shows we have the means – and the commitment – to act. Advice from the Climate Change Authority show that a 2035 emissions reduction target of 62-70% can be achieved with existing technologies in renewable electricity generation, energy efficiency, the electrification of a range of household, industry and transport activities and continued sustainable land management practices. 6d. Economy-wide absolute Australia’s 2035 target is an economy-wide absolute emissions reduction target, emissions reduction targets. covering all sectors and greenhouse gases. 6e. Special circumstances of N/A LDCs and SIDS.

7. Achieving the objective of the Convention as set out in its Article 2 7a. How the NDC contributes Australia’s NDC, submitted in accordance with the Paris Agreement, aligns with the towards achieving the objective set out in Article 2 in contributing to global efforts to stabilise greenhouse objective of the Convention gas emissions. as set out in its Article 2. 7b. How the NDC contributes Australia’s NDC submitted in accordance with the Paris Agreement, takes into towards the Paris consideration the findings of the IPCC as recognised in the consensus Global Agreement’s temperature Stocktake decision, that limiting global warming to 1.5 °C with no or limited and mitigation goals. overshoot means the world needs to reduce emissions by 60% below 2019 levels by 2035, noting the Paris Agreement temperature goal is to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels. Australia’s 2035 Nationally Determined Contribution 25 Annex B: Australia’s response to the Global Stocktake Australia’s contributions to Energy-efficiency programs such as these have the first Global Stocktake (Decision helped deliver a 28% improvement in energy 1/CMA.5) includes: productivity across our economy over the last decade, and are expected to continue 28(a) and (c) Tripling renewable energy capacity improving our energy productivity and direct globally and doubling the global average annual emissions abatement. rate of energy efficiency improvements by . The Household Energy Upgrades Fund, and

2030. Accelerating efforts globally towards net Social Housing Energy Performance Initiative zero emission energy systems, utilizing zero- are estimated to cumulatively provide 3.6 Mt of and low-carbon fuels, well before or by around abatement to 2030. mid-century. . The Greenhouse and Energy Minimum Since 2018, Australia has more than doubled its Standards Act has avoided approximately 40 renewable energy capacity, adding 34 GW over to 60 Mt of emissions over the last decade. The the period at a rate of almost 6 GW per year. program is expected to contribute a further We have policies in place to support a further 2.9 Mt of abatement based on current settings. doubling of our proportion of renewables by 2030, increasing renewable electricity generation . The National Australian Built Environment to a target of 82% by 2030. The Australian Rating System has reduced emissions by Government has introduced the Rewiring the approximately 13 Mt in the 2 decades it has Nation program to support the modernisation been operating. of the electricity grid, alongside the Capacity 28(b) Accelerating efforts towards the phase- Investment Scheme, a national framework to down of unabated coal power. support greater investment in renewables, to deliver 40 GW of renewable energy generation Australia’s electricity generation is changing as our capacity by 2030. The National Renewable Energy remaining coal-fired power stations are reaching Priority List supports the delivery of accelerated the end of their life. Ten of Australia’s major planning and approvals processes for priority coal-fired power stations have closed since 2012. renewable energy infrastructure. Our Cheaper Modelling by the Australian Energy Market Operator Home Batteries program has brought down the indicates that under a net zero scenario, 90% of cost of a typical battery by around 30%, helping to today’s coal capacity could be closed by 2035, and reduce household bills while building a fairer, cleaner the entire coal fleet before 2040. and more reliable energy system for all Australians. Alongside the exit of coal from our energy system, Over 55,000 batteries – with total storage capacity the Australian Government is accelerating the of over 1 GWh – have been installed in just over 2 deployment of renewable resources to deliver months since the program commenced on 1 July cleaner, more reliable energy for Australia. Over

2025. Australia’s Electricity and Energy Sector Plan the last 15 years, more than a quarter of electricity lays out the pathway to transition Australia’s energy generation in Australia has shifted from fossil-fuel sector to net zero emissions. burning generation to renewables – resulting in a While increasing renewable energy supply, the 30% reduction in electricity-related emissions.70 Australian Government has introduced measures At COP29, Australia joined a Call to Action calling to reduce energy demand through the National for countries to not build any new unabated coal- Energy Performance Strategy, working with state fired power plants in domestic energy systems. and territory governments and local councils. Key measures include the Equipment Energy Efficiency program, Commercial Building Disclosure program, the National Construction Code energy- efficiency requirements, the National Australian Built Environment Ratings System, the Nationwide House Energy Rating Scheme, and the Small-scale Renewable Energy Scheme. 26 Australia’s 2035 Nationally Determined Contribution 28(d) Transitioning away from fossil fuels in The Authority works directly with industry, First energy systems, in a just, orderly and equitable Nations people, workers, and state and local manner, accelerating action in this critical decade, governments to support and facilitate public and so as to achieve net zero by 2050 in keeping with private sector participation and investment in the science. net zero transformational projects in Australia. These efforts are complemented by the Future Australia’s electricity system is the largest Made in Australia community benefit principles contributor to our emissions. The government’s which aim to ensure public investment, and the policies to increase the uptake of renewables into private investment it attracts, flow to communities our electricity system has seen renewables surge to in ways that benefit local workers now constitute over 40% of our two major grids, a and businesses. significant increase from 32% in 2022. Australia takes seriously its reputation as a trusted Alongside our domestic efforts, Australia will work and reliable energy exporter and its relationships bilaterally and through multilateral forums to with our long-standing regional partners. Through speed up the transition in our region and beyond. the Future Made in Australia plan, Australia will The Australian Government has committed $75 continue to invest in the sectors needed to provide million to Singapore’s Financing Asia’s Transition our trade partners with energy to remain a reliable Partnership initiative to support the region’s clean energy partner. energy ambitions and supported Vietnam to develop its new Electricity Law and Power Development Plan 28 (e) Accelerating zero- and low-emission (2024), which will unlock a 50% increase in Vietnam’s technologies, including , inter alia, renewables, energy capacity by 2030. Across Southeast nuclear, abatement and removal technologies Asia, the Australian Energy Regulator is working such as carbon capture and utilisation and with the ASEAN Energy Regulators Network and storage, particularly in hard-to-abate sectors, peer agencies to enhance the region’s electricity and low-carbon hydrogen production. frameworks and help accelerate the uptake of In 2024, the Australian Government released renewable energy. This also includes ongoing its revitalised National Science and Research investments that help build secure and diversified Priorities71 and National Science Statement. clean energy supply chains, and the Future Made in The priorities include transitioning to a net Australia plan. zero future as a priority to align investment in Consistent with the call to transition ‘in a just, science and research across industry and the orderly and equitable manner’, in 2024, Australia science community. established the Net Zero Economy Authority to The Australian Government enables low-emission help ensure workers, communities and regions are technology development through the work of the supported to manage the impacts and share the CSIRO and relevant Cooperative Research Centres benefits from Australia’s transition to a net zero (CRCs) supported under the CRCs Program which economy. The authority is in full operation, focusing establishes collaborations between industry and on engaging regions, implementing the Energy the research sector. Not limited to net zero, some Industry Jobs Plan, and coordinating national efforts of the current CRCs cover emissions in fuels, to support workers, communities and industries. agriculture, buildings, heavy industry and waste. The government is also delivering a Carbon Dioxide Removal (CDR) Roadmap in partnership with CSIRO. The CDR Roadmap will consider the realisable potential of CDR in Australia, and options for how we can responsibly deploy and scale the industry. Australia’s 2035 Nationally Determined Contribution 27 The government is further supporting the investing $29 million in the Methane Emissions development of new technologies through the Reduction in Livestock program to fund research Carbon Capture Technologies program. The and development of methane-reducing feed Program is committed to accelerating research, additives and forage legumes for livestock. These development and demonstration of carbon dioxide projects have explored a range of methane- capture, removal and use technologies, critical to reducing feed additives with abatement potentials reaching net zero by 2050. of up to 66–98% and 99% in cattle and sheep, respectively. The government is also investing Australia has no plans to introduce nuclear $87 million over 10 years to establish the Zero Net energy because it is not suitable for our national Emissions Agriculture Cooperative Research Centre, circumstance. Independent advice from the and a further $4 million over 10 years for the CSIRO and Australian Energy Market Operator has Department of Agriculture, Fisheries and Forestry repeatedly confirmed that nuclear energy is too to become a partner. expensive and too slow to be deployed in Australia, while firmed renewables remain the most efficient Hydrofluorocarbons (HFCs) phase-down is and affordable way to modernise our energy grid. contributing to Australia’s greenhouse gas emissions reduction targets and is encouraging 28(f) Accelerating the substantial reduction industry to move to alternative technologies of non-carbon-dioxide emissions globally, in using lower or zero global warming potential particular methane emissions by 2030. gases. Australia is phasing-down HFCs under the Australia is accelerating the reduction of Ozone Protection and Synthetic Greenhouse Gas non-carbon-dioxide emissions to deliver its NDC Management Act 1989 toward an 85% reduction by incentivising investment in energy efficiency, from baseline in 2036. An estimated 40 Mt fuel switching, and technology improvements in CO2-e was avoided since 1995 through Australia’s industry. The Safeguard Mechanism covers various successful phase-out of chlorofluorocarbons (CFCs) greenhouse gases, including carbon dioxide, and hydrochlorofluorocarbons (HCFCs). methane, nitrous oxide, sulphur hexafluoride Australia’s world-class National Greenhouse and specified kinds of hydrofluorocarbons Accounts73 provide the necessary robust data and and perfluorocarbons, as reported under the foundations for these actions and are continuously National Greenhouse and Energy Reporting improved based on the latest science, technologies Scheme.72 Under the Safeguard Mechanism, and practices. The government has committed Australia’s largest industrial emitting facilities $10.2 million to continue to improve fossil methane- are required to meet legislated emissions limits emission estimation and reporting. This includes called baselines. Together, these facilities across establishing an Expert Panel, led by Australia’s the mining, manufacturing, transport, oil, gas and former Chief Scientist, to advise on the potential waste sectors produce around 31% of Australia’s role atmospheric measurement approaches emissions. These baselines will decline predictably could play, and supporting a world-first study74 and gradually on a trajectory consistent with in Australia coordinated by UNEP’s International Australia’s 2030 emission reduction target and net Methane Emissions Observatory to evaluate zero by 2050. This policy is expected to achieve the capability of such approaches in a simulated around 200 million tonnes of abatement to 2030. surface-mine setting. Findings from this work will The Safeguard Mechanism is being reviewed in help all countries better understand and manage 2026-27. This will include setting the decline rates fugitive methane emissions. for 2030–31 to 2034–35. Australia joined to the Global Methane Pledge in The Resources Methane Abatement Fund 2022 where participants commit to collaboratively and Powering the Regions Fund have awarded reducing global methane emissions by at least over $41.2 million to develop and demonstrate 30% below 2020 levels by 2030. 160 nations have technologies to cut methane emissions from committed to the pledge as of August 2025. Australia’s coal industry. The government is 28 Australia’s 2035 Nationally Determined Contribution 28(g) Accelerating the reduction of The Australian Government has taken strong action emissions from road transport on a range of to restrict direct Government support for the fossil pathways, including through development of fuel energy sector. These include: infrastructure and rapid deployment of zero- and . legislating to prohibit direct financing for low-emission vehicles. the extraction of coal and natural gas and Australia is reducing its emissions from road the construction of pipeline infrastructure transport through action to accelerate the uptake primarily for the extraction of natural gas in of low-emission vehicles including electric vehicles the National Reconstruction Fund Corporation (EVs) – which have grown from 0.8% of new light Act 2023. vehicle sales in 2020 to 10% in 202575. . legislating to prohibit the prescription of The Australian Government released its first funding programs where they would subsidise National Electric Vehicle Strategy in April 2023 the extraction of coal and gas in the Industry which outlines plans to increase the supply of Research and Development Act 1986. affordable and accessible EVs and establish the . legislating that Export Finance Australia must resources, systems and infrastructure to have regard to Australia’s obligations under encourage rapid EV uptake. international agreements, including Australia’s The Australian Parliament passed the New Vehicle emissions reduction targets and the Statement Efficiency Standard Act 2024 (NVES Act) to increase on International Public Support for the Clean the supply of more fuel-efficient, low- and zero- Energy Transition. emissions cars and light commercial vehicles to the . restricting new Future Made in Australia Australian market. The NVES Act is expected to support for: the extraction of coal, crude oil or reduce the emissions intensity of new passenger natural gas; the construction of infrastructure vehicles by around 60% by 2030 and halve the for the primary purpose of extracting coal, emissions of new light commercial vehicles over the crude oil or natural gas; directly financing same period. The Standard is expected to achieve investments for the sole purpose of the use of 20 Mt of abatement by 2030, 80 Mt by 2035 coal, crude oil or natural gas in the Future Made and 321 Mt by 2050.76 More information on the In Australia Act 2024. government’s plans to reduce transport emissions . the amendment of almost 20 Acts to embed is availiable in Transport Sector Plan. Australia’s emissions reduction targets in their 28(h) Phasing out inefficient fossil-fuel subsidies objects, to direct government organisations to that do not address energy poverty or just achieve these targets and provide certainty to transitions, as soon as possible. industry and the broader community. Australia joined G20 leaders in 2009 in committing to remove inefficient fossil-fuel subsidies that encourage wasteful consumption. The Australian Government does not provide inefficient fossil-fuel subsidies. Australia has supported the domestic implementation of this commitment, as well as others relating to fossil fuels, renewable energy and energy efficiency, as agreed at COP28. Australia joined the Clean Energy Transition Partnership in 2023, reinforcing our efforts to focus investments and international support into clean and renewable energy projects, and away from the international unabated fossil-fuel energy sector. Australia’s 2035 Nationally Determined Contribution 29

33. Further emphasises the importance of 35. Preserve and restore oceans and coastal conserving, protecting and restoring nature ecosystems and scale-up, as appropriate, and ecosystems towards achieving the Paris ocean-based mitigation action. Agreement temperature goal, including through Australia is a world leader in marine protection enhanced efforts towards halting and reversing – we now protect 52% of our ocean territory deforestation and forest degradation by 2030. within our marine reserve system, with 24% of Also applies to other terrestrial and marine Australia’s ocean under a high level of protection. ecosystems acting as sinks and reservoirs of Recent expansions of this network have focused greenhouse gases and by conserving biodiversity, on strengthening sub-Antarctic protection and while ensuring social and environmental increasing the area of ocean managed by First safeguards, in line with the Kunming-Montreal Nations people through Sea Country Indigenous Global Biodiversity Framework. Protected Areas and joint management of marine Through our Strategy for Nature 2024–2030, parks. The Australian Government champions Australia aims to halt and reverse biodiversity loss sustainable ocean management through our by 2030. It sets ambitious national targets to tackle active support of the Biodiversity Beyond the drivers of biodiversity decline, to protect and National Jurisdiction process and its Preparatory repair our natural ecosystems and put nature on Commission, as well as our membership of the a path to recovery. The strategy recognises that High Level Panel for a Sustainable Ocean Economy, prioritising nature in decision-making is essential our co-leadership (with Chile) of the 100% to tackling the drivers of environmental decline, Alliance for Sustainable Ocean Management, and and increasing climate resilience, and that actions developing a national Sustainable Ocean Plan. which provide benefits to biodiversity can increase Through engagement on the plan’s development, climate resilience. stakeholders have called for ocean-based climate actions to mitigate, adapt and build resilience The alignment of Australia’s Nature Repair Market to climate change as part of a holistic approach with the Australian Carbon Credit Unit Scheme to a healthy ocean and the social and economic (ACCU) supports mitigation and biodiversity development it underpins. co-benefits. Landholders can deliver projects that could earn both a biodiversity certificate and ACCUs, Australia was also one of the first countries to where they meet the eligibility requirements. begin reporting on coastal wetlands in our national greenhouse gas inventory (2017) using the Australia is a strong advocate for sustainable forest voluntary guidance in the 2013 Intergovernmental management. The government is delivering a suite of Panel on Climate Change Wetlands Supplement. initiatives totalling over $300 million to innovate and Noting the critical importance of blue carbon improve the capacity, capability and sustainability ecosystems, we will continue to account for of Australia’s forest sector, as well as through the net emissions from emergence/loss of advocacy in a range of international fora. 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