In a dramatic political reversal, Liberal leader Sussan Ley has confirmed her party has abandoned its commitment to achieving net zero emissions by 2050, setting the stage for a major confrontation with the Labor government ahead of the next federal election.
Policy Reversal After Six Months
Six months after assuming leadership and promising to meet voters "where they are," Ley stood in the same opposition party room at Parliament House to announce the significant climate policy shift. The move paves the way for a joint Coalition energy and emissions policy with the Nationals but represents a stark departure from her earlier positioning.
The decision appears to capitulate to conservative MPs within the Coalition, prioritising party unity and Ley's leadership position over alignment with voter expectations on climate action.
Contradictions in the New Approach
The policy documents released by Ley and shadow energy minister Dan Tehan reveal significant inconsistencies. Despite formally dumping the net zero target, Ley described achieving the international benchmark to limit global temperature increases to 1.5C as "a welcome outcome," provided technology, consumers and markets accomplish this independently.
In a concession to moderate Liberals concerned about their electoral prospects, Ley maintained the party's commitment to the 2015 Paris climate agreement. However, this assertion appears hollow given the agreement's requirement for countries to progressively enhance their emissions reduction targets through "nationally determined contributions" reflecting "highest possible ambition."
Any backslide on climate commitments would breach both the spirit and likely the text of the Paris agreement, creating international credibility issues for Australia.
Questionable Energy Economics
Ley promised a relentless focus on reducing power prices for households and businesses, yet this commitment conflicts with authoritative evidence about energy costs. The CSIRO, Australian Energy Market Operator, Treasury, and credible academic research consistently identify renewables as the cheapest form of power when integrated with complementary technologies.
The CSIRO's latest GenCost report specifically found that wind and solar, supported by properly planned storage and transmission, "remained the lowest-cost new-build electricity generation technologies."
Furthermore, the Coalition's plan to use taxpayer funds to support coal-fired power through "modest, targeted underwriting" and expanding capacity mechanisms to include coal stations undermines any credible emissions reduction strategy. The proposal to address resulting emissions through expanded carbon capture projects faces scepticism given the technology's limited scalability and high costs.
Tehan's claim that the Coalition would "let the market decide" on coal ignores the clear direction energy investment has already taken globally, with renewables accounting for approximately two-thirds of all energy investment in 2024.
The policy shift comes despite clear electoral signals, with Labor's 2022 victory partly attributable to its climate agenda and polling consistently showing voter support for net zero policies as essential for addressing climate change.
As the next election approaches, Ley and Tehan face mounting pressure to provide credible explanations for a policy that appears disconnected from both market realities and voter expectations on climate action.
