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The Authority today publishes its Corporate Plan 2021-22. The plan outlines its activities for the next four years.

Corporate Plan 2021-22 (PDF(Opens in a new tab/window) ; Word(Opens in a new tab/window)).

In his Opening Statement, the Chair of the Authority, Mr Grant King wrote,  "While the challenges are significant, I am optimistic that Australia can continue to contribute to the global effort and that our institutions, including the Climate Change Authority, will assist not only Government but business and the community to achieve the nation’s emission reduction goals and prosper. 

"We will continue to advise the Minister for Emissions Reduction, the Parliament and the broader community by providing balanced, evidence-based advice on how Australia could achieve and strengthen its goals in response to climate change. Our advice is underpinned by guiding principles, set out in legislation, to take a balanced and holistic view of climate change - one that delivers results for the entire nation."

The Authority's Chief Executive Officer, Mr Brad Archer, reflects on the achievements of the previous 12 months in his Foreword. The Authority has:

• released its second statutory review of the Emissions Reduction Fund (ERF), incorporating CSIRO analysis we commissioned of the risks that climate change poses to storing and maintaining carbon in the landscape

• continued its self-initiated research on the trade and investment trends in a decarbonising world and the economic implications for Australia

• released its weekly media digest, On Good Authority, to a growing audience of subscribers

• integrated the Climate Compass framework, a whole-of-government approach to climate risk management, into its risk management framework

• developed its first Reconciliation Action Plan, which sets out defined, measurable actions that the Authority will take to contribute to national reconciliation.

2021- 22 Plan Activities

The Authority’s activities over the reporting period will focus on statutory reviews of the Carbon Credits and National Greenhouse and Energy Reporting legislation, self-initiated research on climate change matters and other Special Reviews as requested by the Minister or the Parliament. This corporate plan covers the four years from July 2021 to June 2025. In line with its functions and available resourcing, the Authority will focus on the following activities.

Activity One: Complete reviews of the National Greenhouse and Energy Reporting and Carbon Credits legislation 

In 2023, the Climate Change Authority will review the legislation underpinning the Emissions Reduction fund and the national emissions reporting framework concurrently for the first time. The Authority is legally required to review, by 31 December 2023: - the Carbon Credits (Carbon Farming Initiative) Act 2011 (Cth), which underpins the Emissions Reduction Fund - the National Greenhouse and Energy Reporting Act 2007 (Cth), which establishes a single national reporting framework for greenhouse gas emissions and companies’ energy consumption and production. The legislation also supports the safeguard mechanism, which sets limits on the emissions of large businesses. 

Activity 2: Other reviews requested by the Government or Parliament 

In 2021–22 and for the remaining three work periods, the Authority may be asked to perform other Special Reviews by the Minister or the Parliament. 

Activity 3: Self-initiated research and analysis In the lead up to the statutory reviews

The Authority intends to continue to undertake self initiated research and analysis into how Australia can prosper in a world transitioning to net zero emissions. During the life of this corporate plan, the Authority will identify and undertake further research on climate change matters if opportunities arise between statutory and special reviews.  

To subscribe to On Good Authority please click here(Opens in a new tab/window).

Date: Tuesday, 31 August 2021

The Climate Change Authority’s new Chair has provided some initial insights and observations on the climate change challenge, noting the magnitude of the task but that Australia is well-placed with world leading institutions.   

The role of the Climate Change Authority is to provide independent, expert advice through its statutory reviews and special reviews requested by the Minister or Parliament, as well as research reports it initiates itself. In observing that the Authority’s role is not to tell the Government what needs to be done but to contribute to how it could be done, Mr King outlined the principles the Authority has regard to under section 12 of the Climate Change Authority Act 2011(Opens in a new tab/window). These principles require the Authority to take a balanced and holistic view of climate change - one that delivers results for the entire nation.

To deliver the substantial emissions reductions required to meet our commitments, Mr King reflected on how Australia has world class climate infrastructure. And that this infrastructure can be leveraged as part of the support Australia offers to other nations as we work together to reduce global emissions. It comprises the various bodies that regulate, invest in, report against and advise Government on climate change. They include the Emissions Reduction Fund/Climate Solutions Fund architecture, the Clean Energy Finance Corporation and the Australian Renewable Energy Agency), the National Greenhouse and Energy Reporting scheme, Clean Energy Regulator, as well as the Climate Change Authority.

While the energy sector’s level of emissions is often the subject of public focus and debate, Mr King noted that this important sector is already well on its way to substantial emissions reductions. The same cannot be said for other parts of the economy. So it is a mistake to see emissions reduction solely through how much can be achieved in this sector.

Mr King expressed his confidence in the ability of technology and the market to be enablers for emissions reduction. He highlighted the crucial role for the private sector in mobilising the capital required to fund the low emissions transition, noting that private investment in renewable energy shows how solutions that once required subsidies are now attractive investments in their own right.

Mr King observed that new technologies will be required to get to net zero globally, but that it would be a mistake to wait for ‘silver bullets’ and that we need to do more to reduce emissions now with the technologies already available to us. A fuel and technology agnostic approach that focuses on maximising emissions reduction is one that has the most chance of success. Incremental advances could leverage legacy technologies or assets. Indeed, starting early and working to reduce emissions using existing technology is far more efficient and effective than waiting, and hoping, that bigger breakthroughs will do all the work.

In reflecting on how the whole economy must contribute, Mr King observed that “the first 10% of reductions in a sector is easier to achieve than the last 10%”. While Australia’s economy includes some significant carbon intensive resources, achieving net zero emissions will require a combination of abatement, sequestration, elimination as well as substitution.  

Looking forward to COP26 in Glasgow, Mr King sees Article 6 negotiations as pivotal and the likely emergence of bilateral carbon bubbles as a reality Australia should be ready to engage with. There is much Australian infrastructure that can be relied upon, that is trusted and tested, that could underwrite the global architecture around which these bubbles could operate within.

While the challenges are significant Mr King is optimistic that Australia can continue to contribute to the global effort and that our institutions, including the Climate Change Authority, will assist not only Government but business and the community to achieve the nation’s emission reduction goals.

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Brad Archer, CEO of the Climate Change Authority, today thanked four departing members for their commitment and service to the Authority, and welcomed three new members. 

Dr Wendy Craik AM has been Chair of the Authority since May 2016. Dr Craik, Mr Stuart Allinson, Ms Kate Carnell AO, and the Hon. John Sharp AM were appointed as members in October 2015.

Over the past five and half years they have led the substantial work program of the Authority, including reviews of the Emissions Reduction Fund and the National Greenhouse and Energy Reporting scheme and recommending measures to improve the efficiency and effectiveness of these schemes.

In 2020 the Authority’s research found that global action on climate change presents significant opportunities for Australia. The report, Prospering in a low emissions world, discussed how our abundance of clean energy and technical know-how provide us with vital sources of advantage as the world acts to address climate change.

The related report, Economic recovery, resilience and prosperity after the coronavirus, identified measures that could contribute to a ‘triple-win' economic stimulus package in response to the economic impacts of COVID-19.

Many of the Authority’s suggestions over the last five years have found their way into government policy and its work continues to be referenced in public discussion on climate change.

With the announcement(Opens in a new tab/window) by the Government today of new appointments to the Authority, Mr Archer thanked Dr Craik AM, Mr Allinson, Ms Carnell AO and the Hon. Mr Sharp AM for their leadership of the Authority and wished them well in their future endeavours.

Mr Archer welcomed new Chair Mr Grant King and members Ms Susie Smith and Mr John McGee, noting the wealth of relevant expertise and knowledge they bring to the Authority with them. They join with ongoing members Mr Mark Lewis, Mr Russell Reichelt AO and Chief Scientist Dr Cathy Foley, in leading the future work of the Climate Change Authority.

The Climate Change Authority would like to thank Dr Andrew Forrest AO, Chairman of the Minderoo Foundation and Fortescue Metals Group, for joining us at a recent Authority meeting. Dr Forrest spoke of Fortescue’s commitment to carbon neutrality, ambitious goals to demonstrate hydrogen-based clean energy technologies, and growing opportunities for manufacturing in Australia.

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The Climate Change Authority today released its 2020 review of the Emissions Reduction Fund (ERF).

The ERF retains a central role within the Government’s suite of emissions reduction policies. It generates high integrity, low cost carbon offsets, supports voluntary abatement actions and provides a foundation for pursuing broader environmental, social and productivity benefits.

The Authority’s Chair, Dr Wendy Craik, said ‘The ERF has now been operating for six years and is maturing as a scheme. While Government purchasing had been subdued in recent years, auction results in 2020 suggest efforts by the Government and the Clean Energy Regulator to boost activity are paying off. These include the announcement last year of significant additional funding under the Climate Solutions Fund and the introduction of optional delivery contracts. The Authority also welcomes the announcement of additional funding for the Regulator to speed up ERF method development and project registration times.’  

The ERF has been successful in incentivising low cost abatement from the agriculture, land and waste sectors. Landholders are reaping the rewards of new income streams; Australia’s carbon services industry is growing, as is the voluntary market for Australian Carbon Credit Units (ACCUs) as more major emitters set emissions reduction targets. ACCUs meet the best international practice integrity principles for carbon credits and are recognised globally.

The Authority’s review builds on the Government’s response to the Report of the Expert Panel examining additional sources of low cost abatement (the King Review), which contains measures designed to boost ERF activity and reduce the costs of participating, as well as the Government’s first Low Emissions Technology Statement, which presents a vision of a prosperous Australia and focuses government investment on new and emerging technologies. It also builds on the Authority’s recent research reports, Prospering in a low-emissions world: An updated climate policy toolkit for Australia, which sets out how Australia can further develop its policies to take advantage of the opportunities of a global low-emissions economy and Economic recovery, resilience and prosperity after the coronavirus, which identifies measures that could contribute to a ‘triple-win' economic stimulus package in response to the economic impacts of COVID-19.

For this review, the Authority commissioned the CSIRO to analyse the risks that climate change poses to storing and maintaining carbon in the landscape under ERF methods. Dr Craik said ‘The Authority considers this work to be a vital step in understanding how the changing climate will affect our efforts to reduce emissions. It highlights risks are present and will continue to grow. The Authority recommends more work be undertaken to allow the Government and ERF participants to better understand and manage these risks.’

The Climate Change Authority is an independent statutory agency, established to provide expert advice on climate change policy. The Authority is required by legislation to review the ERF every three years. The ERF is an emissions reduction offsets scheme combined with Government purchasing of abatement, which has been accomplished to date through competitive reverse auctions.

The review report and the CSIRO risk analysis can be found at www.climatechangeauthority.gov.au.

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The Climate Change Authority today released a consultation paper on its review of the Emissions Reduction Fund (ERF).

The Carbon Credits (Carbon Farming Initiative) Act 2011 (Cth) (CFI Act) covers the crediting and purchasing elements of the ERF. The CFI Act also requires the Authority to review the Act, regulations and other instruments made under the Act every three years.

The Chair of the Authority, Dr Wendy Craik said: “The Authority’s 2020 review will take into account the operation of the ERF and the changes made to it in the period since the Authority’s last review in 2017. It will consider the overall performance of the scheme as well as focus on three main themes -

• maintaining integrity and optimising governance
• managing risks to abatement, and  
• opportunities for enhancing outcomes.”

The Authority recognises the severe disruption caused by Covid-19 and acknowledges this may be a difficult time for some to contribute a submission. In order to assist, we are adopting a flexible approach to stakeholder engagement. The consultation paper provides options for providing input and is available at www.climatechangeauthority.gov.au

Your contributions are greatly valued by the Authority and will inform our final review report.

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The Climate Change Authority today released its report Prospering in a Low Emissions World: an updated climate policy toolkit for Australia. This report sets out how Australia can further develop its policies to ensure we make our contribution to the global task of reducing emissions, in both the short-term and long-term, and position Australia to take advantage of the opportunities of a global low-emissions economy.

Dr Wendy Craik, the Chair of the Climate Change Authority said, "Australians are already experiencing the effects of a variable and changing climate. 2019 was Australia’s warmest and driest year on record – a key factor driving this summer’s catastrophic bushfire season, which caused widespread loss and devastation to Australian communities, wildlife and natural ecosystems. At the same time Australians have endured a record severe and prolonged drought.

The case for countries to move quickly to reduce climate change and adopt measures to build our resilience has never been stronger. The good news is the global shift to low emissions presents many opportunities for Australia."

The report suggests how Australia can prosper in a low-emissions world due to our abundance of clean energy and already strong institutions and capabilities. As global demand for energy increases and countries move to lower emissions, there will be a growing demand for Australia’s clean energy resources and low emissions products. The report also points to the potential for emerging technologies and industries, such as hydrogen, to generate significant opportunities for Australia; and acknowledges the Government’s forthcoming Technology Roadmap to stimulate research and investment.

New areas of jobs and growth could open up in diverse economic sectors such as sustainable agriculture, new green-tech industries, environmental and financial services and climate resilient infrastructure.

In the report, the Authority updates its previous policy toolkit on economy-wide opportunities to reduce emissions for Australia to meet its Paris Agreement commitments. The report presents 35 recommendations to help transition Australia to a low emissions future, building on the Government’s current climate change policy settings to drive down emissions in the transport, industrial, electricity, agriculture and land, and waste sectors.

As well, the updated toolkit aims to empower businesses, governments, communities and families to take action to reduce their emissions and help them better prepare for the changes in our climate that are already locked in.

As an open economy Australia needs continued access to global markets which will be transitioning to low emissions goods and services The Authority emphasises that Australia’s future prosperity will be best served by participating in strong global action to reduce emissions and planning for and managing the impacts of the global transition. The updated toolkit seeks to provide a clear, long-term signal to businesses, investors and communities on the global transition to a net zero emissions world and to ensure the transition is well managed so new jobs and benefits flow to regions and communities.

"We need to position our economy for the coming changes in global trade and investment markets and seize on the opportunities before us, or risk being left behind," Dr Craik said.

Established in 2012, the Climate Change Authority provides independent expert advice to the Australian Government and Parliament on climate change policy. The Authority does this by conducting statutory and specifically commissioned reviews and by undertaking independent research and analysis.

The report can be found at www.climatechangeauthority.gov.au

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The Climate Change Authority today released a consultation paper on updating its previous advice to Government on policies to meet Australia’s greenhouse gas emissions reduction commitments under the Paris Agreement.

Since the Authority last provided its advice to Government on the policy toolkit required to meet the Paris Agreement, a number of developments have occurred in Australia and around the world in terms of climate change science, economics and policy.

The updated advice will seek to provide recommendations that ensure Australia is well-placed to meet its 2030 emissions target and that are consistent with meeting subsequent targets with enhanced ambition that put Australia on a path to net zero emissions, consistent with the Paris Agreement framework.

The Authority is particularly interested in:

• What aspects of the Authority’s previous recommendations remain valid and why?
• What are the opportunities and risks associated with the global transition to net zero emissions and how can Government assist the positioning of the Australian economy to take advantage of the opportunities and mitigate the risks?
• What are the barriers (regulatory and non-regulatory) to realising emissions reductions and are there any additional supporting policies, regulations or government actions that could drive emissions reductions in cost effective ways?
• What role should the Government play in enabling the development and uptake of low‑emissions technologies and development of associated industries?
• What role should international units and carryover from earlier commitment periods have in Australia’s response to climate change?

Stakeholder contributions will inform the Authority’s final report, which the Authority is aiming to release at the end of 2019. The Authority encourages submissions from interested individuals and organisations until 23 August 2019.

As part of the work to inform the forthcoming update of advice, the Authority has today also released a stocktake of drivers for, and actions by, industry to reduce greenhouse gas emissions in Australia, including new and emerging low emissions technologies.

The industry paper is one of a series of three stocktakes the Authority has released in 2019, which provide a summary of actions to mitigate emissions by governments and industry in Australia and taking place internationally. It is available at www.climatechangeauthority.gov.au.

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The Climate Change Authority today released its review of the National Greenhouse and Energy Reporting legislation. The National Greenhouse and Energy Reporting legislation establishes the National Greenhouse and Energy Reporting scheme, the safeguard mechanism and the framework for administration and compliance, including auditing requirements for these and other climate change policies.

The Authority found the legislation is working well, is meeting its objectives and is generally fit for purpose.

The Climate Change Authority Chair, Dr Wendy Craik, said ‘We heard from industry, governments and others that they find the information reported under the legislation to be useful, whether it be the Australian Government meeting its international reporting obligations, investors assessing climate risks, or businesses identifying energy efficiency opportunities.’

‘People we spoke to value the fact the reporting scheme is underpinned by robust methods, which provide a high-quality, nationally-consistent dataset.’

The Authority found the reporting scheme is widely considered to be a best-practice approach to measuring and reporting emissions and energy, and compares favourably to schemes in other countries. In its first year of operation (2016–17), all facilities covered by the safeguard kept their net emissions at or below their baselines. Facilities with safeguard obligations are generally comfortable with its operation and the options for meeting their baselines, however, many called for clarity around its future operation.

Although the Authority finds the legislation is meetings its objectives, there are opportunities for improvements to reduce costs and enhance administration of the legislation. Taken individually, each opportunity for improvement may be seen as incremental. Collectively, they can make an important contribution to building on the schemes’ strengths and improving their overall efficiency and effectiveness.

The Climate Change Authority is an independent statutory agency, established to provide expert advice on climate change policy. The Authority is required by legislation to review the National Greenhouse and Energy Reporting legislation by 31 December 2018 and then complete further reviews every five years.

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The Climate Change Authority today released a paper as a basis for consultation on its review of the operation of the National Greenhouse and Energy Reporting legislation.

The Chair of the Climate Change Authority, Dr Wendy Craik, said ‘Now that energy and emissions reporting has been in place for a decade, it’s a good opportunity to see how it is working and to consider if any improvements are needed.

‘The Authority is particularly interested in how the energy and emissions data is being used and whether the increased awareness of firms’ emissions and energy use has led to improvements in the way they are managed.’

Under the legislation, companies measure and report their greenhouse gas emissions and energy production and use. It covers around 800 companies and 60 per cent of Australia’s emissions. Some of this energy and emissions data is published online and used by companies, governments and other decision makers.

The legislation also underpins the safeguard mechanism, which places limits on emissions from facilities and provides a framework for companies to measure, report and manage their emissions.

The third component of the legislation is the greenhouse and energy auditing framework. This is an important part of the compliance regime applying to audits under the reporting scheme, the safeguard and other climate change policies such as the Emissions Reduction Fund and the Renewable Energy Target.

‘Stakeholder contributions will inform the Authority’s final review report, which is due by the end of this year’, Dr Craik said.

The Authority encourages submissions from interested individuals and organisations until 11 September 2018.

The Authority is required under the legislation to review its operation by 31 December 2018 and every five years after that. This is the first review of the legislation.

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