Australia’s updated Nationally Determined Contribution (NDC) sets a new target: a 62–70% reduction in greenhouse gas emissions by 2035 (below 2005 levels). This adds an additional checkpoint to sit alongside the existing goals of a 43% cut by 20301 and net zero by 2050, reaffirmed under the Climate Change Act 2022. The 2035 target was informed by independent advice from the Climate Change Authority, which deemed it “ambitious but achievable” and aligned with keeping global warming well below 2°C. Notably, the upper end of the target (70%) approaches what many scientists and advocates call for, although some argue even deeper cuts are feasible. 

To achieve these targets, Australia has released a comprehensive Net Zero Plan, structured around five strategic ‘CLEAN’ priorities  

  1. C - Clean electricity across the economy 
  2. L - Lowering emissions through electrification and efficiency
  3. E - Expanding clean fuel use 
  4. A - Accelerating new technologies 
  5. N - Net carbon removals increased 

These priorities are supported by six detailed sectoral emissions reduction plans, each outlining pathways to decarbonisation and targeted investments. Click through to explore ERM’s expert insights on each sector – and access the government’s official sector plan snapshots to see how your business can align with Australia’s Net Zero Plan. 

  • Electricity and energy: Transition to 82% renewables by 2030, enabling economy-wide electrification and clean fuel adoption. Click through to learn more. 
  • Agriculture and land: Emissions intensity declines through better practices, with long-term gains in biodiversity and food security. Click through to learn more. 
  • Built environment: Electrification, energy efficiency, and low-carbon materials drive reductions across homes and commercial buildings. Click through to learn more. 
  • Industry: Existing and emerging technologies scale up, supported by the Safeguard Mechanism and investments in green manufacturing. Click through to learn more. 
  • Resources: Focus on methane abatement, electrification, and carbon capture to reduce scope 1 emissions. Click through to learn more. 
  • Transport: Infrastructure upgrades, electrification, and low-carbon fuels aim to prevent transport from becoming the top emissions source by 2030. Click through to learn more. 

Aerial view of a camper on a red sandy road, bordered by vibrant greenery and a calm turquoise ocean on the right.

What are the next steps for your business? 

The sectoral plans provide a clear signal: businesses across all industries will need to adapt to align with Australia’s strengthened climate targets. Understanding your sector’s roadmap is the first step toward meaningful action. To support this, we’ve outlined five practical steps to help you align your operations with Australia’s Net Zero Plan. 

  1. Understand Australia’s NDC target: Familiarize yourself with the relevant sectoral plan for your business. 
  2. Assess your current position: Evaluate your current operations and investments against the NDC target and respective sectoral plans. Identify areas where you are already achieving the desired emissions reductions, and areas that require further ambition.
  3. Develop a decarbonisation plan: Create a comprehensive plan to transition your operations and investments to align with the NDC targets. This may involve decarbonising your operations, investing in renewable energy and reviewing load shifting and load shaping opportunities, enhancing energy efficiency and energy management, or adopting low-emissions technologies. 
  4. Engage with stakeholders: Communicate your commitment to sustainability to your stakeholders, including investors, customers, and employees. 
  5. Monitor and report progress: Establish a system to monitor and report your progress for decarbonising your operations. Regular reporting not only demonstrates your commitment to sustainability but also helps you stay on track and make necessary adjustments. 

How can ERM help? 

Navigating Australia’s evolving climate policy landscape can be complex. ERM can support your organisation by helping you interpret and incorporate the measures and signals from Australia’s Net Zero Plan into your decarbonisation and transition plans with confidence. We can help guide your business through the emerging Australian Sustainability Reporting Standards (ASRS), ensuring disclosures are robust and transition plans are credible. We’re also help businesses REVAMP their decarbonisation strategies – many of which were developed in a different policy and market context – and which many Australian companies are now using as a foundation for identifying transition risk mitigation activities under ASRS. Whether you're reporting, planning, or recalibrating your approach, ERM can help you move forward with confidence. Contact us at AustraliaMarketing@erm.com if you’re interested in how we can help your business.