Australia's watered down emissions target draws ire of environmentalists

By Alasdair Pal and Christine Chen

SYDNEY, Sept 18 (Reuters) - Australia on Thursday set its 2035 emissions target at a reduction of 62%-70% from 2005 levels, a lower-than-expected figure that was criticised by green groups.

The United Nations has asked countries to submit their climate plans, called Nationally Determined Contributions, or NDCs, before the end of September so that their efforts can be assessed before the COP30 climate summit in November in Brazil.

Australia is one of the world's highest polluting countries per capita, largely due to its resources industry that extracts large amounts of coal and natural gas.

The country's target falls below the range of 65%-75% that was modelled by the Treasury Department and initially suggested by the Climate Change Authority, an independent body that advises the government on climate policy.

Minister for Climate Change and Energy Chris Bowen told a news conference on Thursday the lower target was a more realistically reachable level.

"The target must be two things, ambitious and achievable. A target over 70% is not achievable. That advice is clear. We have gone for the maximum level of ambition that is achievable," he said.

The reduced target drew sharp criticism from environmentalists, who said it lacked ambition and prioritised industry over communities vulnerable to climate change in the region.

"The Albanese government's new climate plan is an affront to communities across the Pacific and Australia facing the escalating impacts of dangerous climate change," said Shiva Gounden, head of Pacific at Greenpeace Australia Pacific.

"Today the government has chosen coal and gas profits over the safety of Pacific and Australian communities."

The target falls "dangerously short of what the science demands," said Dermot O’Gorman, CEO of WWF-Australia.

GREEN CREDENTIALS

The centre-left Labor government has been keen to burnish its green credentials and on Thursday committed billions of dollars in extra funding for clean energy initiatives.

Canberra is also bidding to host the 2026 COP31 summit in partnership with other Pacific nations.

But its recent decision to extend the life of a huge natural gas project has been a source of tension with some of its Pacific Islands neighbours, who are among the world's most vulnerable countries to climate change.

Australia is also yet to commit to phasing out its ageing coal power plants, a fact that is hindering the take-up of renewables, said Stephanie Bashir, CEO of Nexa Advisory, which helps businesses transition to clean energy.

"Certainty around coal closures will send the much needed market signals for renewable development," she said. "Talks of extensions of ageing coal power stations rattle the market."

Out of the climate targets already submitted to the U.N., most of which use different baseline years to Australia, the United Kingdom has announced the most ambitious target of 81% below 1990 levels, followed by Norway, which has pledged a 70%-75% cut.

Australian Prime Minister Anthony Albanese said the country's planned reduction was in line with indications given by allies including the European Union, which has yet to finalise its target.

On Thursday the government announced A$5 billion ($3.32 billion) in funding to help industrial facilities decarbonise, as well as A$2 billion for the country's Clean Energy Finance Corporation to continue to drive downward pressure on electricity prices.

"We are not the biggest polluter or the biggest economy but our commitment to action on climate change matters," Albanese said.

"It matters to our neighbours, it matters for our economy and it matters for the country that we pass on to our children."

($1 = 1.5058 Australian dollars)