In this interview, Saxon Davidson appeared on 2SM Mornings with Chris Smith to discuss the IPA’s research on net zero.
All media appearances posted onto the IPA website are directly related to the promotion and dissemination of IPA research.
Below is a transcript of the interview.
Chris Smith:
Saxon Davidson is from the Institute of Public Affairs. He’s a research fellow there, one of the country’s leading free market think tanks. Saxon’s written extensively on the economic and social cost of climate reduction targets, and he’s been a strong voice warning about what these policies really mean for jobs, productivity, and our way of life, because that’s what we care about. And Saxon has been looking very closely at the Albanese government’s announcement of new emissions reduction targets of 62 to 70% by 2035. And he says, this is not just ambitious, it is reckless with profound consequences for Australia’s economy and living standards. Saxon Davidson, welcome to the Super Radio Network.
Saxon Davidson:
Good morning, Chris. Thank you for having me.
Chris Smith:
What do these new targets actually mean for ordinary Australians for jobs, their bills, their energy bill in particular, and their standard of living?
Saxon Davidson:
Well, what we’ve seen over the last three years with the announcement of the 43% target and the rapid expansion of net-zero policies is that our energy bills have just risen exponentially despite the $275 promise reduction that we heard from Albanese before he was the prime minister. We’ve seen more jobs being put at risk and potential future jobs being put at risk. And we’ve seen the slow increasing deindustrialization of Australia, despite the future made in Australia just made by the Albanese government. And this new target announced yesterday will accelerate all of these negative impacts we’ve seen throughout Australia’s economy and also through our society that we’ve witnessed thus far.
Chris Smith:
The government says 62 to 70% cuts are necessary to meet international commitments and keep investment flowing into renewables. Investments flowing nowhere near renewables at the moment. It’s going the other way, isn’t it?
Saxon Davidson:
Well, exactly that. There is no real investment in renewable energy here in Australia except from the government and except those that are heavily backed via subsidies. And the simple fact is because it’s not as effective, it’s not as efficient as coal or gas or nuclear, which of course we have banned under the EPBC Act. And unfortunately I just see this continuing because people don’t want to invest in something that quite frankly doesn’t work well.
Chris Smith:
Where do we sit on a table of countries in terms of our 2035 target which was announced yesterday?
Saxon Davidson:
We’re pretty mid-range. It’s not the harshest cuts, but it’s not the lowest either. But I think what’s been missing through all of this, particularly what we’ve seen when you’re asking the McCain or Chris Bowen or Jim Chalmers or Anthony Albanese is, do we actually need to have a target? Because whether or not the target is achievable, in my opinion, is the secondary point. The primary point is that the negative impacts for pursuing this target will occur regardless of whether we actually meet it or not, especially considering that what we emit in a year as a country in Australia is the same as what China emits in 12 days.
Chris Smith:
Say that again so people can absorb it and distribute that information.
Saxon Davidson:
What Australia as a country emits every year is the same as what China emits in 12 days, which means that whatever impact we have on reducing our own emissions is completely irrelevant in terms of what will happen around the world.
Chris Smith:
We are a wee in the sea.
Saxon Davidson:
Yup.
Chris Smith:
That’s exactly right. Other nations, even so-called climate leaders, they’re quietly walking back on their targets, aren’t they?
Saxon Davidson:
Absolutely. Of course we’ve seen the United States walk back on their commitments, and the world’s largest emitters that being China and India are not committed to net-zero by 2050. It’s entirely irrelevant whether we are committed to net-zero, but it’s not irrelevant to the Australian punter. It’s not irrelevant to the general public who have to suffer via lower economic growth, less jobs and less well-paying jobs under this net-zero policy framework.
Chris Smith:
What do you make of the Treasurer saying, “Oh, this will grow the economy by $2.2 trillion”?
Saxon Davidson:
I’m very sceptical of that claim.
Chris Smith:
It’s going to come from the private sector he said.
Saxon Davidson:
Yeah, well, as we were just-
Chris Smith:
Don’t laugh, Saxon, come on. This is serious stuff.
Saxon Davidson:
Investment in renewables is lower, so it’s lower than what they’ve been claiming that it would be as we were just talking about. I think it’s entirely ludicrous to say that the net-zero framework will grow our economy simply put because our most viable industries are the exact industries that net-zero is targeting. We’re talking about mining and resources, agriculture and manufacturing. These are the jobs that will have to disappear for net-zero to be achieved and for these emission reduction policies to be achieved. So I’m extremely doubtful that net-zero and these targets will grow our economy at all, let alone by as much as the Treasurer is claiming.
Chris Smith:
One last question for you. They’re saying that our electricity bills will drop by 20%. It starts to excite me. I think to myself, “How good will this country be when our power bills are 20% less than what they are now?” This is the key to productivity, et cetera. What are the chances of that? I see it as None and Buckley’s.
Saxon Davidson:
I completely agree with you. I don’t think there’s any chance. You just have to look at $275 reduction in our energy bills that we were promised prior to the 2022 election. All renewables do is they’ll make our energy grid more unreliable and our power bills more expensive.
Chris Smith:
And we’ve got to back it up with even more expensive coal because it’s working on a part-time basis.
Saxon Davidson:
Exactly.
Chris Smith:
Yeah. All right. You go off and laugh because I have been laughing, but we shouldn’t laugh because it is a economic suicide note, this stuff. Saxon Davidson, thank you very much for your time.
Saxon Davidson:
Thank you for having me.
Chris Smith:
Okay, from the IPA. Yeah. 2.2 trillion to the economy and he laughed. That’s what he thinks. He laughs. It’s a wonder the three green stooges didn’t laugh when they made this stuff up yesterday.
This transcript with Saxon Davidson talking on 2SM Mornings with Christ Smith from 19 September 2025 has been edited for clarity.
