Net zero is not just a target the Australian federal government committed to in international law by way of the Paris Agreement. It is the various laws and mandates that the government has implemented to give legal effect to its emission reduction commitments.
The economic harm from net zero can therefore be attributed to specific policies and laws that current and previous governments have introduced. This paper analyses the key pillars holding up the policy of net zero at the federal level. These are:
- The Climate Change Act 2022
Sets a government-wide target to reduce Australia’s carbon emissions by 43 per cent below 2005 levels by 2030 and to net zero by 2050. It will have significant influence over the interpretation of other legislation and the duties of ministers and regulators under administrative law. - The Safeguard Mechanism
The federal government’s marquee net zero policy implementation that mandates large projects and facilities to reduce their emissions or purchase carbon credits to continue to operate.
- The Future Made in Australia policy
Mandates extensive government subsidisation for the renewable sector to compensate for the reduced role of critical industries in the economy which are set to be diminished under net zero policies.
- The New Vehicle Efficiency Standard
Critical to the electrification of Australian life whereby the means of living and conducting a business are shifted away from coal, gas, and oil, to electric vehicles and appliances powered from a renewable-based energy network.
- The Large-scale Renewable Energy Target
A major indirect subsidy scheme that creates artificial demand for wind and solar electricity generators, and transfers money from electricity consumers to renewable energy generators.
The uncertain and volatile economic environment in which Australia finds itself makes it imperative that impediments to Australia’s economic competitiveness and productivity be removed.
While the net zero policy ought to be abandoned, renouncing emission reduction targets will not, in itself, dismantle net zero so long as the pillars remain in place.
Regardless of whether or not all or any part of Australia’s Paris Agreement commitments are retained by a future federal government, the associated policies in Australian law in pursuit of the targets are causing harm and must be repealed.
