Overview
- Liberal and National MPs endorsed a joint policy that scraps long-term emissions targets, recasting net zero as a welcome outcome only if achieved through technology, choice and voluntary markets.
- The plan introduces a technology-neutral Affordable Electricity Scheme, pegs year-on-year reductions to the real performance of other OECD countries, and proposes preventing early closure of coal plants.
- Institutional changes flagged include stripping emissions reduction from AEMO’s national objectives, amending the Climate Change Act to enshrine the new scheme, reviewing Capacity Investment Scheme and Rewiring the Nation contracts, and maintaining a pledge to scrap four offshore wind zones.
- Policy settings back more gas supply, lift the federal nuclear ban, oppose punitive mandates under the Safeguard Mechanism and EV policies, and contemplate targeted underwriting that could extend to existing or new coal capacity.
- Labor leaders warned the shift will undermine investment and raise power prices, internal Liberal tensions flared over potential coal subsidies, and new polling shows the Coalition’s primary vote falling to 24% as One Nation rises to 18% with Sussan Ley’s approval deeply negative.