Australia Wakes Up!

By Guillaume Lane, Helen Millicer, Gail Greatorex

Elections Recap

Australia’s 2025 federal election concluded with a clear victory for the Australian Labor Party, which will return to government with a significant majority in the House of Representatives.

While vote counting continues to resolve 10 seats in the 151 seat parliament, it is evident that Labor has secured enough support to lead Australia for at least two terms - and the implications are massive for progress on climate and emissions reduction.

Labor will not hold a majority in the Senate upper house, which sets the stage for negotiations with the Greens, independents or conservatives, to pass legislation. Significant reforms were put in place in Labor’s first term meaning climate action will continue apace and there is a possibility for further legislative reforms.

Australia has three tiers of government, a strong parliamentary democracy supported by compulsory and preferential voting and an independent electoral commission.

Labor remains in government, led by Prime Minister Anthony Albanese, winning at least 90 seats in the lower house with 10 seats too close to call and votes still being counted - that's more than double the conservative conservative Coalition, currently at 40 seats.

Commentators have attributed this defeat of the Coalition to meagre and shallow policy platform, continued inaction on climate and higher emissions, and too much like Trump in both policies and ‘leadership’ style. It was exacerbated by the fact they fielded very few women candidates, candidates that failed to reflect the cultural diversity in Australia, in other words continued to be ‘pale, male and stale’.  

With Labor holding a commanding majority in the House of Representatives, a balance of power in the Senate, a record number of women in both houses, and fraction of the conservatives elected, it will be climate-progressive government in Australia for at least the next three and probably six or more years beyond 2030. This promises a long period of stability on climate action after Labor’s victory in 2022 that put an end to nearly a decade of inaction under the conservatives.

Climate Wars over and stable policies for climate action

"This election result confirms the end of the climate wars era. With the Labor government returned with major majority it now has a clear public mandate and parliamentary support to implement its climate agenda. There is now certainty in the renewable future of Australia. That election was a game changer.” Helen Millicer, Co-Founder of ClimateWise Associations.

The combination of Labor, Greens, and climate-focused independents ensures climate policy will not only be a central issue but also one with legislative traction.

The government’s climate architecture is expected to grow more robust. The Climate Change Authority (CCA) will be providing its report to the Australian Government in September recommending Australia’s climate emission reduction targets to 2035. Australia’s legislated targets are for 43% reduction in GHG emissions and 80% renewable electricity by 2030. The CCA’s recommendations will inform the Australian Government’s commitments to COP 30 and Australia is currently in the running to host COP 31 in 2026. The climate-boosted power of other government agencies is now assured, such as the Clean Energy Finance Corporation’s increased allocation of investment capital, and climate-inclusive remit of major institutions like the Productivity Commission.

The Future of Low Carbon Secured in Australia?

The significant 2025 federal election outcome has laid the groundwork for an ambitious, long-term transformation of Australia’s energy and climate landscape.

Helen Millicer predicts “policy certainty up to 2030 if not beyond” – an unprecedented window of opportunity for climate investment and reform.

"We're excited about the outcome of the election and what this means for the role of associations and their members in Australia and the AsiaPac region. As an Australian, I can see first hand the opportunity for the nation and the impact that a low carbon future will have on Australia's people and economy. CAFA is increasing our presence in Australia - we are therefore excited to support membership organisations and their members in the region." Alison Heppenstall, CEO and Founder of Climate Action for Associations

In seizing this opportunity, Australia will now pursue its ambitions to become a renewable energy superpower, which is now a political, social and economic priority.

We can expect to see continued momentum around large-scale solar and wind projects, battery storage, and grid modernisation. Likewise significant further steps on energy efficiency and electrification across all sectors – from housing and commercial property to heavy industry.

Much of the decarbonisation will come through electrification:

• Households and businesses are progressively getting off gas.

• Major equipment in industry is being transitioned to efficient electric alternatives.

• New building codes and retrofitting programs are helping reduce emissions in the residential, public and commercial property sectors.

Following its 2025 re-election, the Labor government has reinforced its commitment to decarbonising Australia’s economy and preparing for the impacts of climate change.

Central to this effort is the strengthened Safeguard Mechanism, which imposes tighter emissions limits on major industrial polluters - pushing for real reductions, not just offsets.

This forms the backbone of Australia’s 43% emissions reduction target by 2030 and lays the groundwork for a new 2035 target expected this term.

To accelerate clean energy uptake, Labor is expanding the Capacity Investment Scheme, providing financial certainty for new solar, wind, and battery projects. The government’s first New Vehicle Efficiency Standards come into effect in 2025, which will drive the shift toward electric vehicles.

Other flagship initiatives include the Solar SunShot Program to boost local solar panel manufacturing and the Net Zero in Government Operations Strategy, aiming to decarbonise the public service by 2030. These domestic actions are being positioned on the global stage, with Australia in partnership with Pacific Island nations vying to co-host COP31 in 2026, and Climate and Energy Minister Chris Bowen touted as being the next UN Climate Chief for 2026 - marking a renewed push for international climate leadership.

The 2025 Australian federal election delivers a fundamental shift: for the first time in years, there is strong and lasting alignment between the political mandate and the public and industrial climate movement. That alignment makes Australia’s transition on clean energy and climate-wise adaption far more certain and secure.

Climate Action for Associations encourages associations in Australia to get in touch, particularly in the context of newfound clarity for businesses, investors, clients and industry as a whole, around the renewable future of the country. The team is looking at how to support associations locally - stay tuned for exciting updates coming soon.

About our authors

Guillaume Lane is engagement and impact lead at Climate Action for Associations. He has a background in biodiversity protection, political sciences, climate advocacy and the carbon market.

Helen Millicer is a sustainability strategist and Churchill Fellow, known for her work in circular economy, energy, and climate policy. She co-founded ClimateWise Associations to advance sustainable practices.

Gail Greatorex is a product safety and sustainability expert with a background in consumer protection. She co-founded ClimateWise Associations to integrate climate action into product standards and policy.

ClimateWise Associations aligns with Climate Action for Associations' mission to support membership organisations with sustainability. We are joining forces to offer enhanced support for associations across Australia. Stay tuned for exciting updates and announcements coming soon.