Sustainability Legislation in Australia

Whether new or experienced, this is a short summary of relevant key laws and reports regarding climate and emissions for use by member-based organisations.

To keep pace with innovation and maintain competitiveness among trading partners, while also meeting Paris COP targets and ensuring policy consistency and investment certainty, Australia has enacted several key legislations to reduce greenhouse gas emissions. It has also published groundbreaking reports to help businesses and communities prepare for worsening climate impacts.

Cutting Greenhouse Gas Emissions

The cornerstone of current policy is the Climate Change Act 2022, which enshrines the national targets of reducing greenhouse gas emissions by 43% below 2005 levels by 2030, and achieving net zero emissions in 25 years, by 2050. Australia is close to achieving the 2030 target with five years to go with significant private and public investment and modernisation of electricity, industry, building and transport underway.

Importantly the Climate Change Act provides a framework for the government to regularly report publicly on progress and adapt policies as needed, ensuring transparency and accountability for all, including industry sectors responsible for cutting pollution. While much media has focussed on this high rate of cutting emissions, associations and their members must recognise that this is from a low baseline. Per capita and per unit of production Australia remains highly inefficient and carbon-intensive, meaning there is plenty more scope for innovation and improvement for Australian business and industry sectors to be in the middle range of international performance.

Sensibly for efficiency and business confidence, systemic change is being enabled through a number of aligned Acts and regulations ensuring fair and equitable contribution by many sectors and communities toward the targets. This is important as before the Climate Change Act in 2022 the focus was solely on renewable electricity and land clearing – disregarding many other key sectors.

Another important legislative measure is the Safeguard Mechanism (Crediting) Amendment Act 2023. This law strengthens the earlier Coalition Government’s Safeguard Mechanism 2015 and the National Greenhouse and Energy Reporting Act 2007 (NGER Act) by requiring 219 large industrial facilities to progressively lower their emissions. Facilities that emit over 100,000 tonnes of greenhouse gases per year must now cut their emissions over time. They can choose to offset their footprint by purchasing Australian Carbon Credit Units (ACCUs). While the rules for ACCUs have improved, there is growing movement in Australia and internationally for improved efficiencies and real cuts to emissions for improved performance of industrial facilities. Together these two Acts are resulting in increased investigation and reporting of up and downstream emissions and energy efficiency measures which is prompting many more companies to investigate their emissions with carbon audits and strategies, such as electrifying fleet and operations.

The longstanding Renewable Energy (Electricity) Act 2000 introduced by the Howard Government remains pivotal in driving the transition to renewables. This Act establishes the Renewable Energy Target (RET) and market, which incentivises investment in large (LRET) and small-scale (SRES) solar, wind, and other renewable energy sources aiming to ensure a significant proportion of Australia’s electricity comes from clean sources. It has contributed to Australia’s reduced reliance on fossil fuels with a target of an additional 33,000 GWh of renewable electricity each year from 2020 to 2030.

To enable cleaner air and transport, in 2024 the Australian Government regulated for improved Vehicle Efficiency Standards. This means from 2025 Australians are increasingly able to buy cleaner, more efficient passenger and light commercial vehicles that are lower cost to run. This will also help reduce Australia’s reliance and risks with imported fuel. Australia was the last country amongst G20 to introduce these standards, and this measure will result in further progress for many businesses and sectors highly reliant on transport and freight.

These federal laws and standards to cut emissions are complemented by state-level laws, regulations and targets. Since late 2024 all states and territories had set targets to achieve net zero emissions by 2050 or earlier. The only state to step back is Queensland in 2025, whereas other states keep powering ahead. These include Tasmania’s Climate Change Act 2008, Victoria’s Climate Change Act 2017 and New South Wales’ Climate Change (Net Zero Future) Act 2023. There are some consistent elements between states including five yearly interim targets, net zero (by 2030 or 2050), requiring adaptation strategies and legally binding pathways and actions for economic transitions.

Adapting to avoid impacts of challenging climate

Finally, regarding the monumental task of adapting to worsening and less predictable weather, in late 2025 the Australian Government published the first comprehensive National Climate Risk Assessment, as part of our Paris COP commitments and set up the Australian Climate Service. This landmark expert Risk Assessment report is informing and galvanising governments at all levels and is compulsory reading for all industry and trade member-based organisations keen to plan and protect their members and the future of their association.

It identifies 11 priority risks including extreme and severe heat, droughts, floods, cyclones, damaging hail, winds and rising seas across 7 key systems ranging from economy and trade to infrastructure, food systems, health and social support systems and natural environment systems.

Such brute facts are that within 25 years, by 2050, 1.5 million more Australians will be in high-risk coastal areas, and for example, critical infrastructure upon which we all depend, such as telecommunications, water and transport systems will go from low to high and very high severity climate impacts levels.

Helpful online resources include the report, impact ratings (from low to high), technical reports, dashboards, and adaptation considerations. Climate change is already impacting us, and this material is freely available for all member-based organisations so they can inform their boards and retain and support their members. 

For practical guidance, please refer to our Australian Environmental Legislation and Regulation member-only Resource.

If you are a membership body and need further guidance, CAFA provides the tools and resources professional bodies need to navigate this. By joining our free membership, you can access the frameworks and support to guide members into leaders. Join us today.