Why Australia’s 2035 climate target matters
A new report from the Climate Council confirms our future hangs in the balance as the Australian government decides what our emissions reduction target will be.
To protect Australia from climate disasters, Climate Council analysis shows that a 2035 target of a 75% reduction on 2005 levels is the minimum Australia must commit to.
A science-aligned target
Global governments, business and scientists all agree that holding global warming well below 2°C is vital to prevent massive disruption to the global climate system.
Australia is emerging from a decade of climate inaction, from 2013-2022 the government failed to deliver strong climate policies.
As one of the world’s largest producers and exporters of fossil fuels like coal and gas, Australia now faces a steep emissions reduction curve to limit climate change.
Consequently, limiting global heating to 1.5°C now seems out of reach. But, with a 75% emissions reduction target by 2035 (on 2005 levels) it may be possible to limit warming to closer to 2°C.
Each fraction of a degree matters when it comes to our targets. Weaker targets are aligned with even higher levels of global heating. A 65% reduction target is aligned with close to 2.4°C of global heating.
Picking up the tab for climate change
Transitioning to a low carbon economy involves investment, but the Climate Council report confirms it’s an investment we can’t afford not to make.
Australians are already living with the consequences of climate change, and we’re already picking up the tab. Climate-fuelled disasters are expected to cost the Australian economy $94 billion a year by 2060 if emissions levels remain high, while at least 8.8% of Australian homes will be uninsurable due to high exposure to climate disasters by 2100.
The total insured cost of extreme weather events in Australia in the first half of 2025 has now exceeded $1.8 billion, following Ex-Tropical Cyclone Alfred, the North Queensland floods, and recent flooding on the Mid-North Coast and Hunter regions of New South Wales.
Setting the right target sets us up for success
The report finds the cost of cutting climate pollution is dramatically less than the cost of living with unchecked climate change.
The bill for climate change’s consequences would cost Australia $4.2 trillion by 2070. Choosing a strong target now is far more cost-effective than that.
The Climate Council suggests that setting a 75% emissions reduction target could have positive economic impacts, sending a clear signal to investors and industry that could unlock and accelerate growth in clean technologies and green exports.
That economic growth is projected to approach $1 trillion per year by 2050 and to create over 400,000 jobs.
We’re backing Business for 75: asking the government to commit to a 75% emissions reduction target on 2005 levels by 2035.
Ready to take action? All businesses that support this target are invited to sign the open letter here, to show the government business supports decisive climate action.