Australia has unveiled its updated environmental target under the Paris Agreement, committing to cut greenhouse gas emissions by 62%–70% from 2005 levels by 2035. The new pledge builds on its 43% reduction target for 2030 and highlights the role of carbon offsets and removals in meeting long-term goals.
Close-up of a newly planted tree with solar panels, wind turbines, and two businessmen in the sunny Australian landscape. AI generated picture.
‘This is an ambitious but achievable target—sending the right investment signal, responding to the science and delivered with a practical plan’, the government said when announcing the Nationally Determined Contribution (NDC).
Prime Minister Anthony Albanese’s government outlined a broader net-zero strategy with five priority areas: scaling up the Australian Carbon Credit Unit (ACCU) scheme, increasing renewable energy, boosting electrification and efficiency, developing low-carbon liquid fuels, and accelerating new technologies with public funding support.
To support this plan, Canberra pledged $5.41 (AUD8.2) billion in new funding. This includes $3.3 (AUD5) billion for a Net Zero Fund to decarbonise industry and $1.3 (AUD2) billion in fresh capital for its green investment bank.
The Treasury also released modelling that projects land-based carbon dioxide removals will double by 2050, identifying reforestation as the most scalable option. A new roadmap, developed with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), will explore additional removal technologies and strategies for responsible deployment.
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The ACCU scheme currently generates credits through environmental plantings and plantation forestry. Treasury forecasts suggest land-based abatement could rise by 9% by 2035, with reforestation remaining central.
Alongside this, the government launched a second funding round of the Carbon Capture Technologies Programme, offering $34.3 (AUD52) million to advance new carbon management methods. ‘CSIRO modelling suggests direct air capture (DAC) could augment land-based sequestration from 2035 onwards. However, the path for such technologies remains highly uncertain given current costs and lack of projects at scale’, the net-zero plan noted.
The announcement triggered volatility in ACCU prices. The generic spot price peaked at $25.39 (AUD38.50) per tonne of CO2 equivalent before the NDC release but fell back to $24.44 (AUD37.05) by the close of trading. More than 383,000 tonnes of CO2 equivalent changed hands, exceeding early-week volumes.
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Australia’s 2035 target—and its emphasis on offsets, removals, and ACCUs—shows where policy and capital are converging: Credible carbon strategies will shape competitiveness as much as compliance. For businesses, this isn’t a waiting game; it’s a build-now moment. At Green Earth, we translate evolving frameworks into action, with tools to measure emissions, reduce operational footprints, and secure high-quality, verifiable credits that deliver real-world results. Our work helps unlock finance, de-risk supply chains, and align reporting with tangible impact—positioning companies to benefit as markets scale. Don’t just follow the transition—lead it with us: Learn more about our solutions, and support your businesses’ green journey through our nature-based credits.
