Labor's 2025 environment plan locks a 43% emissions cut by 2030, introduces a Nature Repair levy on fossil profits, and pushes renewables to 82% of the grid.
2030 & 2050 emissions targets
Labor's environment policy is anchored by legislated emissions reduction targets that provide certainty for business investment and international climate commitments. The policy framework combines ambitious targets with practical mechanisms to achieve them.
The centerpiece is a 43% reduction in emissions by 2030 compared to 2005 levels, enshrined in the Climate Change Act. This target positions Australia in line with international climate science recommendations while providing a clear trajectory toward net-zero by 2050.
Safeguard mechanism expansion
- 43% cut by 2030 (vs 2005): Legally binding target with annual progress reviews
- Net-zero by 2050 baked into Climate Act: Long-term certainty for investment planning
- Annual 'safeguard' caps tighten for top 200 emitters: Industrial facilities must reduce emissions or purchase offsets
- Sectoral decarbonization plans: Tailored approaches for mining, manufacturing, and transport
The Safeguard Mechanism covers Australia's largest industrial emitters, requiring facilities producing over 100,000 tonnes of CO2 annually to stay within declining emissions caps. This market-based approach provides flexibility while ensuring emissions reductions occur across the economy.
Labor Climate Implementation Pathway
Power-mix trajectory to 2030
Coal, gas, renewables% 2024 vs 2030 target
Nature Repair Market & levy
Labor's Nature Repair Market represents a novel approach to biodiversity conservation, creating economic incentives for landholders to restore and protect native habitat. The policy links environmental outcomes with market-based funding mechanisms.
The centerpiece is a 0.1% GDP levy on fossil fuel superprofits, specifically targeting companies with profits exceeding $100 million annually. This revenue stream funds biodiversity credits that compensate landholders for habitat restoration work.
How the Nature Repair Market works
- 0.1% GDP levy on fossil superprofits: Estimated to raise $2-3 billion annually for biodiversity programs
- Landholders paid per hectare of restored habitat: Market-based pricing for verified conservation outcomes
- ACCUs stackable with nature-repair units: Carbon and biodiversity credits can be earned simultaneously
- Independent verification system: Third-party assessment of habitat quality and restoration success
The scheme allows landholders to generate multiple revenue streams from the same land through carbon sequestration and biodiversity conservation, creating powerful incentives for landscape-scale restoration projects.
Renewables and EV incentives
Labor's renewable energy agenda combines grid transformation with consumer incentives to accelerate the clean energy transition. The policy package addresses both supply-side infrastructure and demand-side adoption barriers.
Clean energy transition measures
Labor's renewable energy strategy combines ambitious grid targets with targeted incentives to accelerate the clean energy transition. These measures address both supply-side infrastructure and consumer adoption barriers.
- 82% renewables share by 2030: Massive transmission investment and storage deployment to support renewable energy integration across the National Electricity Market
- FBT-free EVs under $89k extended to 2027: Fringe benefits tax exemption for electric vehicles under $89,332 continues through April 2027, supporting fleet adoption
- Community battery grants doubled: Neighborhood-scale battery storage funding increased to support local energy sharing and grid stability
- Safeguard mechanism tightening: Top 200 emitters face progressively stricter caps to drive industrial emissions reductions
Grid transformation investments
Achieving 82% renewables requires substantial infrastructure investment:
- Transmission infrastructure: New powerlines connecting renewable energy zones to population centers
- Grid-scale storage: Battery and pumped hydro projects to manage renewable intermittency
- Distribution upgrades: Local grid improvements to handle two-way power flows from rooftop solar
- Market reforms: Electricity market rules updated to value flexibility and storage services
Projected levy revenue & biodiversity spend 2026-30
Annual $bn collected vs spent
Key Policy Highlights
Frequently Asked Questions
Labor's 2025 environment policy represents a comprehensive approach to climate action, combining binding targets with innovative funding mechanisms for nature restoration. The Nature Repair Market creates new revenue streams for landholders while the renewable energy transition addresses the bulk of Australia's emissions reduction challenge.
For more information on Labor's policy platform, explore the Labor Party profile or compare Liberal vs Labor policies.