Governments and companies around the world have pledged to reach net zero emissions. Here’s what that actually means, what Australia has committed to, and why it remains a political battleground.
Net zero means reaching a balance between the greenhouse gases released into the atmosphere and those removed from it.
Greenhouse gases, mainly carbon dioxide from burning coal, oil and gas, trap heat in the atmosphere and are the main cause of climate change.
Reaching net zero doesn’t mean producing no emissions at all. It means cutting them as much as possible, then offsetting what’s left, for example by planting trees or using technology that captures carbon dioxide.
Why net zero?
Scientists say limiting global warming to well below 2 degrees, and ideally 1.5 degrees, above pre-industrial levels requires the world to reach net zero carbon dioxide emissions around the middle of the century.
Under the Paris Agreement, signed in 2015, almost every country agreed to set targets to cut emissions, and to strengthen them over time.
Australia’s targets
Australia has legislated targets to cut emissions by 43% below 2005 levels by 2030, and to reach net zero by 2050.
In September 2025, the Federal Government set a target for 2035 of a 62% to 70% cut on 2005 levels.
Australia’s emissions have fallen since 2005, largely because of reduced land clearing and the growth of renewable energy.
How it’s meant to happen
The biggest changes are in electricity, where coal-fired power is being replaced with wind, solar, batteries and pumped hydro. The Government’s goal is for 82% of electricity in the main grid to come from renewables by 2030, although analysts say it is likely to fall short.
The Safeguard Mechanism requires Australia’s largest industrial emitters, such as mines, refineries and smelters, to cut their emissions over time or buy carbon credits.
Other changes include electric vehicles, more efficient buildings, and developing new industries such as green hydrogen and low-emission metals.
The debate
Net zero is a major political dividing line in Australia.
The Labor Government supports net zero by 2050 and stronger interim targets. The Greens and many independents want faster action. In late 2025, the Liberal and National parties dropped their commitment to net zero by 2050, arguing it was driving up energy prices.
Supporters of net zero argue the transition creates jobs and investment, and that the cost of unchecked climate change, through bushfires, floods, droughts and heatwaves, would be far higher.
Critics argue the transition is moving too fast, risking higher power prices and reliability problems, and that Australia’s actions make little difference to global emissions, which are dominated by countries such as China, the U.S. and India.
