The Act sets national GHG targets (43% below 2005 by 2030; net zero by 2050), requires an annual climate progress statement from the federal Minister, and re-establishes statutory advice and public consultation by the Climate Change Authority. It links EPBC approvals to emissions estimates and—if a separate program is prescribed—requires Commonwealth action to secure minimum renewable and dispatchable capacity by 2030. It mainly affects Commonwealth agencies, large emitters and the electricity sector by increasing reporting, transparency and potential future policy-directed investment.
This Act establishes a statutory framework for setting, reporting on and advising about Australia’s greenhouse gas emissions reduction targets, and for periodic review and certain implementation arrangements. Mechanically, it:
Prescribes Australia’s national targets: a point target and an emissions budget for 2021-2030 of reducing net greenhouse gas emissions to 43% below 2005 levels by 2030, and a net-zero target by 2050 (s10(1)).
Requires the Minister to prepare and cause to be tabled, each year, an annual climate change statement covering progress towards the targets, international developments, policy effectiveness, impacts on rural and regional Australia, and climate risks (s12(1), (3)).
Requires the Climate Change Authority to provide advice to the Minister that informs the annual statement and to advise on greenhouse gas emissions reduction targets for any new or adjusted nationally determined contribution (NDC) under the Paris Agreement, including public consultation and publication of written advice (ss14-15).
Creates a reporting link between environmental approvals and emissions information: where an action approved under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) is likely to increase scope 1 emissions or create a new designated large facility, the Environment Minister must give emissions estimates to the Minister, the Climate Change Secretary and the Climate Change Authority (s15A).
Provides for a Capacity Investment Scheme Program if prescribed under the Industry Research and Development Act 1986 (s33 instrument), and, where in force at commencement, requires arrangements to result in at least 23 GW of renewable generation and 9 GW of clean dispatchable capacity by 2030 (s15C). Amendments to the prescribing instrument that vary or revoke the instrument are subject to parliamentary approval (s15D).
Current sections
Direct links to the current provisions in Climate Change Act 2022.
27
Part 1
Preliminary
Part 1—Preliminary
1
Short title
1 Short title
This Act is the Climate Change Act 2022.
2
Commencement
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3
Objects
3 Objects
The objects of this Act are:
(aa) to advance an effective and progressive response to the urgent threat of climate change drawing on the best available scientific knowledge; and
(a) to set out Australia’s greenhouse gas emissions reduction targets which contribute to the global goals of:
(i) holding the increase in the global average temperature to well below 2°C above pre‑industrial levels; and
(ii) pursuing efforts to limit the temperature increase to 1.5°C above pre‑industrial levels; and
(b) to promote accountability and ambition by requiring the Minister to:
(i) prepare annual climate change statements; and
(ii) cause copies of those statements to be tabled in each House of the Parliament; and
(c) to ensure that independent advice from the Climate Change Authority informs:
(i) the preparation of annual climate change statements; and
(ii) the greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.
4
Simplified outline of this Act
4 Simplified outline of this Act
• This Act sets out Australia’s greenhouse gas emissions reduction targets.
• The Minister must prepare an annual climate change statement.
• The Climate Change Authority is to give the Minister advice that relates to the preparation of an annual climate change statement.
• The Climate Change Authority is to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.
• There are to be periodic reviews of the operation of this Act.
5
Definitions
5 Definitions
In this Act:
annual climate change statement means a statement under subsection 12(1).
Australia’s greenhouse gas emissions reduction targets has the meaning given by section 10.
(a) Australia’s current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or
(b) if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.
Climate Change Secretary means the Secretary of the Department responsible for the administration of the National Greenhouse and Energy Reporting Act 2007.
designated large facility has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
Environment Minister means the Minister who administers the Environment Protection and Biodiversity Conservation Act 1999.
expanded designated large facility: a facility is an expanded designated large facility for a financial year if:
(a) the activity, or series of activities, that constitutes the facility is carried on to a greater extent in the financial year than in earlier financial years; or
(b) during the financial year, an activity, or series of activities, is included in the activity, or series of activities, that constitutes the facility for the first time.
facility has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
net safeguard emissions, for a financial year, has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
new designated large facility, for a financial year, means a designated large facility for the financial year that was not a designated large facility for any previous financial year.
Paris Agreement means the Paris Agreement, done at Paris on 12 December 2015, as amended and in force for Australia from time to time.
Note: The Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2022 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
safeguard emissions, for a financial year, has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
safeguard outcome has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
safeguard rules has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
scope 1 emission of greenhouse gas has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
6
Act binds the Crown
6 Act binds the Crown
This Act binds the Crown in right of the Commonwealth. However, it does not bind the Crown in right of a State, of the Australian Capital Territory or of the Northern Territory.
7
Extension to external Territories
7 Extension to external Territories
This Act extends to every external Territory.
8
Extension to exclusive economic zone and continental shelf
8 Extension to exclusive economic zone and continental shelf
This Act extends to a matter relating to the exercise of Australia’s sovereign rights in the exclusive economic zone or the continental shelf.
Part 2
Australia’s greenhouse gas emissions reduction targets
Part 2—Australia’s greenhouse gas emissions reduction targets
9
Simplified outline of this Part
9 Simplified outline of this Part
• This Part sets out Australia’s greenhouse gas emissions reduction targets.
10
Australia’s greenhouse gas emissions reduction targets
10 Australia’s greenhouse gas emissions reduction targets
(1) Australia’s greenhouse gas emissions reduction targets are as follows:
(a) reducing Australia’s net greenhouse gas emissions to 43% below 2005 levels by 2030:
(i) implemented as a point target; and
(ii) implemented as an emissions budget covering the period 2021‑2030;
(b) reducing Australia’s net greenhouse gas emissions to zero by 2050.
Note: The achievement of a target involves reducing Australia’s net greenhouse gas emissions to a level that is at or below the target. Accordingly, nothing in subsection (1) limits Australia’s ability to reduce its net greenhouse gas emissions beyond 43% below 2005 levels by 2030.
(2) Subsection (1) is to be interpreted in a manner consistent with:
(a) the Paris Agreement; and
(b) Australia’s nationally determined contribution.
Concurrent operation of State and Territory laws
(3) Subsection (1) is not intended to exclude or limit the operation of a law of a State or Territory that is capable of operating concurrently with this Act.
Executive power of the Commonwealth
(4) Subsection (1) does not prevent or limit the exercise of the executive power of the Commonwealth to:
(a) prepare and communicate a new nationally determined contribution in accordance with Article 4 of the Paris Agreement; or
(b) adjust Australia’s nationally determined contribution in accordance with paragraph 11 of Article 4 of the Paris Agreement.
(5) If the Commonwealth prepares and communicates a new nationally determined contribution in accordance with Article 4 of the Paris Agreement, the new nationally determined contribution must represent a progression beyond:
(a) Australia’s then current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or
(b) if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.
(6) If the Commonwealth adjusts Australia’s nationally determined contribution in accordance with paragraph 11 of Article 4 of the Paris Agreement, the adjusted nationally determined contribution must represent an enhancement of Australia’s level of ambition.
Part 3
Annual climate change statement
Part 3—Annual climate change statement
11
Simplified outline of this Part
11 Simplified outline of this Part
• The Minister must prepare an annual climate change statement.
• A copy of an annual climate change statement is to be tabled in each House of the Parliament.
12
Annual climate change statement
12 Annual climate change statement
(1) Within 6 months after the end of each financial year, the Minister must prepare a statement that relates to:
(a) the progress made during the year towards achieving Australia’s greenhouse gas emissions reduction targets; and
(b) international developments during the year that are relevant to addressing climate change; and
(c) climate change policy; and
(d) the effectiveness of the Commonwealth’s policies in contributing to the achievement of Australia’s greenhouse gas emissions reduction targets and reducing emissions in the sectors covered by those policies and in particular whether safeguard emissions and net safeguard emissions are declining consistently with the safeguard outcomes; and
(e) the impact of the Commonwealth’s climate change policies to achieve Australia’s greenhouse gas emissions reduction targets on rural and regional Australia, including the social, employment and economic benefits being delivered by those policies in rural and regional Australia; and
(f) risks to Australia from climate change impacts, such as those relating to Australia’s environment, biodiversity, health, infrastructure, agriculture, investment, economy or national security.
(2) A statement under subsection (1) is to be known as an annual climate change statement.
(3) The Minister must cause a copy of an annual climate change statement to be tabled in each House of the Parliament within 5 sitting days of that House after the completion of the preparation of the statement.
Part 4
Advisory functions of the Climate Change Authority etc.
Part 4—Advisory functions of the Climate Change Authority etc.
13
Simplified outline of this Part
13 Simplified outline of this Part
• The Climate Change Authority is to give the Minister advice that relates to the preparation of an annual climate change statement.
• The Climate Change Authority is to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.
• The Environment Minister is to give the Minister, the Climate Change Secretary and the Climate Change Authority certain emissions estimates.
14
Climate Change Authority to give the Minister advice that relates to the preparation of an annual climate change statement
14 Climate Change Authority to give the Minister advice that relates to the preparation of an annual climate change statement
(1) The Climate Change Authority must give the Minister advice that relates to the preparation of an annual climate change statement.
(1A) Advice given to the Minister under subsection (1) must include advice about:
(a) whether safeguard emissions and net safeguard emissions for the financial year to which the annual climate change statement relates are declining consistently with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d) of the National Greenhouse and Energy Reporting Act 2007, taking into account:
(i) the impact of any expanded designated large facilities, or new designated large facilities, for the financial year; and
(ii) the impact of any expected expanded designated large facilities, or expected new designated large facilities, for future financial years; and
(iii) any emissions estimates that are given to the Climate Change Authority under section 15A of this Act; and
(b) if safeguard emissions, or net safeguard emissions, for the financial year are not so declining—whether any amendments to the safeguard rules are needed in order to achieve each of those safeguard outcomes.
(2) If a period is:
(a) specified in an agreement between the Minister and the Climate Change Authority; and
(b) designated by the agreement as the advice period for a particular annual climate change statement;
advice under subsection (1) that relates to the preparation of the annual climate change statement must be given within the advice period designated by the agreement.
(3) In considering advice to be given to the Minister under subsection (1) in relation to the first annual climate change statement, the Climate Change Authority may make provision for public consultation.
(3A) In considering advice to be given to the Minister under subsection (1) in relation to:
(a) the second annual climate change statement; or
(b) a subsequent annual climate change statement;
the Climate Change Authority must make provision for public consultation.
(4) If the Climate Change Authority gives the Minister advice under subsection (1) that relates to the preparation of a particular annual climate change statement, the Minister must have regard to that advice in preparing that statement.
(5) Subsection (4) does not prevent the Minister from having regard to other advice.
(6) If the Climate Change Authority gives the Minister written advice under subsection (1), the Climate Change Authority must:
(a) publish a copy of that advice on its website no later than the day the annual climate change statement to which the advice relates is tabled in a House of the Parliament in accordance with subsection 12(3); and
(b) cause a copy of that advice to be tabled in each House of the Parliament:
(i) within 15 sitting days of that House after giving the advice to the Minister; and
(ii) no later than the day the annual climate change statement to which the advice relates is tabled in that House in accordance with subsection 12(3).
(7) If:
(a) the Climate Change Authority gives the Minister written advice under subsection (1) that relates to the preparation of a particular annual climate change statement; and
(b) the Minister decides not to accept one or more material aspects of that advice;
then:
(c) the Minister must prepare a written statement of reasons for the decision not to accept those aspects of that advice; and
(d) the Minister must cause a copy of the statement of reasons to be tabled in each House of the Parliament within 5 sitting days of that House after the completion of the preparation of the annual climate change statement.
15
Climate Change Authority to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution
15 Climate Change Authority to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution
(1) The Climate Change Authority must, if requested to do so by the Minister, advise the Minister on either or both of the following matters:
(a) the greenhouse gas emissions reduction targets that the Climate Change Authority considers should be included in a new nationally determined contribution to be communicated by Australia in accordance with Article 4 of the Paris Agreement;
(b) the greenhouse gas emissions reduction targets that the Climate Change Authority considers should be included in Australia’s nationally determined contribution as the result of an adjustment to be made in accordance with paragraph 11 of Article 4 of the Paris Agreement.
(1A) The advice given under subsection (1) must include advice on:
(a) the social, employment and economic benefits of any new or adjusted greenhouse gas emissions reduction targets and associated policies, including for rural and regional Australia; and
(b) the physical impacts of climate change on Australia, including on rural and regional Australia.
(2) The Minister must request advice under subsection (1) on the matter mentioned in paragraph (1)(a) at least once every 5 years.
(2A) The Commonwealth must only communicate a new nationally determined contribution in accordance with Article 4 of the Paris Agreement that first includes a greenhouse gas emissions reduction target for 2035, 2040 or 2045 if:
(a) the Climate Change Authority has given advice under subsection (1) on the target; or
(b) the Minister, after consultation with the Climate Change Authority, is satisfied that the new nationally determined contribution needs to be communicated urgently to further the matters set out in Article 2 of the Paris Agreement.
Note: This requirement does not apply to adjustments of nationally determined contributions. Such adjustments must represent an enhancement of Australia’s level of ambition under subsection 10(6) and advice on such adjustments may be requested under paragraph 15(1)(b).
(3) In considering advice to be given to the Minister under subsection (1), the Climate Change Authority must make provision for public consultation.
(3A) The advice given under subsection (1) must include an explanation of how the greenhouse gas emissions reductions targets have taken into account the matters set out in Article 2 of the Paris Agreement, including the global goals of:
(a) holding the increase in the global average temperature to well below 2°C above pre‑industrial levels; and
(b) pursuing efforts to limit the temperature increase to 1.5°C above pre‑industrial levels.
(4) In considering:
(a) the greenhouse gas emissions reduction targets that should be included in a new nationally determined contribution to be communicated by Australia in accordance with Article 4 of the Paris Agreement; or
(b) the greenhouse gas emissions reduction targets that should be included in Australia’s nationally determined contribution as the result of an adjustment to be made in accordance with paragraph 11 of Article 4 of the Paris Agreement;
the Minister must have regard to any relevant advice given by the Climate Change Authority under subsection (1).
(5) Subsection (4) does not prevent the Minister from having regard to other advice.
(6) If the Climate Change Authority gives the Minister written advice under subsection (1), the Climate Change Authority must publish a copy of that advice on its website.
(7) If the Climate Change Authority gives the Minister written advice under subsection (1):
(a) the Minister must, within 6 months after that advice was given, prepare a written statement setting out:
(i) the Minister’s response to that advice; and
(ii) if the Minister has decided not to accept that advice—the reasons for the decision not to accept that advice; and
(b) the Minister must cause a copy of the statement to be tabled in each House of the Parliament within 15 sitting days of that House after the preparation of the statement.
15A
Environment Minister to give Minister, Climate Change Secretary and Climate Change Authority certain emissions estimates
15A Environment Minister to give Minister, Climate Change Secretary and Climate Change Authority certain emissions estimates
If, in a financial year:
(a) the Environment Minister approves, under the Environment Protection and Biodiversity Conservation Act 1999, the taking of an action for the purposes of a controlling provision (within the meaning of that Act); and
(b) the Environment Minister is satisfied that the action is likely to result in:
(i) an increase, in the financial year or future financial years, of scope 1 emissions of greenhouse gases from the operation of a designated large facility for the financial year; or
(ii) a new designated large facility for the financial year or a future financial year; and
(c) the Environment Minister has been given an estimate of the scope 1 emissions of greenhouse gases from the taking of the action in one or more financial years for which an entity covered by subparagraph (b)(i) or (ii) is, or is likely to be, a designated large facility;
the Environment Minister must give the estimate to the Minister, the Climate Change Secretary and the Climate Change Authority as soon as practicable after approving the taking of the action.
Part 4A
Capacity Investment Scheme
Part 4A—Capacity Investment Scheme
15B
Simplified outline of this Part
15B Simplified outline of this Part
The Capacity Investment Scheme Program must be implemented to achieve at least 23 gigawatts of renewable generation capacity and at least 9 gigawatts of clean dispatchable capacity.
15C
Administration of the Capacity Investment Scheme Program
15C Administration of the Capacity Investment Scheme Program
(1) If, at the commencement of this subsection, the Capacity Investment Scheme Program is prescribed by legislative instrument under subsection 33(1) of the Industry Research and Development Act 1986, then:
(a) the Commonwealth must make, vary or administer arrangements in relation to the carrying out of activities by one or more persons under the Capacity Investment Scheme Program; and
(b) those arrangements must result in, by the end of 2030:
(i) at least 23 gigawatts of renewable generation capacity; and
(ii) at least 9 gigawatts of clean dispatchable capacity.
Note: The arrangements referred to in this subsection may include arrangements made, varied or administered before the commencement of this subsection.
(2) If advice of the Climate Change Authority under subsection 14(1) indicates a material risk to the achievement of subsection (1), the Minister’s Annual Climate Change Statement under section 12 must provide a response to that advice.
15D
Amendment of the Capacity Investment Scheme Program
15D Amendment of the Capacity Investment Scheme Program
(1) An instrument made under subsection 33(1) of the Industry Research and Development Act 1986 (the amending instrument), that varies or revokes another instrument made under that subsection that prescribes the Capacity Investment Scheme Program, does not come into effect until the amending instrument has been approved by a resolution of each House of the Parliament.
(2) To avoid doubt, subsection (1) does not apply to an instrument made under subsection 33(1) of the Industry Research and Development Act 1986 that varies or revokes another instrument made under that subsection if that other instrument does not prescribe the Capacity Investment Scheme Program.
Part 5
Periodic reviews of the operation of this Act
Part 5—Periodic reviews of the operation of this Act
16
Simplified outline of this Part
16 Simplified outline of this Part
• There are to be periodic reviews of the operation of this Act.
17
Periodic reviews of the operation of this Act
17 Periodic reviews of the operation of this Act
(1) The Minister must cause independent reviews to be conducted of the operation of this Act.
Public consultation
(2) A review under subsection (1) must make provision for public consultation.
Report
(3) The person or persons who conduct the review must give the Minister a written report of the review.
(4) The Minister must cause copies of a report under subsection (3) to be tabled in each House of the Parliament within 15 sitting days of that House after the review is completed.
First review
(5) The first review under subsection (1) must be completed within 5 years after the commencement of this section.
Subsequent reviews
(6) Each subsequent review under subsection (1) must be completed within 10 years after the completion of the previous review.
When review is completed
(7) For the purposes of subsections (4), (5) and (6), a review is completed when the report of the review is given to the Minister under subsection (3).
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1—Preliminary
1 Short title
1 Short title
This Act is the Climate Change Act 2022.
2 Commencement
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Requires independent periodic reviews of the operation of the Act with public consultation, with the first review due within five years and subsequent reviews every ten years (s17).
Extends the Act to the Commonwealth Crown and external Territories, and to matters relating to the exercise of sovereign rights in the exclusive economic zone and continental shelf; it does not bind the States or Territories (ss6-8).
The Act is procedural and informational in form: it sets targets and creates reporting, advisory and consultative duties. It does not create express criminal penalties, regulatory limits on private emitters or direct market instruments in the text provided. It relies on cross‑references to existing statutes (for definitions and the operational meaning of safeguard outcomes) and to the executive power for communicating NDCs under the Paris Agreement (ss5, 10(2), 10(4)-(6), 14(1A)).
Main concepts
The Act organises several recurring concepts and links them to other instruments:
Australia’s greenhouse gas emissions reduction targets (defined and specified in s10). The Act treats these as national targets to be implemented as a point target and an emissions budget for 2021-2030 (s10(1)(a)(i)-(ii)), and a net zero by 2050 point target (s10(1)(b)). The Act instructs interpretation to be consistent with the Paris Agreement and Australia’s NDC (s10(2)).
Annual climate change statement (s12). A mandated annual Ministerial statement covering progress, international developments, policy effectiveness particularly in relation to safeguard emissions and net safeguard emissions, sectoral impacts on rural and regional Australia, and climate risk (s12(1)(a)-(f)). Timing is precise: prepared within six months after the end of each financial year and tabled promptly (s12(1), (3)).
Advice from the Climate Change Authority (Part 4). The Authority must give advice that relates to preparation of the annual climate change statement (s14(1)) and, on request, must advise on greenhouse gas emissions reduction targets for new or adjusted NDCs (s15(1)). Written advice must be published and tabled within defined windows (ss14(6), 15(6)-(7)).
Safeguard emissions, net safeguard emissions and safeguard outcomes. The Act imports definitions and references from the National Greenhouse and Energy Reporting Act 2007 (NGER Act) for terms such as "designated large facility", "net safeguard emissions", "safeguard emissions", "safeguard outcome" and "safeguard rules" (s5). The Authority’s advice must explicitly address whether safeguard emissions and net safeguard emissions are declining consistently with the safeguard outcomes in the NGER Act, taking into account facility expansions and emissions estimates supplied under s15A (s14(1A)).
Interaction with international obligations. The Act links domestic targets and advice to the Paris Agreement and Australia’s nationally determined contribution (s5 definitions; s10(2), (4)-(6); s15(3A)). It imposes a procedural constraint on communicating new NDCs that would first include targets for 2035, 2040 or 2045 unless the Authority has given advice or the Minister, after consultation, considers urgent circumstances (s15(2A)).
Capacity Investment Scheme Program (Part 4A). A contingent implementation mechanism if the Scheme is prescribed by instrument under the Industry Research and Development Act 1986; quantified capacity goals are specified (s15B, s15C).
Transparency and parliamentary accountability. Multiple tabling, publication and reason-giving duties: the Minister must table annual statements and statements of reasons if rejecting material advice; the Climate Change Authority must publish written advice on its website and table it (ss12(3), 14(6)-(7), 15(6)-(7)).
Review and independent scrutiny. Periodic independent reviews with public consultation and parliamentary tabling (s17).
The Act repeatedly references other statutes for operational detail and definitions. That means much of the Act’s operational impact depends on the content of the NGER Act, the EPBC Act and any instrument under the Industry Research and Development Act 1986.
Who it affects
The Act allocates duties and information flows across the Commonwealth executive, the Climate Change Authority and the parliamentary system; it also creates indirect effects for companies and other regulated entities by altering the policy and information environment.
Directly affected public actors
The Minister. The central duty-bearer for preparing and tabling the annual climate change statement with specified content and timing (s12). The Minister also requests and must have regard to, but is not bound to accept, Climate Change Authority advice relating to annual statements and NDC targets (ss14(4), 15(4)); when rejecting material aspects of written advice the Minister must prepare and table a statement of reasons (s14(7)). When the Authority gives written advice on NDC targets, the Minister must prepare a response and table it within specific timeframes (s15(7)).
The Climate Change Authority. Must provide advice for the annual statement (s14(1)) and, on request, advise on greenhouse gas emissions reduction targets for new or adjusted NDCs (s15(1)). The Authority is required to provide for public consultation in preparing its advice (ss14(3A), 15(3)), to publish written advice (ss14(6), 15(6)), and to have its advice address specific matters such as safeguard emissions and the Paris Agreement context (ss14(1A), 15(1A), 15(3A)).
The Environment Minister. If an action is approved under the EPBC Act and is likely to increase scope 1 emissions or create a new designated large facility, and the Environment Minister has emissions estimates, the Environment Minister must give those estimates to the Minister, the Climate Change Secretary and the Climate Change Authority as soon as practicable (s15A).
The Climate Change Secretary. Defined as the Secretary of the department responsible for administration of the NGER Act; receives emissions estimates under s15A.
Commonwealth agencies responsible for implementing Capacity Investment Scheme obligations, where the Scheme is prescribed by instrument (s15C).
Indirectly affected non-government actors
Designated large facilities and other entities defined in the NGER Act. The Act references safeguard emissions/net safeguard emissions and facility expansions; the assessment of whether these are declining consistently with safeguard outcomes (s14(1A)) may trigger policy responses, including consideration of amendments to safeguard rules (s14(1A)(b)). Although the Act itself does not prescribe direct sanctions, it creates reporting and advisory linkages that may influence regulation under the NGER Act and related instruments.
Proponents of actions under the EPBC Act. Where an approved action is likely to increase scope 1 emissions or lead to a new designated large facility, the Environment Minister’s obligation to provide estimates (s15A) will produce emissions information that feeds into the Authority’s advice and Ministerial reporting.
Investors and energy sector participants. The Capacity Investment Scheme (s15C) sets quantified capacity objectives which, if the Scheme is prescribed and implemented, will create procurement and funding arrangements the Commonwealth must make or administer. Even in the absence of the Scheme instrument, the statutory targets and reporting create policy signals.
State and Territory governments. The Act does not bind States or Territories (s6), and s10(3) states the Part is not intended to exclude laws of a State or Territory capable of operating concurrently. That preserves existing or future state/territory instruments that overlap with this Act.
Who pays and who decides
The Commonwealth executive pays administrative and implementation costs associated with preparing statements, commissioning and responding to Authority advice, tabling documents in Parliament and running reviews (ss12, 14, 15, 17).
The Minister decides the content of the annual statement and whether to accept material aspects of Authority advice subject to statutory duties to have regard to advice and to publish reasons for non‑acceptance (ss14(4), 14(7), 15(7)).
The Climate Change Authority decides the content of its advice and must follow public consultation requirements (ss14(3A), 15(3)).
The Act is largely a framework for public information, advice and accountability rather than a direct regulatory regime imposing fines or operational limits in the text provided.
Key duties and rights
This section summarises specific procedural duties, publication obligations and definitional rights established by the Act, with cross-references to the controlling sections.
Ministerial duties
Prepare an annual climate change statement within six months after the end of each financial year covering specified topics: progress towards targets; international developments; climate change policy; policy effectiveness including whether safeguard emissions and net safeguard emissions are declining consistently with safeguard outcomes; impacts on rural and regional Australia; and climate risks (s12(1)(a)-(f)).
Cause the annual climate change statement to be tabled in each House of Parliament within five sitting days after preparation (s12(3)).
Have regard to Climate Change Authority advice when preparing the relevant annual statement (s14(4)).
When the Authority gives written advice relating to an annual statement, ensure the Authority publishes and tables that advice (s14(6)), and if the Minister disagrees with material aspects prepare and table a statement of reasons within five sitting days after preparation of the annual statement (s14(7)(c)-(d)).
When the Authority provides written advice on NDC targets, the Minister must, within six months of that advice, prepare a written response and cause it to be tabled within 15 sitting days after preparation (s15(7)).
Climate Change Authority duties and functions
Provide advice to the Minister relating to the preparation of annual climate change statements (s14(1)).
In that advice, include specific analysis on whether safeguard emissions and net safeguard emissions are declining consistently with safeguard outcomes in the NGER Act, taking into account expanded or new designated large facilities and emissions estimates given under s15A, and whether amendments to the safeguard rules are needed (s14(1A)(a)-(b)).
For the second and subsequent annual statements, make provision for public consultation when preparing advice (s14(3A)). For advice on NDC targets, make provision for public consultation (s15(3)).
For NDC advice, include analysis of social, employment and economic benefits and physical impacts of climate change, including on rural and regional Australia (s15(1A)).
Publish any written advice on its website and table it in Parliament (ss14(6), 15(6)).
Environment Minister duties
Where the Environment Minister approves an action under the EPBC Act that is likely to result in increased scope 1 emissions from a designated large facility or create a new designated large facility, and has been given an emissions estimate for that action, the Environment Minister must give that estimate to the Minister, the Climate Change Secretary and the Climate Change Authority as soon as practicable after approving the action (s15A).
Capacity Investment Scheme administration
If the Scheme is prescribed by instrument under s33(1) of the Industry Research and Development Act 1986 at the commencement of s15C(1), the Commonwealth must make, vary or administer arrangements that result in at least 23 GW of renewable generation and at least 9 GW of clean dispatchable capacity by the end of 2030 (s15C(1)(a)-(b), (1)(b)(i)-(ii)).
If the Authority’s advice indicates a material risk to achieving those capacity goals, the Minister’s annual climate change statement must provide a response (s15C(2)).
An instrument under s33(1) of the Industry Research and Development Act 1986 that varies or revokes a prescribing instrument for the Scheme does not come into effect until it has been approved by resolution of each House of Parliament (s15D(1)).
Review and reporting duties
The Minister must cause independent reviews of the operation of the Act to be conducted, with public consultation and tabling of the review report in Parliament. First review within five years; subsequent reviews within ten years of the previous report (s17(1)-(6)).
Rights and limits
The Act binds the Commonwealth Crown but does not bind the Crown in right of the States, nor the ACT or NT (s6).
The Act extends to external Territories and to matters related to the exercise of Australia’s sovereign rights in the exclusive economic zone and continental shelf (ss7-8).
The Act does not constrain the executive from preparing or adjusting Australia’s nationally determined contribution under the Paris Agreement; however, any new NDC must represent progression beyond the current NDC and any adjustment must represent an enhancement (s10(4)-(6)). Communication of certain longer-term NDCs is subject to procedural constraints requiring Authority advice unless urgency is established (s15(2A)).
Notably absent in the Act’s text provided are express criminal penalties, civil sanctions or delegated regulatory regimes; the statutory obligations are principally administrative, consultative and disclosure-oriented.
Penalties and enforcement
The Act as provided contains no express criminal sanctions, pecuniary penalties, licence conditions, compliance notices or enforcement mechanisms directed at private actors. The text does not create new offence provisions or specify enforcement agencies. The enforcement and compliance architecture is therefore limited to administrative and parliamentary accountability mechanisms. Key points:
Transparency and parliamentary checks are the primary means of enforcement and oversight. The Minister must table annual statements (s12(3)). The Climate Change Authority must publish and table written advice (s14(6), s15(6)). When the Minister declines material aspects of written Authority advice, the Minister must prepare and table a statement of reasons (s14(7)(c)-(d)). When the Authority gives written advice on NDC targets, the Minister must prepare a response within six months and table it within 15 sitting days (s15(7)(a)-(b)).
Administrative timing obligations are enforceable through parliamentary oversight and public scrutiny rather than through specified sanctions in the Act. The Act sets precise timeframes (s12(1), s12(3), s14(6), s14(7), s15(7), s17(5)-(6)) which create political and reputational costs for non-compliance; these may, however, be subject to practical exceptions and interpretation in real-world operation.
Where the Capacity Investment Scheme Program is prescribed by instrument under the Industry Research and Development Act 1986, s15D(1) creates a parliamentary control over amendment of that instrument: an amending instrument varying or revoking the prescribing instrument does not come into effect until approved by a resolution of each House of Parliament. That is a statutory constraint on the executive’s ability to change the Scheme instrument without parliamentary endorsement (s15D(1)). The provision is not framed as a penalty but as a condition on the effectiveness of an amending instrument.
The Act relies on cross-referenced instruments and other statutes for substantive regulation. For example, safeguard outcomes and safeguard rules are items of the NGER Act; enforcement powers over facilities and emissions likely sit in those cross-referenced instruments and Acts. The Act instructs the Authority to advise on whether safeguard emissions align with safeguard outcomes and whether amendments to safeguard rules are needed (s14(1A)). Any enforcement relating to facilities’ compliance with safeguard rules will therefore depend on the statutory and regulatory framework under the NGER Act and related instruments, not on this Act.
In short, the Act creates statutory duties of advice, reporting, consultation and tabling, and imposes administrative constraints (timelines and publication obligations). It does not itself impose criminal or civil penalties in the text supplied; enforcement is through transparency, parliamentary processes and the potential for follow-on action under other laws that regulate facilities and emissions.
How it interacts with other laws
The Act is branching rather than self-contained: it imports definitions from and creates procedural links to existing federal environmental and reporting statutes and to international treaty obligations. Principal interactions set out in the text:
National Greenhouse and Energy Reporting Act 2007 (NGER Act). The Act imports multiple terms directly from the NGER Act: "designated large facility", "facility", "net safeguard emissions", "safeguard emissions", "safeguard outcome", "safeguard rules", and "scope 1 emission" (s5). The Climate Change Authority’s statutory advice must address whether safeguard emissions and net safeguard emissions are declining consistently with safeguard outcomes in the NGER Act and may recommend amendments to safeguard rules (s14(1A)). This ties the Act’s monitoring and advisory functions to the operational content and enforcement regime of the NGER Act. Any policy response to the Authority’s advice that affects regulated entities will therefore be implemented through the NGER Act’s mechanisms or other legislative instruments, not through penalty provisions in this Act.
Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). The Act requires the Environment Minister to pass emissions estimates to the Minister, the Climate Change Secretary and the Climate Change Authority where an EPBC approval is given and the Minister is satisfied the action is likely to increase scope 1 emissions or create a new designated large facility (s15A). That creates a formal information flow from environmental approvals to greenhouse reporting and advisory processes.
Paris Agreement. The Act frames interpretation of the targets to be consistent with the Paris Agreement and Australia’s nationally determined contribution (s10(2)). It imposes procedural constraints on communicating new NDCs that first include targets for 2035, 2040 or 2045 unless the Climate Change Authority has given advice or the Minister, after consultation, considers urgency is required (s15(2A)). The Act also requires Authority advice to explain how target recommendations take into account Article 2 matters of the Paris Agreement (s15(3A)).
Industry Research and Development Act 1986. The Capacity Investment Scheme Program is to be implemented only if prescribed by instrument under subsection 33(1) of that Act. The Act requires arrangements to meet quantified capacity outcomes if the Scheme is prescribed at the commencement of s15C(1) (s15C(1)). It further requires parliamentary approval by resolution of each House before an amending instrument varying or revoking the prescribing instrument can take effect (s15D(1)). This creates a cross‑Act procedural constraint on modifications to the Scheme.
Commonwealth Crown and States/Territories. The Act binds the Crown in right of the Commonwealth but not the Crown in right of a State, the ACT or the NT (s6). Section 10(3) expressly states the Part is not intended to exclude or limit a law of a State or Territory capable of operating concurrently. This leaves room for overlap and concurrent operation with State or Territory laws regulating emissions, energy or land use; the Act itself does not pre-empt state regulation.
Parliamentary procedures and tabling rules. The Act imposes tabling obligations (ss12(3), 14(6)-(7), 15(7), 17(4)). These will operate within the standing orders and practice of each House; the Act prescribes sitting-day windows for tabling which interact with parliamentary timetables and could affect the practical timing of disclosure.
Overall, substantive regulatory effects on emitters will generally be effected through the NGER Act, the EPBC Act and any instrument implementing the Capacity Investment Scheme. This Act creates mandatory information flows, advice and accountability channels that intersect with those instruments. The Act’s design places the Climate Change Authority and Minister at the centre of an advice-reporting-parliamentary feedback loop that relies on underlying statutory regimes for operational enforcement and market‑facing measures.
Amendment history
The only amendment-history material contained in the text is the commencement table and an express note about it:
Section 2 sets out commencement rules. The Act provides a table indicating that "The whole of this Act" commences "The day after this Act receives the Royal Assent." Column 3 of that table records "14 September 2022" as Date/Details. Section 2(2) states that any information in column 3 is not part of the Act and may be edited in published versions, but the commencement statement in column 2 has effect according to its terms (s2(1)-(2)). The Act also notes the table relates only to provisions as originally enacted and will not be amended in the published version to reflect later amendments (s2 note).
There are no further amendment entries, schedules or later amending provisions reproduced in the text supplied. The Act itself includes internal mechanisms for review (s17) but does not set out subsequent amendments.
Implications for readers
The Act records only the original commencement arrangement. If practitioners need to determine whether later amending Acts have changed duties, definitions or operative dates, they must consult consolidated statute databases or parliamentary records; the Act’s note warns that the commencement table will not be updated within the Act text (s2(2) note).
The Act creates a statutory requirement that parliamentary approval is required for instruments that would amend or revoke a prescribing instrument for the Capacity Investment Scheme Program (s15D(1)). That creates a special amendment pathway for that instrument that is recorded in the Act.
No other amendment history, retrospective amendments, repeal provisions or transitional rules are contained in the supplied text.
Litigation history
The supplied Act text contains no references to judicial decisions, precedent, or litigation involving the Act. It names no cases and identifies no legal disputes. The Act’s provisions impose administrative duties and public reporting obligations rather than creating novel adjudicative schemes that naturally generate immediate litigation; any litigation that may later arise is outside the scope of the text provided.
What the text tells you about potential litigation pathways
The Act creates duties of public disclosure and advice (for example, tabling and publication obligations in ss12, 14, 15, 17) and procedural constraints on executive action (for example, s15D parliamentary approval gate). Non-compliance with these duties would typically attract political and parliamentary consequences rather than direct criminal or civil sanctions under this Act, since no sanctions are specified.
Disputes about the meaning or proper fulfilment of obligations (for example, whether the Minister properly "had regard to" Authority advice (s14(4)), whether the Authority’s consultation obligations were met (ss14(3A), 15(3)), or whether an action approved under the EPBC Act is one that "is likely to result in" increased scope 1 emissions for the purposes of s15A) could give rise to administrative law challenges in appropriate circumstances. The Act does not create statutory privative clauses; ordinary judicial review avenues under the Administrative Decisions (Judicial Review) Act 1977 and common law remain the general routes for contesting administrative action, but this is not stated within the Act itself.
Any enforcement action against facilities in relation to safeguard rules and outcomes would proceed under the NGER Act and associated regulations, since this Act imports definitions and directs advice to safeguard rules but does not itself prescribe enforcement mechanisms.
Because the Act does not record case law, practitioners must track subsequent decisions and challenges in consolidated legal databases and court records to assess any litigation history after enactment.
Gotchas
This Act’s practical impact depends heavily on interlocking instruments and administrative practice. The following are specific implementation and interpretative traps to watch for, grounded in the statutory text.
"Have regard to" is not the same as "must accept" (ss14(4), 15(4)). The Minister is required to have regard to the Climate Change Authority’s advice when preparing annual statements or developing NDC targets, but the Minister may adopt other advice. Where the Minister declines "one or more material aspects" of written advice, the Minister must prepare and table a written statement of reasons (s14(7)(c)-(d)). That creates an obligation to record and explain non-acceptance but does not legally bind the Minister to follow the Authority’s recommendations.
Tight tabling and publication timeframes. Written Authority advice must be published and tabled no later than the day the related annual climate change statement is tabled, and copies of written advice must be tabled within 15 sitting days after giving the advice (s14(6)). The Minister must cause an annual statement to be tabled within 5 sitting days after preparation (s12(3)). These short windows can create operational pressure for agencies and may interact awkwardly with parliamentary sitting calendars. Failure to meet these windows exposes the Minister and Authority to parliamentary scrutiny; the Act does not create statutory extensions or specify consequences.
Cross‑Act dependency for definitions and enforcement. Multiple definitions and the substantive meaning of "safeguard outcomes" and "safeguard rules" come from the NGER Act (s5). Any practical enforcement, compliance obligations for facilities, or substantive amendment to safeguard rules requires action under that Act. Advice under this Act may recommend amendments, but implementing them requires action elsewhere (s14(1A)(b)).
Information flows triggered by EPBC approvals depend on the Environment Minister’s satisfaction and on the existence of emissions estimates (s15A). The obligation to pass estimates to the Minister, Climate Change Secretary and Authority is contingent on the Environment Minister being satisfied that an action is likely to increase scope 1 emissions or create a new designated large facility, and there being an emissions estimate to pass. The phrase “as soon as practicable” sets a timing standard but leaves room for administrative discretion and dispute.
Capacity Investment Scheme is contingent and protected. The Act only requires the Commonwealth to administer the Scheme if it is prescribed by instrument under the Industry Research and Development Act 1986 at the commencement of s15C(1) (s15C(1)). If the Scheme is so prescribed, obligations to achieve quantified capacity outcomes by 2030 apply; amendment of the prescribing instrument is subject to parliamentary approval (s15D(1)). Determining whether the Scheme instrument existed at commencement and whether particular arrangements are "arrangements" under s15C(1)(a) may be a technical question relevant to implementation and litigation.
Non-binding of States and Territories. The Act binds the Commonwealth Crown but does not bind State or Territory Crowns (s6), and expressly does not intend to exclude state or territory laws capable of operating concurrently (s10(3)). That preserves the possibility of divergent or overlapping state regimes; coordination risk arises because the Act does not centralise authority over sub-national measures.
No express penalties in this Act. Because the Act contains no penalties, private entities looking for direct statutory obligations or sanctions in this Act will be disappointed; consequences for non-compliance with statements or advice obligations are political, reputational and potentially regulatory via other Acts (notably the NGER Act and EPBC Act) rather than punitive under this text.
Procedural constraint on communicating certain NDCs. The Commonwealth may only communicate a new NDC that first includes a greenhouse gas target for 2035, 2040 or 2045 if the Climate Change Authority has given advice on the target, or the Minister, after consultation with the Authority, is satisfied that urgent communication is required (s15(2A)). This creates a procedural gate. The circumstances that qualify as "urgent to further the matters set out in Article 2 of the Paris Agreement" may be contested.
Publication duties create discoverability and timing issues. The Authority must publish written advice on its website (ss14(6)(a), 15(6)). Publication timing is linked to tabling; consultants and stakeholders should track these publication points to ensure effective participation in policy processes.
Reviews are infrequent but formal. The first independent review is required within five years and then every ten years thereafter (s17(5)-(6)). These reviews must allow public consultation (s17(2)) and be tabled (s17(4)). The long intervals between mandated reviews may mean slower statutory course corrections.
These "gotchas" are interpretive and operational rather than doctrinal: they focus on how the Act sets duties, timeframes and inter-agency flows that can create bottlenecks, discretion points and compliance complexities.
How to comply
This section addresses compliance steps and practical monitoring points for the different actors the Act affects. Advice is limited to duties and mechanics in the statutory text.
For the Minister
Annual climate change statement. Prepare the annual climate change statement within six months after the end of each financial year and ensure it covers each required topic (s12(1)(a)-(f)). Prepare for prompt tabling: the statement must be tabled in each House within five sitting days after completion (s12(3)). Practically, allow lead time to coordinate inputs from the Climate Change Authority, Climate Change Secretary, relevant portfolio agencies and the Environment Minister (where EPBC approvals are relevant).
Respect “have regard to” obligations. Obtain Climate Change Authority advice for the annual statement and record how that advice was considered (s14(4)). If not accepting material aspects of written Authority advice, prepare a written statement of reasons and ensure tabling within five sitting days after completing the annual climate change statement (s14(7)(c)-(d)).
Respond to advice on NDC targets. If the Authority provides written advice under s15(1), prepare a written response within six months and table it within 15 sitting days after preparation (s15(7)). Ensure the response addresses the social, employment and economic considerations flagged in the Authority’s advice (s15(1A)).
For the Climate Change Authority
Public consultation. For the second and subsequent annual statements and for any NDC target advice, make provision for public consultation (ss14(3A), 15(3)). Document consultation processes and record inputs to satisfy transparency expectations and prepare for publication.
Content requirements. Ensure written advice addresses safeguard emissions and net safeguard emissions relative to the safeguard outcomes in the NGER Act, takes into account expanded and new designated large facilities and emissions estimates under s15A, and explains alignment with Article 2 of the Paris Agreement when advising on NDC targets (ss14(1A), 15(1A), 15(3A)).
Publication and tabling. Publish any written advice on the Authority’s website no later than the day the related annual statement is tabled, and cause copies to be tabled in each House within the statutory windows (s14(6)). Prepare administrative processes to manage publication timing that aligns with parliamentary sitting calendars.
For the Environment Minister and proponents of EPBC applications
Emissions estimates. Where an action approved under the EPBC Act is likely to increase scope 1 emissions or produce a new designated large facility, and if an emissions estimate exists, ensure the estimate is transmitted as soon as practicable to the Minister, Climate Change Secretary and Climate Change Authority (s15A). Ensure emissions estimates are prepared and documented to a standard that will be usable by the Authority and the Minister for advice and reporting.
Timing and satisfaction threshold. Recognise that s15A’s obligation is contingent on the Environment Minister being satisfied of the likely emissions impact; maintain records supporting the Minister’s satisfaction and the admissibility of the estimate.
For agencies implementing the Capacity Investment Scheme (if prescribed)
Check instrument status. The Scheme is only to be implemented if prescribed by instrument under s33(1) of the Industry Research and Development Act 1986 (s15C(1)). Confirm whether such an instrument exists at commencement or has since been made.
Achieve quantified outcomes. If the Scheme is prescribed, implement or administer arrangements designed to result, by the end of 2030, in at least 23 GW of renewable generation capacity and at least 9 GW of clean dispatchable capacity (s15C(1)). Document milestones, procurement practices and funding mechanisms in line with the Scheme’s objectives.
Parliamentary approval for amendment. Be aware that any amending instrument varying or revoking the prescribing instrument for the Scheme does not take effect until approved by resolution of each House (s15D(1)). Plan for parliamentary timelines and potential delays in amending the Scheme.
For Parliamentarians and oversight bodies
Use tabling deadlines to schedule scrutiny. The Act sets precise tabling timelines (ss12(3), 14(6)-(7), 15(7), 17(4)). Schedule committee inquiries and questions in relation to those disclosures to capitalise on statutory windows and to hold Ministers and the Authority to account.
Track the first and subsequent reviews. The first independent review must be completed within five years of the section’s commencement; subsequent reviews every ten years (s17(5)-(6)). Reviews must provide for public consultation and be tabled.
For regulated industry (facilities and investors)
Monitor published statements and advice. The Authority’s advice, the Minister’s annual statement and any Ministerial response are published and tabled on a defined timetable (ss12, 14, 15). These documents will contain information and policy direction that could inform business planning, investment and compliance under the NGER Act and related instruments.
Engagement in consultations. The Authority is required to provide for public consultation on advice (ss14(3A), 15(3)). Industry participants should engage early in those consultation processes to influence the Authority’s recommendations.
Prepare for downstream regulation under the NGER Act. Because the Act channels concern about safeguard emissions into advice about amendments to safeguard rules (s14(1A)(b)), businesses should be prepared for potential future amendments to safeguard rules implemented under the NGER Act. Track NGER Act rulemaking and consultations.
Administrative and recordkeeping practices to adopt
Establish timelines and responsibility matrices to meet short tabling windows and publication duties.
Maintain auditable records of how advice from the Climate Change Authority was considered in preparing statements (s14(4)) and of the factual basis for any decision not to accept material aspects of advice (s14(7)(c)-(d)).
Ensure emissions estimates tied to EPBC actions are prepared to a consistent methodology so they can be transmitted under s15A and used effectively by the Authority and the Minister.
Where the Capacity Investment Scheme is applicable, document how arrangements are designed to deliver the statutory capacity targets and how risk of non-delivery will be assessed and reported in the annual climate change statement (s15C(2)).
Compliance under this Act therefore demands administrative discipline, timely inter-agency coordination, transparent recordkeeping, active engagement with Authority consultations and attention to related rulemaking under the NGER Act and EPBC Act.
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Objects
3 Objects
The objects of this Act are:
(aa) to advance an effective and progressive response to the urgent threat of climate change drawing on the best available scientific knowledge; and
(a) to set out Australia’s greenhouse gas emissions reduction targets which contribute to the global goals of:
(i) holding the increase in the global average temperature to well below 2°C above pre‑industrial levels; and
(ii) pursuing efforts to limit the temperature increase to 1.5°C above pre‑industrial levels; and
(b) to promote accountability and ambition by requiring the Minister to:
(i) prepare annual climate change statements; and
(ii) cause copies of those statements to be tabled in each House of the Parliament; and
(c) to ensure that independent advice from the Climate Change Authority informs:
(i) the preparation of annual climate change statements; and
(ii) the greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.
4 Simplified outline of this Act
4 Simplified outline of this Act
• This Act sets out Australia’s greenhouse gas emissions reduction targets.
• The Minister must prepare an annual climate change statement.
• The Climate Change Authority is to give the Minister advice that relates to the preparation of an annual climate change statement.
• The Climate Change Authority is to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.
• There are to be periodic reviews of the operation of this Act.
5 Definitions
5 Definitions
In this Act:
annual climate change statement means a statement under subsection 12(1).
Australia’s greenhouse gas emissions reduction targets has the meaning given by section 10.
(a) Australia’s current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or
(b) if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.
Climate Change Secretary means the Secretary of the Department responsible for the administration of the National Greenhouse and Energy Reporting Act 2007.
designated large facility has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
Environment Minister means the Minister who administers the Environment Protection and Biodiversity Conservation Act 1999.
expanded designated large facility: a facility is an expanded designated large facility for a financial year if:
(a) the activity, or series of activities, that constitutes the facility is carried on to a greater extent in the financial year than in earlier financial years; or
(b) during the financial year, an activity, or series of activities, is included in the activity, or series of activities, that constitutes the facility for the first time.
facility has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
net safeguard emissions, for a financial year, has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
new designated large facility, for a financial year, means a designated large facility for the financial year that was not a designated large facility for any previous financial year.
Paris Agreement means the Paris Agreement, done at Paris on 12 December 2015, as amended and in force for Australia from time to time.
Note: The Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2022 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
safeguard emissions, for a financial year, has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
safeguard outcome has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
safeguard rules has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
scope 1 emission of greenhouse gas has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
6 Act binds the Crown
6 Act binds the Crown
This Act binds the Crown in right of the Commonwealth. However, it does not bind the Crown in right of a State, of the Australian Capital Territory or of the Northern Territory.
7 Extension to external Territories
7 Extension to external Territories
This Act extends to every external Territory.
8 Extension to exclusive economic zone and continental shelf
8 Extension to exclusive economic zone and continental shelf
This Act extends to a matter relating to the exercise of Australia’s sovereign rights in the exclusive economic zone or the continental shelf.
Part 2 Australia’s greenhouse gas emissions reduction targets
Part 2—Australia’s greenhouse gas emissions reduction targets
9 Simplified outline of this Part
9 Simplified outline of this Part
• This Part sets out Australia’s greenhouse gas emissions reduction targets.
10 Australia’s greenhouse gas emissions reduction targets
10 Australia’s greenhouse gas emissions reduction targets
(1) Australia’s greenhouse gas emissions reduction targets are as follows:
(a) reducing Australia’s net greenhouse gas emissions to 43% below 2005 levels by 2030:
(i) implemented as a point target; and
(ii) implemented as an emissions budget covering the period 2021‑2030;
(b) reducing Australia’s net greenhouse gas emissions to zero by 2050.
Note: The achievement of a target involves reducing Australia’s net greenhouse gas emissions to a level that is at or below the target. Accordingly, nothing in subsection (1) limits Australia’s ability to reduce its net greenhouse gas emissions beyond 43% below 2005 levels by 2030.
(2) Subsection (1) is to be interpreted in a manner consistent with:
(a) the Paris Agreement; and
(b) Australia’s nationally determined contribution.
Concurrent operation of State and Territory laws
(3) Subsection (1) is not intended to exclude or limit the operation of a law of a State or Territory that is capable of operating concurrently with this Act.
Executive power of the Commonwealth
(4) Subsection (1) does not prevent or limit the exercise of the executive power of the Commonwealth to:
(a) prepare and communicate a new nationally determined contribution in accordance with Article 4 of the Paris Agreement; or
(b) adjust Australia’s nationally determined contribution in accordance with paragraph 11 of Article 4 of the Paris Agreement.
(5) If the Commonwealth prepares and communicates a new nationally determined contribution in accordance with Article 4 of the Paris Agreement, the new nationally determined contribution must represent a progression beyond:
(a) Australia’s then current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or
(b) if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.
(6) If the Commonwealth adjusts Australia’s nationally determined contribution in accordance with paragraph 11 of Article 4 of the Paris Agreement, the adjusted nationally determined contribution must represent an enhancement of Australia’s level of ambition.
Part 3 Annual climate change statement
Part 3—Annual climate change statement
11 Simplified outline of this Part
11 Simplified outline of this Part
• The Minister must prepare an annual climate change statement.
• A copy of an annual climate change statement is to be tabled in each House of the Parliament.
12 Annual climate change statement
12 Annual climate change statement
(1) Within 6 months after the end of each financial year, the Minister must prepare a statement that relates to:
(a) the progress made during the year towards achieving Australia’s greenhouse gas emissions reduction targets; and
(b) international developments during the year that are relevant to addressing climate change; and
(c) climate change policy; and
(d) the effectiveness of the Commonwealth’s policies in contributing to the achievement of Australia’s greenhouse gas emissions reduction targets and reducing emissions in the sectors covered by those policies and in particular whether safeguard emissions and net safeguard emissions are declining consistently with the safeguard outcomes; and
(e) the impact of the Commonwealth’s climate change policies to achieve Australia’s greenhouse gas emissions reduction targets on rural and regional Australia, including the social, employment and economic benefits being delivered by those policies in rural and regional Australia; and
(f) risks to Australia from climate change impacts, such as those relating to Australia’s environment, biodiversity, health, infrastructure, agriculture, investment, economy or national security.
(2) A statement under subsection (1) is to be known as an annual climate change statement.
(3) The Minister must cause a copy of an annual climate change statement to be tabled in each House of the Parliament within 5 sitting days of that House after the completion of the preparation of the statement.
Part 4 Advisory functions of the Climate Change Authority etc.
Part 4—Advisory functions of the Climate Change Authority etc.
13 Simplified outline of this Part
13 Simplified outline of this Part
• The Climate Change Authority is to give the Minister advice that relates to the preparation of an annual climate change statement.
• The Climate Change Authority is to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.
• The Environment Minister is to give the Minister, the Climate Change Secretary and the Climate Change Authority certain emissions estimates.
14 Climate Change Authority to give the Minister advice that relates to the preparation of an annual climate change statement
14 Climate Change Authority to give the Minister advice that relates to the preparation of an annual climate change statement
(1) The Climate Change Authority must give the Minister advice that relates to the preparation of an annual climate change statement.
(1A) Advice given to the Minister under subsection (1) must include advice about:
(a) whether safeguard emissions and net safeguard emissions for the financial year to which the annual climate change statement relates are declining consistently with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d) of the National Greenhouse and Energy Reporting Act 2007, taking into account:
(i) the impact of any expanded designated large facilities, or new designated large facilities, for the financial year; and
(ii) the impact of any expected expanded designated large facilities, or expected new designated large facilities, for future financial years; and
(iii) any emissions estimates that are given to the Climate Change Authority under section 15A of this Act; and
(b) if safeguard emissions, or net safeguard emissions, for the financial year are not so declining—whether any amendments to the safeguard rules are needed in order to achieve each of those safeguard outcomes.
(2) If a period is:
(a) specified in an agreement between the Minister and the Climate Change Authority; and
(b) designated by the agreement as the advice period for a particular annual climate change statement;
advice under subsection (1) that relates to the preparation of the annual climate change statement must be given within the advice period designated by the agreement.
(3) In considering advice to be given to the Minister under subsection (1) in relation to the first annual climate change statement, the Climate Change Authority may make provision for public consultation.
(3A) In considering advice to be given to the Minister under subsection (1) in relation to:
(a) the second annual climate change statement; or
(b) a subsequent annual climate change statement;
the Climate Change Authority must make provision for public consultation.
(4) If the Climate Change Authority gives the Minister advice under subsection (1) that relates to the preparation of a particular annual climate change statement, the Minister must have regard to that advice in preparing that statement.
(5) Subsection (4) does not prevent th
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