u.s climate policy reversal meets australia’s ambitious 2035 cut a global green transition pivot

The global energy landscape is undergoing a dramatic shift. While the United States wrestles with the possibility of reversing key clean-energy policies, Australia is doubling down on its ambition—setting a new target of 62–70 % reduction in greenhouse gas emissions by 2035 from 2005 levels. (DCCEEW) This confluence of diverging policy trends in major economies makes the current decade a pivot point in the global green transition. The Paris Agreement and other international frameworks, signed nearly a decade ago, provide important historical context for today’s climate commitments.

In this blog post, we’ll explore:

• The Introduction to Global Climate Efforts,

• Australia’s Renewable Energy Sector and the 2035 target,

• The Economic Implications of Climate Policies, and

• The imperative of Global Cooperation on Climate Policies as well as the future of energy production.

Introduction to Global Climate Efforts

The world is increasingly recognising that the era of unchecked fossil-fuel expansion cannot continue if climate change is to be addressed effectively. The unchecked expansion of fossil fuels has led to rising greenhouse gases, which drive climate change. Nations are setting bold emissions-reduction targets, aligning with the Paris Agreement and other frameworks, and repositioning themselves for a clean-energy future. These targets are specifically designed to reduce emissions and limit the accumulation of greenhouse gases.

Key themes

• Net zero emissions: Many countries target achieving net zero emissions by mid-century (e.g., Australia by 2050), aligning these goals with their national interest. (Climate Action Tracker)

• Emissions reduction targets: Intermediate benchmarks (e.g., for 2030, 2035) are being adopted as crucial steps. For example, Australia’s new 2035 reduction target range is 62–70% below 2005 levels, which is considered both ambitious and practical. The government argues this is the right target, backed by science and national interest. (DCCEEW)

• Fossil fuels under pressure: Coal and gas are increasingly being challenged by renewable energy, electrification and energy-efficiency measures.

• Clean energy surge: Technologies like solar power, wind farms, battery storage and clean hydrogen are becoming mainstream, forming part of a sustainable pathway forward for the energy sector.

• Climate policy reversals: On the flip side, in countries like the U.S., the potential rollback of policies such as the Inflation Reduction Act (IRA) threatens to undermine this momentum. (Energy Innovation)

The 2035 target is a responsible target backed by proven technology and a practical plan for decarbonization. The new 2035 target adds to previous commitments and sets a clear direction for the next decade, supporting a sustainable pathway for Australia’s energy and climate policy.

Why this matters now

• Global warming is accelerating: fewer degrees of avoided warming translate into vast benefits for human health, ecosystems and economies.

• The next decade is critical: the infrastructure we build now (energy-systems, grids, manufacturing) will define carbon-emission pathways for decades. Countries must uphold their own commitment to emissions reductions.

• Clean-energy industries are becoming massive economic drivers; countries that act early can capture strategic advantage. However, some countries may only narrowly achieve their targets, leading to criticism that these are only reduction targets and may be seen as appallingly low or even an utter failure by environmental groups. Business groups have warned cuts above certain levels could risk billions in exports and send companies offshore, as industry faces significant challenges. The Australian Chamber has weighed in on the economic implications of the targets. Tax credits have played a key role in incentivizing clean energy investment. Australia has taken its targets to the United Nations General Assembly. The government maintains Australia is on track to meet its targets, and the new target was Thursday set.

“A target over 70 % is not achievable … we have gone for the maximum level of ambition that is achievable.” – Australia’s Minister for Climate Change and Energy. (Norton Rose Fulbright)

Thus, as Australia sets its sights on 2035 and the U.S. debates retrenchment, we are at a global green transition pivot—where the course chosen in the next few years will resonate across decades.

Australia’s Renewable Energy Sector & the 2035 Emission-Cut Target

Australia has long been an energy-rich country—replete with coal, natural-gas, minerals and fossil-fuel export industries. Australia is one of the world’s largest exporters of coal and liquefied natural gas. Liquefied natural gas exports and coal and gas corporations play a significant role in the country’s economy and climate policy debates. There is ongoing criticism that the government’s targets do not adequately address the influence of gas corporations. Addressing Australia’s coal exports remains a contentious issue in setting climate policy. But now it is also aiming to become a clean-energy powerhouse, with official Australia targets for emissions reductions.

The 2035 target

• The government, led by Prime Minister Anthony Albanese from the center-left Labor Party, has legislated (through advice from the Climate Change Authority) a target of reducing emissions by 62–70 % below 2005 levels by 2035. (Climate Change Authority)

• Albanese told reporters that this target represents a significant milestone in Australia’s climate policy and demonstrates the government’s commitment to meaningful action.

• This target is positioned as the next major step on the pathway to net zero emissions by 2050. (AOFM)

• It builds on the earlier 2030 target of about 43 % reduction below 2005 levels. (DCCEEW) However, there is ongoing debate about the government’s actual target, with some critics questioning whether the official commitment truly reflects the ambition needed to address climate change.

Renewable energy growth

Australia’s solar power, wind farms and battery-storage systems are becoming ever more central:

• The government highlights that the country has “abundant natural resources including sun, wind, and the minerals needed for a clean energy future”. (DCCEEW)

• The Net Zero Plan identifies key priorities:

1. Clean electricity across the economy.

2. Lowering emissions via electrification and efficiency.

3. Expanding clean-fuel use.

4. Accelerating new technologies.

5. Scaling net carbon removals. (DCCEEW)

The environmentally focused Australian Greens, with a senator leading the call for deeper emissions cuts, have criticized the government’s targets as insufficient.

Challenges ahead

• Although promising, this transition is not without hurdles. One Australian analysis notes that achieving the 62–70 % cut by 2035 would require new forests “the size of half of Victoria” in the next ten years to offset residual emissions. (ABC)

• Some environmental groups argue that the 62–70 % range is too weak, and that Australia can and should aim for deeper cuts (e.g., 75 %) by 2035. (Climate Council)

• Opposition leader Sussan Ley, from the conservative opposition Liberal Party, has also criticized the government’s emissions reduction target. Ley told reporters that the target is appallingly low and an utter failure, questioning the credibility of the government’s climate commitments.

• Deployment of renewables and grid upgrades need to accelerate significantly if the target is to be credible. (ABC)

Renewable energy in action

Australia’s bold emissions-reduction target places renewables and clean energy squarely at the heart of the national strategy—not just for environmental reasons, but for economic growth, export opportunities and regional development. According to a report from the Australian Broadcasting Corp, there is ongoing debate over Australia’s climate targets, with critics highlighting concerns about continued coal and gas exports and the effectiveness of current environmental policies.

Economic Implications of Climate Policies

Setting climate-policies is about more than the environment—it is about jobs, competitiveness, energy security and global positioning.

In Australia

• The government argues the 2035 target is “in our national interests … to advance our economy and jobs”. (ABC)

• Business groups warn that if emissions-reductions targets go above 70 %, there may be risks of companies relocating offshore due to high costs and energy-security concerns. For example, the Business Council of Australia warned that deeper cuts could cost billions in exports and impact energy-intensive industries. (The Guardian)

• On the flip side, clean-energy investment creates new job opportunities, especially in regions transitioning away from fossil-fuel industry. The shift from coal/gas to solar/wind/battery can generate growth.

• The conservative opposition, the Liberal Party of Australia, emphasises energy affordability and energy security as risks if the transition is too fast or poorly managed. (The Guardian) The outcomes of the last two federal elections have significantly influenced Australia’s climate policy direction, with shifts in political leadership affecting national climate targets and international commitments. Federal elections continue to shape the debate over emissions targets and economic priorities.

In the U.S. – risk of reversal

The Inflation Reduction Act (IRA) has been a major driver of clean-energy investment, job creation and manufacturing build-out in the United States. Tax credits have been a key component of the IRA, incentivizing investments in clean energy technologies and accelerating sector growth. (Energy Innovation)

A repeal or weakening of the IRA would carry significant economic costs. According to one modelling scenario:

• GDP decrease of US$250 billion by 2035. (Energy Innovation)

• 1.3 million fewer jobs. (Energy Innovation)

• Increased energy and fuel bills per household (e.g., US$240 per household by 2035). (Energy Innovation)

The risk isn’t just domestic: a U.S. rollback would send ripples globally—less demand for clean-tech, slower deployment, and weaker zones of demand for solar, wind, batteries and related supply chains.

Analysts note that a partial repeal is more likely than a full repeal, but even that has meaningful implications for investor-confidence. (Global English)

Table: Policy vs Economic Impacts

Country	Key Climate Policy	Economic Implications
Australia	62–70 % emissions reduction by 2035	Industry transition, export risk, jobs in renewables
USA	Inflation Reduction Act (potential reversal)	GDP, jobs, households exposed to energy-cost risk

Why this matters globally

Energy and climate policies are no longer purely national concerns. Supply-chains, investment flows, technology diffusion and global emissions trajectories are intertwined. If one major economy retreats (U.S.), others must accelerate (Australia, EU, China) to keep the global transition on track.

Global Cooperation on Climate Policies & The Future of Energy Production

The world is moving toward a future where renewable energy, clean power, and strategic decarbonisation will define competitive advantage—and cooperation will be critical.

Global cooperation

• Countries must share best practices: grid integration, managing variable renewables (wind + solar), deploying storage.

• International frameworks like the Paris Agreement set the architecture; national policies like Australia’s 2035 target or the U.S.’s IRA are how it gets implemented.

• As the U.S. policy landscape becomes uncertain, the global clean-energy transition depends on other countries stepping up. Australia’s surge helps fill that void.

• Cross-border investment, trade in clean-technologies and supply-chains for solar modules, wind-turbines, batteries will be central.

• Climate finance, support for developing countries, and joint technology innovation all benefit from stable, aligned policy signals.

The future of energy production

• Wind farms & solar power will dominate new generation capacity in many countries. Costs continue to decline, making them competitive with fossil fuels.

• Fossil fuels (coal, gas) still play a role during the transition, but need to be phased out or used with CCS (carbon-capture) and other mitigation.

• Clean power and storage: Battery systems, hydrogen, advanced grid management will be vital. Australia’s Net Zero Plan emphasises this. (DCCEEW)

• Energy security and affordability must be balanced with decarbonisation. For example, Australia must ensure that its electricity system can handle high-share renewables and maintain reliability. (ABC)

Why the next decade is critical

• Decisions made now (which technologies to scale, which assets to lock-in) will determine whether we lock into high-carbon or low-carbon futures.

• Moral and generational responsibility: these transitions affect future generations; as Australia notes, “it matters for the country that we pass on to our children”. (ABC)

• Global alignment matters: if big emitters diverge (some accelerating, some reversing), the world may miss the 1.5 °C or 2 °C warming thresholds.

Conclusion

We find ourselves at a global green transition pivot. The contrast is stark: while the U.S. entertains a reversal of its clean-energy framework via the Inflation Reduction Act, Australia is locking in deeper targets for 2035 and aiming for net zero by 2050. The implications are vast—economically, technologically, ethically and geopolitically.

Australia’s 62–70 % emissions-reduction target for 2035 places clean energy, renewable power and grid transformation at the heart of national strategy. But it also raises questions about feasibility, the pace of fossil-fuel phase-out, and how to manage transition risks.

Globally, clean-energy momentum needs more countries to push forward—because climate change does not respect borders. Investment signals, technology diffusion, trade, and policy consistency will shape the world’s clean-energy trajectory.