The Institute of Public Affairs (IPA) has welcomed the Australian Coalition's commitment to adopt its net zero termination policy. Shadow Minister for Energy and Emissions Reduction Dan Tehan announced that a future Coalition government would repeal the Climate Change Act (2022), remove the safeguard mechanism, repeal the New Vehicle Efficiency Standard Act 2024, and eliminate legislative bans on nuclear energy. The IPA has long argued that these policies impose economic costs and harm sovereign capability, citing its research that the safeguard mechanism could cost large facilities between $7.1 billion and $11.7 billion by 2029-30. This announcement marks a significant shift in Australia's climate policy direction. If implemented, the removal of the safeguard mechanism would reduce the demand for carbon credits in the domestic market, affecting projects that rely on that revenue. The plan to lift nuclear bans signals a focus on expanding nuclear power, though timelines and regulatory hurdles remain unclear. For stakeholders in carbon markets, grid planning, and renewable finance, these proposals could reshape the operating environment, and the lack of a stated replacement for emissions reduction policies raises questions about how Australia will meet its international commitments.
