INSIGHT

A critical time: what's on the horizon for environmental reform and climate policy?

By Bill McCredie, Rebecca Pleming, Disha Kamal, Matt Dutaillis
Climate Change & Sustainability Environment & Planning Environmental, Social & Governance Government Renewable Energy

Key policies from the election campaign 6 min read

In the wake of the election, this is a critical time for federal environment and climate change laws, which were key areas of reform during Labor's last term but faced significant political opposition that hindered the delivery of various reform agendas.

Although it is yet to be seen how the Government will actually pursue reform in these areas, we recommend that businesses remain abreast of environmental law reform proposals and consider engaging in consultation processes with the Government where appropriate.

In this Insight, we summarise key aspects of the Government's campaign policies on the environment and climate, and what changes we expect to see during this next term.

Key takeaways 

  • Climate targets: the Government will likely maintain current climate-change targets and continue transitioning to renewable energy, targeting the achievement of net zero emissions by 2050.
  • Environmental reforms: while environmental reforms more broadly are still on the agenda, it is as yet unclear whether the previously proposed sweeping amendments to the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) will proceed given past delays and opposition. In particular, details surrounding the suggested new model for a federal nature watchdog are not yet known.
  • Legislative challenges: the final composition of the Senate, in which Labor appears to be gaining seats at the expense of the Coalition, may aid the passage of new environmental legislation, as compared with the difficulties faced by Labor in its previous term.

A recap: environmental and climate reforms in Labor's previous term

When elected in May 2022, the Government committed to deliver significant changes to federal environment and climate laws, including a commitment to achieving net zero emissions by 2050; transitioning to renewable energy and storage as part of Australia's decarbonisation strategy; and the cornerstone being sweeping reforms proposed to the EPBC Act after a quarter century of operation.

Climate change

The Government previously committed to achieving net zero emissions by 2050, and an interim target of a 43% reduction on 2005 levels by 2030; with emissions reduction targets legislated under the Climate Change Act 2022 (Cth).

The Government also pledged $27.4 million for the development of a National Climate Risk Assessment and National Adaptation Plan, although these have not been finalised, together with $200 million annually for disaster preparedness and resilience initiatives.

Renewable energy

In its previous term, the Government proposed a number of policies and initiatives to support the development of a renewable energy generation and storage system, set out through the publication of its Powering Australia Plan.1

This included the development of the Capacity Investment Scheme, setting out targets for the delivery of renewable capacity by 2030; the Rewiring the Nation Fund to support the development of transmission infrastructure; and progressing the offshore wind industry by declaring six priority areas for offshore wind farms.

Nature Positive reforms

In December 2022, the Government published its Nature Positive Plan: better for the environment, better for business (NPP) which sought to guide the Government's reform agenda of national environmental laws, and was stated to be 'the most comprehensive remaking of national environmental law since the EPBC Act was first introduced'.2 The NPP was driven by the 38 recommendations made in the independent review of the EPBC Act by Professor Graeme Samuel AC in October 2020.

The rollout of the legislative reforms faced significant delays due to political and stakeholder opposition, with only the first stage of reforms being completed in late 2023 with the creation of the Nature Repair Market and expanded 'water trigger' for assessment of coal and unconventional gas developments. The Nature Repair Market went live on 1 March 2025.

The second stage of the EPBC Act reforms sought to create a new independent federal agency with expanded compliance and enforcement power (Environment Protection Australia) and a new Environment Information Australia, amongst other changes. Whilst the second stage progressed to the point of legislation being tabled in Parliament in June 2024, in February 2025 the Government formally shelved plans to pass the legislation after months of struggles to obtain support in the Senate, where Labor did not hold a majority.

The third and final proposed stage—which sought the most extensive reforms, including the publication of National Environment Standards and amendments to environmental assessment and approval processes—was deferred and not introduced before the 2025 Federal Election.

Labor's 2025 election campaign

Leading into the 2025 election, Labor's campaign with respect to environmental and climate change matters consisted of the following:

  • Climate change: at this stage, the Government has not indicated an intention to alter its 2030 target, but will consider the advice of the independent Climate Change Authority in setting a 2035 target, in accordance with existing legislative requirements.
  • Renewables: building on its Powering Australia Plan, the Government is maintaining its target for renewables to supply 82% of the National Electricity Market by 2030, and voiced strong opposition to the Coalition's nuclear power plan. The Government also promised to unlock $8 billion of additional investment in renewable energy and low emissions technologies through a $2 billion expansion of the Clean Energy Finance Corporation.3
  • Nature Positive laws: the Nature Positive reforms received far less emphasis compared to the 2022 Federal Election campaign and it is yet to be seen whether the Government will re-engage with this reform agenda. Prime Minister Anthony Albanese has recently confirmed that the environmental reform remains on the table, but the previously proposed national agency Environment Protection Australia will differ from the model that failed to secure legislative support during the previous term, and this would be pursued in consultation with the states, industry and environmental groups. Further, in the lead-up to the 2025 Federal Election and in the Federal Budget 2025/26, the Government reaffirmed its commitment to biodiversity protection by pledging $262 million over five years to meet its '30 by 30' commitment of conserving 30% of Australia's landmass and 30% of Australia's marine areas by 2030.4

What's next?

Under the re-elected Government, we expect to see a maintained commitment to current climate change emissions reduction targets and the energy transition to renewables and storage, with a continuation of current policies.

With respect to the Nature Positive reforms, given their limited progress in the previous term, it remains to be seen whether the Government will pursue its previously intended sweep of changes. While counting in the Senate is still underway, at this stage it appears the Government may be gaining seats at the expense of the Coalition, which is expected to aid the passage of environmental legislation.

We are monitoring policy announcements in these areas and will provide further updates when more details become available.