Australia unveils 2035 climate goal, urges practical action

Australia has formally unveiled its 2035 climate target, a move welcomed by many across the energy and freight sectors but accompanied by calls for pragmatic measures to ensure the country can achieve its decarbonisation ambitions while maintaining economic and infrastructure resilience. The announcement signals fresh intent to accelerate the national transition to net-zero, yet industry leaders emphasise the practicalities involved in shifting both energy and transport sectors from traditional to sustainable models.

John Alexander, Managing Director of Large-scale at SMA Australia, said the setting of the 2035 target was "an important step in the transition to a decarbonised energy system." However, he argued the aspiration must be coupled with the deployment of robust energy infrastructure to address grid reliability as fossil fuels are gradually scaled back. "As Australia moves toward higher shares of renewable energy, the challenge lies in maintaining the stability and resilience of the electricity system," he stated.

Alexander noted that technological advances will be essential to success. "Grid-forming inverters, paired with large-scale battery storage, are critical technologies that allow renewables to deliver reliable power, even as traditional generation sources decline. At SMA Australia, we've seen firsthand how these solutions enable the faster deployment of large-scale renewable projects while maintaining grid stability." According to Alexander, simply building more solar and wind farms is not enough; sophisticated integration of renewables is vital for ensuring that electricity consumers continue to benefit from secure and steady supply as coal and gas generators retire.

Renewables now account for a rising share of Australia's power supply, but this transformation presents new tasks for system operators. The intermittency of solar and wind necessitates advancements such as battery storage systems and intelligent inverters, capable of stabilising voltage and frequency within the grid without the traditional support from large synchronous fossil fuel generators.

Meanwhile, the transport sector remains another significant hurdle. Australia's freight and logistics industry is a large and growing source of emissions, with projections indicating the challenge will intensify as the population and economy expand. Dean Newman, Chief Operations Officer of Ofload, underlined that freight is not only a major contributor but also a key site for rapid emissions reductions. "Unlike some sectors where decarbonisation will take decades of infrastructure change, freight offers immediate gains. The quickest wins in achieving 2035 emissions targets are in freight," Newman said.

He cited the example of network optimisation using digital technology, saying such approaches have already delivered substantial emissions cuts. "Through our technology, we helped customers cut more than 3,500 tonnes of CO2 last year – the equivalent of taking over 20,000 cars off the road from Sydney to Brisbane," he reported. Newman stressed that technology and better use of existing vehicle capacity can yield savings today, while longer-term solutions like zero-emissions vehicles are scaled up.

Newman also warned policymakers against measures that could inadvertently hinder progress, such as prematurely imposing road user charges on electric trucks. "We must be careful not to introduce measures, like taxing electric trucks too early, that could stall the transition. A road user charge on e-trucks risks being an own goal for Australia," he cautioned. Instead, policy settings should incentivise rapid uptake of clean freight solutions and avoid penalising early adopters.

The government's roadmap includes a focus on reducing unnecessary freight movements and improving logistics. Collaboration with industry and strategic use of new technologies are highlighted as key planks for meeting the emissions target. However, both energy and freight sector leaders agree that setting a target is only the start. As Newman observed, "2035 should be more than just a number on a page. It should be the decade where Australia builds supply chains that are both zero-carbon and shock-resistant. If we get this right, freight will be seen as a climate solution and not as a climate liability."

With emission reductions in both power and transport presenting distinct but overlapping challenges, analysts suggest that Australia's 2035 climate target can become a pivotal milestone on the path to net zero - provided strong policies, targeted investment, and technology leadership are all brought to bear.