The federal government’s release of sector-specific decarbonisation plans has drawn strong support from experts at the Climateworks Centre, who say the frameworks provide a solid foundation but must quickly translate into coordinated action if Australia is to meet its 2035 emission targets.
The plans — covering electricity and energy, transport, buildings, industry, and agriculture — outline how each sector will contribute to the national goal of reducing emissions by 62 to 70 per cent from 2005 levels by 2035.
Energy transition the “bedrock” of economic success
Anna Malos, Climateworks Australia Lead and former Assistant Director at the Climate Change Authority, said the new energy sector plan cements Australia’s position as a renewable energy powerhouse but the next step is clear:
“Australia is already a global renewable energy powerhouse – with more than four million homes with solar power and momentum still building. The government’s new plan sets the foundation for accelerating the energy transition which is the bedrock for economic success. The next step is clear: turn plans into action.”
She added that improving energy productivity and managing demand across homes and businesses will help ensure the transition benefits consumers through lower bills and stronger industries.
Transport to become the largest emissions source by 2030
For fleet operators and transport businesses, the Transport and Infrastructure Sector Plan outlines a roadmap for decarbonisation across passenger and freight operations.
Helen Rowe, Climateworks Transport Lead, said it provides a strong starting point for reform but requires close collaboration between federal, state and territory governments.
“The government’s transport and infrastructure sector plan sets out a solid framework for decarbonisation in Australia, and commits to important reforms to build momentum on technology change.”
“By the end of the decade, transport will be Australia’s largest source of emissions. Strengthening the National Vehicle Emissions Standard will not only reduce emissions but also the money consumers pay at the petrol bowser.”
Rowe also noted the growing role of road user charging in shaping future transport funding and climate outcomes.
“Road user charging is finally gaining traction and can be leveraged to support, not undermine, climate goals. Designed well, it can be a powerful tool to boost productivity, build economic resilience and help achieve emissions reductions all at the same time.”
Buildings offer fastest path to emissions cuts
Dr Gill Armstrong, Climateworks Buildings Lead, said decarbonising Australia’s buildings — both new and existing — represents one of the fastest and most equitable ways to cut emissions.
“Decarbonising buildings is the fastest and most equitable place to reduce emissions now as zero carbon buildings are key to a least-cost transition – offering significant co-benefits from better health and wellbeing outcomes, lower energy bills and reduced energy system costs.”
Armstrong said that residential building emissions could fall by up to 93 per cent by 2035 in a 1.5°C-aligned pathway. Achieving this will require consistent national implementation of the updated Trajectory for Low Energy Buildings and the 2025 Buildings and Energy Sector Plan.
Industry and regional transition priorities
Hugh Sheehan, Industry Program Manager at Climateworks, welcomed the announcement of a $5 billion Net Zero Fund under the National Reconstruction Fund to support industrial transformation.
“Australia’s industrial regions are key to cutting emissions and seizing huge low carbon opportunities. The government’s sector plans can help drive a coordinated, fast-paced transition to future-proof industries and ensure they and the communities they support remain competitive in a net zero world.”
He likened Australia’s current position to having both the “ingredients and the recipe” for decarbonisation — but warned the outcome depends on execution:
“If it is done ad hoc, the outcome could be a dish half-baked with unintended consequences. Move too slowly, and Australia will miss the chance to serve it while it’s hot and in demand.”
Land, agriculture and carbon storage
Liam Walsh, Food, Land and Ocean Lead at Climateworks, said the agriculture and land plan’s ambition to scale carbon storage and deliver nature-positive outcomes was welcome but must be backed by proactive policy.
“The government’s plan seeks to scale up carbon storage, meet nature positive commitments and manage landscape outcomes at the same time. This ambition is welcome. Achieving these objectives simultaneously will require ambitious policy and proactive planning.”
Transition to renewable economy key to global credibility
Kylie Turner, Sustainable Economies Lead, said implementing these plans effectively will be vital to Australia’s credibility as it seeks to host the 31st United Nations Climate Conference (COP31) in Adelaide in 2026.
“Our 2035 emission reduction goal, and the plan to achieve it, are critical to Australia’s bid to host the 2026 global climate conference. To be credible as a host, Australia must show it’s working on an achievable plan to move from being a fossil fuel exporter to a renewable energy superpower.”
“Delivering the sector-by-sector actions set out in the Net Zero Plan will be a foundation for showing the world that Australia is taking action to reduce emissions and is open for business in the global green economy.”
What this means for fleets
For Fleet Managers and Sustainability Managers, the message from Climateworks is consistent: the 2035 target can only be achieved with rapid change in how vehicles, buildings, and businesses use energy.
- Strengthening the New Vehicle Efficiency Standard and introducing road user charging reforms will reshape fleet strategy and cost structures.
- Electrification of both light and heavy vehicles will be central to decarbonisation.
- Investments in charging infrastructure, depot energy systems, and building efficiency will underpin long-term operational savings.
The overarching message from Climateworks experts is clear — Australia now has the framework, but progress depends on speed and execution.
