Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Australian Industry Group (Ai Group) has a high level of engagement with climate policy. The association shows largely positive positions on climate-related policies in Australia and a mix of positive and negative positions on the energy transition, broadly supporting economy-wide decarbonization efforts while also appearing to support a continued role for fossil gas in the energy mix.
Top-line Messaging on Climate Policy: The Ai Group displays supportive top-line messaging on climate policy. The association advocated greenhouse gas emissions reductions in line with 1.5°C target in its June 2024 consultation submission on the Electricity and Energy Sector Plan Discussion Paper and repeatedly supported government regulation to respond to climate change, including efforts to achieve a circular economy, as seen in its April 2024 response to the Senate Inquiry into waste reduction and recycling policies. The Ai Group also recognized the achievements of the United Nations Climate Change Conference in Dubai in a December 2023 media release.
Engagement with Climate-Related Policy: The Ai Group’s transparent engagement with climate related policy is largely positive. The association is broadly supportive of key renewable energy policies in Australia, including the Guarantee of Origin scheme, as seen in its October 2024 consultation submissions on the provisions of the scheme, and the federal Renewable Energy Target, as seen in a July 2024 joint letter. Further, the associations repeatedly expressed support for the introduction of a carbon border adjustment mechanism (CBAM) in Australia, for example stating that it could be “extremely helpful” for the country’s industrial ambitions in its July 2024 consultation submission on Unlocking green metals opportunities for a Future Made in Australia. The Ai Group also advocated for a cohesive policy environment to encourage a circular economy in its November 2024 response to the Senate Inquiry into opportunities in the circular economy and repeatedly called for export restrictions on unprocessed scrap steel to provide more scrap for recycling within Australia’s steel industry, for example in its February 2025 consultation submission on the Review of the Recycling and Waste Reduction Act (2020).
However, the Ai Group also displayed negative or less supportive positions on greenhouse gas (GHG) emissions policies in Australia. The association argued against the introduction of a climate trigger into Australia’s main national environmental legislation as part of the Nature Positive reforms in an October 2024 media release and appeared to support Australia’s New Vehicle Efficiency Standard (NEVS) with exceptions, highlighting challenges around its implementation while advocating for no enforcement penalties during 2025 in a March 2024 consultation submission on the NVES. In addition, the Ai Group communicated an unclear position on Australia’s 2035 GHG emissions targets in its June 2024 consultation submission to the Climate Change Authority. While the association emphasized the need for targets to balance ambition with practical achievability, it did not clearly state whether it supported the Authority’s proposed reduction range of 65% to 75% below 2005 levels.
Positioning on Energy Transition: The Ai Group adopts a mix of positive and negative positions on the energy transition, broadly supporting economy-wide decarbonization efforts while also appearing to support a continued role for fossil gas in the energy mix. The association communicated broad support for a transition towards renewable energy, for example in a March 2025 research note, and supported the Australian Government’s Future Made in Australia (FMIA) plan, highlighting the need for urgent investment in the net zero transition in a July 2024 response to the Senate Inquiry into the provisions of the FMIA Bill.
In contrast, the Ai Group also supported fossil gas exploration in Victoria and highlighted the need for the development of additional import terminals in a September 2024 media release. Similarly, in a June 2024 media release, the association supported a new fossil gas project in Victoria and stressed that the government cannot “wait another ten years to approve its next gas project,” emphasizing the risk of gas shortfalls and the need for further government action to increase gas supply. In addition, while highlighting challenges around a potential role for nuclear in Australia’s energy mix and pointing to the need to deploy large-scale renewables in its November 2024 response to the Senate Inquiry into nuclear power generation in Australia, the Ai Group supported a continued role for fossil fuels with carbon capture and storage (CSS) in the power sector, but with unclear conditions and timelines for ensuring CCS deployment.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the association’s scores each week, the summary above is updated periodically.
This summary was last updated in Q2 2025.