The Australian government’s ambitious 2035 climate target will require policies that acknowledge the essential role of natural gas in reducing emissions while maintaining reliable and affordable energy for Australians.
Australian Energy Producers Chief Executive Samantha McCulloch emphasised that Australia’s oil and gas sector is already contributing significantly to emission reductions through the Safeguard Mechanism and the deployment of carbon capture, utilisation and storage (CCUS) technologies.
“Natural gas provides the reliable backup for growing shares of wind and solar in our energy mix,” McCulloch said.
“Gas will need to play an even greater role if Australia is to achieve the ambitious targets announced today, which will require increased action and investment across the economy.”
The government’s recently released Net Zero Plan and sector plans highlight the critical role natural gas plays in Australia’s energy mix and in achieving net zero emissions by 2050.
McCulloch stated: “Continued investment in new gas supply is needed to meet Australia’s long-term energy demand, because without gas the energy transition becomes harder, more expensive and less reliable.
“Australia’s policies should also recognise the growing opportunity for our LNG exports to deliver energy security and emissions reductions in our region.”
She further noted that Australia’s climate goals mean all technologies must be considered, with CCUS playing a major role in industrial emissions reduction.
“The International Energy Agency, Intergovernmental Panel on Climate Change, and CSIRO have all found that there is no pathway to net zero without CCUS.
“The oil and gas industry stands ready to work with governments and other sectors to ensure we can achieve Australia’s climate goals while keeping energy secure and affordable for all Australians,” McCulloch said.
The federal government’s Net Zero Plan is designed to guide Australia toward cutting emissions by 62 to 70 per cent below 2005 levels by 2035 and achieving net zero by 2050.
It identifies five priority areas for emissions reduction, including decarbonising and expanding the electricity network, electrification and efficiency improvements, expanding clean fuel use such as green hydrogen, accelerating new technology adoption through investments, and scaling up net carbon removals via robust offset schemes.
This comprehensive approach balances environmental goals with economic growth opportunities, helping secure energy reliability while fostering innovation.
The plan also includes a significant investment package, including a $5 billion Net Zero Fund, targeted to support industrial decarbonisation and boost the production of renewables and low-emissions manufacturing.
Other funding includes support for electric vehicle adoption, clean fuel production, and energy efficiency improvements in homes and businesses.
By advancing these measures, the government aims to drive down emissions across sectors while ensuring energy remains affordable and accessible to Australians throughout the transition.
This integrated policy framework acknowledges the indispensable role of natural gas as a stable energy source that complements renewable energy sources and underpins the transition to a cleaner economy.
