With the federal election behind us, Australia stands at an important crossroads for environmental reform and climate policy. Over the past term, we saw the Government attempt a bold overhaul of environmental laws and climate frameworks – many of which faced roadblocks in Parliament. As the newly re-elected Government settles in, the direction it takes now will have a lasting impact on the country’s climate commitments, biodiversity outcomes, and transition to renewable energy.

While details remain to be seen, now is a key time for businesses, industry leaders and environmental practitioners to stay engaged and contribute to consultations as these policies evolve.

Where Are We Headed?

Here are the major themes and expectations shaping the road ahead:

  • Climate Targets: The Government is holding the course on its net zero by 2050 ambition and 2030 emissions reduction target (43% below 2005 levels). The Climate Change Authority will guide the setting of a 2035 target, as required under existing law.
  • Renewable Energy Push: Building on the Powering Australia Plan, the target remains for renewables to provide 82% of the National Electricity Market by 2030. The Government has pledged a further $8 billion in investment via the Clean Energy Finance Corporation to accelerate the shift to low-emissions technology – firmly opposing nuclear as an alternative.
  • Nature Positive Reforms – Still in Play?: After ambitious reforms to the Environment Protection and Biodiversity Conservation (EPBC) Act stalled during Labor’s last term, it’s unclear how far the next wave of environmental reforms will go. That said, Prime Minister Albanese has confirmed that reform is still on the agenda, albeit in a revised form. Importantly, the commitment to biodiversity protection remains, supported by a $262 million pledge over five years to meet the ’30 by 30′ conservation target – protecting 30% of Australia’s land and marine areas by 2030.

A Look Back: Progress and Setbacks

In 2022, the Government outlined its Nature Positive Plan – the most significant proposed revamp of federal environmental laws since the EPBC Act came into effect over two decades ago. The reforms were based on Professor Graeme Samuel AC’s independent review and promised to reshape environmental governance, impact assessment, and biodiversity protection.

Only a fraction of this agenda was implemented:

  • Nature Repair Market: Launched on 1 March 2025, this world-first legislated biodiversity credit scheme allows landholders and organisations to earn and trade biodiversity certificates by undertaking verified conservation and restoration activities.
  • Water Trigger Expansion: Reforms extended the ‘water trigger’ under the EPBC Act to apply to all unconventional gas projects, strengthening protections for vital water systems.

Other key components – like the proposed creation of Environment Protection Australia and Environment Information Australia – were introduced to Parliament but ultimately shelved in early 2025 due to lack of Senate support.

Looking Forward: What Should We Expect?

Although the full legislative reform agenda remains uncertain, the outcome of the election appears to have strengthened Labor’s Senate position, which could open the door for further environmental legislation.

For now, we can expect:

  • Continued momentum on renewable energy and emissions reduction;
  • Selective engagement with environmental law reform, likely in consultation with states, industry, and environmental groups;
  • Increased funding and focus on biodiversity outcomes through programs like the Nature Repair Market and 30 by 30 initiatives.

Why It Matters

The decisions made in the next few months will shape how Australia manages its natural assets, responds to climate risk, and positions itself in a decarbonising global economy. For businesses, there’s a real opportunity – and responsibility – to align with these shifts. Staying informed, participating in consultations, and preparing for regulatory changes will be key.

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