Speaking at a press conference on Tuesday, Mr Morrison announced that over $20 billion will be invested in low emissions technologies by 2030, with $60-$100 billion of public-private investments expected to follow.
Mr Morrison said the government’s plan will be carried out through “technologies, not taxes”, however, it will not shut down coal and gas exports, nor will it negatively impact farming and agriculture.
“Australians understand and they support the need to take action on climate change. So do I, so does our government,” he said.
“Our plan is a fair plan. It is a practical plan. It is a responsible plan. We’ve listened very carefully to concerns and the ambitions of Australians in getting this plan right.”
Mr Morrison said Australia is on track to beat its 2030 targets which will reduce emissions by 30-35 per cent below 2005 by then.
Under the plan, the government has outlined a number of technology goals which includes producing clean hydrogen for under $2 a kilogram and producing low emissions steel for $700 a tonne.
He added that modelling for the plan will be released in “due course”.
Minister for Industry, Energy and Emissions Angus Taylor added that the plan is a “practically achievable pathway”.
“It means recognising that customer and investor demands are changing, and we need to adapt with them,” Mr Taylor said.
It comes as Mr Morrison prepares to head to Glasgow this week for the UN Climate Change Conference (COP26).
Earlier this month, ethical fund manager Australian Ethical CEO and MD John McMurdo said that Australia must go “all in” on climate action.
“It’s time to end our national embarrassment when it comes to climate action and support for the fossil fuel industry,” Mr McMurdo said.
Shortly after the Investor Group on Climate Change (IGCC) responded to the news, calling the commitment an important long-term signal to investors.
“Investors need a supportive, credible, consistent, and stable policy environment that will facilitate private investment by reducing policy-related climate risks and shape markets for low carbon products and services,” , IGCC CEO Rebecca Mikula-Wright said.
“A national and bipartisanship commitment to achieving net zero emissions is crucial to sustain investments in the Australian economy and to support the creation of new industries and economic opportunities.
The Responsible Investment Association Australasia (RIAA) also welcomed the news, however critcised the 26-28 per cent 2030 targets for not being in line with the Paris Agreement’s interim targets of 35-55 per cent.
“Australia’s projections of achieving 30-35 per cent reductions by 2030 should be government policy, providing investors with more reliable parameters for better risk pricing and valuation,” RIAA’s executive, policy and standards, Nicolette Boele, said.
“However to be competitive globally, we should be lifting the bar and adopting scientifically-relevant emissions reduction targets for 2030 that set the pace for decarbonising Australia’s economy in step with the global investment market place.”
