BCSDA, We Mean Business Coalition and Better Futures Australia call for robust 2035 climate target to anchor Australia’s National Climate Plan
- bcsda0
- 6 hours ago
- 3 min read
Sydney, 12 September 2025 - Australia’s business community is calling for a 2035 emissions-reduction target of at least 75% below 2005 levels, backed by a Net Zero delivery plan, to put the nation firmly on a 1.5°C pathway, strengthen competitiveness and unlock significant economic gains. These recommendations are set out in a new joint report from the Business Council for Sustainable Development Australia (BCSDA), the We Mean Business Coalition and Better Futures Australia, Australia’s 2035 National Climate Plan: A Robust Climate Target for Economic Certainty and Global Credibility.
Modelling indicates that a 75% by 2035 target could deliver a $227 billion economic boost compared to a 65% scenario and create 45,000 additional jobs per year through 2035. Australian businesses are signalling readiness: 77% of executives support 100% renewables-based electricity within a decade, and businesses are exploring competitive advantages in regions with cleaner energy infrastructure - highlighting the competitiveness imperative of an accelerated transition.
At the same time, the report cautions that policy fragmentation - for example, moves to extend coal generation - risks undermining federal ambition. Without a clear, investible Nationally Determined Contribution (NDC), Australia faces the prospect of stranded assets, reduced investor confidence and reputational risk ahead of COP31, which Australia seeks to co-host.
“Business is ready to scale, but it needs certainty. A 2035 target of at least 75%, paired with a credible Net Zero delivery plan, would give Boards and investors the clarity to deploy capital into clean energy, advanced industry and resilient supply chains,” said Andrew Petersen, CEO of BCSDA. “This is about economic certainty and global credibility. With COP31 on the horizon, now is the moment to set a robust NDC that attracts finance, secures jobs and strengthens Australia’s standing.”
The report identifies electricity decarbonisation as the system unlock, with the power sector reaching near-zero emissions by around 2034 on established pathways, enabling rapid emissions cuts across transport, industry and the built environment. Complementary modelling also identifies green growth as a driver of competitiveness, reinforcing the case for an ambitious, orderly transition.
To make Australia’s 2035 NDC investible and integrity-led, the organisations propose governance mechanisms that protect credibility and crowd-in capital, including:
Economy-wide and sectoral carbon budgets to guide delivery;
Guardrails for international cooperation under Article 6;
Transition funds and regional development pathways, with meaningful First Nations participation.
What it means for executives: A robust 2035 NDC provides investment certainty, access to finance and supply-chain competitiveness. Delay raises the risk of reduced investment confident and loss of policy coherence as customers and investors tighten decarbonisation requirements.
“Business is already moving. What we need from government is a joined-up plan that gives long-term certainty, so Australia doesn’t just meet climate goals, we win the race for the industries and jobs of the future,” Petersen added.
Read the report here: https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/09/Australia-NDC-note_FINAL.pdf
About BCSD Australia
The Business Council for Sustainable Development Australia is a non-profit organisation dedicated to operationalising sustainable development practices among Australian businesses. BCSD Australia was established in Australia in 1991 and works with over 70 leading global businesses and other organisations to drive systemic transformation in key sectors, advocating for sustainable leadership and rewarding action through education, partnerships, and policy influence.
In 2014 the organisation was appointed Australia’s Network Partner for World Business Council for Sustainable Development (WBCSD).
BCSD Australia’s members believe that by integrating social and environmental impacts with financial results, business lowers its risk profile, makes better decisions and creates the solutions needed to meet the Sustainable Development Goals.
BCSD Australia’s members include leading Australian businesses, from all sectors, who share a commitment to economic, environmental and social development. It represents member companies, public sector enterprises and institutions, BINGOs and community organisations, which in turn represent 120,000 + Australian employees. www.bcsda.org.au.
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For further information contact: Andrew Petersen, CEO, Business Council for Sustainable Development Australia, +61 412 545 994