The government’s latest emissions reduction target shows strong support for the food and beverage sector, according to the Australian Food and Grocery Council (AFGC).
Australia has set an emissions reduction target of 62-70 per cent by 2035. The announcement comes after the United Nations has asked countries to submit their climate plans to prepare for the COP30 climate summit in November in Brazil.
AFGC CEO Colm Maguire said the government’s plan sends a strong signal of support for the transformation of Australia’s essential food and grocery manufacturing sector, which employs more than 290,000 people and contributes over $170 billion to the economy.
Maguire added that the target provides a clear framework for long-term investment and innovation.
“Our industry is already taking steps to improve energy efficiency, reduce emissions, and build resilience. This target gives us the clarity we need going forward,” he said.
The AFGC also welcomed the additional $5 billion from the National Reconstruction Fund (NRF) for industrial decarbonisation and low-emissions manufacturing. An additional $85 million has also been announced to support businesses in understanding and improving their energy usage.
“The funding has the potential to help food and grocery manufacturers invest in decarbonisation technologies and advanced manufacturing capabilities sooner to keep us competitive globally,” Maguire said.
According to the AFGC, the food and grocery sector is the third-largest industrial energy user in the country and faces many challenges in the energy transition.
Around 40 per cent of the sector’s energy use comes from gas, which remains irreplaceable for many high-heat manufacturing processes, the council continued. The high upfront costs and limited technological options make government support essential, it added.
While industry groups such as the AFGC and the Business Council of Australia expressed support for the climate target, environmentalists argued that it lacked ambition and prioritised industry over communities.
According to Reuters, the target of 62-70 per cent is below the range of 65-75 per cent modelled by the Treasury Department and initially suggested by the Climate Change Authority, an independent body that advises the government on climate policy.
The UK has announced the most ambitious target of 81 per cent below 1990 levels, followed by Norway, which has pledged a 70-75 per cent cut.
