Liberal Party Dumps Net-Zero: What Happened and Why It Matters

Yesterday the Liberal Party of Australia formally agreed to remove the commitment to achieve net zero emission by 2050 and the 2030 emissions reduction target from its policy platform. This move follows weeks of internal debate and rising pressure from its partner party, the National Party of Australia, which had already dropped the target.

What the decision includes

• The Liberals agreed to stay in the Paris Agreement and have said they will set climate targets if elected.

• The phrasing has been softened: while the 2050 net-zero deadline is abandoned, reaching net-zero in the future is described as a “welcome outcome”.

• The party is aligning with two principles: ensuring a reliable and affordable energy supply, and reducing emissions in a responsible, transparent way.

Different perspectives

• The Climate Council described the decision as a “dangerous retreat” from meaningful climate policy, warning that abandoning net zero could result in increased emissions, higher household energy bills and diminished global credibility.

• Independents such as Zali Steggall (Warringah) and Sophie Scamps (Mackellar) characterised the decision as reckless and signalling a major shift away from community expectations on climate action.

• The National Party’s Senate leader, Bridget McKenzie, welcomed the change, framing it as a shift toward lowering energy costs for Australians and sustaining on-shore industry. She emphasised longer operation of coal-fired plants, greater gas use and a role for nuclear and carbon capture.

• Within the Liberal Party some members emphasise this is a realignment rather than a cancellation: their aim remains emissions reductions, but with an emphasis on flexibility and energy affordability rather than a fixed 2050 deadline.

Why it matters infrastructure & clean energy

While the Liberal Party is not currently in government, this shift still matters.

• Signals to investors and markets: Even without legislative power, opposition policy shapes expectations about what may come next. Businesses planning multi-decade infrastructure or energy projects pay close attention to both government and opposition commitments when assessing risk and return.

• Policy uncertainty: A bipartisan approach to net zero has been one of the stabilising factors supporting Australia’s clean-energy transition. The loss of that consensus introduces some uncertainty around long-term emissions targets and could influence the pace of investment.

• Business continues to move forward: Many large infrastructure, energy, and manufacturing firms have already embedded net-zero strategies into their operations. While the political debate continues, industry momentum towards decarbonisation and renewables remains strong.

What comes next

• The Liberal and National parties are set to finalise a joint climate and energy position at a coalition meeting this weekend.

• Although the Liberals maintain that they will continue to stay in the Paris Agreement, abandoning the net zero target breaches Australia’s obligations under the agreement, which requires that countries do not backslide on their emissions reduction goals. This issue is yet to be addressed.

You can read the Liberal Party emissions reduction media release here.