Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Australian Chamber of Commerce & Industry (ACCI) is highly engaged on climate policy. The association is broadly supportive of climate action in its top-line messaging but demonstrates a mix of positive and negative engagement with specific climate-related regulations. In addition, the ACCI consistently advocates a continued role for fossil gas in the energy mix.
Top-line Messaging on Climate Policy: The ACCI displays limited but broadly positive top-line messaging on climate change. Its CEO Andrew McKellar repeatedly supported Australia’s transition to net-zero emissions by 2050, for example in a July 2023 media release. The association does not appear to have communicated a position on the Paris Agreement since 2019.
Engagement with Climate-Related Regulations: The ACCI engages with a mix of positive and negative positions on specific climate-related regulations. It stated support for the passage of Australia’s Climate Change Bill, which legislates the country’s 2030 and 2050 emissions reduction targets, in a September 2022 tweet. In addition, it appeared to support elements of Australia’s Safeguard Mechanism Reforms in a September 2022 consultation submission, including declining baselines aligned with the country’s emissions targets. The association’s CEO Andrew McKeller also appeared to support this passage of the reforms in a January 2023 news article in the Australian Financial Review.
In contrast to this advocacy, the ACCI opposed proposals from the Australian Greens for the Safeguard Mechanism Reforms to block new gas and coal projects in a February 2023 media release. The ACCI also opposed the introduction of a Carbon Border Adjustment Mechanism (CBAM) in a January 2023 press release, stating that a CBAM is “simply a punitive tax on imported goods that will do little to incentivize investment in low-emissions technology”.
Positioning on Energy Transition: The ACCI adopts largely negative positions on the transition of the energy mix. In a November 2023 consultation submission on Australia’s Future Gas Strategy, the ACCI advocated for the federal and state governments to lift restrictions on gas exploration and extraction and fast-track new gas field development. In addition, the association advocated for the removal of regulatory barriers to gas exploration in its November 2023 annual report. This position represents a trend in the ACCI’s positioning on the energy transition in 2023 and was also expressed by McKellar in a March 2023 interview on ABC News, when he demanded a clear signal from the government “that encourages firms, major international players, to continue to explore in Australia, and to continue to produce in Australia because gas is an important part of the transition.”
The ACCI’s top-line messaging on the energy transition appears more positive. For example, its CEO McKellar advocated greater investment in renewable capacity and energy infrastructure in a May 2022 media release and appeared to support the decarbonization of Australia’s economy in an October 2022 media release.