Australia has announced a new 2035 emissions reduction target, aiming to cut greenhouse gas emissions by 62–70% from 2005 levels. The federal government describes the target as “ambitious, achievable, and in Australia’s national interests.” Prime Minister Anthony Albanese will present the updated target at the United Nations General Assembly.
The target follows Australia’s 29% emissions reduction from 2005 levels to date, and significantly raises the ambition from previous projections of a 51% cut by 2035. The announcement coincides with the release of the National Climate Risk Assessment, which outlines the potential consequences of insufficient climate action.
AIRAH CEO Sami Zheng, Affil.AIRAH, welcomed the new target, calling it a milestone in the country’s path to net zero. “While we would like to see more ambitious measures in some areas, especially in refrigerant transition, AIRAH acknowledges that the plan announced this week represents an achievable goal,” she said.
The HVAC&R sector is addressed primarily through the Built Environment Sector Plan, one of six sector-specific strategies supporting the 2035 target. The plan highlights electrification as a key approach, particularly for heating and hot water systems, which are major contributors to Scope 1 emissions from buildings. It also identifies energy efficiency improvements as the most effective strategy to reduce Scope 2 emissions, which make up 48% of the built environment’s footprint.
Scope 3 emissions from the construction process—estimated at 37–64 Mt CO2e annually—are also considered. Zheng supported the plan’s electrification goals and called for further action: “Phasing out gas heating is a no-brainer; it reduces Scope 1 emissions from fossil fuel while increasing energy efficiency and improving overall performance.”
Refrigerants are mentioned in the plan, with HFC emissions cited as contributing 32% of the built environment’s Scope 1 emissions. While the plan acknowledges Australia’s ongoing HFC phase-down under the Kigali Amendment, it does not propose any new targets or address imports of pre-charged equipment. Zheng noted that “the measures don’t extend beyond what the Kigali Amendment set in place nearly a decade ago” and called for a “holistic plan for refrigerants” to guide the industry beyond 2036.
The plan also references HVAC&R maintenance but includes no specific measures to support it. “If we want to reduce Scope 1 emissions, better maintenance regimes and refrigerant tracking are no-regrets actions that would make a big difference,” Zheng said.
To support the 2035 goal, the government will expand four major programs in the built environment sector. These include a $10 million investment in the Commercial Building Disclosure program, $10 million to expand NABERS tools and ratings, $16 million to modernise the Greenhouse and Energy Minimum Standards (GEMS) Act, and $33 million to scale up the Nationwide House Energy Rating Scheme (NatHERS) for existing homes.
