Media release – The Australia Institute, 11 February 2025

Private sector demands ‘real zero’ policies and an end to fossil fuels

Some of Australia’s best-known and most respected industry, business and community leaders have written an open letter to state and federal MPs calling for an end to the ‘net zero smokescreen’ to secure Australia’s prosperity.

In a letter published in newspapers today, CEOs, investors and academics have called for governments to stop subsidising and approving fossil fuel projects and to implement policies that will drive investment in decarbonisation.

Signatories include business leaders and investors across a range of sectors including resources, retail and superannuation.

According to the letter Real Zero means:

  • Setting a deadline for ending fossil fuel use, rather than relying on offsets.
  • Rapid reduction in fossil fuel use and absolute greenhouse gas emissions, not delays based on future technology promises.
  • A managed end to fossil fuel production, including a phase out of subsidies.

“A critical mass of Australian businesses have declared their support for or signed voluntary climate commitments aligned with 1.5 degrees of global warming. It is welcome to see the private sector actually start to align their advocacy with these existing commitments”, said Polly Hemming, Director, Climate & Energy Program at The Australia Institute.

“To have any chance of staying within the liveable bounds of climate change, we must all be as ambitious as we say we are. ‘Real Zero’ must be the aspiration. ‘Real Zero’ must be the goal.

“The current policy settings favour a handful of fossil fuel companies and undermine the efforts of those actors who are genuinely trying to decarbonise. Greenwashing in Australia is effectively sponsored by the Australian Government through its ongoing endorsement of carbon offsets, unproven technology and incentives to keep using and producing fossil fuels.

“The Australia Institute values and supports the voices of so many respected Australians calling for real zero on the eve of this year’s Climate Integrity Summit at Parliament House tomorrow.”

Media release – Better Futures Australia, 10 February 2025

No Time to Backslide: Australian Businesses, Investors and Local Leaders Call for Policy Certainty as World Awaits Updated Climate Plans

As global climate plans take shape, Australia has the chance to lead the clean energy economy—driving investment, job creation, and economic resilience.

With its world-leading solar and battery technology, abundant critical minerals, and strong research sector, Australia can attract billions in private capital and build clean industries and exports. But to seize this opportunity, businesses, investors, and local government leaders are calling for policy clarity and confidence in Australia’s next Nationally Determined Contribution (NDC)—the formal global commitment guiding the nation’s emissions reductions through to 2035.

Read for comments from IKEA, the Investor Group on Climate Change (representing investors for 14.8 million Australians), the B Corp Climate Collective, city councillors and others below.

The opportunity is massive. Analysis from Mission Possible Partnership shows that, while Australia has 45 low-emissions industrial plants planned, only seven have progressed beyond Financial Investment Decision. This represents $150 billion in private capital ready to be unlocked—if the right policies are in place.

Rachel Howard, Director of Industrial Decarbonisation, Mission Possible Partnership:

“We know there is a huge opportunity for Australia, it’s already punching above its weight on the global stage but if we’re to seize the opportunity and continue at the forefront, we need many more clean-tech plants to come online more quickly. Corporate initiatives have led to first-of-a-kind projects but need policy certainty and long-term purchasing security to scale up. We’re at a stalemate between buyers and producers, with buyers not incentivised to purchase green products that are still competing against cheaper, higher-carbon products. As we’ve witnessed in several sectors and countries, governments have the power to change this and drive the growth of new green markets and industries.”

A strong national climate plan can unlock demand for low-carbon materials, creating certainty for industry. Hudson Worsley, Chair of the Materials and Embodied Carbon Leaders Alliance (MECLA), representing 190 organisations across construction and infrastructure, emphasised:

“Strong, consistent government policy and smart procurement decisions are critical to giving the industry the confidence to help drive Australia’s shift to a clean economy.”

The Global Context: A Defining Moment for Australia

Every country is updating its commitments under the Paris Agreement this year. UN Climate Change Executive Secretary Simon Stiell has called the 2025 national climate plan updates:

“…the most important documents to be produced in a multilateral context so far this century.”

As part of the global Mission 2025 campaign, supported locally by Better Futures Australia, business, industry, and city leaders worldwide are urging governments to adopt policies that align with the science of limiting warming to 1.5°C. Major corporate supporters include IKEA, Unilever, and industry alliances such as the We Mean Business Coalition, Principles for Responsible Investment, and locally, the Investor Group on Climate Change.

Rebecca Mikula-Wright, CEO of the Investor Group on Climate Change (IGCC), stated:

“Australia’s abundant sun, wind, and mineral resources position it as a global leader in the clean energy economy. With the right policy settings, Australia can seize the economic opportunities of a net-zero future while mitigating the financial and environmental risks of runaway climate change. That’s why IGCC’s members—investors responsible for managing the retirement savings of 15 million Australians—strongly support an ambitious 2035 emissions reduction target, underpinned by clear, sector-specific plans to drive investment and economic growth.”

A strong, science-aligned climate plan will safeguard Australia’s communities, industries, and infrastructure from mounting climate risks while unlocking economic opportunity. Clear, long-term policies will give businesses the confidence to invest, innovate, and continue to compete in the global clean economy. Australia’s real economy leaders stand ready to work with policymakers to secure long-term prosperity for our economy and communities.

Anna Skarbek, CEO, Climateworks Centre 

“Climate action and economic prosperity are fundamentally linked. Australia is now committed to and tracking towards a zero emissions future. The nation has everything it needs to position itself as a global climate powerhouse – securing enormous economic rewards for communities, workers, business and industry.”

Anna Reynolds, Lord Mayor, City of Hobart

“Australia’s cities and regions are on the frontlines of climate action—driving emissions reductions, building resilience and seizing the economic opportunities of the shift to clean energy. But we can’t do it alone. We need national leadership to back local ambition with strong policy, investment, and certainty to create lasting benefits for communities across Australia.”

Blair Palese, Director of Philanthropy at Ethinvest

“Australia must step up and move fast as a climate leader with smart policies to ensure we grab the economic opportunities our abundant rare earth minerals, renewable energy and smart innovators offer us in the rapidly-growing global zero emissions market.”

Hudson Worsley, Chair, Materials and Embodied Carbon Leaders Alliance 

“MECLA is a ‘do tank’ — 190 organisations across construction and infrastructure working to slash the embodied carbon of the construction sector. Transforming the sector is a complex challenge, but also a huge opportunity. From manufacturing, design and material selection through to procurement, construction techniques and end of asset life, every part of the construction ecosystem must evolve. Strong, consistent government policy and smart procurement decisions are critical to giving the industry the confidence to drive Australia’s shift to a clean economy.” 

Kal Glanznig, Youth Ocean Advocate & Councillor at Sutherland Shire Council

“As a young leader in local government and business, I believe our united voice—supporting an ambitious government—can galvanise federal policymakers to adopt a robust, updated climate plan that safeguards our future while unlocking vast economic prosperity for all Australians.” 

Rachel Howard, Director of Industrial Decarbonisation, Mission Possible Partnership

“We know there is a huge opportunity for Australia, it’s already punching above its weight on the global stage but if we’re to seize the opportunity and continue at the forefront we need many more clean-tech plants to come online more quickly. Corporate initiatives have led to first-of-a-kind projects but need policy certainty and long-term purchasing security to scale up.

We’re at a stalemate between buyers and producers, with buyers not incentivised to purchase green products that are still competing against cheaper, higher-carbon products. As we’ve witnessed in several sectors and countries, governments have the power to change this and drive the growth of new green markets and industries.”

Rebecca Mikula-Wright, CEO, Investor Group on Climate Change (IGCC)

“Australia’s abundant sun, wind, and mineral resources position it as a global leader in the clean energy economy. With the right policy settings, Australia can seize the economic opportunities of a net-zero future while mitigating the financial and environmental risks of runaway climate change. That’s why IGCC’s members—investors responsible for managing the retirement savings of 15 million Australians—strongly support an ambitious 2035 emissions reduction target, underpinned by clear, sector-specific plans to drive investment and economic growth.” 

Ricardo Pereira, CFO, IKEA Australia

“We believe we can make a better future, but we cannot do it alone. Businesses need goals, policies, and investments from Governments aligned with 1.5 degrees – which provides certainty to the private sector. This will support us to accelerate the transition to a low carbon economy.”

Sasha Titchkosky, Founder and CEO, Koskela

“For Australian businesses to remain viable and competitive, we must embed climate resilience and circularity into our economic model. The future belongs to companies that rethink waste, design for longevity, and reduce emissions at every stage of production. Strong climate policies will not only drive sustainability but will provide the certainty that business needs to invest, creating new markets, jobs, and long-term prosperity for Australia’s industries.”