The Liberal Party now has a narrow window to commit itself to a more credible net zero policy. This week, for the first time ever, a majority of RSC members voted to repeal the target. Yesterday, party state central committee members met for an almost five-hour marathon meeting. Debate was fierce as they focused on uprooting long planted intra party divisions on climate action. Opposition Leader Sussan Ley is expected to announce her party’s definitive stance against net zero this Thursday. This announcement will be made immediately following a full shadow cabinet meeting.
The announcement is anticipated to clarify the party’s stance and could signal a significant shift in Australia’s approach to climate change. This comes on the heels of an International Energy Agency (IEA) report highlighting the economic implications of transitioning to net zero. The report indicates that while higher initial investments are necessary, the long-term benefits include a “clear decline in total household energy bills in advanced economies.”
Internal Struggles within the Liberal Party
The Liberal Party’s recent deliberations are a product of months of schoolyard-level, embarrassing climate policy division. Members expressed conflicting views on whether to take the long-term plunge committing to a net zero target. That sent some serious debate reverberating through the meeting. While party establishments continue to deal with these tensions, many of their members are waiting impatiently to engrave their position before contests in 2024 elections.
Shadow Energy Minister Dan Tehan has been vocal about the need for clarity regarding the party’s final position on net zero. The outcome of this meeting will not only shape the party’s future strategies but influence Australia’s broader climate initiatives.
“a clear decline in total household energy bills in advanced economies” – International Energy Agency report
Implications of the IEA Report
The IEA report should be the critical reference point for further discussions within the Liberal Party. Moving to net zero will demand more upfront investment. While this creates an illusion that it costs more, it actually leads to lower household electricity costs. This is an important finding. It might even be able to nudge some of the undecided members who are scared about the economic impact of climate policy.
The party is looking to it’s big finale—its final leadership announcement. Stakeholders are eager to see how this data will shape the story on net zero targets and long-term economic viability.
Broader Context: Security Treaty with Indonesia
In an unrelated but notable regional development, Australia and Indonesia agreed to a landmark security treaty yesterday. Foreign Minister Penny Wong is likely to have great opportunity to elaborate on how this treaty serves Australia’s broader foreign policy aims. The timing of this announcement is particularly interesting, as it comes during unprecedented internal deliberations on the government’s climate policy, highlighting the multilayered challenges that government faces.
