Powering ahead: Australia's climate wins so far

While the discussion around Australia’s climate progress is typically hung in a frame of panic or hurried pessimism, encouraging new data shows that the country has seen some significant progress and is making great strides in its green energy transition.

New data from the Clean Energy Regulator and the federal Department of Climate Change, Energy, the Environment and Water show some great steps in Australia’s energy transition, with the latest Quarterly Carbon Market Report, National Greenhouse and Energy Reporting data, and the National Greenhouse Gas Inventory Quarterly Update all indicating a decline in emissions and record levels of renewable energy generation.

These findings provide some much-needed good news at a critical juncture in our sustainability journey, with Australia looking to establish itself as a true world leader in the global shift to clean energy.

The rise of renewable energy

Renewable energy adoption has surged across Australia, breathing new life into the electricity sector. Increased investments in solar, wind, and energy storage have contributed to lower emissions while improving energy security and affordability. In 2024, Australia produced more renewable electricity than ever before, seeing a 30% increase since 2021.¹ Businesses and households are embracing clean energy, marking a shift towards a more resilient and sustainable power system.

While challenges remain, the data suggests that the transition to renewables is accelerating at an impressive rate. This isn’t only a critical environmental boost; it presents an incredible economic opportunity for Australia as a nation.

Key areas of progress and future opportunities

Grid modernisation

Upgrading energy infrastructure is critical to integrating more renewables and ensuring stability. Investment in transmission networks and decentralised energy solutions will allow renewable power to reach more consumers efficiently. Particularly in areas of the country with volatile weather conditions, this is a critical safeguard.

Energy storage expansion

Technologies such as large-scale batteries, pumped hydro and green hydrogen are essential for maintaining energy reliability as renewable penetration increases. Australia holds a great opportunity to become a global leader in this area, with development in this space supporting long-term grid stability.

Industrial transition

Energy-intensive industries are beginning to adopt cleaner technologies, driven by policy incentives and market shifts. Supporting this transition will help these sectors reduce emissions while maintaining global competitiveness.

The role of businesses in the transition

Australian businesses are increasingly taking control of their energy needs, investing in solar, battery storage and innovative power purchase agreements (PPAs). Behind-the-meter energy solutions are gaining traction, allowing businesses to generate and store their own power, a huge step towards reducing dependence on the grid and mitigating cost fluctuations.

Collaboration and policy support

The energy transition requires buy-in from government, industry and private stakeholders. To keep up this pace, investment in energy infrastructure, incentives for businesses and households, investment towards skilled workers and education, and support for industrial innovation are crucial. Ensuring a stable regulatory environment and clear long-term policy direction will further bolster confidence in clean energy investments.

Looking ahead

Australia’s recent energy milestones show that sustained efforts in policy, technology and investment have seen success. The progress demonstrated in these reports is encouraging, with the country keeping a steady pace towards its targets.

By focusing on modern infrastructure, advancing energy storage solutions, and encouraging business-led clean energy initiatives, Australia can continue to lead in the global energy transition. The path forward offers opportunities for innovation, economic growth and long-term sustainability.

Consistent negative headlines and discussions can breed a defeatist mindset towards critical environmental support. While great progress is less headline-worthy than the eye-catching doom and gloom, it’s a long road ahead that requires plenty more good news stories just like these.

_{1. The Department of Climate Change, Energy, the Environment and Water, accessed 10 June 2025, https://minister.dcceew.gov.au/bowen/media-releases/albanese-government-delivers-record-renewable-investment-and-declining-emissions}

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