Turning climate targets into business strategy

Australia’s 2035 climate target is almost here. Under the Paris Agreement, countries must set new emissions reduction goals every decade, and the federal government has committed to announcing Australia’s target by mid-September 2025.

Australia’s 2030 target, a 43% reduction on 2005 levels, was legislated in 2022. The new 2035 climate target is expected to land somewhere between 60% and 75%.

This is not just a political headline. Once announced, it becomes the new reference point for investment, regulation, and market design. Energy markets, supply chains, and corporate strategies will all begin adjusting to that number long before 2035 arrives.

The headlines focus on cost. But here is the truth. That money will be spent one way or another. The real question for business is whether it builds your future or leaves you stranded with yesterday’s assets.

Billions are already on the move

A 60% emissions reduction target will accelerate investment in renewable generation, new transmission, industrial electrification, and cleaner supply chains. Governments and investors are already funding large-scale projects, and corporates are under pressure to show real progress on decarbonisation.

For businesses, the flow of capital is beginning to unlock tangible openings. This is happening particularly through long-term power purchase agreements (PPAs). Federal and state grants also continue to emerge, especially for businesses pursuing electrification or grid-enhancing investments.

Those who step in early are securing favourable terms and stronger positions in this new market. Those who hold back will face tighter supply, higher prices, and fewer options once demand peaks. And with the 2035 climate target only weeks away from being locked in, the window to act early is closing fast.

Skills are the new bottleneck

The transition is not just about steel and capital. It is about people. Tens of thousands of additional trades and technical specialists are needed to build the infrastructure that decarbonisation depends on. Shortages are already creating delays and pushing up project costs.

This means businesses that align themselves with capable partners, or that invest in building internal expertise, will keep their projects moving. Others will find themselves waiting in line as the competition for skilled labour intensifies. The 2035 climate target announcement will only increase that pressure.

The cost of sitting still

Boards often weigh the transition against cost. That is the wrong lens. The cost of inaction is already showing up in higher energy prices, tighter investor expectations, and increasing compliance obligations. Choosing not to act does not preserve value, it erodes it. Waiting is simply a slower and more expensive way of meeting the same end point. By the time September’s target is announced, “wait and see” will no longer be a safe option.

What this means for business

• Scenario planning must extend beyond 2030. Targets set for 2035 will reshape energy markets and investment cycles long before then.
  
• Access to accurate energy and emissions data is becoming non-negotiable. Without it, businesses will struggle to prove progress or make sound decisions.
  
• Supply chains are being rewired. Businesses that cannot demonstrate lower emissions will find themselves squeezed out of procurement processes.
  
• Policy settings may change, but the overall direction will not. Flexibility and optionality in strategy will be critical.

Utilizer’s take

We've seen this pattern before. Disruption always looks risky until the leaders start moving. Then the real risk is being left behind.

At Utilizer, our job is to make energy easy. That means giving you clarity on your energy data, building strategies that align with your sustainability targets, and running procurement processes that allow you to secure the best-fit contracts in volatile markets. It also means helping you plan for demand flexibility, onsite generation and storage, or future fuels so you are not caught off guard as the rules change.

The scale of investment heading into Australia’s energy system is not a threat. It's the new playing field. With the 2035 climate target due within weeks, the clock is ticking. The only question left is whether you're managing energy in a way that puts your business ahead, or leaving your reaction to when you'll be a step behind.

Reach out to our energy strategists today and we'll show you how we make energy easy.

More power to you.