In December 2024, Melbourne Climate Futures and the University of Cambridge co-hosted a high-level roundtable to examine how a global fossil fuel phasedown could shape Australia’s policy landscape. The Centre for Climate Engagement was represented by Advisory Group Co-Chair Professor Harro van Asselt, with Law for Climate Action Manager Nick Scott attending and authoring a report on the discussions.
Executive Summary
In December 2024, Melbourne Climate Futures and the University of Cambridge partnered to host a roundtable exploring the impact of a global fossil fuel phasedown on Australian policy priorities. During the roundtable, experts in law, policy and finance from government, civil society, industry, and academia discussed how the Australian government could support the transition away from fossil fuels, the key challenges and opportunities in doing so, and how this might impact Australia’s international partnerships. Attendees reflected on a white paper prepared by Melbourne Climate Futures which sets out the scientific realities which underpin the need to phase down fossil fuels, how markets and civil society are responding to this need, and why this means that the energy transition must be a high priority for the Australian government.
Key points
- As a fossil fuel exporter, Australia is particularly exposed to climate transition risks but also has unique opportunities to drive a fossil fuel phasedown. To avoid impacts from climate policy abroad, and to capitalise on opportunities in the energy transition, Australia must proactively manage an economic transition away from fossil fuels and towards alternative energy sources to build a resilient economy and urban and regional communities.
- Australia’s response to climate change is important to many international relationships. These include trade partnerships in which Australia currently exports fossil fuels, but also broader diplomatic and political relationships including with Pacific Island countries facing significant climate risks.
- The energy transition is also an economic transition with significant implications for the corporate and financial worlds. In addition to key climate policy levers such as carbon pricing, more fundamental obligations such as fiduciary duties may help align investors and businesses with fossil fuel phasedown. When considering how to drive these changes at an international level, it is important to remain conscious of differences between the structures of economies and the businesses within them.
- As Australia bids to host COP31, demonstrating ambitious and credible climate plans may impact the country’s ability to facilitate effective climate collaboration and protect public trust in UNFCCC processes. Beyond the UNFCCC, there is scope for Australia to play a larger role in negotiating and implementing other environmental treaties with clear links to climate change.
Slingshot