Australia has committed to reduce emissions to 26 to 28 per cent below 2005 levels by 2030 under the Paris Agreement.
Projections from the Department of the Environment and Energy estimate Australia requires cumulative emissions reductions of 695Mt CO2-e (26 per cent reduction) to 762Mt CO2-e (28 per cent reduction) between 2021 and 2030 to meet this target.
The scale of the emissions challenge suggests Australia requires significant new investment across the economy (see Figure 4). While changes in investment patterns are evident in some sectors of the economy, in other areas the transition to lower emissions is yet to begin in earnest. In this context, the CEFC has a clear focus on increasing private sector investment flows to address a diverse range of emissions challenges. We recognise that lower economy-wide emissions can best be achieved through a multi-sectoral approach.