The Albanese Government’s decisive re-election delivered more than political continuity; it delivered a mandate. Voters endorsed a plan to accelerate the energy transition and capture the economic upside of climate leadership.
That momentum matters. It creates policy certainty. It sends a market signal. And it invites the private sector to play a central role in scaling solutions, from decarbonising heavy industry and modernising infrastructure, understanding the importance of nature and Australia’s position as a megadiverse country, to unlocking new technologies and export markets.
Mandatory reporting isn’t going anywhere—if anything, it’s just the beginning.
As Australia prepares to submit its updated Nationally Determined Contribution (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC) under the Paris Agreement this year, the direction of travel is clear: deeper, economy-wide decarbonisation. The 2035 targets, which must go further than those set in 2022, will shape regulatory expectations, investment signals, and corporate accountability for the decade ahead. As Simon Steill, Executive Secretary of UN Climate Change states “ NDC done right will be economic blueprints, they will be development strategies and they will be engines of prosperity”
The Climate Change Authority is advising the Australian Government on these targets through rigorous whole-of-economy modelling, policy analysis, and stakeholder consultation. For business, this underscores the value of aligning strategy with long-term climate ambition—because the frameworks driving disclosure today will be the benchmarks for transition performance tomorrow.
An ambitious NDC would be in line with investor expectations and the Paris Agreement; to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.
Regional partnerships, global markets
Australia’s joint bid with Pacific nations to host COP31 in 2026 is more than a diplomatic milestone, it’s a strategic moment for business.
While the bid is still under negotiation and requires global support, its ambition sends a strong signal: Australia is positioning itself as a hub for clean energy, sustainable investment, and regional cooperation. If successful, Adelaide, a city already sourcing over 70 per cent of its electricity from renewables, is likely to become the global stage for climate action.
But for business, the real opportunity lies not in hosting the summit, but in what we do next.
Australia is uniquely positioned to become a global renewable energy superpower by exporting clean energy embedded in energy-intensive goods such as green iron, aluminium, ammonia, and fuels. As countries like China, India, Japan, Korea, and Germany face looming shortfalls in affordable clean electricity, Australia’s exceptional wind, solar, and biomass resources offer a cost-effective solution. The New Energy Trade, a recent report from The Superpower Institute argues that Australia could supply a significant share of the clean energy these countries will require to reach net zero—potentially offsetting up to 9.6 per cent of global 2021 emissions by 2060—while generating up to $987 billion annually in export revenues. Realising this opportunity will require addressing key market failures, maintaining open trade, ensuring policy certainty, and streamlining approvals to unlock the large-scale investment needed for this transformative industrial shift.
A spotlight on Australia and the Pacific
Australia’s bid to co-host COP31 with Pacific nations is grounded in shared climate risks—and shared opportunity. But this partnership must go beyond symbolism. It is a chance to align deeply with regional priorities and demonstrate that climate leadership can be inclusive, science-based, nature-based, and future-focused.
This is an opportunity to deliver global climate ambition that matches the science; learn from First Nations knowledge to lead for people, planet, peace, and prosperity; and embrace Australia’s renewable and economically inclusive superpower potential. The goal is not only to respond to climate change—but to unlock new pathways to prosperity that support equity, justice, and leave no communities behind.
For Australian businesses, this means engaging early, and meaningfully, in a regional platform that values collaboration and co-creation. It means investing in climate-resilient infrastructure and services, forming trade relationships that reflect a more inclusive global economy, and working alongside communities to build solutions and shared resilience in a climate-changing world.
The economic case is clear. South–South and South–China trade are now outpacing traditional North–North flows, growing at 3.8% and 6% compound annual growth rate (CAGR) respectively. Australia sits at a strategic crossroads of this shift. The question is not whether we engage—but how fast and how well.
Green investment needs business at the centre
If Australia is to position itself as a destination for green capital, the private sector must lead with credibility and speed. That means delivering real emissions reductions, investing in nature-positive outcomes, and building integrity into supply chains and governance systems.
It also means working in partnership, with communities, investors, and governments, to set transparent targets, drive innovation, and scale what works.
At the UN Global Compact Network Australia, we’re seeing this shift in real time. More companies are moving beyond compliance and embedding sustainability into their business models, because it’s where growth, resilience and relevance now lie.
What comes next
Whether or not COP31 comes to Australia, the eyes of the world are already turning toward us. This is our chance to reframe Australia as a trusted, future-focused economy, one that partners with the region, leads on transition, and delivers shared prosperity. The invitation is clear: business has a central role to play in defining Australia’s next chapter. Let’s make it count.
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