Australia has announced an ambitious new climate target to cut emissions by 62 to 70 percent by 2035, updating its previous goal of a 43 percent reduction by 2030, with the announcement expected before Prime Minister Anthony Albanese's address to the United Nations.

Prime Minister Albanese described the target as scientifically supported and pragmatic, emphasizing its importance for environmental protection, economic growth, and future generations, while internal Labor discussions favor a 70 percent reduction baseline.

The government warns that failing to act on climate could harm the economy and stresses the need for an orderly transition, highlighting the role of private sector investment in achieving these goals.

Experts warn that delaying the expansion of renewables could lead to electricity prices rising over 50 percent, as coal plants are extended and gas use increases to meet energy demands.

While environmental groups and unions support the higher ambitions, some business sectors express concern that exceeding 70 percent emissions cuts could threaten exports worth over $150 billion and lead companies to relocate offshore.

Experts agree that although rapid climate action involves costs, the long-term benefits—such as avoiding severe climate damages and fostering green industries—far outweigh these expenses.

A comprehensive national climate risk assessment will be published soon, highlighting severe threats to Australia's economy and environment, including risks to electricity, transport, and financial systems.

Achieving these ambitious targets will require substantial policy reforms across sectors like electricity, resources, and industry, with decisions on how to implement these reforms being critical.

Climate Minister Chris Bowen emphasizes the economic opportunities of transitioning to clean energy, suggesting that Australia can create hundreds of thousands of jobs and attract significant investment.

Critics, including opposition figures like Ted O’Brien, argue that the government’s increased spending lacks fiscal discipline, contrasting it with traditional rules of economic management.

Some view the climate target announcement as a political compromise that may lack urgency, risking future climate and economic security.

The announcement is part of a broader strategy to balance environmental ambitions with economic stability, with internal debates within Labor reflecting the tension between immediate economic benefits and long-term climate goals.