Sophie Schlachter, Sustainability Advisor, unpacks the environmental, social, and economic implications of Australia’s recent federal election.
In this article:
- What the shift from a Liberal to a Labor government means for climate policy
- How the election result affects emissions legislation, clean energy, and investment certainty
- What businesses need to know about upcoming environmental law reforms
- How social sustainability may improve under Labor’s education, health, and childcare plans
- A notable step forward for gender representation in federal leadership
Liberal loss
In electing a majority Labor government to the lower house, Australians have avoided a dramatic weakening of climate-related policy from a Coalition government.
The Liberals campaigned on a fossil-fuel and nuclear-based energy mix which would have destroyed Australia’s chances of meeting our Paris climate agreement targets. So too would the proposed reduction in vehicle emissions standards and the potential weakening of the safeguard mechanism – our only legislation limiting emissions from large-scale industrial polluters.
Aside from regressive climate policy, the upheaval for business brought about by such a change in direction would have introduced market uncertainty, and undermined or stifled the large-scale ongoing investment required from all sectors, to foster a more sustainable economy.
Labor victory
In electing a majority Labor government to the lower house, Australians have placed their faith in a party who have mandated climate-related reporting, strengthened regulation for Australia’s biggest polluters, introduced vehicle emissions standards, and supported the transition to renewable energy.
Labor have also approved more than 30 new fossil fuel projects in their first term – and failed to deliver critical reforms to Australia’s major environmental protection laws – the EPBC Act.
So, a mixed bag, really.
What now?
While Labor enjoys a lower house majority, the balance of power in the Senate remains with the Greens who – while leaderless at the time of writing – will need to decide whether or not their overall approach changes after suffering major losses in this election.
From an environmental perspective, Labor’s climate campaign policies were described as “minimal” by Biodiversity Council co-chair Hugh Possingham, but they will continue to support the transition to renewable energy, which will be beneficial for both businesses and households.
Labor have flagged their intention to try again to deliver an independent environmental protection authority – with greater consultation across all sectors, including the minerals and resource sector, this time. Of course, they will still have to convince the Greens in the Senate that what they propose is fit for purpose. Business leaders should stay abreast of developments in environmental approval processes as they emerge.
From a social sustainability perspective, Labor campaigned on major funding for Medicare, 100,000 fee-free TAFE places per year from 2027, and increased government-provision of childcare. Businesses should benefit here from increased access to trainees and apprentices, as well as more favorable conditions for meeting gender equality targets.
Are women the winners?
Gender representation is arguably the winner in this election, with a likely all-female leadership group amongst the major parties in the Senate (Labor’s Penny Wong, Greens’ Sarah-Hanson Young, and Liberal’s Michaelia Cash), Sussan Ley winning Liberal Party Leadership to become Leader of the Opposition – and the Greens coughing up an all-female list of contenders for leadership.
About the author – Sophie Schlachter, Sustainability Advisor
Sophie holds a Master of Sustainability from the University of Sydney and has worked across regenerative agriculture and waste management sectors, including for OzHarvest and the Taronga Zoo Conservation Society. Sophie is experienced in business and sustainability analytics, and is passionate about enabling sustainable business that balances profit with positive environmental and social outcomes.
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