Australia has abundant energy resources, yet its rush to meet emissions targets is proving costly, made worse by delays in delivering replacement power.
Building new capacity ahead of schedule gives a country more choices; closing existing plants too soon leaves it with fewer, exposing consumers and businesses to higher costs and greater uncertainty. That is the central lesson of Australia’s energy transition — and one that other countries, including Japan, should take seriously.
Australia’s experience shows what happens when emissions reduction takes precedence over other priorities. Its , passed in 2022, requires emissions to fall 43% below 2005 levels by 2030 and reach net zero by 2050. Energy policy should prioritize capability: affordable and reliable power, competitive industries, resilience and flexibility when plans go wrong.
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