Climate Change Act 2022

No. 37, 2022

Compilation No. 2

Compilation date: 20 February 2025

Includes amendments: Act No. 13, 2025

About this compilation

This compilation

This is a compilation of the Climate Change Act 2022 that shows the text of the law as amended and in force on 20 February 2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self - repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Preliminary 1

1 Short title 1

2 Commencement 1

3 Objects 2

4 Simplified outline of this Act 2

5 Definitions 3

6 Act binds the Crown 5

7 Extension to external Territories 5

8 Extension to exclusive economic zone and continental shelf 5

Part 2—Australia’s greenhouse gas emissions reduction targets 6

9 Simplified outline of this Part 6

10 Australia’s greenhouse gas emissions reduction targets 6

Part 3—Annual climate change statement 8

11 Simplified outline of this Part 8

12 Annual climate change statement 8

Part 4—Advisory functions of the Climate Change Authority etc. 10

13 Simplified outline of this Part 10

14 Climate Change Authority to give the Minister advice that relates to the preparation of an annual climate change statement 10

15 Climate Change Authority to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution 12

15A Environment Minister to give Minister, Climate Change Secretary and Climate Change Authority certain emissions estimates 15

Part 4A—Capacity Investment Scheme 16

15B Simplified outline of this Part 16

15C Administration of the Capacity Investment Scheme Program 16

15D Amendment of the Capacity Investment Scheme Program 16

Part 5—Periodic reviews of the operation of this Act 18

16 Simplified outline of this Part 18

17 Periodic reviews of the operation of this Act 18

Endnotes 20

Endnote 1—About the endnotes 20

Endnote 2—Abbreviation key 22

Endnote 3—Legislation history 23

Endnote 4—Amendment history 24

An Act to set out Australia’s greenhouse gas emissions reduction targets, to provide for annual climate change statements, to confer advisory functions on the Climate Change Authority, and for related purposes

 1 Preliminary
1 Short title

This Act is the Climate Change Act 2022.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. The whole of this Act The day after this Act receives the Royal Assent. 14 September 2022

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 2

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Objects

The objects of this Act are:

 aa

to advance an effective and progressive response to the urgent threat of climate change drawing on the best available scientific knowledge; and

 a

to set out Australia’s greenhouse gas emissions reduction targets which contribute to the global goals of:

 i

holding the increase in the global average temperature to well below 2°C above pre-industrial levels; and

 ii

pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels; and

 b

to promote accountability and ambition by requiring the Minister to:

 i

prepare annual climate change statements; and

 ii

cause copies of those statements to be tabled in each House of the Parliament; and

 c

to ensure that independent advice from the Climate Change Authority informs:

 i

the preparation of annual climate change statements; and

 ii

the greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.
4 Simplified outline of this Act

• This Act sets out Australia’s greenhouse gas emissions reduction targets.

• The Minister must prepare an annual climate change statement.

• The Climate Change Authority is to give the Minister advice that relates to the preparation of an annual climate change statement.

• The Climate Change Authority is to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.

• There are to be periodic reviews of the operation of this Act.
5 Definitions

In this Act:

annual climate change statement means a statement under subsection 12(1).

Australia’s greenhouse gas emissions reduction targets has the meaning given by section 10.

Australia’s nationally determined contribution means:

 a

Australia’s current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or

 b

if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.

Climate Change Secretary means the Secretary of the Department responsible for the administration of the National Greenhouse and Energy Reporting Act 2007.

designated large facility has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

Environment Minister means the Minister who administers the Environment Protection and Biodiversity Conservation Act 1999.

expanded designated large facility: a facility is an expanded designated large facility for a financial year if:

 a

the activity, or series of activities, that constitutes the facility is carried on to a greater extent in the financial year than in earlier financial years; or

 b

during the financial year, an activity, or series of activities, is included in the activity, or series of activities, that constitutes the facility for the first time.

facility has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

net safeguard emissions, for a financial year, has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

new designated large facility, for a financial year, means a designated large facility for the financial year that was not a designated large facility for any previous financial year.

Paris Agreement means the Paris Agreement, done at Paris on 12 December 2015, as amended and in force for Australia from time to time.

safeguard emissions, for a financial year, has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

safeguard outcome has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

safeguard rules has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

scope 1 emission of greenhouse gas has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.

Note: The Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2022 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
6 Act binds the Crown

This Act binds the Crown in right of the Commonwealth. However, it does not bind the Crown in right of a State, of the Australian Capital Territory or of the Northern Territory.
7 Extension to external Territories

This Act extends to every external Territory.
8 Extension to exclusive economic zone and continental shelf

This Act extends to a matter relating to the exercise of Australia’s sovereign rights in the exclusive economic zone or the continental shelf.
2 Australia’s greenhouse gas emissions reduction targets
9 Simplified outline of this Part

• This Part sets out Australia’s greenhouse gas emissions reduction targets.
10 Australia’s greenhouse gas emissions reduction targets 1

Australia’s greenhouse gas emissions reduction targets are as follows:

 a

reducing Australia’s net greenhouse gas emissions to 43% below 2005 levels by 2030:

 i

implemented as a point target; and

 ii

implemented as an emissions budget covering the period 2021-2030;

 b

reducing Australia’s net greenhouse gas emissions to zero by 2050.

Note: The achievement of a target involves reducing Australia’s net greenhouse gas emissions to a level that is at or below the target. Accordingly, nothing in subsection (1) limits Australia’s ability to reduce its net greenhouse gas emissions beyond 43% below 2005 levels by 2030.

 2

Subsection (1) is to be interpreted in a manner consistent with:

 a

the Paris Agreement; and

 b

Australia’s nationally determined contribution.

Concurrent operation of State and Territory laws

 3

Subsection (1) is not intended to exclude or limit the operation of a law of a State or Territory that is capable of operating concurrently with this Act.

Executive power of the Commonwealth

 4

Subsection (1) does not prevent or limit the exercise of the executive power of the Commonwealth to:

 a

prepare and communicate a new nationally determined contribution in accordance with Article 4 of the Paris Agreement; or

 b

adjust Australia’s nationally determined contribution in accordance with paragraph 11 of Article 4 of the Paris Agreement.

 5

If the Commonwealth prepares and communicates a new nationally determined contribution in accordance with Article 4 of the Paris Agreement, the new nationally determined contribution must represent a progression beyond:

 a

Australia’s then current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or

 b

if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.

 6

If the Commonwealth adjusts Australia’s nationally determined contribution in accordance with paragraph 11 of Article 4 of the Paris Agreement, the adjusted nationally determined contribution must represent an enhancement of Australia’s level of ambition.
3 Annual climate change statement
11 Simplified outline of this Part

• The Minister must prepare an annual climate change statement.

• A copy of an annual climate change statement is to be tabled in each House of the Parliament.
12 Annual climate change statement 1

Within 6 months after the end of each financial year, the Minister must prepare a statement that relates to:

 a

the progress made during the year towards achieving Australia’s greenhouse gas emissions reduction targets; and

 b

international developments during the year that are relevant to addressing climate change; and

 c

climate change policy; and

 d

the effectiveness of the Commonwealth’s policies in contributing to the achievement of Australia’s greenhouse gas emissions reduction targets and reducing emissions in the sectors covered by those policies and in particular whether safeguard emissions and net safeguard emissions are declining consistently with the safeguard outcomes; and

 e

the impact of the Commonwealth’s climate change policies to achieve Australia’s greenhouse gas emissions reduction targets on rural and regional Australia, including the social, employment and economic benefits being delivered by those policies in rural and regional Australia; and

 f

risks to Australia from climate change impacts, such as those relating to Australia’s environment, biodiversity, health, infrastructure, agriculture, investment, economy or national security.

 2

(2) A statement under subsection (1) is to be known as an annual climate change statement.

 3

The Minister must cause a copy of an annual climate change statement to be tabled in each House of the Parliament within 5 sitting days of that House after the completion of the preparation of the statement.
4 Advisory functions of the Climate Change Authority etc.
13 Simplified outline of this Part

• The Climate Change Authority is to give the Minister advice that relates to the preparation of an annual climate change statement.

• The Climate Change Authority is to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution.

• The Environment Minister is to give the Minister, the Climate Change Secretary and the Climate Change Authority certain emissions estimates.
14 Climate Change Authority to give the Minister advice that relates to the preparation of an annual climate change statement 1

The Climate Change Authority must give the Minister advice that relates to the preparation of an annual climate change statement.

 1A

Advice given to the Minister under subsection (1) must include advice about:

 a

(a) whether safeguard emissions and net safeguard emissions for the financial year to which the annual climate change statement relates are declining consistently with each of the safeguard outcomes in paragraphs 3(2)(b), (c) and (d) of the National Greenhouse and Energy Reporting Act 2007, taking into account:

 i

the impact of any expanded designated large facilities, or new designated large facilities, for the financial year; and

 ii

the impact of any expected expanded designated large facilities, or expected new designated large facilities, for future financial years; and

 iii

any emissions estimates that are given to the Climate Change Authority under section 15A of this Act; and

 b

if safeguard emissions, or net safeguard emissions, for the financial year are not so declining—whether any amendments to the safeguard rules are needed in order to achieve each of those safeguard outcomes.

 2

If a period is:

 a

specified in an agreement between the Minister and the Climate Change Authority; and

 b

designated by the agreement as the advice period for a particular annual climate change statement;

advice under subsection (1) that relates to the preparation of the annual climate change statement must be given within the advice period designated by the agreement.

 3

In considering advice to be given to the Minister under subsection (1) in relation to the first annual climate change statement, the Climate Change Authority may make provision for public consultation.

 3A

In considering advice to be given to the Minister under subsection (1) in relation to:

 a

the second annual climate change statement; or

 b

a subsequent annual climate change statement;

the Climate Change Authority must make provision for public consultation.

 4

If the Climate Change Authority gives the Minister advice under subsection (1) that relates to the preparation of a particular annual climate change statement, the Minister must have regard to that advice in preparing that statement.

 5

Subsection (4) does not prevent the Minister from having regard to other advice.

 6

If the Climate Change Authority gives the Minister written advice under subsection (1), the Climate Change Authority must:

 a

publish a copy of that advice on its website no later than the day the annual climate change statement to which the advice relates is tabled in a House of the Parliament in accordance with subsection 12(3); and

 b

cause a copy of that advice to be tabled in each House of the Parliament:

 i

within 15 sitting days of that House after giving the advice to the Minister; and

 ii

no later than the day the annual climate change statement to which the advice relates is tabled in that House in accordance with subsection 12(3).

 7

If:

 a

the Climate Change Authority gives the Minister written advice under subsection (1) that relates to the preparation of a particular annual climate change statement; and

 b

the Minister decides not to accept one or more material aspects of that advice;

then:

 c

the Minister must prepare a written statement of reasons for the decision not to accept those aspects of that advice; and

 d

the Minister must cause a copy of the statement of reasons to be tabled in each House of the Parliament within 5 sitting days of that House after the completion of the preparation of the annual climate change statement.
15 Climate Change Authority to advise the Minister on greenhouse gas emissions reduction targets to be included in a new or adjusted nationally determined contribution 1

The Climate Change Authority must, if requested to do so by the Minister, advise the Minister on either or both of the following matters:

 a

the greenhouse gas emissions reduction targets that the Climate Change Authority considers should be included in a new nationally determined contribution to be communicated by Australia in accordance with Article 4 of the Paris Agreement;

 b

the greenhouse gas emissions reduction targets that the Climate Change Authority considers should be included in Australia’s nationally determined contribution as the result of an adjustment to be made in accordance with paragraph 11 of Article 4 of the Paris Agreement.

 1A

The advice given under subsection (1) must include advice on:

 a

the social, employment and economic benefits of any new or adjusted greenhouse gas emissions reduction targets and associated policies, including for rural and regional Australia; and

 b

the physical impacts of climate change on Australia, including on rural and regional Australia.

 2

The Minister must request advice under subsection (1) on the matter mentioned in paragraph (1)(a) at least once every 5 years.

 2A

The Commonwealth must only communicate a new nationally determined contribution in accordance with Article 4 of the Paris Agreement that first includes a greenhouse gas emissions reduction target for 2035, 2040 or 2045 if:

 a

the Climate Change Authority has given advice under subsection (1) on the target; or

 b

the Minister, after consultation with the Climate Change Authority, is satisfied that the new nationally determined contribution needs to be communicated urgently to further the matters set out in Article 2 of the Paris Agreement.

Note: This requirement does not apply to adjustments of nationally determined contributions. Such adjustments must represent an enhancement of Australia’s level of ambition under subsection 10(6) and advice on such adjustments may be requested under paragraph 15(1)(b).

 3

In considering advice to be given to the Minister under subsection (1), the Climate Change Authority must make provision for public consultation.

 3A

The advice given under subsection (1) must include an explanation of how the greenhouse gas emissions reductions targets have taken into account the matters set out in Article 2 of the Paris Agreement, including the global goals of:

 a

holding the increase in the global average temperature to well below 2°C above pre-industrial levels; and

 b

pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.

 4

In considering:

 a

the greenhouse gas emissions reduction targets that should be included in a new nationally determined contribution to be communicated by Australia in accordance with Article 4 of the Paris Agreement; or

 b

the greenhouse gas emissions reduction targets that should be included in Australia’s nationally determined contribution as the result of an adjustment to be made in accordance with paragraph 11 of Article 4 of the Paris Agreement;

the Minister must have regard to any relevant advice given by the Climate Change Authority under subsection (1).

 5

Subsection (4) does not prevent the Minister from having regard to other advice.

 6

If the Climate Change Authority gives the Minister written advice under subsection (1), the Climate Change Authority must publish a copy of that advice on its website.

 7

If the Climate Change Authority gives the Minister written advice under subsection (1):

 a

the Minister must, within 6 months after that advice was given, prepare a written statement setting out:

 i

the Minister’s response to that advice; and

 ii

if the Minister has decided not to accept that advice—the reasons for the decision not to accept that advice; and

 b

the Minister must cause a copy of the statement to be tabled in each House of the Parliament within 15 sitting days of that House after the preparation of the statement.
15A Environment Minister to give Minister, Climate Change Secretary and Climate Change Authority certain emissions estimates

If, in a financial year:

 a

(a) the Environment Minister approves, under the Environment Protection and Biodiversity Conservation Act 1999, the taking of an action for the purposes of a controlling provision (within the meaning of that Act); and

 b

the Environment Minister is satisfied that the action is likely to result in:

 i

an increase, in the financial year or future financial years, of scope 1 emissions of greenhouse gases from the operation of a designated large facility for the financial year; or

 ii

a new designated large facility for the financial year or a future financial year; and

 c

the Environment Minister has been given an estimate of the scope 1 emissions of greenhouse gases from the taking of the action in one or more financial years for which an entity covered by subparagraph (b)(i) or (ii) is, or is likely to be, a designated large facility;

the Environment Minister must give the estimate to the Minister, the Climate Change Secretary and the Climate Change Authority as soon as practicable after approving the taking of the action.
4A Capacity Investment Scheme
15B Simplified outline of this Part

The Capacity Investment Scheme Program must be implemented to achieve at least 23 gigawatts of renewable generation capacity and at least 9 gigawatts of clean dispatchable capacity.
15C Administration of the Capacity Investment Scheme Program 1

(1) If, at the commencement of this subsection, the Capacity Investment Scheme Program is prescribed by legislative instrument under subsection 33(1) of the Industry Research and Development Act 1986, then:

 a

the Commonwealth must make, vary or administer arrangements in relation to the carrying out of activities by one or more persons under the Capacity Investment Scheme Program; and

 b

those arrangements must result in, by the end of 2030:

 i

at least 23 gigawatts of renewable generation capacity; and

 ii

at least 9 gigawatts of clean dispatchable capacity.

Note: The arrangements referred to in this subsection may include arrangements made, varied or administered before the commencement of this subsection.

 2

If advice of the Climate Change Authority under subsection 14(1) indicates a material risk to the achievement of subsection (1), the Minister’s Annual Climate Change Statement under section 12 must provide a response to that advice.
15D Amendment of the Capacity Investment Scheme Program 1

(1) An instrument made under subsection 33(1) of the Industry Research and Development Act 1986 (the amending instrument), that varies or revokes another instrument made under that subsection that prescribes the Capacity Investment Scheme Program, does not come into effect until the amending instrument has been approved by a resolution of each House of the Parliament.

 2

(2) To avoid doubt, subsection (1) does not apply to an instrument made under subsection 33(1) of the Industry Research and Development Act 1986 that varies or revokes another instrument made under that subsection if that other instrument does not prescribe the Capacity Investment Scheme Program.
5 Periodic reviews of the operation of this Act
16 Simplified outline of this Part

• There are to be periodic reviews of the operation of this Act.
17 Periodic reviews of the operation of this Act 1

The Minister must cause independent reviews to be conducted of the operation of this Act.

Public consultation

 2

A review under subsection (1) must make provision for public consultation.

Report

 3

The person or persons who conduct the review must give the Minister a written report of the review.

 4

The Minister must cause copies of a report under subsection (3) to be tabled in each House of the Parliament within 15 sitting days of that House after the review is completed.

First review

 5

The first review under subsection (1) must be completed within 5 years after the commencement of this section.

Subsequent reviews

 6

Each subsequent review under subsection (1) must be completed within 10 years after the completion of the previous review.

When review is completed

 7

For the purposes of subsections (4), (5) and (6), a review is completed when the report of the review is given to the Minister under subsection (3).

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key— E ndnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history— E ndnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under Legislation Act 2003.section 15V of the

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key
ad = added or inserted o = order(s)
am = amended Ord = Ordinance
amdt = amendment orig = original
c = clause(s) par = paragraph(s)/subparagraph(s)
C[x] = Compilation No. x /sub-subparagraph(s)
Ch = Chapter(s) pres = present
def = definition(s) prev = previous
Dict = Dictionary (prev…) = previously
disallowed = disallowed by Parliament Pt = Part(s)
Div = Division(s) r = regulation(s)/rule(s)
ed = editorial change reloc = relocated
exp = expires/expired or ceases/ceased to have renum = renumbered
effect rep = repealed
F = Federal Register of Legislation rs = repealed and substituted
gaz = gazette s = section(s)/subsection(s)
LA = Legislation Act 2003 Sch = Schedule(s)
LIA = Legislative Instruments Act 2003 Sdiv = Subdivision(s)
(md) = misdescribed amendment can be given SLI = Select Legislative Instrument
effect SR = Statutory Rules
(md not incorp) = misdescribed amendment Sub-Ch = Sub-Chapter(s)
cannot be given effect SubPt = Subpart(s)
mod = modified/modification underlining = whole or part not
No. = Number(s) commenced or to be commenced

Endnote 3—Legislation history
Act Number and year Assent Commencement Application, saving and transitional provisions
Climate Change Act 2022 37, 2022 13 Sept 2022 14 Sept 2022 (s 2(1) item 1)
Safeguard Mechanism (Crediting) Amendment Act 2023 14, 2023 11 Apr 2023 Sch 1 (items 66A–66F, 67): 12 Apr 2023 (s 2(1) item 2) Sch 1 (item 67)
Electricity Infrastructure Legislation Amendment Act 2025 13, 2025 20 Feb, 2025 Sch 2: 20 Feb 2025 (s 2(1) item 1) —

Endnote 4—Amendment history
Provision affected How affected
Part 1
s 5 am No 14, 2023
Part 3
s 12 am No 14, 2023
Part 4
Part 4 heading am No 14, 2023
s 13 am No 14, 2023
s 14 am No 14, 2023
s 15A ad No 14, 2023
Part 4A
Part 4A ad No 13, 2025
s 15B ad No 13, 2025
s 15C ad No 13, 2025
s 15D ad No 13, 2025