Australia’s Climate Change Department’s Reporting Methods Ineffective for Carbon Emission Reduction
A recent audit conducted by the Australian National Audit Office (ANAO) has revealed that the reporting methods employed by Australia’s Climate Change Department are not effectively contributing to the reduction of carbon emissions in the country. The audit, which assessed the Department’s governance arrangements, aimed to support the federal Labor government’s plan to combat climate change.
The federal parliament passed two pieces of legislation in September 2022, outlining national goals to reduce greenhouse gas emissions by 43 percent below 2005 levels by 2030 and achieve net zero emissions by 2050. The Department is responsible for managing and coordinating actions, policies, and strategies to facilitate the government’s climate change plan and is required to report progress to the Parliament annually.
However, according to the ANAO report, the Department has failed to deliver the necessary strategies and plans to help the government achieve its emissions reduction targets. While the governance arrangements introduced by the Department were deemed “partly effective,” they did not include national plans, strategies, and frameworks.
The report stated that the Department is unable to demonstrate the extent to which specific Australian government policies and programs have contributed or are expected to contribute to overall emissions reduction. Additionally, the Department has not established oversight arrangements and risk management strategies for the government’s climate change commitments.
The audit report also examined the effectiveness of the Department in managing the government’s Powering Australia program. This ambitious plan aimed to bring cheaper renewable energy to Australian households and businesses by investing billions of dollars in accelerating the transition to renewable energy and decarbonizing industry and transport sectors. The program was also expected to create jobs and reduce energy bills for Australians.
Despite significant government investment, the report found that the Department did not establish an effective strategy to manage the program. There was no consolidated policy and program-level reporting on progress, valuation, and decision-making. The Department also failed to finalize arrangements for managing stakeholder coordination and communication for the Powering Australia program.
To address these issues, the ANAO made five recommendations to help the Department measure the achievements of the government’s climate change commitments. The Department has agreed with all five recommendations and stated that it has already taken steps to implement the necessary reforms.
