Actions to address climate change risk fall into two broad categories: mitigation and adaptation. Mitigation involves limiting changes to the climate by reducing greenhouse gas emissions. Adaptation involves adjusting systems to anticipate and respond to climate and its effects, both to moderate harm and to exploit beneficial opportunities. The latest synthesis report from the Intergovernmental Panel on Climate Change states that climate resilient development involves both adaptation and mitigation.

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) was formed on 1 July 2022. DCCEEW is the entity leading and delivering the Australian Government’s agenda across climate change, energy, the environment, heritage, and water.

Since May 2022, the Australian Government has made organisational and structural changes reflecting its investment in climate change policy matters. There are many stakeholders across government, industry, and the community that have interests in DCCEEW’s effective management and delivery of this body of work.

This audit provides assurance to Parliament on the effectiveness of DCCEEW’s governance arrangements supporting the implementation of the Australian Government’s climate change commitments, including its arrangements to assess and measure implementation, coordination, risk management, and performance.

Key findings:

• DCCEEW’s governance arrangements to support the implementation of the Australian Government’s climate change commitments are partly effective with some components including national plans, strategies, and frameworks yet to be delivered. DCCEEW reports annually on progress towards targets, however is unable to demonstrate the extent to which specific Australian Government policies and programs have contributed or are expected to contribute towards overall emissions reduction.
• DCCEEW has partly appropriate oversight arrangements and risk management strategies to support the Australian Government’s climate change commitments. DCCEEW established governance arrangements for oversight of its Powering Australia program of work and provides support for other cross-portfolio arrangements in climate- and energy-related work intended to achieve Australia’s climate change commitments.
• DCCEEW has established partly effective coordination and reporting arrangements. Cross-entity coordination arrangements and activities provide information on measures within the Powering Australia program of work, however DCCEEW cannot demonstrate that arrangements are fulfilling their intended role.