The Australian Government’s fourth annual statement provides an overview of Australia’s climate change progress in 2025. It reports on the Government’s initiatives and programs that are contributing to climate action and setting the foundation to meet ambitious targets over the next decade. The statement sets out emissions data and projections across all sectors of the economy and covers key developments. It illustrates the progress made on the path to net zero and reports progress on climate change and energy initiatives in 2025. 

The statement also includes the Australian Government’s full response to recommendations made by the Climate Change Authority in its 2025 Annual progress report.

2025 was a landmark year for climate action. The Australian Government:

• set an ambitious and achievable 2035 emissions reduction target of 62–70% below 2005 levels
• released the Net Zero Plan, supported by six sectoral decarbonisation plans
• released the National Climate Risk Assessment and National Adaptation Plan.

The statement reflects on signs of progress towards targets:

• renewables now make up over 40% of Australia’s two largest electricity grids
• the Capacity Investment Scheme is on track to deliver an additional 40 GW of renewable energy capacity this decade
• over 135,000 batteries have been installed across Australia under the Cheaper Home Batteries Program since it commenced in July 2025
• electric vehicles are becoming an increasingly popular choice for consumers. The New Vehicle Efficiency Standard commenced in July 2025
• following the first year of the reformed Safeguard Mechanism, emissions from Australia’s largest emitting facilities are decreasing.