Media Release
18 September 2025
Low Emission Technology Australia (LETA) welcomes today’s announcement of further investment in carbon capture technologies to help meet the Federal Government’s ambitious 2035 emissions reduction target.
While much of the debate often focuses on how we generate lower-emissions electricity, LETA CEO Mark McCallum says achieving the Government’s updated target will also require deep cuts across the entire economy – including heavy industry and resources, sectors where advanced low-emission technologies are essential.
“Ambition is important, but delivery is critical. Reaching this cut by 2035 will be extremely difficult without accelerating investment in technologies that can address emissions from our hardest-to-abate industries,” Mr McCallum said.
“The Government’s commitment to fund a second round of the Carbon Capture Technologies Program for an additional $52 million is a welcome step in the right direction. Programs like this will need to be extended into the future for Australia to reach its emissions reduction targets.”
“Carbon capture, utilisation and storage, low-carbon hydrogen production, and tackling methane emissions from coal mining are proven pathways that can safeguard jobs, preserve trade competitiveness, and reduce emissions at scale. Without them, the challenge only gets harder.”
Independent analysis by EY-Parthenon, commissioned by LETA, shows a thriving carbon capture and storage industry on Australia’s east coast alone could contribute more than $66 billion to GDP and support 15,000 jobs by 2050.
“Australia provides the energy security and industrial power that underpin economies across Asia. By investing in low-emissions technologies, we can reduce our own emissions, and continue to be a reliable partner for our neighbours while helping them to decarbonise. This not only strengthens regional cooperation but ensures Australia remains at the centre of global supply chains in a low-carbon future.”
Mr McCallum said governments, industry and communities must work together to unlock the investment required and that low emission technologies should be able to access funding programs like the newly announced $5 billion Net Zero Fund within the National Reconstruction Fund.
“These are flagship policies to drive decarbonisation and economic strength. But without opening them up to technologies like carbon capture, low-carbon hydrogen and methane abatement, we will not reach the government’s own 2035 target. These are the delivery tools that must sit alongside renewables if we want ambition to translate into action.”
“Every credible global decarbonisation pathway includes low emissions technologies. Australia has the skills, geology and industrial base to lead, but we need a national strategy that matches ambition with action,” he said.
“By backing low-emission technologies now, Australia can ensure we not only meet our climate goals but do so in a way that strengthens regional economies, protects energy security, and secures future export opportunities.”
LETA has called on the Federal Government to take the lead on developing a national CCUS strategy which would bring together states and territories to unlock Australia’s full carbon storage potential. We look forward to working with the CSIRO on the development of the Carbon Dioxide Removal (CDR) Roadmap.
For more information see LETA’s pre-election statement available here.
ENDS