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AAP
AAP
Business
Marion Rae

Firms urge bigger climate ambition: survey

Two-thirds of survey respondents believe Australia's 2030 emissions reduction target is inadequate. (Mick Tsikas/AAP PHOTOS) (AAP)

Missing details in Australia's new climate policy remain a concern for business and industry leaders, with many wanting more ambition from the federal government.

A survey by the Carbon Market Institute has found more than two-thirds (64 per cent) believe the 2030 target is "inadequate", despite new laws requiring a 43 per cent cut in national carbon emissions.

With key climate mechanisms under review, survey respondents shared strong views on what the nuts and bolts should look like under Labor.

A review of carbon credits led by former chief scientist Ian Chubb is due by December, and almost half (48 per cent) are concerned Australia does not have enough carbon credits to meet domestic demand over the next three to five years.

Some 84 per cent want a link to international carbon markets for importing and exporting carbon credits, which has been ruled out by the Labor government.

But business was upbeat about the value of Australian carbon credits, each representing one tonne of emissions.

Most (55.6 per cent) forecast a price of more than $60 by 2030, up from last year's prediction of more than $40.

Most (87 per cent) want specific emission reduction targets for different parts of the economy, to unlock investment and help various industries get to net-zero emissions by 2050.

The next step for the federal government will be a 2035 target, which is required within two years under the Paris Agreement which Australia signed in 2015.

Just over half (52 per cent) wanted a 2035 emissions reduction target in excess of 60 per cent.

That's below the 70-75 per cent many scientists and investors say is more aligned to Australia's "fair share" in helping to limit global warming to 1.5C, the institute's report said.

Almost two-thirds (61 per cent) believe Australia should also set a target for "net-negative" emissions, which means a target beyond net zero where Australia removes more carbon from the atmosphere than it emits.

A so-called safeguard mechanism was set up by the previous coalition government to encourage the biggest emitters to reduce pollution, with emission limits to get tougher over time.

More than half (53 per cent) of business leaders surveyed said the average annual decline rates for emissions under the mechanism should be five per cent or more.

Companies use new methods of operating, switch to cleaner energy sources and buy carbon credits to stay under their emissions limit.

More than 40 per cent of survey respondents said international carbon offsets should be permitted to help them comply.

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