Navigating net zero: the challenges and opportunities for Australian businesses

It’s clear that reaching an 82% renewable grid-mix by 2030 will be a challenge, with estimates that Australia will reach 58% at best by this target date. However, the government seeks to drive forward with this ambitious target, and the Climate Change Authority (CAA) will shortly be establishing a 2035 emissions reduction goal alongside, which will aim to focus attention on the scale of the energy transition required over the next decade. 

 

Outside of controlling emissions being the right thing to do for the planet, it also makes good business sense. Whether this is by avoiding fines from regulators for not meeting renewable energy goals or getting ahead of the competition by adopting a sustainability-first mindset now. It’s time for action – but what’s the first step?

 

For many organisations, the energy that fuels their operations is something of a black box, with limited visibility of where the power comes from. Without the ability to see how much of their supply is sourced renewably, businesses face challenges in understanding and reporting their use of renewables.

 

This situation is changing rapidly. We can look to other countries for an indication how renewable certificates are allocated, retired and tracked to understand how businesses in Australia might be impacted in the future. For example, in the UK, the Large-scale Generation Certificates (LGCs) equivalent is Renewable Energy Guarantee of Origin (REGOs). A number of large UK businesses, along with the Climate Group, have called for urgent reform to ensure more accurate REGO time-matching, price transparency and incentivisation to adopt renewable technologies.

In Australia, The Guarantee of Origin (GO) scheme will have a mechanism to certify renewable electricity, called the Renewable Electricity Guarantee of Origin (REGO). Australia’s Renewable Electricity Guarantee of Origin (REGO) scheme is being developed to provide more detailed, credible tracking of renewable electricity generation and consumption. For large commercial and industrial businesses, this means greater visibility over when and where your renewable power is sourced, offering a clear line of sight from generator to load. Unlike traditional LGCs, REGOs are expected to include time-stamped and locational data, allowing you to align procurement with internal sustainability goals and external reporting requirements like Carbon DIsclosure Project (CDP). As the scheme evolves, early engagement will help businesses embed REGOs into their energy strategies and stay ahead of regulatory and market expectations.

This call for traceability goes hand-in-hand with a need for technology solutions that make reporting easier and provide clarity to end users.  

 

 

There is no doubt that sustainability commitments can be a catalyst for change. However, while these measures are clearly well-intentioned, the growing weight of compliance, reporting obligations and reputational risk has made the path to net zero more complex to navigate. Companies are under pressure to demonstrate measurable progress, yet often lack the resources, clarity or support to deliver on these demands at pace.

 

In some sectors, sustainability reporting requirements can consume time and capital that might otherwise be allocated to on-the-ground decarbonisation initiatives. For others, uncertainty about which frameworks to prioritise – and how best to evidence their efforts – creates fear and hesitancy, slowing down action and creating friction.

 

To maximise the benefits of sustainability objectives, companies should prioritise practical, data-driven strategies that enhance visibility and understanding of their energy supply chains. Embedding this approach into core operations will also be a key enabler of success. Businesses committed to early progress are likely to view reducing their carbon footprint as more than a compliance burden, understanding that it can be a framework for making smarter, more resilient decisions in a changing energy landscape.

Regulations are evolving

Rethinking energy systems for the future