Victoria’s climate action targets

Victoria has set world-leading targets to cut the state’s greenhouse gas emissions and achieve net zero emissions by 2045.

The Government confirmed Victoria’s newest target, for 2035, in May 2023.

Driving real climate action

Victoria's 2035 Emissions Reduction Target (PDF, 3.4 MB): Victoria’s new 2035 target and key emissions reduction policies.

Victoria's 2035 Emissions Reduction Target (DOCX, 463.8 KB): Victoria’s new 2035 target and key emissions reduction policies - accessible version.

Victoria’s climate action targets

 Graph showing Victoria's emissions reduction targets below 2005 levels - 2025: 28-33%; 2030: 45-50%; 2035: 75-80%; net-zero by 2045. The graph shows that we beat our 2020 target of 15-20% below 2005 emissions. Emissions fell by almost 30%

Victoria was one of the first jurisdictions in the world to put a net-zero emissions target in law. The Government brought forward the commitment to achieve net-zero from 2050 to 2045.

Victoria beat its first target - to reduce emissions 15-20% below 2005 levels by 2020 – with a cut of almost 30%.

Building on this success, the Victorian Government has set targets that provide a clear path to net-zero emissions:

  • 28-33% by 2025
  • 45-50% by 2030
  • 75-80% by 2035.

Victoria’s targets are all reductions below 2005 emissions levels.

Note: Victoria’s 2040 target will be set by 2028.

Benefits from climate action

Meeting Victoria’s targets will create new jobs, including in clean energy, land restoration, zero-emissions transport, and the circular economy.

It will also create significant benefits for the community and the environment including cleaner air, lower energy bills, and greater biodiversity.

Meeting Victoria’s climate action targets will benefit the economy. Victoria’s economy will be $63 billion bigger from now to 2070 with our targets and strong global climate action. Strong targets will help attract part of the estimated $US130 trillion of global private finance available for the transition to net zero emissions. The targets will also help Victoria stay competitive as our key trading partners transition to net zero emissions.

The image shows the net-zero transition provides an opportunity for:   New industries: New clean manufacturing and production facilities are already being established in Victoria and Victoria’s ambitious climate targets will help drive further investment. Victoria’s renewable energy target of 95 per cent by 2035 and energy storage target of 6.3 gigawatts by 2035 are estimated to bring forward around $9.5 billion in economic activity and create 59,000 jobs over the period to 2035.  Lower energy costs: Switching from fossil gas to efficient electric appliances will cut energy bills – savings can be more than $1,000 per year if households become all electric – with higher savings from those who also install solar. Requirements for new homes to be more energy efficient can deliver households cost savings from $300 to over $1,000 a year.  Economic benefits for Victoria’s farmers and Traditional Owners: Land restoration, the energy transition and carbon markets provide new economic opportunities and income streams in sectors such as renewable energy, land management and seed supply.  This can diversify revenue streams for Traditional Owners, landowners and farmers, with flow on benefits to regional communities.  Health benefits: Switching from fossil gas to electric cooktops will cut indoor air pollution, helping to reduce respiratory illnesses such as childhood asthma. Reducing emissions from transport and electricity generation will also reduce local air pollution, providing health improvements worth an estimated $5.7 billion between 2035 and 2045.  Protecting our environment: Protecting and increasing vegetation in Victoria will reduce emissions, improve air and water quality, reduce soil erosion, increase biodiversity and strengthen nature-based tourism

Meeting Victoria’s targets

Victoria’s targets are ambitious but achievable, building on trends and actions already underway. Victoria’s emissions have been falling since 2010. We beat the 2020 target and by 2021, Victoria’s emissions had fallen by 32% below 2005 levels.

Key actions the Victorian Government is already taking to cut emissions include:

  • increasing the 2030 Victorian Renewable Energy Target (VRET) to 65% and setting a VRET new target of 95% renewable electricity generation by 2035
  • putting electricity back in the hands of Victorians by bringing back the State Electricity Commission (SEC)
  • setting the biggest energy storage targets in Australia
  • setting a target for 50% of new light vehicle sales to be zero emissions vehicles – powered by electricity, hydrogen and other clean new fuels – by 2030
  • working towards the world’s first carbon-neutral pasture-based dairy farm.

The Victorian Government will continue to work with communities and businesses to build on these actions and meet the state’s climate action targets. Victoria’s Climate Change Act 2017 sets a framework to keep developing new policies to meet the targets, called sector pledges. The next set of pledges, for 2026-2030, are due in 2025.

Victoria’s climate action targets can be met with known technologies and solutions – and there is more than one way to get there. By 2035, all sectors of Victoria’s economy will be on their way to net zero emissions.

Illustrative pathway and key changes from today to Victoria’s 2035 target

Diagram showing illustrative emissions reductions across the Victorian economy from today to achieve the 2035 target. For 2035, the diagram shows fewer emissions released into the atmosphere than in 2023, particularly from electricity generation, and greater emissions absorbed by trees and vegetation in our landscapes.

Want to know more?

Determination of Victoria’s 2035 target was informed by the following:

Victoria’s 2035 Emissions Reduction Target: Supporting Analysis (PDF, 938.9 KB): a summary of the modelling exercises informing Victoria’s 2035 emissions reduction target

Victoria’s 2035 Emissions Reduction Target: Supporting Analysis (DOCX, 552.1 KB): a summary of the modelling exercises informing Victoria’s 2035 emissions reduction target - accessible version

Victoria’s 2035 climate action target (PDF, 5.5 MB): driving growth and prosperity: advice from the independent expert panel on Victoria’s 2035 target

Victorian emissions budgets (PDF, 1.5 MB): independent analysis related to Victoria’s contribution to global efforts to minimise global temperature rise

Victoria’s Climate Science Report 2019 (PDF, 6.7 MB): understanding the current and potential future impacts of climate change on Victoria

Victoria’s greenhouse gas emissions (PDF, 2.7 MB): understanding Victoria’s contribution to climate change

Determination of the interim greenhouse gas emissions reduction target—2035 (PDF, 308.8 KB): formal determination under the Climate Change Act 2017

Independent expert advice on targets

By law, the Minister for Climate Action must seek independent expert advice to inform the setting of Victoria’s climate action targets.

The expert advice must include:

  • a recommended target
  • indicative pathways to reach net zero emissions
  • potential emissions reduction opportunities to achieve the target.

The experts must consider economic, environmental and social circumstances and impacts, and the latest climate science, national and global climate action, low-emissions technology and progress in reducing Victoria’s emissions.

2035 target independent advice

The Minister for Climate Action appointed an independent expert panel to provide advice on a target for 2035. The members were Martijn Wilder AM (Chair), Emma Herd and Tennant Reed. The Panel delivered its final advice on 1 March 2023.

The Panel recommended a 2035 target of 80% below 2005 levels.

The Panel’s recommended target for 2035 and indicative trajectory to net zero emissions

Graph showing emissions and targets over time.  For the historical period 2005 to 2020: Victoria’s emissions are already trending downwards. For the period 2021 – 2030: targets already set. Victoria’s existing 2030 target of 50% below 2005 levels will require emissions to decline further, and the Panel’s states this will put Victoria on a pathway to achieving the Panel’s recommended 2035 target.  For the period 2031-2035: The Panel’s recommended 2035 target of 80% requires emissions reductions to accelerate during 2031- 35, with the Panel stating this coincides with Victoria transitioning to renewable energy and other opportunities scaling up. For the period 2026 to 2045: graph shows shallower reductions will be needed to reach net zero emissions by 2045. Panel states: continued, sustained emissions reductions will be needed to meet net zero emissions by 2045. The Panel further states that its recommended 2035 target of 80% and indicative trajectory to net zero emissions are consistent with limiting warming to 1.5oC.

The Panel recommended that the Victorian Government focus on the following areas to achieve the 2035 target:

  • a whole-of-economy climate action delivery plane
  • electricity generation
  • transition from gas
  • built environment
  • transport and forestry
  • agriculture.

Read the Panel's advice

Victoria’s 2035 climate action target: driving growth and prosperity (PDF, 5.5 MB)

Supporting information

Public consultation: results from online public consultation on the 2035 target held between 13 April and 5 June 2022.

Terms of reference (PDF, 161.2 KB): the requirements of the Panel’s advice

The Panel also considered the evidence listed above.

Meet the panel

Martijn Wilder AM (Chair)

Martijn Wilder AM

Martijn has deep expertise in law, finance and investment related to climate change and the clean energy sector. Martijn is Founder and CEO of Pollination, a global climate change investment and advisory firm. Before this he was head of the global climate law and finance practice at Baker & McKenzie.

Emma Herd

Emma Herd

Emma has deep expertise in industry, banking, finance, policy and advocacy in the climate change arena. Emma is currently Partner for Climate Change and Sustainability Services at advisory firm EY. She was the former Chief Executive Officer of the Investor Group on Climate Change (IGCC) and non-executive Director of the Carbon Market Institute.

Tennant Reed

Tennant Reed

Tennant has extensive experience across climate and energy policy design, industry and energy sector dynamics, and advocacy and engagement on behalf of industry. Tennant is Director of Climate Change and Energy at Ai Group. He is also co-host of the Let Me Sum Up podcast.

2025 and 2030 target independent advice

An independent expert panel advised the Minister for Climate Action on interim targets for 2025 and 2030. The Panel was chaired by the Hon Greg Combet AM, with members Dr Penny Whetton and Dr Lorraine Stephenson.

The Panel’s final report was tabled in Parliament on 6 June 2019.

Page last updated: 23/05/23