Ahead of the 2025 election, the Coalition’s climate policy is under scrutiny, raising concerns about a potential rollback of existing climate measures and a lack of concrete alternative emissions reduction plans. Experts warn this could significantly impact Australia's ability to meet its net zero targets, presenting risks for the property sector.
Specifically, the Coalition's proposed changes to renewable energy targets, vehicle emissions standards, and the 2030 emissions reduction target could have ramifications for Australian property professionals. A slower transition to renewable energy could hinder green building initiatives and increase energy costs for properties, especially if the safeguard mechanism, which influences large industrial facility emissions, is weakened. Scrapping fines on car companies who are slow to meet emissions targets will impact the demand for charging infrastructure in residential and commercial properties.
These policy shifts could affect property values and investment decisions, with potential volatility especially in climate-vulnerable regions. Uncertainty also impacts real estate agents marketing less energy efficient properties, and property managers adapting to changing tenant expectations. As ESG factors gain prominence, a perceived lack of climate action could also negatively impact foreign investment in the Australian property market. Critically, both major parties are being criticised for a lack of emphasis on climate policy despite the increasing frequency of environmental emergencies – a worrying signal for the property sector.
