Chalmers slams net-zero critics as climate policy battle intensifies in Australia

Australia’s climate policy debate intensified on Wednesday when Treasurer Jim Chalmers publicly characterized critics of the net-zero by 2050 target as "cookers and crackpots" during a Brisbane news conference. He directed the sharp words at Opposition Leader Sussan Ley after she delivered a major economic speech calling for Australia to reduce its dependence on government programs and to reform welfare and spending. Chalmers used the moment to frame the net-zero target as a central fiscal and environmental question for the country, arguing that abandoning the 2050 commitment would come with costly consequences for both the economy and the climate.

Chalmers argued that moving away from the 2050 net-zero pledge would jeopardize investment, energy reliability, and long-term competitiveness. He asserted that the Liberal stance on climate policy has become a distraction from prudent budget management and economic stewardship. "The speech that Sussan Ley is giving today is the exact same speech that Joe Hockey gave before the Liberals last came after pensions and Medicare when they were last in office," Chalmers said. "Their party is run by cookers and crackpots and I think they are the real audience of Sussan Ley’s speech today." The remarks were part of a broader exchange that highlighted ongoing tensions between Labor and the Liberal-National opposition as both sides frame climate policy within broader economic narratives.

Opposition finance spokesman James Paterson pushed back, accusing Chalmers of insecurity over leadership ambitions and arguing the comment was not a serious contribution to public policy. "I think it shows that Jim Chalmers is an insecure Treasurer, and it is probably because he’s in a battle with people like [Home Affairs Minister] Tony Burke for succession planning after Anthony Albanese," Paterson told Sky News. He added that Ley’s speech was about prudent fiscal management and budget discipline rather than weak policy, saying that the focus should be on setting rules to rein in government spending.

Ley’s address to the Committee for Economic Development of Australia the day before outlined an economic vision she said would emphasize responsibility rather than dependence on government programs. She argued that Australia must move from a culture of dependency to one of empowerment, warning that a heavyhanded fiscal approach could undermine national capacity and opportunity for future generations. "I will make the case that we must move from a time of dependency to empowerment," Ley said. "By 'dependency,' I mean the growing expectation that government will provide for every need and solve every problem by spending more. This mindset, supercharged in recent years, weakens both our finances and our national character." She framed guardrails around government spending as a means to strengthen the economy, protect services for those truly in need, and ensure opportunity for the next generation rather than mounting debt.

The intra-Coalition tension has been mounting since Liberal Andrew Hastie threatened to resign from the frontbench over the net-zero by 2050 pledge. Ley sought to tamp down the intra-party heat, insisting that the party would not commit to net zero at any cost and that cost concerns must be weighed against the Paris targets. "We will not have net zero at any cost because the cost can be too high," Ley said. "And right now, it looks like the cost is too high when you consider what this government is about to do with its Paris targets. I’ll hold that conversation until they actually make their announcement." The comments underscored broader debates within the Coalition as it undergoes a wide-ranging review of energy policy after a heavy electoral defeat.

With Labor in government, Australia’s climate policy faces a new milestone as the Albanese government prepares to unveil its 2035 emissions reduction target. The government has indicated the target will be submitted for cabinet sign-off, with senior ministers convening in Sydney ahead of a formal announcement. Treasury has modeled an emissions reduction path that sits in a 65 to 75 percent range, a figure aligned with proposals from the Climate Change Authority. Environmental groups have urged a higher target, arguing that Australia should aim for no less than an 80 percent reduction to meet global climate goals. Business groups, however, warn that targets above about 70 percent could threaten export competitiveness and prompt companies to relocate operations offshore.

Under the Paris Agreement, Australia and other signatories are obliged to update their nationally determined contributions every five years and to strengthen them where possible. Nations must submit fresh targets by the end of the month. Australia has legislated a 43 percent emissions reduction from 2005 levels by 2030, with the Paris accord aiming to limit global temperature rise to 1.5 degrees Celsius, and to keep efforts well below 2 degrees. Australia’s climate policy decisions are increasingly intertwined with economic policy, industrial strategy, and international commitments as the government weighs how to balance growth, jobs, and emissions reductions.

The government’s 2035 target and related policies are expected to shape the trajectory of energy investment, grid transformation, and industry competitiveness for years to come. Cabinet sign-off in the coming days will be a crucial step in aligning the country’s environmental ambitions with its economic and political realities. As Australia navigates this pivotal period, observers say the stakes extend beyond climate policy to the broader question of whether the country can sustain a credible, growth-oriented approach to energy transition while meeting its international obligations.