Experts call Albanese net-zero claim a 'bald-faced lie' as costs shift to taxpayers

Australian Prime Minister Anthony Albanese's government unveiled a 2035 emissions target of a 62 to 70 per cent reduction, based on advice from the Climate Change Authority chaired by Matt Kean. At the same time, Albanese framed the plan as a path to lower power bills, saying renewables would shave about $1,000 a year from household energy costs. Energy experts, however, branded that claim a "bald-faced lie" and argued the real costs would be borne by taxpayers rather than through electricity bills.

Critics noted that much of the policy's funding would come from taxpayer subsidies and from an array of measures designed to accelerate renewables, along with energy, industry, and transport policies worth billions. Bruce Mountain, an energy price expert with Victoria University's Victoria Energy Policy Centre, told the Daily Telegraph that instead of power bills covering the enormous cost of new renewable generation, transmission, and storage, much of the expense would be carried by taxpayers. He said recovering new energy system costs from taxpayers began with Prime Minister Malcolm Turnbull and the Snowy 2.0 project, and that successive governments have expanded taxpayer subsidies since then.

Frontier Economics managing director Danny Price, who has analysed both Labor and Coalition energy plans, said the government's $1,000 savings claim was dishonest. "I suspect most Australians know it is a bald-faced lie," Price said, arguing that electricity prices would rise or taxes would stay high, or both. MacroBusiness chief economist Leith van Onselen offered a broader critique, saying the transition to renewables would drive up household energy costs. "The phasing out of baseload coal power in favour of intermittent, weather-dependent solar and wind also makes the grid more reliant on expensive gas, battery, and pumped hydro generation, which drives up overall power bills," he said. He added that the hundreds of billions of dollars in investments in renewables transmission would eventually be capitalised into higher energy bills, with households also paying through taxes for renewables subsidies. "There is a massive rent-seeking renewables industry benefiting from taxpayer subsidies and mandates, and households and businesses are bearing these costs," he said. "Growing up, the electricity bill was nothing. It was never an issue. Now it costs an absolute arm and a leg and is getting worse." Van Onselen also argued that Australia’s energy mix is out of step with global trends, noting that China and India still rely on large coal fleets and that Australia could be an energy superpower if prices were lower.

By contrast, the government has leaned on Australian Energy Market Commission modelling, which projects a 13 per cent fall in household electricity prices and about a 20 per cent drop in total energy costs, roughly $1,000 a year, as renewables roll out. The regulator said the declines would begin from 2027, though it cautioned its forecasts cover only costs passed directly through to energy bills, not those funded by taxpayers. Energy Minister Chris Bowen has stopped short of guaranteeing price declines, saying only that renewables are the cheapest form of energy and that the policy's benefits will depend on a range of factors. "Renewables are the cheapest form of energy," he told the ABC's 7.30.

Thursday's 2035 target sparked sharply divided reactions. Environmental groups said Labor should aim higher, while the business sector warned even the lower end of the target range would be challenging. The Liberals dismissed it as "a train wreck," while the Greens accused Labor of bowing to coal and gas interests, demanding a 75 per cent cut. Bowen indicated he will not seek to legislate the target unless the Greens back it.

Observers note the debate reflects a broader shift in Australia’s energy policy, with critics arguing that subsidies and network investments have shifted costs away from the energy bill and onto taxpayers, renters, and higher-income taxpayers through taxes, while supporters say the policy is essential to cut emissions and build a modern economy. The 2035 target, stemming from a package of energy, industry, and transport policies, remains up for negotiation as the Greens weigh their stance and the government tests support in parliament.