AGL accepts the science on climate change and supports comprehensive policy action to support Australia’s commitments under the Paris Agreement, including the commitments to reach net zero emissions by 2050, to ensure the increase in global average temperature is held to well below 2 degrees and importantly to pursue all efforts to limit temperature increase to 1.5 degrees.

AGL advocates for a responsible transition that balances energy reliability and affordability with the need to decarbonise. We will take action to deliver, and speak up for, a responsible transition. Our advocacy positions and submissions to consultations are published and available on our website.
We recognise that meeting the objectives of the Paris Agreement will require significant policy action from governments and collaboration between the private and public sectors. In our policy engagement we advocate for greater action from governments to commit to progressive decarbonisation of the energy sector and policies that are consistent with the objectives of the Paris Agreement.

As a large energy company, our highest priority is finding an economic pathway to transition our energy portfolio and connect our customers to a sustainable future. However, we also support emissions reductions and policies for other sectors across the economy, and consideration of how abatement in all sectors will contribute to overall economy-wide targets.

The decarbonisation of the electricity sector is a critical step to unlock decarbonisation in other industries. We have a responsibility to achieve this transition via a least cost pathway as these costs will ultimately be passed on to customers who are already facing significant cost of living pressures and commercial and industrial businesses customers are facing high energy input costs that threaten competition at this early stage of the transition.

AGL advocates for policy certainty and reducing investment risks to create a positive investment environment. The government has an important role to play in setting a clear long-term vision, supported by detail underpinning how transitional challenges from the journey to net zero will be identified and overcome. It's important that government policy is coordinated across federal, state and local governments to ensure consistency in objectives and outcomes.

Maintaining market competition and appropriate economic signals is imperative to ensuring ongoing efficient investment in the energy transition. Market competition promotes innovation, efficiency, and cost-effectiveness, ultimately benefiting energy consumers through lower energy bills and enhanced product offerings. Appropriate market signals must be preserved to support the efficient operation of markets as this indicates where investment is most needed. Several non-market barriers need to be
addressed concurrently, including planning approvals, connection processes, and supply chain constraints including workforce availability affecting the construction of new projects and social license issues.

Social licence concerns in regional areas where future renewable energy assets and transmission lines will need to be located present a significant risk to the energy transition. AGL considers that along with project developers, there is a role for government in the national coordination of the rollout of generation and transmission assets, the building of community awareness of the need for these assets, the building of trust in industry and engagement with communities, so communities are part of the process, feel heard and are set to benefit.

For the electricity and gas sectors, given that energy is an essential service, there needs to be a focus on outcomes that deliver equity - the ability for all Australians to participate in and benefit from the energy transition.

AGL’s vision for reconciliation is a unified and inclusive Australia where Aboriginal and Torres Strait Islander peoples are respected and have equal voice, rights and opportunities for prosperity. We are focused on creating pathways to sustainable futures for Aboriginal and Torres Strait Islander peoples by supporting direct and indirect employment and through our investment in the energy transition.
We believe that the transformation of the energy system presents some unique opportunities and benefits for First Nations peoples and businesses, and that government and industry have an important role to play in providing opportunities for First Nations peoples and businesses to participate in renewable energy projects and by looking for opportunities to partner with First Nations peoples and businesses to help develop their coordination and capacity.

Safe closure of large base-load generation requires cooperation from many stakeholders including government, energy system operators and planners along with local government.
In our view, transitioning the workforce at locations of large coal-fired thermal assets will be site-specific and will need to be managed with local coalitions and partnerships. On the personnel side, AGL's approach is to treat people fairly and respectfully, working closely with any impacted employees to explore opportunities for career transition.

Finally, safety will remain AGL’s top priority, and we will focus on the safe and efficient management of our thermal assets through to closure, de-commissioning and site rehabilitation.

AGL supports proposals to strengthen reporting frameworks, including the International Sustainability Standards Board (ISSB) and the Task Force for Climate-Related Financial Disclosures (TCFD). We also support the broad commitment to develop a sustainable finance framework for Australia, to promote the ongoing growth and resilience of the Australian economy and its energy sector into the future.

Achieving the optimised, highest performing, lowest-cost form of our future decarbonised energy grid is going to require fine-tuning of a range of solutions, some in opposition to others. Government programs should therefore be designed with clear goals in mind to incentivise the individual solutions available.

A diverse range of both supply-side and demand-side solutions will be required. Energy efficiency and energy productivity are critical objectives, to ensure that reductions in energy use do not come at the expense of reduced economic productivity or household comfort.

Regular reviews of carbon offset schemes and methodologies are important to ensure they are fit-for-purpose, particularly as expert advice and both domestic and international climate goals change.
As a general principle, we believe that businesses and organisations should adhere to the mitigation hierarchy, seeking to avoid and directly reduce GHG emissions prior to the use of offsetting mechanisms.

Gas may be required for residential, business, and commercial customers while we progress to an electrified economy. AGL recognises the importance of ensuring sufficient gas supply to meet the needs of its customers and for gas-fired generation to support the electricity grid. For many applications, we consider that renewable electricity is likely to provide the most cost-effective pathway to accelerated decarbonisation. However, this will not immediately be the case for all applications, especially for some industrial processes where different decarbonisation pathways may be necessary over the short to medium term. We are supportive of development and deployment of renewable gas alternatives, such as biogas and hydrogen, to help decarbonise hard-to-abate sectors.