Australian Food and Grocery Council welcomes decarbonisation target

Industry lobby group Australian Food and Grocery Council (AFGC) has welcomed “the clarity provided” by the federal government’s emissions reduction target announcement on Thursday.

The government released a target – to get between 62 per cent and 70 per cent below 2005 levels by 2035 – as well as a Net Zero Plan, blueprints for six major sectors of the economy to make cuts, and spending measures such as allocating $5 billion of the National Reconstruction Fund’s capital to help industrial companies decarbonise.

“We welcome the Government’s strengthened emissions reduction target, which provides a clear framework for long-term investment and innovation,” said AFGC CEO Colm Maguire.

“Our industry is already taking steps to improve energy efficiency, reduce emissions, and build resilience. This target gives us the clarity we need going forward.”

Maguire added that changes to the NRF “have long been called for by the AFGC” and called the announcement a win for manufacturing, regional jobs, and supply chain security.

“The funding has the potential to help food and grocery manufacturers invest in decarbonisation technologies and advanced manufacturing capabilities sooner to keep us competitive globally.”

According to the AFGC, its sector is the third-largest industrial energy user in Australia, and faces a unique set of challenges in the energy transition.

Around 40 per cent of its energy use is from gas, “which remains irreplaceable for many high-heat manufacturing processes.”

It said that companies are adopting alternatives where possible, but high upfront costs and limited technological options made government support essential.

Picture: credit CARLOS534 (CC BY-SA 4.0)