Written by:
Future Group
24 February 2025
Future Group has joined some of Australia’s largest companies in calling for a ‘real zero’ emissions target over net zero policies.
The open letter, published in newspapers around the country, calls on the Prime Minister and Members of Parliament to commit to real zero emissions targets.
The letter was led by Fortescue and supported by Future Group, Canva and some of Australia’s most prominent companies.
The difference between a real zero emissions target and net zero is that net zero relies on carbon offsets and unproven technologies like carbon capture and storage to meet targets.
A real zero emissions target, on the other hand, requires clear timelines for phasing out fossil fuels and achieving zero emissions – without the heavy reliance on offsets.
It is essential that emissions reduction commitments from companies and investors are aligned to climate science if we are to avoid the most catastrophic impacts of climate change.
That’s why Future Group helped to create an open source tool - RealZero Check - which measures financed emissions in equities portfolios against carbon budgets modelled by leading climate scientists.
To the Prime Minister and Members of Parliament,
As Australian business leaders, investors, philanthropists and other eminent community leaders, we are united in our support for 'real zero' emissions targets over 'net zero' policies. The difference is critical: while net zero relies on carbon offsets and unproven future technologies, real zero requires clear and transparent timelines for fossil fuel phase out.
To achieve real zero, Australian businesses need policies that bring down the cost of renewable energy and incentivise decarbonisation. Policies that subsidise and facilitate the expansion of fossil fuels, justified through net zero frameworks, are at odds with science and undermine real emissions reductions.
Real zero means:
Setting a deadline for ending fossil fuel use, rather than relying on offsets.
Rapid reductions in fossil fuel use and absolute greenhouse gas emissions, not delays based on future technology promises.
A managed end to fossil fuel production, including a phase out of subsidies.
We call on the Australian Government to:
Replace weak 'net zero' targets with real zero commitments that mandate clear phase-out timelines for fossil fuel use.
Rapidly phase out fossil fuel subsidies and cease approvals for new coal and gas projects, redirecting support to renewable energy infrastructure and decarbonisation.
Implement policies that enable, rather than slow, rapid industry decarbonisation, including:
Strong incentives for renewable energy adoption
Support for industrial electrification
Investment in grid infrastructure and energy storage
Every dollar spent on fossil fuels today is a dollar diverted from building a lower cost, clean energy future that benefits all Australian businesses, not just fossil fuel companies.
Our international competitors are rapidly decarbonising, and Australian businesses are being left behind. We are ready to invest in real climate solutions, but we need policy settings that support rather than obstruct our progress.
We stand ready to work with government to design and implement these policies in a way that maximises economic opportunities while ensuring a just transition for affected workers and communities. However, this collaboration must be based on real zero principles that address the problem – fossil fuels – not on net zero compromises.
We urge the government to abandon the net zero smokescreen, remove the barriers to decarbonisation, and implement policies that will secure Australia's prosperity.
