Media release
AGL’s climate plan shows green shoots but lacks pace and ambition
The Australasian Centre for Corporate Responsibility (ACCR) is commenting on AGL’s Climate Transition Action Plan (CTAP) which was released today.
- A new Scope 3 target for a 60% reduction by the end of FY35 based on the FY19 baseline, and ceasing operation of Loy Yang Mine by the end of FY35.
- Coal plant closures: Bayswater by 2033 (during FY34) and Loy Yang A by the end of FY35.
- Interim renewables and firming target for FY30 has been increased from 5GW to 6GW (with at least 3GW of grid-scale batteries)
- Commitments to positive advocacy including monitoring industry associations
The CTAP will be put to a shareholder vote at the company’s Annual General Meeting (AGM) on 3 October 2025.
Brynn O’Brien, ACCR’s Executive Director, said:
“AGL’s climate strategy is showing green shoots but overall, it continues to lack the ambition and pace that investors expect from Australia's largest energy generator and greenhouse gas emitter.
“As Australia’s largest electricity generator, AGL should be driving forwards the buildout of bulk renewable power. We have not seen a real increase in ambition in this climate plan - the 2035 target of a modest 12GW remains unchanged, with just an incremental increase of 1GW in the interim target by 2030, which is really just a commitment to build some of it sooner.
“While a range of barriers currently exist to rapid decarbonisation, investors need to see a company which is future-proofed for a faster transition and positioning to seize the full value of the transformation of the energy sector. This means wholeheartedly embracing electrification and consumer energy resources and increasing its targets for renewables.
“While it commendably remains firm on its coal closures, the company still seems wedded to fossil gas for much longer than necessary.
“AGL remains committed to supply fossil gas through its retail business indefinitely - which is incongruous with its net zero commitment.
“AGL has listened to investors on positive policy advocacy and we welcome its commitment to not support any organisations or groups that actively obstruct the energy transition.
“We look forward to seeing AGL using its substantial influence to secure policy settings that deliver solutions to transition barriers in the energy ecosystem.”
Background
2022 CTAP vs 2025 CTAP
| 2022 CTAP | 2025 CTAP | |
|---|---|---|
| Scope 1 & 2 targets | Closure of Bayswater between 2030-2033. Closure of Loy Yang A by the end of FY35. | Closure of Bayswater by the end of 2033 (during FY34). Closure of Loy Yang A by the end of FY35. |
| Scope 3 targets | Net zero ambition by 2050. | To reduce Scope 3 emissions by 60% compared to FY19 levels following the closure of coal-fired power stations. Ceasing operation of Loy Yang Mine by the end of FY35. Net zero ambition by 2050, with ~4Mt of offset for all scopes. No plans for direct emissions reductions of gas retail to 2050. |
| 12 GW renewables and firming target by the end of 2035 | 5 GW by 2030 interim target. 12 GW of new renewable and firming capacity by the end of 2035. Investment up to $20 billion. | 6 GW by 2030 interim target, with at least 3 GW total grid-scale batteries. 12 GW of new renewable and firming capacity by the end of 2035. Approximately $10 billion will be funded on AGL's balance sheet. |
