A major business group is urging the winner of the federal election in May to work with the states and industry to help prepare for a faster and more coherent transition to a clean economy.
In its latest series of reports outlining post-election policies, the Australian Industry Group wants to see deeper 2030 goals to ensure zero net emissions are achieved by 2050.
"While there is no one best number, roughly halving emissions by 2030 would put Australia in the mainstream of advanced economies.," Ai Group chief executive Innes Willox says.
He says Australia's former competitive advantage in carbon-intensive energy is gone and while building a new advantage in clean energy is achievable, it demands coherent and efficient action.
"Coal generator closures will accelerate and variable renewables will increasingly dominate supply," Mr Willox said.
"This transition will not be straightforward or easy, but it can and must be managed effectively, avoiding negative impacts on price, security and reliability."
But that transition must also include fair treatment of workers, communities, and supply chains affected by closures so that they can thrive.
He said governments no longer seem confident that the existing electricity market can drive necessary investment, and their interventions further impact purely private activity.
"A new settlement on resource adequacy mechanisms is needed that commands broad consensus and provides greater stability," Mr Willox said.
While natural gas plays vital roles in powering industry and households, Mr Willox warned the price outlook is bleak and emissions objectives will require alternative ways of delivering these energy services.
