Clean energy developers must earn social licence to operate: Coalition

During an announcement of its proposed 8-point energy policy in September 2026, the Coalition has said clean energy developers will have to prove local community support for projects and earn social licence in order to operate.

Saying it would introduce the policy within 30 days of being re-elected, compliance to the code would be a mandatory condition for projects seeking financial backing from the Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC).

Though not released in full detail, the policy would actively abolish legislated net zero targets, revoke four offshore wind zones and refocus the Australian Energy Regulator (AER) to solely lowering electricity prices and ensuring supply security for consumers.

It also vowed to eliminate the New Vehicle Efficiency Standards (NVES), remove the Safeguard Mechanism and lift the ban on nuclear.

The Coalition’s policy announcement coincided with United Nation’s 2026 Climate Summit in New York where world leaders gathered to push for faster clean energy transitions and stronger climate action, and Türkiye and Australia were thanked for their efforts in the preparation of COP 31.

It also came four days after a record 80.4% of demand on Australia’s main electricity grid was supplied by solar and wind generation.

Farmers for Climate Action expressed extreme disappointment, challenging the axing of pollution reduction policies was not a way of looking after farmers.

FCA spokesperson Peter Holding said farmers know more pollution means more fires and droughts, more climate change, and higher insurance costs.

“Farmers have no economic interest in weakened pollution reduction targets. Instead, we need policies that work, provide consistency and deliver results. Our recently released Shifting the Burden report highlighted the importance of strengthening the Safeguard Mechanism to reduce industrial pollution and support strong, high integrity carbon markets,” Holding said.

“Farmers need a stable climate and clean air and water to grow the food Australians eat. Continued pollution hurts our farmers and our food supply.”

On the intention to scrap vehicle pollution standards FCA Chief Executive Officer Verity Morgan-Schmidt said more than a fifth of new cars purchased this year are fully electric.

“When you add plug-in hybrid electric cars, more than a third of all cars sold are electric in some form. The FCA’s Energy Sovereignty report demonstrated that electrification makes our regions more resilient and will reduce our vulnerability to volatile international conditions over time,” Morgan-Schmidt said.

“The Coalition needs to explain why they would be denying choice and locking in long term vulnerabilities. Whose interests does this serve?”

Climate Council Chief Executive Officer Amanda McKenzie described the policy as a ‘brain fart’.

“Australians have been flocking to electric vehicles (EVs) and more efficient vehicles since the New Vehicle Efficiency Standards came in. The Coalition wants to force Australians back into the most polluting cars in the world and increase our dependence on foreign oil. This is a recipe for more insecure and costly energy and transport – it makes no sense at all,” McKenzie said.

“The Coalition’s war on renewables is pure ideology. They want every egg in the basket of volatile fossil fuels and a nuclear fantasy. And they want taxpayers to foot the bill,” McKenzie said.

“They want to remove the only thing putting downward pressure on energy prices: renewable power. Australia is the sunniest and one of the windiest countries in the world. To disrupt the transition to renewable power is reckless and self-defeating, squandering the jobs, investment and prosperity that should be ours.”

Advocacy organisation Re-Alliance National Director Andrew Bray said a wrecking ball is easy to swing but keeping the lights on while coal retires takes planning, investment and people willing to host new infrastructure.

“If the Coalition wants to undo the work already progressing, it must explain how that delivers lower bills and reliable power,” Bray said. 

“The way forward is to keep building the power we need and give host communities more influence over how it is done. Fix the problems people are raising. Don’t make them pay for another round of national energy paralysis.”

Think tank Climate Energy Finance Director Tim Buckley said the “moribund joke of an energy policy” would derail considerable progress made on transitioning Australia to clean, cheap, reliable, firmed renewables and destroy the momentum on EV take-up,

“This climate science denialism and fossil fuel lobby capture creates sovereign risk for Australia by massively increasing investor risks,” Buckley said.

“Policy uncertainty, such as dumping net zero, reduces capital investment in our country, with less investment in our energy system in turn reducing new energy supply and raising energy costs for consumers and industry. And all to pander to the vested self-interests in the US administration.”

Independent Member for Kooyong condemned the policy as a reckless attempt to unwind Australia’s clean energy transition.

“The Coalition’s plan is a dumb, dangerous, and desperate climate denial which would make energy more expensive and unreliable,” Ryan said. 

“Australians have embraced clean energy because it works. We’ve spent years investing in rooftop solar, electric vehicles, household batteries, and home electrification because these technologies save money and reduce emissions. The Liberals’ retrograde attempt to appease the Nationals and woo One Nation voters would drag the country backwards.”