Liberal Party Prepares Watershed Energy Vote Amid Net Zero Abandonment Speculation
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The Liberal Party will convene Wednesday for what shadow ministers are describing as a watershed moment in opposition policy development, with expectations mounting that the party will abandon or significantly modify its commitment to net zero emissions by 2050 in favor of prioritizing affordable electricity prices.
Shadow Energy Minister Dan Tehan signaled the shift Friday during interviews at the Liberal Party Federal Council, declining to rule out dropping the net zero target while emphasizing that affordable energy must be the coalition’s number one priority. The Victorian MP said he expected to announce the party’s finalized energy and emissions reduction policy by the Sunday following the Wednesday meeting.
“I’m working through with my colleagues where we need to go and what we need to do,” Tehan told reporters when directly asked if the party would drop net zero. “I look forward to be able to tell you what our policy is hopefully Sunday week.”
The policy announcement, now imminent after six months of internal deliberation, comes as the coalition attempts to capitalize on widespread community anger over electricity price increases that have reached 40 percent under the current Labor government. Opposition Leader Sussan Ley has made attacking Labor’s energy policy central to her political strategy, arguing the government’s approach has devastated manufacturing and left major industrial facilities seeking bailouts.
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Tehan leads a working group established by Ley immediately after the May election defeat, tasked with developing a comprehensive energy policy that could unite the diverse views within the coalition. That assignment has proven extraordinarily complex, with Liberal Party members spanning from those representing coal-dependent regional electorates to MPs in urban seats threatened by climate-focused independent candidates.
The shadow minister described the challenge as “threading a needle” but expressed confidence a policy could be landed that addresses both affordable energy and emissions reduction concerns. However, his emphasis on cheap power as the top priority suggested the balance may tilt away from ambitious climate targets.
“We’ve got to make sure that our number one priority is cheap and affordable energy,” Tehan said, citing his own electorate of Wannon as a microcosm of the national debate. “That has to be our number one priority, otherwise we cannot compete internationally. But they also want to see us doing our bit when it comes to emissions reduction.”
The Wannon electorate includes Portland aluminium smelter, a major industrial facility facing cost pressures from high electricity prices. Tehan has positioned himself as representing the manufacturing and industrial interests that have been squeezed by rising energy costs, while also acknowledging electoral pressure from constituents concerned about climate action.
Ley confirmed Friday that the working group had completed its work and was ready to present findings to the Liberal Party room. She emphasized that the Wednesday meeting would represent a critical moment for demonstrating the party’s focus on supporting Australians struggling with energy costs.
“Every single one of my Liberal Party colleagues walking into our party room on Wednesday will know the disaster that is this Labor government’s energy policy and how Labor’s net zero is failing Australians,” Ley said at a press conference. “40% increase in power prices. Manufacturing across this country being absolutely crushed. Smelters looking for bailouts.”
The opposition leader argued there was no longer genuine Australian manufacturing, only bailouts of important industries. She described Labor’s approach as destructive to households, businesses and the broader economy, positioning the coalition’s alternative as necessary to restore national competitiveness.
Ley outlined two fundamental principles that would underpin any Liberal energy policy: maintaining a stable, reliable grid to provide affordable energy for households and businesses, while also playing Australia’s part internationally in reducing emissions. However, the relative weighting of these priorities and the specific mechanisms for achieving them remain subjects of intense internal debate.
The working group process included consultations with industry representatives, energy retailers, and sector experts across the spectrum. Tehan said Friday he had met with Liberal and National Party working groups, backbench committees, and coalition joint meetings throughout the policy development phase.
“I want to thank all my colleagues because everyone’s been prepared to sit down, to express their views,” Tehan said, describing a constructive meeting held Friday week ago where colleagues presented their positions. “The take out of that meeting was there is so much that unites us on this front.”
However, Tehan’s diplomatic characterization of unity contrasts with visible signs of disagreement within the party room. Some Liberal members have publicly advocated for abandoning net zero entirely, arguing the target is unachievable without devastating economic consequences. Others, particularly those representing urban electorates facing independent challenges, have warned that abandoning climate commitments could prove electorally catastrophic.
The National Party has already announced its own energy policy position, creating pressure on the Liberals to align closely enough to maintain coalition cohesion. Tehan acknowledged the importance of landing a joint position with the Nationals while respecting the distinct processes of each party.
Political observers note the timing of the Wednesday meeting places enormous pressure on Ley’s leadership. A divisive or inconclusive debate could fuel existing concerns about her capacity to unite the party, while a clear decision risks alienating whichever faction feels their position was rejected.
Labor has aggressively defended its energy policy while acknowledging price pressures have created political vulnerability. The government argues its approach balances the transition to renewable energy with grid stability concerns, though opposition attacks on the 40 percent price increase statistic have resonated with voters experiencing financial stress.
Minister for Climate Change and Energy Chris Bowen, who represents the New South Wales seat of McMahon, has yet to respond publicly to the emerging Liberal policy position. However, Labor strategists are preparing to attack any coalition retreat from emissions reduction targets as abdicating Australia’s international responsibilities and abandoning the economic opportunities in clean energy sectors.
The Liberal Party’s energy policy announcement, expected the Sunday following Wednesday’s party room debate, will represent one of the most significant opposition policy declarations of the parliamentary term. The decision on net zero could define the coalition’s electoral positioning and determine whether the Liberal and National parties can present a united alternative to voters increasingly concerned about both energy affordability and climate impacts.
Tehan emphasized Friday that the goal was not merely developing policy for its own sake but creating a platform to effectively challenge the government. “We need to get this policy right, and then all of us make sure we’re doing two things, focusing on highlighting what a bad job this government is doing, but also making sure that we’re doing that important policy development going forward,” he said.
The shadow minister’s comments suggested confidence that despite internal divisions, the Wednesday meeting would produce sufficient consensus to move forward. However, whether that consensus involves abandoning, modifying, or maintaining the net zero commitment remains the critical unanswered question as the Liberal Party approaches what many describe as its most consequential policy debate in years.
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