On Good Authority
25 March 2026
Hi there
Welcome to this fortnight’s On Good Authority. This edition, we take a closer look at a call from our Chair Matt Kean for superannuation funds to seize the rapidly expanding opportunities of the clean energy transition. In other news, the UK’s Climate Change Committee has found that the benefits of the net zero transition far outweigh the costs. And agricultural waste has successfully been trialled in India as a low emissions feedstock for steel.
The Select Committee on Information Integrity on Climate Change and Energy has released its report ‘The Integrity Gap: Restoring Trust in the Climate and Energy Debate’. Among the 21 recommendations is a call for the Australian Government to support and adopt the United Nations Global Principles on Information Integrity and work to coordinate the application of these principles across government.
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Authority news
The Authority released 3 papers this past fortnight:
Read our proposed COP Presidency initiative on decarbonisation deals to align government, industry and finance on faster emissions cuts in hard-to-abate sectors.
Have your say on a tool the Authority is developing to inform its advice on how Australia is tracking toward a prosperous, resilient, net zero future. The Evidence Platform Issues Paper is open to public submissions until 30 April 2026. You can find further information on our consultation hub.
See what we heard from our public consultation on the Australian Carbon Credit Unit (ACCU) Scheme. Read more in the listening report.
Our Chair, the Hon Matt Kean has been talking to horticulturalists, investors and European royals over the past fortnight:
10 March – a keynote speech at the AIPH Horticultural Industry Conference highlighted the urgent climate risks facing horticulture, as well as the opportunities the sector has to thrive in a low‑carbon economy.
12 March – panel moderation at the Australian Renewables Fuels Summit. The panel explored how sustainable liquid fuels, particularly sustainable aviation fuel, will be essential for sectors like aviation where alternatives to liquid fuels are limited.
17 March – a keynote speech at the Australian Council of Superannuation Investors Conference, Sydney, urged super funds to prepare for climate risks and seize clean‑energy investment opportunities to support Australia’s net‑zero future.
18 March – a speech at the Danish Royal Visit Renewable Energy Seminar, Melbourne outlined Australia's rapid progress in renewables and the need to accelerate clean‑energy investment as climate pressures grow.
19 March – an opening address at the Energy Network 26 conference, Adelaide focused on Australia’s rapid shift to home batteries and electrification, stressing the need for flexible regulation and smarter energy systems.
20 March – a speech at the Catastrophe and Reinsurance Symposium 2026 (CARS 2026) emphasised the importance of public climate science in helping Australia prepare for escalating extreme weather and future risks.
More speeches and opinion pieces can be read on our website.
We’re hiring! Applications are open for roles in our Analysis Branch and our Systems and Science Branch. For more information, visit the Employment page on our website.
Fast fact
11%
The proportion of emissions the worldwide steel sector is responsible for.
Source: steelwatch.org
News in brief
Australia’s green steel opportunity widens
A near-term supply gap for green steel to 2030 gives Australia a window to launch green iron exports, according to analysis by Institute for Energy Economics and Financial. It suggests the export markets could be worth AUD2.8 billion a year with Japan and Korea as the main demand sources.
This analysis comes after a joint Indian and Australian trial successfully demonstrated a viable approach to cut emissions from steelmaking by partially replacing coal with agricultural waste.
Net zero cheaper than staying with fossil fuels
Benefits of the UK’s net zero transition outweigh the costs, with every GBP1 spent leading to GBP2 to 4 in advantages. The UK Climate Change Committee’s analysis of the country’s Seventh Carbon Budget finds that a single fossil fuel price shock on the scale of 2022 energy crisis would match the added cost of achieving net zero through 2050. The biggest benefit is avoiding climate damages, valued at GBP40–130 billion in 2050. The value of energy losses is expected to halve, falling from GBP60 billion today to GBP30 billion a year in a net zero system. The Committee also identifies substantial health and wellbeing gains, including cleaner air, warmer homes and more active travel.
Australia’s green steel opportunity widens
A near-term supply gap for green steel to 2030 gives Australia a window to launch green iron exports, according to analysis by Institute for Energy Economics and Financial. It suggests the export markets could be worth AUD2.8 billion a year with Japan and Korea as the main demand sources.
This analysis comes after a joint Indian and Australian trial successfully demonstrated a viable approach to cut emissions from steelmaking by partially replacing coal with agricultural waste.
Escalating heat reshaping daily life
New research shows that intensifying heat is reducing liveability and driving more dangerous climate extremes. One global study finds that rising heat and humidity are sharply cutting the number of hours people, especially older adults, can safely spend outdoors. Since the mid-20th century, the number of hours with dangerously hot conditions has risen by 50% or more. At the same time, recent research shows that heatwaves are increasingly triggering compound drought-heat events, with the land area affected by these events more than doubling the since the early 2000s. These findings show how accelerating and cascading climate risks need coordinated adaptation and resilience planning.
Energy price shocks spotlight energy system resilience
Recent oil and gas price spikes, linked to conflict in the Middle East, highlight the risks of reliance on imported fossil fuels, UN News reports. Speaking in Brussels, Simon Stiell, Executive Secretary of the UN Framework Convention on Climate Change said volatile energy prices affect households, businesses and national economies, while renewable energy offers more stable supply conditions. The growing overlap of energy security, affordability and emissions trajectories are likely to shape future climate and energy policy debates in Australia. They underscore the importance of clear pathways to reduce emissions while supporting secure, reliable and affordable energy systems in Australia.
Fuel supply disruption sharpens EV interest
Fuel supply disruption linked to tensions involving Iran is prompting more Australians to reconsider electric vehicles, according to a new survey. The research finds 25% of drivers are now considering an EV for their next purchase, up from 7% before the disruption. Concern about petrol prices and fuel availability were the main reasons. This potential shift could affect future vehicle demand and emissions trends, highlighting the way price volatility of fossil fuels can impact technology shifts.
SA less likely to be cooking with gas
Nearly a third of consumers in South Australia have said they will stop using gas in the next 10 years. The Australian Energy Consumers report estimates a 64% rise in gas costs for a typical South Australian household by 2036.
In our 2035 Targets advice, the Authority identified that switching from gas to electric appliances should be a priority for reducing emissions in the built environment sector.
Electricity bills burden could ease
Households across NSW, SA and parts of Queensland could have cheaper electricity as result of the Australian Energy Regulator’s Default Market Offer. The draft decision, which covers the 2026-27 financial year, acts as a reference price to help people compare electricity market offers. If adopted, the Offer’s annual prices for residential customers would fall by between 1.3% and 10.1%, while small business prices would drop by between 7.6% and 21.2%, depending on the region. Victoria’s Essential Services Commission earlier this month issued a draft default offer also projecting possible price falls of between 3% and 5%.
Kean insight
‘The present turmoil on commodity markets because of the Middle East war highlights the folly of seeking to shore up energy security by investing more into fossil fuels. It makes the imperative to accelerate the decarbonisation of the economy clear. Sunlight can’t get stranded in the Strait of Hormuz.’
Source: Super funds urged to seize transition opportunities | Climate Change Authority
Our feature this week
Super funds urged to lead Australia’s net zero transition
Speaking at the Australian Council of Superannuation Investors 2026 Conference, Authority Chair Matt Kean highlighted both the scale of the investment challenge and the potential for super funds to shape Australia’s economic future.
The speech emphasised that superannuation investors—who collectively manage around AUD4.5 trillion—face complex decisions about how to maximise returns during turbulent global conditions while preparing members for retirement decades into the future. Kean warned that if Australia is to reach net zero by 2050, investment strategies must reflect that future economy, not the carbon intensive one being left behind.
Modelling shows that Australia will require roughly half a trillion dollars to retool the economy within the next 2 decades. A disorderly or delayed transition risks higher costs, job uncertainty, and a wave of stranded assets—outcomes that would impact returns for millions of fund members.
Recent guidance from the Australian Prudential Regulation Authority outlined how climate change represents a material financial risk to superannuation portfolios. Kean stressed that boards and trustees must factor in these risks—as well as opportunities—into their investment frameworks to stay aligned with member interests and long-term performance.
Despite challenges, the message was ultimately one of optimism. With global shifts reshaping energy, infrastructure, minerals, and manufacturing, Kean argued that Australian super funds are positioned to become powerful enablers of climate solutions—if they act with ambition and clarity. The alternative, he warned, is allowing hesitation to overshadow the economic potential of leading the net zero transition.
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The Authority recognises the First Nations people of this land and their ongoing connection to culture and country. We acknowledge First Nations people as the Traditional Owners, Custodians and Lore Keepers of the world's oldest living cultures, and pay our respects to their Elders—past and present.
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