The short answer
Repeal Net Zero Bill 2025 [No. 2]: Senator Canavan's proposal to unwind Australia's climate legislation explained
The Repeal Net Zero Bill 2025 [No. 2] is a private senator's bill introduced by Senator Matthew Canavan (Nationals, Queensland) on 4 September 2025. The bill proposes to repeal five pieces of Commonwealth climate legislation — the Climate Change Act 2022, the Future Made in Australia (Guarantee of Origin) Act 2024 and its Charges companion, the Net Zero Economy Authority Act 2024, and the New Vehicle Efficiency Standard Act 2024 — and amend three further Acts to remove emissions-reduction obligations. The bill is before the Senate and has progressed only to the second-reading stage. As a private senator's bill without government support it faces significant procedural hurdles. The explanatory memorandum frames the bill as a response to what Senator Canavan characterises as economic damage from net zero policy, but this characterisation is the sponsor's claim, not an independently established fact.
This is a federal system guide. State constitutions, parliaments and local-government laws can allocate comparable functions differently.
The useful question is not only “what is the rule?” but also “who administers it, which document controls it, and when might it change?” That distinction prevents an accurate general explanation from becoming wrong advice in a particular election, chamber or policy setting.
Evidence review
What the bill proposes
The bill has a single schedule of amendments divided into two parts. Part 1 would repeal five Acts in their entirety: the Climate Change Act 2022 (which legislated Australia's 43 per cent emissions reduction target for 2030 and the net zero by 2050 target), the Future Made in Australia (Guarantee of Origin) Act 2024 and its Charges companion Act (which established a certification scheme for renewable energy and low-emissions products), the Net Zero Economy Authority Act 2024 (which created a statutory authority to coordinate the energy transition), and the New Vehicle Efficiency Standard Act 2024 (which introduced fuel efficiency standards for new vehicles).
Part 2 would amend three further Acts. The Export Finance and Insurance Corporation Act 1991 would be amended to remove provisions related to climate financing. The Future Made in Australia Act 2024 would be stripped of its emissions-reduction and renewable-energy-related functions. The National Greenhouse and Energy Reporting Act 2007 would be amended to remove or modify reporting obligations.
Evidence review
Status and parliamentary pathway
The bill was introduced in the Senate on 4 September 2025 and the second reading was moved the same day. As of July 2026 it remains before the Senate at the second-reading stage. It has not been referred to a committee for inquiry. The bill is Senator Canavan's second attempt at this legislation, as indicated by the '[No. 2]' designation — an earlier version lapsed or was discharged.
Private senators' bills rarely pass without government support. To become law, this bill would need to pass the Senate (where the government holds a majority and has legislated the net zero target as a core policy commitment), pass the House of Representatives, and receive royal assent. No private senator's bill has passed both houses against government opposition in recent parliamentary history.
Evidence review
What the explanatory memorandum claims
The explanatory memorandum asserts that the net zero policy 'is damaging the national economy and inflicting a higher cost of living on Australians', that 'the vast majority of the world does not adhere to Net Zero as a global policy', and that Australia's approach will 'have no effect on the world climate'. It lists adverse effects including 'closure of major industries', 'removal of agricultural land from production', 'reduction of reliable energy', and 'massive increase in power costs'.
These claims are the sponsor's characterisation. The explanatory memorandum does not cite independent modelling, peer-reviewed research, or official economic data to support its assertions. The bill itself contains no savings or transitional provisions to manage the disruption that would follow the wholesale repeal of five Acts and the amendment of three others.
Evidence review
What the bill does not do
The bill does not propose alternative emissions reduction targets or a replacement climate policy framework. It does not address Australia's international commitments under the Paris Agreement, to which Australia remains a signatory. It does not contain any regulatory impact analysis or costings. It does not provide for transitional arrangements for industries, workers, or communities that have made investment or employment decisions on the basis of the legislation it seeks to repeal.
The bill also does not address the constitutional or legal consequences of unwinding legislation that other Commonwealth, state and territory laws may reference or rely upon.
Evidence review
Who would be affected
If enacted, the bill would directly affect: entities regulated under the National Greenhouse and Energy Reporting Act 2007, which would see reporting obligations altered; the Net Zero Economy Authority, which would be abolished; automotive manufacturers and importers subject to the New Vehicle Efficiency Standard; renewable energy and low-emissions product producers using the Guarantee of Origin scheme; and Export Finance Australia, whose lending mandate would be modified. Indirectly, state and territory governments with policies linked to Commonwealth climate legislation, businesses that have invested in emissions-reduction activities, and communities hosting energy transition projects would all face regulatory uncertainty.
Evidence review
Remaining steps
For the bill to progress, it would need a second-reading debate and vote in the Senate. If it passed the second reading, it would proceed to the committee-of-the-whole stage for detailed consideration and potential amendments. It would then require a third reading in the Senate, introduction and passage through the House of Representatives, and royal assent. At any of these stages the bill could be amended, deferred, or negatived. As a private senator's bill opposed by the government, it has not attracted visible cross-party support.
Common questions
Before you rely on the answer
Would this bill end Australia's net zero target if passed?
Yes. The bill would repeal the Climate Change Act 2022, which legislates Australia's net zero by 2050 target and the 43 per cent emissions reduction target for 2030. It would also abolish the Net Zero Economy Authority and unwind several other pieces of climate-related legislation. However, Australia would still be bound by its international commitments under the Paris Agreement unless it formally withdrew.
Is this the first time Senator Canavan has introduced this bill?
No. The '[No. 2]' designation indicates this is a second version. An earlier iteration of the bill was introduced but did not progress, likely lapsing at the end of a parliamentary period or being discharged from the notice paper.
What is the current parliamentary status of this bill?
Very low. Private senators' bills rarely pass without government support. The government has legislated the net zero target and established the Net Zero Economy Authority as core policy commitments. To pass, the bill would need majority support in both the Senate (76 members) and the House of Representatives (151 members), which is not currently apparent on the parliamentary record.
Does the bill propose any climate policy to replace what it repeals?
No. The bill is purely a repeal and amendment bill. It does not establish any replacement emissions reduction targets, climate policy framework, or transitional arrangements.
Source spine
Primary material used for this guide
Review trigger: Review if the bill passes the Senate, is amended, or lapses.
Archive note: Based on bill as introduced. Check current status at aph.gov.au.
Primary links are provided without affiliate or tracking parameters. Confirm that the source still applies to the bill, sitting date, jurisdiction or reporting period before relying on it.