Queensland's energy shift: Policy whiplash chills investments

Queensland experienced a dramatic shift in its energy policy landscape following the Liberal National Party's election victory in October 2024. In 2024, the state saw record approvals for solar, wind, and storage projects totaling 3,202 megawatts. However, the new government repealed legislated renewable energy targets and introduced a coal-friendly energy plan, extending the operational life of state-owned coal plants to at least 2046.

This policy change resulted in a significant downturn for renewable energy investments. From 3,202 megawatts in 2024, only 510 megawatts of projects reached financial close in 2025. Experts noted that capital has moved from Queensland to states with more stable policy settings, citing a "sense of chaos and havoc" created by policy shifts, such as projects being "called-in" after prior approval expectations. This instability contrasts with the previous government's accelerated push towards decarbonization by 2035.

The state's commitment to climate targets, crucial for international standing like the Great Barrier Reef's World Heritage status, is now under scrutiny. While the LNP government maintains a net-zero target by 2050 and an official 2035 emissions reduction goal, analyses suggest the new energy roadmap may only achieve a 50% cut by 2035. This departure from previous targets risks leaving Queensland behind in the global race for investment and clean energy skills.