AFGC statement on emissions reduction target
18 September 2025
The Australian Food and Grocery Council (AFGC) has welcomed the clarity provided by the Federal Government’s latest emissions reduction target announcement.
AFGC CEO Colm Maguire said the Government’s plan sends a strong signal of support for the transformation of Australia’s essential food and grocery manufacturing sector, which employs more than 290,000 Australians and contributes over $170 billion to the economy.
“We welcome the Government’s strengthened emissions reduction target, which provides a clear framework for long-term investment and innovation,” Mr Maguire said. “Our industry is already taking steps to improve energy efficiency, reduce emissions, and build resilience. This target gives us the clarity we need going forward.”
In a major win for the sector, the AFGC also applauds the expansion of the National Reconstruction Fund (NRF) to include an additional $5 billion for industrial decarbonisation and low-emissions manufacturing. An additional $85 million has also been announced to support businesses to understand and improve their energy usage.
“Changes to the National Reconstruction Fund have long been called for by the AFGC and this announcement is a win for Australian manufacturing, regional jobs, and supply chain security. The funding has the potential to help food and grocery manufacturers invest in decarbonisation technologies and advanced manufacturing capabilities sooner to keep us competitive globally.”
The AFGC has long advocated for investment to modernise Australia’s largest manufacturing sector, and today’s announcements are a strong step forward.
As the third-largest industrial energy user in the country, the food and grocery sector faces a unique set of challenges in the energy transition. Around 40% of the sector’s energy use comes from gas, which remains irreplaceable for many high-heat manufacturing processes. While companies are adopting alternatives where possible, the high upfront costs and limited technological options make government support essential.
Scope 3 emissions make up a significant share of the sector’s footprint, and addressing them requires strong value chain collaboration, something the AFGC and our members are committed to. To support this, the AFGC has developed a Scope 3 Emissions Workbook to help businesses measure, understand and reduce their emissions, because what gets measured can be reduced.
“With the right policy settings, our sector can lead the way in low-emissions, high-value manufacturing,” Mr Maguire added. “We look forward to working with the Government to ensure these commitments translate into real outcomes for our members, the environment, and the Australian economy.”
Media Contact:
Ingrid Cruz
media@afgc.org.au
