The Economic Perspective 7 November 2025
- Nov 7, 2025
- 3 min read
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Good morning dear readers,
This week’s articles cover a variety of climate related topics, from regulatory updates to production systems. The European Union have amended their European Climate Law this week to establish their 2040 emissions reduction goal of 90%, an intermediary goal for the 2050 Net Zero agenda. Next, Woolworths and Westpac both judge the Australian beef sector’s deforestation risk as low, although some climate groups view this as a weakening of climate ambitions, and a new report shows that current pre-pay power arrangements disproportionately impact First Nations households, recommending a services register to prevent disconnection. Lastly, a discussion of the plastics industry argues that regulatory attention has historically focused on litterbugs rather than the more culpable production systems.
Following the discussion on plastics, I've also attached a figure from the DCCEEW displaying emissions from varying methods of plastic waste processing, showing incineration to be the most emissions-intensive, while mechanical recycling is the least.
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Hope you enjoy the articles and have a great weekend!
2040 climate target: Council agrees its position on a 90% emissions reduction
On Wednesday the EU Council established their intermediary 2040 goal to reduce GHG emissions by 90% (relative to 1990 levels), before reaching Net Zero in 2050. The target was set out in an amendment to the European Climate Law (ECL), along with added scope for flexibility to address industry concerns over competitiveness. Framework elements include administrative streamlining, energy efficiency, renewable energy solutions, investment and innovation, realistic carbon removal methods and protection of natural carbon sinks and biodiversity. Read more here.
Woolworths and Westpac back beef’s sustainability credentials.
Westpac will no longer require formal “no deforestation” commitments from beef, sheep and dairy customers, instead supporting industry-led deforestation efforts, although some organisations like the Australian Conservation Foundation see the policy shift as climate ambition cold-feet just before the deadline of Westpac's previous deforestation commitment. Woolworths has rated Australian beef as low risk in its efforts to eliminate deforestation from its supply chain, following the European Commission’s low-risk rating for Australia. Woolworths will instead be prioritising high risk products: pulp and timber for packaging, palm oil, cocoa, and soy in stock feed. Read more here.
Prepaid electricity consumers sweltering under regular disconnections, report finds
A recent report by Original Power and the First Nations Clean Energy Network has found that extreme heat is a major driver of power disconnection for First Nations households. Over 65,000 First Nations’ people access electricity through prepayment supply arrangements, where meters must be topped up with credit to maintain connection. When credit runs out, disconnection is automatic, resulting in extreme energy insecurity with an average of 1 disconnection per week. When temperatures exceed 40 degrees disconnections more than double. The report was tabled in parliament on Monday, calling on government to develop a services register to mitigate disconnections. Read more here.
How the plastics industry shifted responsibility for recycling onto you, the consumer
Historically, advertisers backed by packaging companies portrayed “litterbugs” as the cause of plastic pollution, rather than packaging design and supply chains – redirecting regulatory attention away from producers and production systems. Furthermore, the article suggests that plastic recycling logos are a sham. Large-scale plastics recycling is neither technically feasible nor economically viable, and recycling rates for Australian flexible plastics remain near zero. Without reforms that cap new plastic output, markets for truly recyclable materials will continue to be flooded with cheap undegradable plastics. Read more here.
Emissions from Plastic Waste Processing
The figure below, taken from the DCCEEW’s 2021-22 Plastic Flows and Fates Study, quantifies the emissions associated with the available end-of-life management options for Australian plastic products. Mechanical recycling had the lowest emissions due to relatively low energy inputs and reuse leading to foregone production of “virgin” plastic polymers.
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