Net zero policy splits Coalition

Nov 3, 2025 • 3 min read

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Nationals abandon net zero, leaving Liberals divided and leadership under pressure

The Coalition splits deepen over net zero policy as the Nationals moved to abandon their net zero by 2050 commitment, forcing the Liberal Party to decide whether to follow. Net zero policy splits Coalition has put Opposition Leader Sussan Ley under growing pressure, with Liberal MPs split between keeping the climate target or aligning with the Nationals.

The developments unfolded in Canberra, where 7NEWS political reporter Isabel Mullin explained the fallout. The Nationals’ decision came after months of internal debate, and it contributed to senior Nationals figure Barnaby Joyce announcing he would not recontest his New England seat.

Barnaby Joyce announced he won't recontest New England

The Liberal Party has until January to decide whether it will retain the net zero by 2050 target. That deadline tightens the spotlight on Sussan Ley as internal divisions grow and her personal approval ratings slide. Some senior Liberals argue the party must keep the policy to meet international and treaty obligations, while others push to desert net zero and realign with the Nationals.

Liberal MPs discussing net zero policy options

Several voices inside the coalition are vocal. One MP told reporters they had surveyed their community and found 65 per cent opposed net zero, saying constituents were “suffering right now” and wanted a more pragmatic energy policy. Others warned Australia still needs a credible path to emissions reduction, arguing net zero in some form is necessary.

Barnaby Joyce’s stance was pivotal. The net zero policy was cited as a significant reason behind his decision to step back from the Nationals. Even after the party dumped the policy, Joyce indicated he would assess the process carefully and did not immediately commit to returning, signalling deeper tensions within the Nationals themselves.

Interview asking Barnaby Joyce if he'll stay with the Nationals

Liberal Senator Dave Sharma added to the pressure by suggesting the Liberals should reconsider their long-standing coalition with the Nationals. His comments underline a growing debate within the party about whether the Coalition partnership still serves Liberal electoral and policy interests.

Why this matters

The dispute affects more than party room dynamics. The decision will shape Australia’s climate messaging ahead of the next federal election and influence policy settings for energy investment, industry certainty and international obligations. A split would also complicate opposition coordination and may alter electoral strategies in regional seats.

What comes next

The Liberals have until January to resolve their position, but internal polling and public sentiment will be decisive. Expect more public statements from senior MPs, further media scrutiny, and possibly a deeper review of the Coalition arrangement if tensions remain unresolved.

  • Deadline: Liberals set to decide by January.
  • Key figures: Opposition Leader Sussan Ley, Barnaby Joyce, Senator Dave Sharma.
  • Main split: Keep net zero by 2050 vs abandon and align with Nationals.

Voices from the transcript

“I am very strongly of the view that we need to reject net zero,” one MP said, urging the Liberal Party to follow the Nationals and remain united. Other MPs cautioned Australia still has serious treaty obligations and needs a pragmatic path to emissions reduction.

MP saying they strongly reject net zero

What exactly happened to the Nationals' net zero commitment?

The Nationals formally abandoned their net zero by 2050 policy, prompting fresh infighting within the Coalition and contributing to Barnaby Joyce's decision not to recontest his seat.

Has the Liberal Party decided whether to keep net zero?

The Liberal Party has not yet decided. Party leaders have given themselves until January to make a final decision on whether to retain or abandon the net zero by 2050 target.

Why is Sussan Ley under pressure?

Opposition Leader Sussan Ley faces pressure because the party is split on climate policy and her personal approval ratings have been falling, making the January decision a test of her leadership.

Did Barnaby Joyce leave the Nationals because of net zero?

The net zero policy was a major factor in Barnaby Joyce announcing he would leave the Nationals and not recontest the New England seat, though he has indicated he will assess developments before deciding whether to return.

Could the Coalition split entirely?

Some Liberal figures, including Senator Dave Sharma, have suggested the Liberals should reconsider their coalition partnership. If divisions persist, a formal split or realignment remains possible but would depend on ongoing negotiations and political calculations.

Key takeaways

  • The Nationals dumped their net zero by 2050 policy, increasing Coalition tensions.
  • The Liberal Party must decide by January whether to keep the target.
  • Barnaby Joyce’s decision not to recontest was closely linked to the policy dispute.
  • Senior Liberals are publicly questioning the Coalition partnership.

The information in this article has been adapted from mainstream news sources and video reports published on official channels. Watch the full video here Coalition splits deepen over net zero policy | 7NEWS

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