Dr Caralee Mclieseh PSM
Auditor-General
Australian National Audit Office
GPO Box 707
CANBERRA ACT 2601

Dear Dr Mcliesh

Request to audit the Capacity Investment Scheme (CIS)

I am writing to request that the Australian National Audit Office (ANAO) consider undertaking a performance audit into the Australian Government's climate change commitments, including the governance, cost, implementation, transparency and measurable progress of those commitments.

The Australian Government has made significant national and international commitments in relation to emissions reduction, energy transformation, net zero, climate adaptation and climate-related public sector reporting. These include legislated emissions reduction targets, commitments under Australia's Nationally Determined Contribution, major expenditure programs across energy and industry, and whole-of-government policy changes intended to support the transition to net zero.

Given the scale of public expenditure, the breadth of agencies involved, and the importance of public confidence in the accuracy and delivery of these commitments, there is a strong
public interest in independent assurance over whether the Government has appropriate systems in place to manage, measure and report on progress.

I respectfully request that the ANAO consider an audit examining whether relevant Australian Government entities are effectively:

• establishing clear implementation plans for climate change commitments;
• identifying the full cost, fiscal risk and delivery risk associated with those commitments;
• coordinating policy delivery across departments, agencies and government business enterprises;
• measuring emissions reductions and other outcomes in a consistent, transparent and evidence-based way;
• reporting progress to Parliament and the public in a way that is accurate, complete and comparable over time;
• managing risks to reliability, affordability and regional provision of energy to Australian communities; and
• ensuring grant, procurement and investment programs linked to climate commitments are achieving value for money.

Such an audit could usefully examine the Department of Climate Change, Energy, the Environment and Water, the Department of Finance, the Treasury, the Department of Industry, Science and Resources, and other relevant entities involved in program delivery or reporting. It may also be appropriate to consider whether existing performance measures provide a clear line of sight between policy announcements, budget allocations, program outputs and actual emissions-reduction outcomes.

In my view, there is a particular need for scrutiny of whether public reporting distinguishes between modelled projections, committed policies, funded programs, delivered projects and
verified emissions reductions. Without clear distinctions between these categories, Parliament and the public may be unable to properly assess whether climate commitments are on track,
whether costs are being controlled, and whether claimed outcomes have actually been achieved.

I also ask that the ANAO consider the adequacy of governance arrangements for climaterelated reporting across the Commonwealth. As climate commitments increasingly affect budget decisions, infrastructure planning, energy markets, procurement, industry policy and regional development, it is important that reporting frameworks are robust, auditable and not overly reliant on assumptions that are not transparent to Parliament.

I would be grateful if the ANAO could consider this matter when developing its future audit work program. I would also welcome advice on whether any existing or planned audit activity is expected to examine the governance, costing, delivery and reporting of Australia's climate change commitments.

Thank you for your consideration.

Yours sincerely,

Garth Hamilton MP
Federal Member for Groom
Shadow Minister for Energy Security and Affordability

1 July 2026