In the most recent Climate Change Performance Index (2025), Australia has dropped two ranks to 52nd place, below countries like Slovakia, India and Vietnam – after scoring low in Renewable Energy and Climate Policy, and very low in Energy Use.

Despite being among the 10 countries with the largest developed coal and gas reserves, and in spite of a global push towards renewable energy, Australia is currently still planning to increase its production of both coal and gas.

Rankings are based on each country’s overall score. This is calculated from the individual scores in four categories, consisting of 14 indicators – including national climate policy, development of energy supply from renewable energy sources, and current level of GHG emissions per capita.

Despite our low ranking, the experts did note that since the election in mid-2022 and instalment of the Albanese government fossil fuel subsidies have declined and been redirected to other industries. However, major fossil fuel subsidies still remain, including the Fuel Tax Credit scheme which subsidies the fuel taxes paid by a range of sectors, including fossil fuel mining.

Despite accounting for over 75% of the world’s greenhouse gas emission, only two of the G20 countries are among the high performers in the CCPI 2025 – the United Kingdom (6th) and India (10th).

* As no country performs well enough in all index categories to achieve an overall very high rating, the first three overall positions remain empty.

In the CSIRO’s State of the Climate Report (2024) it was revealed that Australia’s climate has warmed by an average of 1.51 ±0.23 °C since national records began in 1910.

Some other key stats from the report include:

• Sea surface temperatures have increased by an average of 1.08 °C since 1900.
• The warming has led to an increase in the frequency of extreme heat events over land and in the oceans.
• Oceans around Australia are becoming more acidic, with changes happening faster in recent decades.
• Sea levels are rising around Australia, including more frequent extreme high levels that increase the risk of inundation and damage to coastal infrastructure and communities.
• In the south-west of Australia there has been a decrease of around 16% in April to October rainfall since 1970. Across the same region, May to July rainfall has seen the largest reduction, by around 20% since 1970.
• In the south-east of Australia, there has been a decrease of around 9% in April to October rainfall since 1994.

But it isn’t all bleak news. Over our 20 plus years as a market research company, Square Holes has worked with a number of environmental organisations (government and otherwise) on projects spanning recycling, flood preparation, and streamlining services.

Matthew Scales, Associate Director Engagement and Communications at Green Industries SA says that Australia should be looking to states like SA

“South Australia has long been a leader in sustainability, pioneering waste reduction policies and renewable energy adoption,” says Scales.

“However, to maintain this leadership, businesses must go further—re-evaluating product design, reducing emissions, and embracing circularity in operations. Those that proactively adopt sustainable practices will gain a competitive edge, attracting investment, reducing costs, and future-proofing their operations.”

Matthew argues that traditional models of production are no longer viable, and that businesses need to look to a circular approach.

“The traditional linear model of production and consumption is no longer sustainable. Instead, a circular economy approach—where resources are kept in use for as long as possible, minimising waste and maximising value—is becoming essential,” says Scales.

“For small to medium enterprises (SMEs), embedding sustainability doesn’t have to be complex. It can start with small steps—waste reduction, energy efficiency, or responsible sourcing. As ESG expectations grow globally, South Australian businesses must act now to remain relevant, resilient, and ready for the future economy. The shift to circular and sustainable practices isn’t just an environmental necessity—it’s a business imperative.”

Combined with renewable energy transitions, cultural shifts (encouraging people to consume less and use things longer) and stronger government policies and regulations – a circular economy is a powerful tool in mitigating environmental damage.