- Survey of Australian businesses conducted by ABB’s Energy Industries division indicates technology advancements (68 percent) and AI and automation (51 percent) are key drivers of the energy transition
- Almost all (99 percent) of respondents plan to boost energy transition investment, with 69 percent due to allocate over 10 percent of total capex over the next five years
- Survey reveals strong readiness for the transition, with 57 percent of respondents having an energy management and transition plan in place and 52 percent having a sustainability plan
Australia’s energy transition is gaining momentum, marked by strong commitment for the adoption of technology advancements, growing investment, an expectation to use more renewable energy and collaboration across the energy ecosystem. These findings are drawn from the Asia Pacific Energy Transition Readiness Index 2025, a regional industry research project conducted by ABB’s Energy Industries division.
The research reveals that commitment in Australia for investment in energy transition initiatives is strong, with 99 percent of respondents expecting to increase efforts within the next three years, while 69 percent plan to allocate more than 10 percent of their total capex over the next five years.
The Asia Pacific Energy Transition Readiness Index 2025 surveyed more than 4,000 business leaders responsible for automation, electrification, digitalization, and sustainability strategies across 10 industries and 12 markets, including Australia. Using 20 indicators grouped under Strategy, Technology and Infrastructure, Finance, and Talent, the Australian results highlight the country’s transition acceleration, driven by a supportive policy environment and growing business confidence.
“Australia’s headline is momentum – with bold and diverse investment, a focus on technology and AI adoption, and private-public collaboration,” said Aaron Trueman, Vice President of ABB’s Energy Industries division in Australia. “Efforts to advance the energy transition are evident among industry players through their willingness to invest across multiple transition initiatives. ABB is committed to enabling reliable, affordable and sustainable progress. Now it is time to execute and deliver a brighter, cleaner future for all Australians.”
Technology and automation stand at the heart of Australia’s developing energy ecosystem. 68 percent of respondents rank technological advancements as a top three driver for the country to accelerate its energy transition journey, while 51 percent believe AI and automation will play a significant role in enhancing existing technologies and processes to support energy transformation efforts.
Australia has set a national target to reduce emissions by 62-70 percent by 2035 compared to 2005 levels[1]. This regulatory clarity enables organizations to establish credible pathways toward net-zero goals. Optimism towards renewable energy is also rising, with 73.6 percent of respondents anticipating increased use of renewables within the next five years. This underscores the need for timely action and adaptive measures to support this shift.
Respondents also identified the leading low carbon energy sources or energy vectors in Australia. These are solar PV (58.9 percent), wind (56.8 percent), hydropower (46.7 percent), green hydrogen (41.1 percent) and ammonia (21.5 percent). These findings align with how the policy framework builds efforts to promote renewable energy in the next decade. The Renewable Energy Target scheme is targeting an extra 33,000 gigawatt hours (GWh) of electricity from renewable sources every year from 2020-2030[2].
More than half of respondents (57 percent) have an energy transition plan and a sustainability plan (52 percent) in place. There is also strong confidence in tracking progress, with 83 percent trusting their technology and sustainability data.
A successful transition requires skilled and adaptable talent. 81 percent of respondents in Australia express a strong need for green-skilled professionals, while 49 percent are already actively recruiting talent with sustainability expertise. The competitive job market offers organizations a prime opportunity to lead innovation and drive impactful change in the energy transition.
Collaboration across the industry is also seen as essential – 61.4 percent report active collaboration with vendors, universities and other stakeholders to strengthen their transition capabilities, while 70 percent identify public-private partnerships as one of the top three untapped opportunities.
Conducted between May and June 2025, the study demonstrates Australia’s commitment to the energy transition. Unlocking the full potential of this transformation will require continued investment, renewable adoption, technology innovation, and sustained collaboration to build the skilled workforce and resilient infrastructure necessary for a low-carbon future.
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
ABB’s Automation business automates, electrifies and digitalizes industrial operations that address a wide range of essential needs – from supplying energy, water and materials, to producing goods and transporting them to market. With its ~20,000 employees, leading technology and service expertise, ABB Process Automation helps process, hybrid and maritime industries outrun – leaner and cleaner. go.abb/processautomation
