Mathias Cormann, the secretary-general of the Organisation for Economic Co-operation and Development (OECD), has encouraged Australians to consider nuclear power as a viable energy source. He stated that there is nothing inherently partisan about nuclear energy. Cormann also expressed support for the Albanese government's emissions reduction target for 2030, calling it "well on track." He urged the government to establish a responsible and effective target for 2035.

In light of ongoing inflation concerns, Cormann advised the Reserve Bank of Australia to be cautious about making significant cuts to official interest rates. He emphasized the importance of maintaining prudent monetary and fiscal policies in the current global economic climate.

As the Labor government prepares to announce its next internationally binding climate target, discussions are intensifying regarding the ambition of this target. Currently, emissions in Australia have decreased by 28 percent compared to the baseline year of 2005, a figure that has remained relatively stable over the past three years. The existing target aims for a 43 percent reduction by 2030.

Cormann, a former finance minister and Western Australia senator, refrained from commenting on the internal challenges facing the Liberal Party. However, he urged the Coalition to adhere to its international climate commitments, including the Paris Agreement established under former Prime Minister Tony Abbott. "Australia signed on to that commitment back in 2016. We're part of a global effort to tackle climate change," Cormann stated during an interview.

He highlighted the need for public policy decisions that balance climate objectives with economic opportunities. On the topic of nuclear power, which was a key policy for Peter Dutton during the recent election, Cormann remarked that the discussion around nuclear energy is ongoing. "There's no doubt it will remain part of the conversation as it has been internationally over the last several years," he said.

Cormann noted that the debate surrounding nuclear energy is not closed and that various governments worldwide, regardless of their political affiliations, are increasing their nuclear capacity. He stressed the importance of energy security, reliability, affordability, and meeting climate goals in the ongoing discussions.

Regarding the Reserve Bank's potential rate cuts, Cormann cautioned against rapid reductions, suggesting that the OECD does not see a need for extensive cuts at this time. "There is a risk that inflation could remain elevated for longer than previously anticipated," he warned. Cormann was reappointed as OECD secretary-general for a second five-year term in July.