Liberal moderates are divided over the party's recent decision to abandon its commitment to a net zero emissions target by 2050. Many party members express concern that this shift could alienate urban voters who prioritize strong climate policies. A majority of the party has supported the move to scrap the 2050 target, while some moderates who favored retaining it worry about the potential loss of metropolitan seats in upcoming elections.

On Thursday, the Liberal Party's shadow ministry approved a plan to repeal Labor's emission reduction mechanisms. The new approach emphasizes a technology-led strategy that prioritizes affordability and reliability over strict emissions targets. This decision aligns the Liberals more closely with the Nationals, who also recently abandoned their support for the net zero target amid internal conflicts regarding the Coalition's climate policy.

As part of this compromise, the Liberals stated they would still "welcome" the theoretical achievement of net zero emissions and support Australia's participation in the Paris Agreement. Opposition Leader Sussan Ley expressed confidence that the party could secure seats nationwide with this new policy, arguing that Labor's climate strategy is ineffective. "People in the city are struggling with affordability of energy costs," Ley said, emphasizing the need for credible policy alternatives in urban areas.

However, Ley faces challenges in maintaining party unity as some conservatives remain dissatisfied with any mention of net zero in the Liberal platform. There are indications that members of the right faction are considering a leadership challenge against Ley, with some moderates who initially supported her leadership now believing her position is precarious. One moderate noted, "I think blinking on net zero has created that problem; (the right faction) will come after immigration next."

Several Liberals who advocated for retaining the net zero target have expressed skepticism about the party's ability to regain inner-city seats with the current climate policy. One member stated, "Nowhere, I don't see anywhere we can pick up (a seat)." South Australian senator Andrew McLachlan, who is not part of the shadow ministry, voiced his doubts about the new stance attracting young and urban voters. "Personally, I'll still be advocating in the public form for (emissions reduction) targets and net zero by 2050," he said.

Despite the dissent, some moderates view the decision to remain in the Paris Agreement and maintain five-yearly emissions reduction targets as a positive outcome. Anne Ruston, a prominent moderate, expressed her belief in the value of diverse viewpoints in policy-making. "I think reality tells us that we were always going to have to come to a compromise," she said, adding that she was pleased with the commitment to emissions reduction.

Teal independents quickly criticized the Liberals' decision. Curtin MP Kate Chaney argued that the "mixed message" would undermine investment certainty in renewable energy. Mackellar MP Sophie Scamps described the abandonment of the net zero target as indicative of a "party without conviction," while Warringah MP Zali Steggall called it a "reckless and a massive step backwards."

Labor officials are confident that the Liberals' new approach will not yield additional seats in the next election. They believe the uncertainty and division stemming from the abandonment of net zero, along with the potential for taxpayer investment in fossil fuel projects, will not resonate well with voters in urban and regional areas where energy transitions are linked to local employment.

In preparation for the next election, Ley has assigned Climate Change and Energy spokesman Dan Tehan, along with Ruston and Tasmanian senator Jonno Duniam, to negotiate with the Nationals to finalize a Coalition position on net zero. The three senior Liberals are set to meet with Nationals representatives in the coming days to discuss the specifics of the policy, including potential changes to vehicle emissions standards and the expansion of investment schemes for coal and gas. A joint party room meeting is scheduled for Sunday to finalize the Coalition's policy position.