A new paper released by the Climate Change Authority has outlined a series of recommendations and insights it says are key to Australia’s prosperity and economic growth.
Australia must begin to view emissions reduction as a source of competitive advantage rather than a cost according to the government body.
“To be competitive as the world decarbonises, we need to lower emissions in all sectors of the economy as quickly as we can,” said Climate Change Authority CEO Brad Archer.
“With Australia’s most significant material exports – fossil fuels, minerals and agriculture – having high emissions or energy intensity in their production and/or when they are used at their final destination, there is a growing competitiveness risk for Australia.”
Mr Archer highlighted that almost 130 countries were aiming to reach net zero emissions by 2050.
“As countries raise their emissions reduction targets; foreign investors are looking for low carbon investment opportunities and customers for our exports are seeking low and zero emission alternatives,” he said.
Among the recommendations from the Climate Change Authority’s report are to examine the role different sectors of the economy can play in reaching net zero emissions and to assess how prepared high emitting industries are for net zero.
The report found that Australia must produce “the cleanest exports at the lowest cost” in order to succeed in a global market shifting towards net zero, and that well-functioning markets would “accelerate, smooth and lower” the costs related to reaching net zero.
“If Australia does these things well, the economic benefits of our emissions reduction efforts will follow,” Mr Archer said.
“With Australia likely on track to meet and exceed its 2030 emissions reduction target, we can turn our minds to increasing ambition and getting on a trajectory to achieve net zero emissions as soon as possible.”
ASX-listed companies identified emissions as their top area of focus and improvement in a recent survey, while Australia’s professional accounting bodies have announced their commitment to reach net zero.
The Association of Superannuation Funds of Australia has also issued a warning that billions of dollars in investment returns could be lost if climate change is ignored.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
