A net zero target would unlock investments worth billions, study finds

Australia stands to miss out on investments worth many billions of dollars and the opportunity to generate millions of jobs if it fails to adopt emissions-reduction goals in line with the Paris climate accord.

Those are the findings of analysis – commissioned by the Investor Group on Climate Change, a lobby representing institutional investors managing $2 trillion in funds – to assess opportunities if the economy adopted a net zero carbon emissions target for 2050. The Morrison government has rejected such a goal.

Billions of dollars of business opportunities would be opened up if the Australian government aligned the economy with the agreed Paris climate goals, the Investor Group on Climate Change says.

Billions of dollars of business opportunities would be opened up if the Australian government aligned the economy with the agreed Paris climate goals, the Investor Group on Climate Change says.CREDIT:JASON SOUTH

Under an orderly transition where policies are clear and consistent, openings in the next five years alone would total $15 billion in manufacturing and $6 billion in transport investment. So-called green hydrogen that taps renewable energy to split hydrogen from water would also lure $3 billion as that industry begins.

By 2050, renewables and other clean power generation would create the largest investment opportunity at $385 billion from 2020 onwards, with green hydrogen next largest at $350 billion in current dollars.

Read the full article in the Sydney Morning Herald published 12th October 2020