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.
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.