However, if the country meets its current goals and climate policies, investments worth $ 43 billion would be wasted over the next five years, reaching $ 250 billion by 2050.The Climate Change Investor Group represents investors in Australia and New Zealand who focus on the effect of the climate crisis on the financial value of investments.
Among its members are institutional investors whose funds under management are worth more than $ 2 trillion.
The organization tasked consultancy firm Energetics to examine domestic investment opportunities that would arise from an orderly transition to net zero emissions by 2050.
The report finds that a net zero scenario would unlock $ 63 billion in investment over the next five years, including $ 15 billion in manufacturing, $ 6 billion in transportation infrastructure such as charging stations and 3 billion dollars in domestic production of green hydrogen, as businesses and governments move towards the highest emissions target.
Carbon sequestration – or carbon cultivation – would emerge as a major investment asset class, with an estimated investment of $ 33 billion in nature-based solutions such as tree planting and assisted regeneration of trees. deforested land.
The investment potential would reach hundreds of billions of dollars in the longer term until 2050, including 385 billion dollars in clean electricity, 350 billion dollars in domestic green hydrogen, 104 billion dollars in transport infrastructure and 102 billion dollars. dollars in carbon sequestration.
“What this shows is that the investment opportunities go far beyond the renewable energy sector,” said Erwin Jackson, IGCC policy director.
“Renewable energy is the backbone of the transition, but there are huge opportunities in other sectors such as manufacturing, land reclamation and transportation electrification.”
The report, which targets governments, businesses, investors and financial regulators, says its estimates are conservative because they do not take into account the export potential of industries such as clean hydrogen.
He argues that if governments establish a stable policy, and businesses and investors work together to align their decisions with the goals of the Paris Agreement, then billions of dollars in the short and long term could support jobs and wealth of millions of Australians, especially in the regions.
The Morrison government refused to commit Australia to a net zero emissions target and focused its climate policy on a new technology roadmap covering hydrogen, energy storage, steel and aluminum ” low carbon ‘, capture and storage of carbon and soil carbon.
As part of the roadmap, the government says it will invest $ 18 billion in technology over 10 years.
The IGCC report notes that more than half of Australia’s bilateral trading partners have set targets to achieve net zero emissions by mid-century.
He warns that a ‘greenhouse’ scenario in Australia – without a net zero emissions target – would produce $ 43 billion less in investment over five years and $ 250 billion less by 2050 than would be possible with a goal of net zero.
“To put it bluntly, capital is global and it wants to invest in solutions to climate change because they see it as a better performance of their long-term investments,” Jackson said. “They will invest more in countries that have sustainable and credible policies to achieve net zero emissions by 2050.”
John Connor, managing director of the Carbon Market Institute, said the reality Australia faced was that its economy was operating “below capacity and needed new direction”.
He said clean technologies like renewables and transport represented significant opportunities for Australia in a post-carbon world and that the country’s vast land mass, with landscapes to regenerate, gave it a competitive advantage in terms of carbon sequestration.
“We can either step off the cliff into the greenhouse of economic and climate catastrophe or turn a turn towards an orderly transition and the opportunities that present themselves,” Connor said.