Australia would create $63 billion in fresh investment opportunities over the next five years by strengthening climate targets and policies in line with reaching net zero emissions by mid-century, new economic modelling finds.
The analysis also finds that under this scenario private investment would accelerate out to 2050, with hundreds of billions of dollars in opportunities created across renewable energy, green hydrogen, manufacturing, electrified transport and carbon sequestration.
However, if current climate targets and policy approaches are continued into coming decades then significant private investment opportunities would be lost, worth $43 billion to 2025 and $265 billion out to 2050, when compared to a Paris-aligned emissions trajectory.
The economic modelling – undertaken by consultancy Energetics for the Investor Group on Climate Change (IGCC) – compared an ‘orderly transition’ scenario, in which Australia adopts a stronger 2030 emissions reduction target and a 2050 net zero goal, with a ‘hothouse’ scenario marked by current emissions trajectories and policy approaches.
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