ACF's Don Henry at the Business Leaders' Roundtable
Corporate leaders call for action on climate change
The Australian Business Roundtable on Climate Change has released a report which shows significant reductions in greenhouse gas emissions can be achieved at an affordable cost to the Australian economy.
The report titled 'The Business Case For Early Action' shows that if action on climate change is delayed it becomes more expensive for business and the wider Australian economy to reduce greenhouse gas emissions.
The Roundtable - which includes CEOs from BP Australia, Insurance Australia Group, Origin Energy, Swiss Re, Visy Industries, Westpac and the Australian Conservation Foundation - commissioned CSIRO to determine climate impacts on Australia and the Allen Consulting Group to model the economic effects of a 60 per cent reduction in emissions by 2050.
The research was undertaken to advance the understanding of business risks and opportunities associated with climate change. In a signed Joint CEO Statement, Roundtable members agree climate change poses a major business threat and the time to act is now.
Key findings of the report, which support the call to act and act early on climate change, include:
· A 60 per cent reduction in greenhouse gas emissions is possible while maintaining strong economic growth, with real GDP averaging 2.1 per cent p.a. through to 2050 if early action is taken;
· In comparison to early action, delaying action to 2022 would result in lower real GDP growth by an average of 0.2 per cent p.a. through to 2050, and concentrate any disruptive shocks over a shorter period;
· An additional 3.5 million jobs will still be created in the economy under the early action scenario over the period 2013-2050; equating to 250,000 more jobs than under the delayed action scenario.
The economic modelling does not incorporate the economic benefits of cutting emissions to reduce the rate of climate change. Consequently, the modelling is an assessment of the economic costs of reducing the quantity of emissions rather than a cost-benefit analysis which would also seek to value the benefit of minimising climate change.
The CSIRO Report highlights that many Australian industries, including two of the nation's largest export earners - agriculture and tourism - may be seriously impacted if we delay action on climate change. CSIRO concludes reducing emissions by 60 per cent or more by 2050, as part of an international response, will reduce the rate and magnitude of climate change and related flow-on effects for the whole economy.
Recommendations put forward by the Roundtable call for Australian Governments to work with business and the community to develop a policy framework that allows industry to respond effectively.
The recommendations require action on three fronts:
· Designing a 'long, loud and legal' framework to establish a carbon price signal;
· Encouraging innovation and investment in emerging and breakthrough technologies; and
· Building national resilience to impacts of climate change.
Roundtable members believe the recommendations set out in the report will create the necessary investment conditions to reduce emissions while maintaining strong economic growth.
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