Creating Jobs – Cutting Pollution

The roadmap for a cleaner, stronger economy

Action to reduce pollution can go hand-in-hand with job creation and an environmentally healthy Australia.

As this report Creating Jobs – Cutting Pollution demonstrates, Australia could create more than 770,000 extra jobs by 2030 by taking strong action now to reduce pollution.

The jobs identified are not just “green collar” jobs, but new jobs in traditional industries such as agriculture, mining, manufacturing and the services sector.

Using extensive economic modelling, the report shows that every region of Australia – even those dependent on coal, electricity generation, or heavy industry – can benefit from jobs growth.

The good news is we can create jobs, reduce pollution and deliver a healthy environment and vibrant economy.

The real debate is about the cost of doing “too little, too late”.

Failure to grasp the challenge will put a brake on Australia’s economic growth and diminish our quality of life.

The solution for a healthy economy and planet is simple: invest and innovate now and secure our long-term future.

The modelling

The National Institute of Economic and Industry Research (NIEIR) conducted integrated economic modelling based on two scenarios – Weak Action and Strong Action.

The Weak Action scenario assumes a price on pollution as the sole instrument to reduce Australia’s pollution levels. The Strong Action scenario assumes a price on pollution plus a targeted suite of complementary policies to provide investment in renewable energy, public transport and making homes and businesses more energy efficient.

The results

The results of the modelling are clear: Strong Action to reduce Australia’s pollution results in more jobs in regional Australia and a stronger national economy.

• Strong Action results in 770,000 more jobs by 2030 than Weak Action.
• When comparing employment growth from 2009 to 2030, all regions except one see a growth in jobs numbers under Strong Action to reduce pollution.
• Jobs grow across all sectors of the economy under Strong Action including construction, agriculture, mining, forestry and fisheries, manufacturing and the services sector.
• The living standards of Australians will be higher under Strong Action. Australians will be nearly 10 per cent better off with Strong Action by 2030.
• The economy as a whole will be better off with Strong Action with an average 3.2 per cent Gross Domestic Product (GDP) in the 2010-2030 period compared with 2.8 per cent under Weak Action.
• Under Weak Action, foreign debt is more than $180 billion higher by 2030 due to a reliance on importing international pollution permits and the continued high level of oil imports.
• Without a price on pollution, action to reduce pollution is more expensive – by 2030 Australia would be $126 billion worse off.

ACF and ACTU descriptor

Creating Jobs – Cutting Pollution has been commissioned by the ACTU and ACF from the National Institute of Economic and Industry Research. It follows the 2008 report, Green Gold Rush, which found that ambitious environmental and industry policy could create an additional 500,000 jobs in six sectors by 2030.

This report again demonstrates that strong action to clean up pollution will create jobs across all regions, generating higher and cleaner living standards as well as a healthier environment as we shift to a cleaner economy.

You can download the complete Creating Jobs – Cutting Pollution report

1. In the NSW Far West, jobs continue to decline in the wool and mining industries. Targeted support will help the region take up new opportunities, such as clean energy generation.

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