Over 200 Australian businesses are backing a target of net-zero emissions by 2050. The country is raising concerns among citizens about the lack of a coordinated energy policy and the government’s proposed use of carryover credits.
A Carbon Market Institute (CMI) survey of over 200 Australian businesses reveals 96% of those surveyed believe Australia should not delay transitioning into a decarbonized economy. About one-third of the companies surveyed are emissions-intensive companies that have responsibilities under the National Greenhouse and Energy Reporting Act (NGER Act) and include the oil, gas, mining, and manufacturing industries. Others interviewed include carbon project developers, professional service providers, carbon market experts, and investors.
The CMI survey shows that businesses and industry groups are concerned. They are worried about the government’s current policy settings, with 94% claiming the approach is insufficient to meet Australia’s 2030 Paris pledge to cut emissions to 26%-28% of 2005 levels.
In Oct 2019, the Reserve Bank of Australia warned that it was becoming increasingly important for investors and institutions to manage their carbon risk actively.
At the UN climate change conference in Madrid, Australian officials defended the country’s plan to use 411 million tons of emissions credits from the Kyoto protocol to reach its Paris targets. However, Angus Taylor, the energy minister, said that Australia could potentially meet its goals without using carryover credits, claiming the government was already “over-delivering.”
According to the CMI survey, about 76% of business respondents do not believe that Australia should be allowed to use the carryover units to attain its 2030 emission reduction target. 96% of those surveyed agree that the longer Australia delays decarbonization, the more “forceful, abrupt, and disruptive” the policy response will have to be.
When the business leaders were asked what Australia’s long-term policy should look like, they voted a legislated net-zero 2050 target along with a synchronized national climate policy to meet the goal with a clear path that’s reviewed regularly.
The businesses want “sectoral decarbonization strategies” that identify structural barriers, a price on carbon, abatement potential, a plan to ensure closure of old coal plants, their replacement with clean energy and economic opportunities.
John Connor, CMI’s chief executive, said:
This survey tells us that many in Australian business – including Australia’s highest-emitting companies – are already planning to transition to a net-zero emissions world. Business is looking for more ambitious climate policies to set a defined pathway and assist them in managing this.
The issue of carbon emission reduction and climate change is becoming more and more pressing. 84% of survey respondents said that their organization recognizes the strategic and financial risks of climate change at an executive and board level.
