Trillions of dollars rest on Australia's climate action, says Deloitte

A path of climate inaction will cost the Australian economy an estimated $3.4 trillion by 2070, while acting on a net-zero by 2050 goal will gain $680 billion by 2070, estimates Deloitte.

The author of the article “2030: A thriving, decarbonising Australia”, John O’Brien, says that decarbonising the right technology is not enough, instead a holistic approach to climate action will be required.

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“Effective climate action requires significant changes to private and public sector strategy, governance, finance and disclosure regimes,” the authors say.

“Communities need to share responsibility for the net zero transition, and be supported to ensure equity and minimise disruption. This is not a challenge for the next generation or the next CEO — those that are not already acting are exposing their organisation to climate risks and risk missing out on the massive upsides from climate action.”

According to Deloitte, Australia currently has the technology to reduce emissions by 60 per cent by 2030, setting a smoother path to the net-zero by 2050 goal and presenting massive investment opportunities.

In order to maximise the impact, value and accelerate adoption of decarbonisation technology, optimal pathways must be developed.

Circumstances unique to organisations such as cost, fear of losing jobs, short term vision and uncertainty are all listed as obstacles currently preventing development and uptake.

To effectively progress towards climate goals, cross-industry collaboration and community involvement will be necessary, according to Deloitte.

“It will not be for a lack of options that we fail to decarbonise — the real challenge will be in driving collaboration within and across sectors and ensuring that communities see that there is something for them in the climate transition journey,” the article says.

“Change is inevitable — so it’s our imperative to act. If we are proactive and collaborative we can ensure that our fragile continent is economically resilient and that our communities will thrive — both now and well past 2030.”