Paris Plus: From cost to competitive advantage
The Climate Change Authority today releases a new insights paper outlining the way forward for Australia to maintain its prosperity and economic growth: by viewing reducing emissions not as a cost but as a source of competitive advantage.
‘Paris Plus: From cost to competitive advantage’ sets out the Authority’s strategic framework, insights drawn from our forthcoming research report on trade and investment trends, and priorities for work to ensure Australia can set increasingly ambitious emissions reduction goals that address all sectors of the economy and policies backed by a strong evidence base.
A global trade regime aligned with net zero emissions will have implications for Australia’s trade competitiveness, and proliferating finance and investment policies that take climate risk and opportunity into account will shape future foreign investment flows into Australia.
To build our competitive advantage in a net zero world, Australia can:
- produce the cleanest exports at the lowest cost to succeed in overseas markets as the world shifts towards net zero emissions
- take every viable opportunity to mitigate and sequester emissions as fast and efficiently as possible
- base our policy choices and investment decisions on information about our competitors, supply chains and the factors that contribute to Australia’s competitive advantage
- embed ourselves in international climate change rule making, building off our existing knowledge, expertise and policy architecture
- ensure that global and regional markets function in a manner that accelerates, smooths and lowers the cost of achieving net zero emissions.
The Authority’s forthcoming research report examines the global reorientation in trade and investment that is underway globally, as governments, regulators and markets around the world begin transitioning to net zero emissions, and considers what these trends mean for Australia.