Economist Ross Garnaut has called for huge investment to turn Australia into an energy superpower capable of cutting a significant share of global emissions in addition to its own zero carbon targets.
In a speech at last night’s jobs summit filled with dark warnings that Australia’s economic position was actually much worse than feared, the University of Melbourne professor stressed it was also “better “positioned than any other country” to benefit from the global push toward clean energy.
He said Australia’s “superpower transformation” could cut global emissions by 7%, apart from eliminating its own 1.25% of emissions, and called for the nation to make changes that could look impossible on the way.
Economist Ross Garnaut has called for huge investment to turn Australia into an energy superpower capable of cutting a significant share of global emissions in addition to its own zero carbon targets. (9 News)
“The realities facing Australia are far more dangerous than what was revealed to the electorate in May this year,” he said, referring to the pre-election economic and fiscal outlook.
“But the opportunities for zero carbon are much bigger. Policy will have to change more than we thought necessary, and more than we thought possible.
“But stop kidding us, make the impossible policy changes needed to build a zero-emissions superpower thoroughly and we can have full employment with growing incomes and the right amount of debt for a long period.”
The required investment would be massive, about 5.5% of GDP (over $100 billion) every year from now until the 2050s.
But the man responsible for several high-profile government economic reviews said it was “within the range” of mining investment during China’s resources boom.
The employment and skills summit in Parliament today. (Getty)
Garnaut argued that zero-carbon investment would help put Australia on the path to full employment, with higher wages and better living conditions.
And he said Australia had five crucial advantages in a zero-emissions economy: the best solar and wind resources in the developed world; mass exports of minerals that require energy-intensive processing; an abundance of critical materials needed in the zero carbon economy; large amounts of land for biomass energy and carbon sequestration; and human skills and mining infrastructure.
He argued that the transition itself would have more positive impacts, highlighting more development in regional Australia and engagement with Indigenous peoples.
Renewable electricity and green hydrogen would also change the energy economy, making it cheaper for Australia to process its own minerals locally rather than shipping them overseas for value to be added.
Prime Minister Anthony Albanese, speaking at the opening of the Jobs and Skills Summit in Canberra today. (Getty)
Garnaut ended his keynote address with a direct appeal to Premier Anthony Albanese and Treasurer Jim Chalmers.
“As premier and treasurer, the challenges are greater than the official forecast said to expect and the opportunities are greater,” Garnaut said.
“Some of your predecessors faced challenges of similar magnitude and left our country vulnerable because they avoided them.”
Introducing Garnaut, Albanese said the country was at a “critical juncture in time.”
“The clean energy revolution is as important as the industrial revolution,” he said.
The Minerals Council of Australia rejected Garnaut’s call for a “mineral rent” tax, as introduced by the Gillard Labor government and later repealed by the Coalition.
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