The NAB chairman says the scale of action needed to transition to a greener future is “much broader than the industrial revolution and the timeframe is about half that.”
Australia needs to spend $70 billion in structural change and $420 billion in new investment over the next 30 years to position its economy for growth in a low-emissions world, new research from Deloitte Access Economics finds .
This can be achieved by assessing the $20 trillion in economic investment planned for the Australian economy by 2050 and recalibrating it so the economy can excel in a low emissions world.
Commissioned by NAB, the All Systems Go report found that $20 trillion will be poured into the economy over the next 28 years whether or not we go to net zero, but NAB Chairman Philip Chronican said said the transformation to a low-emissions economy is both inevitable and complex.
“If we get it right, the opportunities are immense,” he said, but he also warned that “the scale of action needed is far larger than the industrial revolution and the timeline is about half”.
In releasing the report, NAB also revealed that it had created the new role of climate change agent, reflecting “the growing demands from all parts of the economy and all parts of the bank, to help its customers make the transition to a low-emissions future”. ”.
Calling the shift to a low-emissions future a “great reallocation,” Chronican argued that we need to change where we invest and what will drive economic growth.
The report identifies four economic systems which together account for 90% of Australia‘s emissions and need to reduce this rate, namely energy, mobility, raw material manufacturing and food and land use.
“The research also makes it clear that climate action is everyone’s business – the goals won’t be achieved by one industry alone,” Chronican said.
“The adjustments needed to realize opportunity will impact every business and every home. We will all have to make changes.
Of the $20 trillion in economic investments, $4 trillion represents net capital flows and investments in these four areas, in addition to $420 billion in additional new investments through 2050.
“$70 billion must transition from emissions-intensive activity by 2030 to low-emissions activity to bring about the necessary structural changes and avoid increasing the cost of the transition in the long term,” a- he declared.
The research builds on research undertaken for the Business Council of Australia Last year, who found that iIf coordinated and early action is taken, the economy is expected to gain around $890 billion over 50 years
Ross McEwan, CEO of NAB, said there is “a clear business opportunity for Australian companies“.
“Our role is to support our customers and communities through the transition and fund the investments needed to create a strong and sustainable future for Australia,” he said.