<- Back

 Market change - Australia’s need to adapt to a carbon conscience market

by tim sleeth | 13-Dec-2009 | Comments (1) Tags: carbon emissions, climate change, CPRS, economy, renewable technology, Australia  12 ratings. Please log in to rate and comment

Market change
Australia’s need to adapt to a carbon conscience market

By Tim Sleeth

The current global debate about carbon emissions trading and reduction has raised the question of how this new carbon conscious market will impact upon our national economy. 

Recent debate in Parliament about the Rudd governments ETS and international discussions in Copenhagen have revolved around the extent and scale of emissions commitments. Whatever the targets eventually agreed upon it can be seen that the international community is moving away from high emissions technology.
It is important that Australia begin to reassess its current trading position, focusing less on carbon intensive industries if it is to ensure continued prosperity in the face of this clean energy future.

Australia has recently been ranked as the highest carbon dioxide polluter per capita for energy use by risk assessment company Maplecroft. It has also been identified as the least prepared wealthy nation to compete in a clean energy market by UK consultancy Vivid Economics. These finding reveal that despite the nation’s commitment to sustainability, our economy is still structured around high emission technology and is presently in no position to significantly reduce emissions or transit easily into a green market.

The UN Comtrade database identified mineral fuels as accounting for 31.9% of total Australian exports in 2008, the largest component. The changing international attitudes towards brown coal and other fossil fuels are likely to have detrimental implications to our export market. The carbon reduction commitments and shift away from conventional fossil fuels will devalue our natural resources which we have relied upon for so long and investment in alternative industries is needed if Australia is not to be adversely affected. It is necessary that steps are taken to pre-empt the imminent resources change by implementing initiatives which will maintain a strong export market and reliance on Australian goods.

There needs to be increased funding for the research and development of sustainable technologies to improve the competiveness with fossil fuels. Only through increased use and research will economies of scale improve to the extent where technology such as wind, solar and geothermal a viable alternative. With the imminent implementation of reduction agreements the market demand for renewable technologies will rapidly expand. If Australia can pre-empt the demand for these technologies we can be in a position to take advantage of the market change and gradually replace our high emission exports with sustainable alternatives.

Increased investment in sustainable technology will not only be a favourable export but it will also help Australia to meet its own reduction targets. For instance the proposed $420 million Victorian solar power plant is an important step towards a clean energy future. Unfortunately this project has stalled and whilst funding is being sourced, there has been pressure on the state government to ensure the project goes ahead. It is important to invest in such projects as upon completion this power plant would be the largest and most efficient solar photovoltaic generator in the world. It is flagship projects such as these that would cement our reputation as a green power producer, create jobs and pave the way for an Australia solar industry to replace our reliance on fossil fuels.

The primary detractor from emissions agreements is the likelihood of unemployment, but even at current emissions targets there will be job losses and this is will become more frequent as reduction commitments progressively increase. Therefore it is a matter of developing new businesses now which can employ these workers whilst moving towards reductions and in doing so, limit the damage of mass job losses later.

In addition to new industry initiatives an increased investment in existing areas will play a major role in filling the void left by the high emissions industries. By investing in education it will guarantee a solid skills base for the future and continue to attract foreign students bolstering our existing $13.7 Billion dollar international education industry.

Reducing the reliance on imported goods and by providing incentives to production, small business and manufacturing within Australia, emissions can be reduced whilst improving the national economy. By decreasing the focus on foreign imports through tariffs and marketing, using instead Australian made goods with low embodied energy, it can save on emissions whilst creating employment and providing a greater range of products available for export.

Emissions trading can impact upon our already successful economy, but those risks must be weighed against the affects of global warming and the changing economy in a carbon conscience market. With the recent rejection of the Rudd governments Carbon Pollution reduction scheme and continued pressure to increase compensation to business it is indicative that whilst all parties are championing the environmental crusade some are loath to upset the status quo. Protecting high emissions industries maybe financial beneficial now, but it is undermining our future competitiveness; riding on the back on the resources boom we now find ourselves in a market where these resources will rapidly depreciate and our economy needs to restructure if it is to ensure continued growth.

It was never going to be easy converting to low emissions technology but action should be taken now to develop our industries and reduce emissions. The longer Australia fails to do so, the harder, and more costly it will be to meet the required targets in future and the worse position we will be in for it.

Things to Do

 More Entries

 17 ratings.

 8 ratings.

 16 ratings.