Daily BulletinDaily Bulletin

The Conversation

  • Written by Anna Skarbek, CEO at ClimateWorks Australia, Monash University

It will be tempting for some to overlook the climate change challenge in the rush to restart the economy after the pandemic.

Federal energy minister Angus Taylor has flagged he wants to develop Australia’s gas-fired power to help boost the economy. And conservative political strategist Sir Lynton Crosby recently argued business survival is more important than environment, social and governance matters.

Read more: The charts that show coronavirus pushing up to a quarter of the workforce out of work

In the United States, the Trump administration is reportedly contemplating a coronavirus rescue package tailored specifically to oil and natural gas producers, while the Chinese government is trying to stimulate its economy by allowing polluters to bypass environmental regulations.

But the pandemic is not a reason to weaken the commitments to net zero emissions. In fact, climate action is a vital protection against further global shocks, especially as governments plan their post-pandemic stimulus packages.

The economic shock from climate change

The devastation the virus has inflicted is a reminder of our vulnerability and the importance of prevention and mitigation.

It’s a point bolstered by fresh evidence about the scale of economic shock we might face if we fail to meet the targets of the Paris Agreement.

A major study published in Nature Communications last month put a dollar value on the cost of climate inaction. If we don’t prevent the planet warming, we can expect a bill of between US$150 trillion and US$792 trillion by 2100. That’s up to A$1,231 trillion in Australian dollars.

Read more: Vital Signs: climate-linked financial crises loom, but the fix isn't up to central banks

The predicted “global shock” would be even more financially catastrophic than coronavirus.

The research, however, also points out some good news. The limitation of global warming to 1.5℃ would deliver a corresponding boost, with the global economy growing by US$616 trillion compared to inaction.

Big businesses on board

The economic cost of the shutdowns imposed to address the coronavirus pandemic have not been compared to the value of the lives saved.

Climate change action, on the other hand, has repeatedly been found to pass traditional cost-benefit tests. The solutions are known to already be available and effective if deployed in time.

What’s more, new research – with Nobel prize winner Joseph Stiglitz and leading climate economist Nicholas Stern at the helm – shows climate mitigation actions deliver maximum economic growth multiplier benefits from a stimulus perspective.

It found spending on new green energy projects generates twice as many jobs for every dollar invested, compared with equivalent allocations to fossil fuel projects.

Climate action, then, is vital for the economy. That’s why a remarkable list of business leaders have just added their names to a call for stimulus funds to be invested in what they call “the economy of the future”.

This includes chief executives, chairs and senior executives from major organisations including Rio Tinto, BP, Shell, Allianz and HSBC, together with the Energy Transitions Commission (a global group of companies and experts working towards low-carbon energy systems).

They’re urging for massive investments in renewable power systems, a boost for green buildings and green infrastructure, targeted support for innovative low-carbon activities and other similar measures.

In Europe, a coalition of chief executives, politicians and academics is calling for major investment in projects to make the European Union the “world’s first climate-neutral continent” by 2050.

They say the need for state intervention in the wake of the pandemic provides an unparalleled chance to build economies that are sustainable, resilient and dynamic.

Representatives of global companies have signed the “green recovery” platform. These include PepsiCo, Microsoft, Enel, E.ON, Volvo Group, L'Oréal, Danone, Ikea and more.

Technology is getting better

Boosting the economy with climate action is a message our recent research from ClimateWorks Australia reinforces. It shows how we can achieve the Paris targets with technologies already available.

Read more: It might sound 'batshit insane' but Australia could soon export sunshine to Asia via a 3,800km cable

But we can only do it if government, business and consumer decisions support the accelerated deployment of these technologies, and only if we roll out mature zero-emissions technology solutions more quickly across all sectors (not just electricity), and invest in development and commercialisation of emerging solutions in harder-to-abate sectors.

Across all sectors of the Australian economy, technology provides opportunities to decarbonise, and has rapidly improved.

For example, advances in lithium ion technology mean high-tech batteries cost only a fifth of what they did ten years ago. So it’s easier and cheaper to store electricity than ever before – even as renewables now offer a consistently cheaper source of generation than fossil fuels.

Why it doesn't make economic sense to ignore climate change in our recovery from the pandemic Lithium ion batteries have come a long way in a short time. Shutterstock

Innovations like that have changed the game. A new Australian Energy Market Operator study makes clear that, within five years, Australia can run a power grid in which 75% of electricity comes from wind and solar.

A clean stimulus package

Measures these pathways involve are ideally suited to a stimulus package. Governments could create jobs and spur industry, while modernising the economy for the challenges ahead.

How? By building charging infrastructure to support electric vehicles powered by renewables; encouraging investment in sustainable agriculture, fertiliser management and carbon forestry; deploying PV and battery systems across city buildings; or embracing any number of other “shovel ready” solutions.

Through this pandemic we’ve witnessed how people have learned new approaches and switched mindsets almost as quickly as the COVID-19 pandemic lockdowns and social distancing restrictions began.

Just as we’re remembering to wash our hands more than we used to, coming out of the pandemic, it will pay to be more attentive about remembering to choose the zero-emissions option at every step.

Read more: Here's what the coronavirus pandemic can teach us about tackling climate change

We stand at a crossroads. If government stimulus packages around the world favour carbon-intensive practices and miss the moment to modernise and decarbonise, we will lock ourselves into a warming future.

If, however, we rise to the challenge, we can use the recovery from one crisis to simultaneously address another.

Authors: Anna Skarbek, CEO at ClimateWorks Australia, Monash University

Read more https://theconversation.com/why-it-doesnt-make-economic-sense-to-ignore-climate-change-in-our-recovery-from-the-pandemic-137282

Giant sea scorpions were the underwater titans of prehistoric Australia

arrow_forward

Victoria's coronavirus contact tracers are already under the pump. What happens next?

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Prime Minister Interview with Ben Fordham, 2GB

FORDHAM: Thank you very much for talking to us. I know it's a difficult day for all of those Qantas workers. Look, they want to know in the short term, are you going to extend JobKeeper?   PRI...

Scott Morrison - avatar Scott Morrison

Prime Minister Scott Morrison interview with Neil Mitchell

NEIL MITCHELL: Prime minister, good morning.    PRIME MINISTER: Good morning, how are you?   MICHELL: I’m okay, a bit to get to I apologise, we haven't spoken for a while and I want to get t...

Scott Morrison - avatar Scott Morrison

Prime Minister Interview with Ben Fordham

PRIME MINISTER: I've always found that this issue on funerals has been the hardest decision that was taken and the most heartbreaking and of all the letters and, you know, there's been over 100...

Scott Morrison - avatar Scott Morrison

Business News

SEO In A Time of COVID-19: A Life-Saver

The coronavirus pandemic has brought about a lot of uncertainty for everyone across the world. It has had one of the most devastating impacts on the day-to-day lives of many including business o...

a Guest Writer - avatar a Guest Writer

5 Ways Risk Management Software Can Help Your Business

No business is averse to risks. Nobody can predict the future or even plan what direction a business is going to take with 100% accuracy. For this reason, to avoid issues or minimise risks, some for...

News Company - avatar News Company

5 Ways To Deal With Unemployment and Get Back Into the Workforce

Being unemployed has a number of challenges and they’re not all financial. It can affect you psychologically and sometimes it can be difficult to dig your way out of a rut when you don’t have a job ...

News Company - avatar News Company



News Company Media Core

Content & Technology Connecting Global Audiences

More Information - Less Opinion