Speaking about his report, which calls for a nonpartisan emissions plan, business council chief Bran Black called on Labor to cut down approval times to build the energy projects required to allow Australia to prosper from the energy transition.
“Ambitious but achievable targets with the right policies to deliver them are key to Australia’s long-term competitiveness and prosperity,” Black said.
The business council research states that a 70 per cent target would require between $435 billion to $530 billion in spending on green projects, subsidies and other measures, paid for by a combination of business and government. Lower targets of 60 per cent and 50 per cent would cost between $210 billion and $480 billion.
Importantly, the McKinsey analysis does not include longer-term considerations about the downside costs of a heated planet or the boost to GDP generated by spending on new forms of energy. The analysis includes only capital costs, and the emergence of new technologies may lower those estimates.
The bitterness around the energy debate was on display in question time on Thursday when the independent member for Fowler, Dai Le, asked Bowen a question suggesting the “government’s approach to net zero is leaving almost zero dollars in the pockets of families”.
In his response Bowen accused Le of being a part-time MP due to her role as a local councillor, just after Anthony Albanese launched a fiery attack on pro-fossil fuel Coalition MPs, including Barnaby Joyce.
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“The Australian people know when a government’s getting on with the job and they know when an opposition is engaging in hypocrisy. If Coalition hypocrisy created energy, we would have gigawatts to spare,” Bowen said in parliament, after hinting he may not legislate the 2035 target, as the government did for 2030.
The business community is split on how hard the government should go on its next climate target, which it must release under its obligations in the Paris climate agreement. A higher target could also help the government with its stalled bid to host the next COP global climate summit.
Last month, the business council was known to be divided over a preferred target. Climate advocates who have seen drafts of the McKinsey report have blasted it and challenged its assumptions on the costs of renewables.
Responding to the findings, Bowen said it was clear that the business lobby, a traditional ally of the Coalition, wanted a clear path towards the adoption of renewables after years of muddled policy under the Coalition.
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“It is in the national and economic interest – they know the cost of inaction is too great,” he said.
A separate Deloitte report commissioned by Business for 75, a group of pro-green companies including Fortescue, Atlassian, Canva, Lendlease and Unilever advocating for ambitious action, found the pursuit of a 75 per cent target could add $370 billion to Australia’s GDP over the next decade, equating to a per capita increase of over $10,000.
According to the Deloitte analysis the higher target would promote investment, foster innovation, and drive an infrastructure transformation that would boost Australian green energy and advanced manufacturing, adding an average of 45,000 additional jobs annually over the next decade.
Before unveiling the 2035 target, Labor will release a long-delayed report on the forecasts of climate change-induced damage to government budgets, ecosystems and personal health.
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