Extract from The Guardian
Those who advocate for leaving Paris are economically, environmentally and socially irresponsible
Withdrawing from the Paris agreement is not an option for Australia,
unless we want to suffer severe economic consequences as a result.
Australia is highly vulnerable to the impacts of climate change and it is in our national interest to support effective global action. The Paris agreement sets a common multilateral platform that allows for domestic flexibility to make contributions to emissions reductions acknowledging the scale of the challenge is greater than any one country’s capacity to act.
Critically, the rules are being written and formalised this year into a rulebook guiding how the Paris agreement will be implemented. Australia needs to have a seat at the table if we are to ensure the interests of our energy intensive, export-orientated economy are represented.
Without active engagement in the process to negotiate and implement the Paris rulebook, Australia will suffer the consequences of not being able to optimise our national interest around how markets, technology, trade and finance flows develop in the transition to a low carbon economy. For example, the rules being negotiated around article 6 of the agreement involve how transfers and trade in emissions will occur between parties.
As our domestic policy settings will inevitably tighten, Australia’s large-emitting businesses will want access to international permits and conversely our world class domestic offset market will want to export credits to a world short in supply. Accelerated clean energy and technology transfer and climate finance will also be part of expanded trade-related rules stemming from the Paris rulebook.
When President Trump announced he was leaving the Paris agreement, US businesses and state and local governments rallied and formed a “We are still in” coalition. More than 2,800 organisations have signed a commitment that they stand by the Paris agreement and are committed to its goals. The message from this powerful grouping has been loud and clear: that participation in the Paris agreement helps strengthen competitiveness, create jobs, markets and growth and reduces business risks.
Australian businesses and financial institutions are also attuned to the business risks and opportunities climate change presents. There is increasing recognition at board and executive management levels that climate change poses material financial and strategic risks. Leading businesses are starting to adopt the new framework issued by the Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD), to assess and disclose the emerging risks, opportunities and financial implications climate change poses for their business. The primary driver for this initiative is to protect shareholder value. Australian companies are starting to build resilience and play their part in supporting the transition to a net-zero carbon emissions economy.
The foreign minister, Julie Bishop, should be commended for her forthright unequivocal support for maintaining commitment to the Paris agreement. She was spot on when she announced at the time of Australia’s ratification of the Paris agreement in 2016 that: “The Australian government has determined that ratifying the Paris agreement is in our national interests and will provide great opportunities for Australian businesses.”
She went on to say, “The global low emissions economy is estimated to be worth around $6tn and is growing at some 4-5% per annum. We believe that through the use of technology and research and science and innovation, there will be many opportunities for Australian businesses, Australian jobs in a low emissions economy.”
In Australia, climate change has impacts and economic consequences across infrastructure, property, regional security, disaster management, agriculture, fisheries and forestry, tourism and importantly, but not well documented, the health and wellbeing of communities.
Any ill-informed opinion that it is in Australia’s interest to leave the Paris agreement is economically, environmentally and socially irresponsible.
As far as Australian business is concerned, “We are still in”.
Australia is highly vulnerable to the impacts of climate change and it is in our national interest to support effective global action. The Paris agreement sets a common multilateral platform that allows for domestic flexibility to make contributions to emissions reductions acknowledging the scale of the challenge is greater than any one country’s capacity to act.
Critically, the rules are being written and formalised this year into a rulebook guiding how the Paris agreement will be implemented. Australia needs to have a seat at the table if we are to ensure the interests of our energy intensive, export-orientated economy are represented.
Without active engagement in the process to negotiate and implement the Paris rulebook, Australia will suffer the consequences of not being able to optimise our national interest around how markets, technology, trade and finance flows develop in the transition to a low carbon economy. For example, the rules being negotiated around article 6 of the agreement involve how transfers and trade in emissions will occur between parties.
As our domestic policy settings will inevitably tighten, Australia’s large-emitting businesses will want access to international permits and conversely our world class domestic offset market will want to export credits to a world short in supply. Accelerated clean energy and technology transfer and climate finance will also be part of expanded trade-related rules stemming from the Paris rulebook.
When President Trump announced he was leaving the Paris agreement, US businesses and state and local governments rallied and formed a “We are still in” coalition. More than 2,800 organisations have signed a commitment that they stand by the Paris agreement and are committed to its goals. The message from this powerful grouping has been loud and clear: that participation in the Paris agreement helps strengthen competitiveness, create jobs, markets and growth and reduces business risks.
Australian businesses and financial institutions are also attuned to the business risks and opportunities climate change presents. There is increasing recognition at board and executive management levels that climate change poses material financial and strategic risks. Leading businesses are starting to adopt the new framework issued by the Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD), to assess and disclose the emerging risks, opportunities and financial implications climate change poses for their business. The primary driver for this initiative is to protect shareholder value. Australian companies are starting to build resilience and play their part in supporting the transition to a net-zero carbon emissions economy.
The foreign minister, Julie Bishop, should be commended for her forthright unequivocal support for maintaining commitment to the Paris agreement. She was spot on when she announced at the time of Australia’s ratification of the Paris agreement in 2016 that: “The Australian government has determined that ratifying the Paris agreement is in our national interests and will provide great opportunities for Australian businesses.”
She went on to say, “The global low emissions economy is estimated to be worth around $6tn and is growing at some 4-5% per annum. We believe that through the use of technology and research and science and innovation, there will be many opportunities for Australian businesses, Australian jobs in a low emissions economy.”
In Australia, climate change has impacts and economic consequences across infrastructure, property, regional security, disaster management, agriculture, fisheries and forestry, tourism and importantly, but not well documented, the health and wellbeing of communities.
Any ill-informed opinion that it is in Australia’s interest to leave the Paris agreement is economically, environmentally and socially irresponsible.
As far as Australian business is concerned, “We are still in”.
- Peter Castellas is CEO of the Carbon Market Institute
No comments:
Post a Comment