In line with the global thrust to achieve carbon neutrality by 2050, various companies and industries in Australia have begun strengthening their commitment to achieve net-zero carbon emissions.
The urgency of the move toward a carbon-neutral Earth by 2050 is meant to be a concerted effort to prevent a further increase in the planet’s average pre-industrial temperature — 2019 was the second hottest year on record, with the temperature 1.15 degrees Celsius warmer than the average between 1850-1900, the period used to represent pre-industrial temperature.
Although the Australian government has yet to commit to this target, certain state and private establishments are moving toward this goal.
Transition to lead investment boom
According to industry analysts, Australia could very well experience a $63 billion investment boom in the next five years as industries align with global climate targets for 2050.
The Investor Group on Climate Change (IGCC) says that the gradual transition to a carbon-neutral economy by 2050 could raise investment opportunities amounting to hundreds of billions of dollars. Sectors poised for unprecedented growth include renewables, such as the solar power industry, manufacturing, transport and carbon sequestration.
The energy consultancy Energetics was commissioned by the IGCC to assess domestic investment opportunities. According to their report, investments in line with the global goal in the next five years would yield $15 billion for the manufacturing industry, $6 billion for transport (including infrastructure for charging stations) and $3 billion for green hydrogen production. Carbon farming or sequestration is expected to yield investments worth $33 billion, by focusing on nature-based solutions, such as reforestation.
By 2050, clean electricity from solar panel systems, wind farms and other renewable sources have the investment potential to reach $385 billion. Add to this $350 billion for green hydrogen, $102 billion in carbon sequestration and $104 billion in transport infrastructure, and what you have is a massive economic impact one simply cannot ignore.
These opportunities are not lost on major establishments in Australia. For example, the superannuation fund AustralianSuper has committed to investing $1 billion in renewables by 2022. Investments in Quinbrook Investment Partners and the National Infrastructure Investment Fund also form part of AustralianSuper’s foray into the renewables sector.
But if the government does not aggressively support the global initiative, the Australian economy could lose as much as $43 billion in investment opportunities over the next five years, and which could balloon up to $250 billion by 2050.
A carbon-neutral future is the only way to go
Even as the Australian government has no stable policy yet to support the global carbon neutrality goal, local companies and investors have already taken resolute steps to align their strategies and decisions with the Paris Agreement.
This is a clear sign that everyone shares a common goal of weaning the world off its destructive carbon dependence.
You can do your part in achieving a carbon-neutral future by going solar with us at Solar Miner.
If you have questions about solar power systems, or are interested in getting one, please contact us.