Decarbonising the Australian Economy
Public Economic Forum highlights need for Australia to invest in green technology.
On the 11th of November 2024, the Melbourne Institute hosted a Public Economics Forum in Canberra, where government officials, academics and industry representatives discussed the strategies required to secure the future of Australia’s industrial sector and natural resource exports.
A key theme for the Forum was that a failure to invest in new technologies would go against national interest by weakening our economic resilience. Challenges surrounding the transition to net zero were acknowledged, particularly regarding political opposition and the public support necessary for emissions reductions.
Guest speakers left to right: Dr Ingrid Burfurd (Superpower Institute), Professor Geoff Brooks (Swinburne University), Mr Luke Yeaman (The Treasury) and moderator: Professor Ross Gaurnat AC (Superpower Institute and the University of Melbourne).
Luke Yeaman from the Treasury’s Macroeconomic Group acknowledged that the well-known market failure in carbon emissions and a lack of a compensating global carbon price meant that there will be underinvestment in green metals without government intervention.
For the last 15 years, Australia’s policy on climate change has been underwhelming, leaving us behind where we need to be to fulfil our obligations under the Paris Accord. Despite this, Dr Ingrid Burfurd from the Superpower Institute said that, by contrast with most of East Asia and Europe, Australia has plentiful land to generate the renewable energy needed for green iron manufacturering.
Forum discussions strongly welcomed a pivot to net zero exports, for the initial investment that would likely follow from the European Union Carbon Border Tax and a growing number of global economies already covered by net zero commitments.
Professor Geoff Brooks from Swinburne University acknowledged that the future looks bright for those working in pyrometallurgy, as the production and processes for extracting, smelting and refining metals will undoubtedly be overhauled in the coming years.
Professor Ross Garnaut AC speaking on Australia's transition to net zero.
The Public Economics Forum was well attended, with robust discussions moderated by Professor Ross Garnaut AC, the former Australian Ambassador to China and adviser to former Prime Minister Bob Hawke.