Business for 75 founding member welcome government's 62-70% target
Business for 75
Attributed to Simon Sheikh, CEO of Future Group
“A target in the 62–70% range is a solid step forward and sets us on the path to attract global investment and build our export potential in the new green energy powered economy.”
“This is obviously a large target range, but hitting the top end of this range will show markets and investors that Australia is serious about seizing the clean energy opportunity,” said Simon Sheikh, CEO of Future Group.
“It’s clear the Albanese Government recognises Australia’s enormous opportunity to build a future powered by renewable energy. With world-class solar and wind and abundant critical minerals, the business community stands ready to help make Australia a green energy powerhouse,” said Simon Sheikh, CEO of Future Group.
Economic modelling by Deloitte shows Australia is uniquely placed to become a clean energy powerhouse, with world-class solar and wind resources and abundant critical minerals. Deloitte’s analysis indicates that a 75% target could deliver an additional $370 billion in GDP over the next decade compared to business-as-usual.
“The opportunity is right in front of us. If the Government commits to the upper end of its target range and backs it with credible policies, Australia can unlock the investment needed to build new industries, create jobs, and ensure we avoid paying more later for climate damages and delayed transition costs,” continues Sheikh.
“This is a pivotal moment. By aiming for the top end of the target, the Government will send a clear signal that Australia is ready to lead and that means more jobs, stronger growth, and an economy powered by clean energy.”
Background:
Future Group and Fortescue were the founding members of the Business for 75% campaign, a group of over 500 Australian businesses including Atlassian, Canva, Unilever, IKEA Australia, Volvo Group, Lendlease and Bank Australia committed to a 2035 climate target of at least 75%.
Modelling commissioned by Fortescue and Future Group from Deloitte shows that a target of over 75 per cent would drive significant investment, innovation and infrastructure transformation across Australia, generating $227 billion of additional GDP by 2035 relative to a 65 per cent target and $20 billion per year of extra investment (2025–2035).
A 75 per cent target would also lead to higher economic output across all industries by 2035, including construction, services, power, trade, transport, and resources.
In contrast, a target of 65 per cent or lower is associated with at least 2°C of warming and lower economic growth.
The Australian Government’s national climate risk assessment makes clear that 2°C warming would have a disastrous impact on our economy, health, survival, farmers and access to critical services. 2°C will double severe and extreme heatwave events and increase time spent in drought by up to 70 per cent. Heat-related mortality would increase by 190% in Sydney, 126% in Melbourne and 139% in Perth. Over 1.5 million coastal people would be at risk from sea level rise, including across the Torres Strait Islands.
Contact details:
Alana Theodor, Future Group